Legislature(2025 - 2026)BUTROVICH 205

05/15/2025 01:30 PM Senate TRANSPORTATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 191 TRANSFER OF RAILROAD LAND TO WHITTIER TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
*+ HJR 14 PORT MACKENZIE & NORTHERN RAIL EXTENSIONS TELECONFERENCED
Moved CSHJR 14(TRA) Out of Committee
-- Invited & Public Testimony --
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                          May 15, 2025                                                                                          
                           1:40 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Jesse Bjorkman, Chair                                                                                                   
Senator Löki Tobin, Vice Chair                                                                                                  
Senator Jesse Kiehl                                                                                                             
Senator Bert Stedman                                                                                                            
Senator Mike Shower                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Holland                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 191                                                                                                             
"An  Act approving  the  transfer  of land  owned  by the  Alaska                                                               
Railroad Corporation to  the City of Whittier;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 14(TRA)                                                                                       
Supporting the  completion of the  Port MacKenzie  Rail Extension                                                               
and  the  Northern Rail  Extension;  supporting  the increase  in                                                               
defensive  capabilities at  Fort  Greely,  Alaska; encouraging  a                                                               
renewed commitment  by the Alaska Railroad  to a community-minded                                                               
approach   to  future   rail  expansion;   and  encouraging   the                                                               
development of critical Arctic infrastructure.                                                                                  
                                                                                                                                
     - MOVED CSHJR 14(TRA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 191                                                                                                                  
SHORT TITLE: TRANSFER OF RAILROAD LAND TO WHITTIER                                                                              
SPONSOR(s): SENATOR(s) GIESSEL                                                                                                  
                                                                                                                                
05/09/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/09/25       (S)       TRA, CRA                                                                                               
05/15/25       (S)       TRA AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: HJR 14                                                                                                                  
SHORT TITLE: PORT MACKENZIE & NORTHERN RAIL EXTENSIONS                                                                          
SPONSOR(s): REPRESENTATIVE(s) MCCABE                                                                                            
                                                                                                                                
03/21/25       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/21/25       (H)       TRA                                                                                                    
04/10/25       (H)       TRA AT 1:00 PM BARNES 124                                                                              
04/10/25       (H)       Heard & Held                                                                                           
04/10/25       (H)       MINUTE(TRA)                                                                                            
04/22/25       (H)       TRA AT 1:00 PM BARNES 124                                                                              
04/22/25       (H)       Heard & Held                                                                                           
04/22/25       (H)       MINUTE(TRA)                                                                                            
04/24/25       (H)       TRA AT 1:00 PM BARNES 124                                                                              
04/24/25       (H)       Moved CSHJR 14(TRA) Out of Committee                                                                   
04/24/25       (H)       MINUTE(TRA)                                                                                            
04/25/25       (H)       TRA RPT CS(TRA) 3DP 1NR                                                                                
04/25/25       (H)       DP: MCCABE, STUTES, CARRICK                                                                            
04/25/25       (H)       NR: MINA                                                                                               
05/07/25       (H)       TRANSMITTED TO (S)                                                                                     
05/07/25       (H)       VERSION: CSHJR 14(TRA)                                                                                 
05/09/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/09/25       (S)       TRA                                                                                                    
05/15/25       (S)       TRA AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR CATHY GIESSEL, District E                                                                                               
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 191.                                                                                        
                                                                                                                                
PAIGE BROWN, Staff                                                                                                              
Senator Cathy Giessel                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided a summary of the intent of SB 191.                                                               
                                                                                                                                
JACKIE WILDE, City Manager                                                                                                      
City of Whittier                                                                                                                
Whittier, Alaska                                                                                                                
POSITION STATEMENT: Testified by invitation on SB 191.                                                                        
                                                                                                                                
CHRISTY TERRY, Vice President                                                                                                   
Real Estate                                                                                                                     
Alaska Railroad Corporation                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on SB 191.                                                                        
                                                                                                                                
REPRESENTATIVE KEVIN MCCABE, District 30                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HJR 14.                                                                                        
                                                                                                                                
BILL O'LEARY, President and Chief Executive Officer (CEO)                                                                       
Alaska Railroad Corporation (ARRC)                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on HJR 14.                                                                        
                                                                                                                                
CLARK HOPP, Chief Operating Officer (COO)                                                                                       
Alaska Railroad Corporation (ARRC)                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on HJR 14.                                                                        
                                                                                                                                
PATRICK SHARROCK, representing self                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified with concerns on HJR 14.                                                                        
                                                                                                                                
DAVID GRIFFIN, Port Director                                                                                                    
Port McKenzie                                                                                                                   
Matanuska-Susitna Borough                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HJR 14.                                                                           
                                                                                                                                
JACK BARRETT, Meritage Communities                                                                                              
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of HJR 14.                                                                           
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:40:57 PM                                                                                                                    
CHAIR   BJORKMAN  called   the  Senate   Transportation  Standing                                                               
Committee meeting  to order at 1:40  p.m. Present at the  call to                                                               
order  were Senators  Tobin, Kiehl,  Stedman and  Chair Bjorkman.                                                               
Senator Shower arrived thereafter.                                                                                              
                                                                                                                                
          SB 191-TRANSFER OF RAILROAD LAND TO WHITTIER                                                                      
                                                                                                                                
1:41:52 PM                                                                                                                    
CHAIR  BJORKMAN announced  the consideration  of SENATE  BILL NO.                                                               
191 "An  Act approving the transfer  of land owned by  the Alaska                                                               
Railroad Corporation to  the City of Whittier;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
1:42:07 PM                                                                                                                    
SENATOR  CATHY GIESSEL,  District  E,  Alaska State  Legislature,                                                               
Juneau, Alaska, advanced to slide 2  and gave a brief overview of                                                               
SB  191.  She  surmised  that an  agreement  transferring  Alaska                                                               
Railroad Corporation (ARRC)  lands to the City  of Whittier would                                                               
surprise some individuals.                                                                                                      
                                                                                                                                
1:42:43 PM                                                                                                                    
SENATOR GIESSEL advanced to slide 3  and gave a brief overview of                                                               
Whittier:                                                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                         Whittier Facts                                                                                       
                                                                                                                                
        • Population of 272                                                                                                     
        • Built during WWII                                                                                                     
       • Ice-Free Deep-Water Port for year -round access                                                                        
        • Gets thousands of visitors a year                                                                                     
        • Popular cruise, fishing and outdoor recreation                                                                        
          launch point                                                                                                          
                                                                                                                                
1:43:07 PM                                                                                                                    
SENATOR GIESSEL advanced to slide  4 and explained that ARRC owns                                                               
85  percent of  the  developable land  surrounding Whittier.  She                                                               
said  that Begich  Towers was  built during  WWII and  houses the                                                               
majority  of Whittier's  population. Slide  4 contains  an aerial                                                               
image of  Whittier with  overlays to indicate  land lots  and the                                                               
ARRC Reserve/Lands Boundary.                                                                                                    
                                                                                                                                
1:43:32 PM                                                                                                                    
SENATOR GIESSEL advanced to slide  5 and continued to discuss the                                                               
proposed land transfer. She emphasized  that the City of Whittier                                                               
wants  to grow.  She  explained that  Huna  Totem Corporation  is                                                               
building a  large dock  at the  far end  of the  Whittier Harbor,                                                               
which would increase local tourism.  The Whittier Tunnel provides                                                               
additional  opportunities  for growth.  Slide  5  contains a  map                                                               
depicting  ARRC's areas  of interest  (AOI).  This land  transfer                                                               
would benefit Whittier by providing  the opportunity for the city                                                               
to grow  its economic base.  In turn, this economic  growth would                                                               
benefit the entire state.                                                                                                       
                                                                                                                                
1:44:09 PM                                                                                                                    
SENATOR GIESSEL advanced to slide 6:                                                                                            
                                                                                                                                
Original punctuation provided.]                                                                                                 
                                                                                                                                
                            Timeline                                                                                          
                                                                                                                                
     November 1998                                                                                                            
     Master lease signed by ARRC and the City of Whittier                                                                       
                                                                                                                                
     March 2021                                                                                                               
      Whittier passes resolution requesting non-essential                                                                       
     lands from the Railroad.                                                                                                   
                                                                                                                                
     March 2024                                                                                                               
     Whittier has initial discussions with Alaska Railroad                                                                      
     Corporation (ARRC)                                                                                                         
                                                                                                                                
     October 2024                                                                                                             
     Memorandum of Understanding signed by ARRC and City of                                                                     
     Whittier.                                                                                                                  
                                                                                                                                
SENATOR GIESSEL  emphasized that  the City  of Whittier  and ARRC                                                               
have  reached  a land  transfer  agreement  for approximately  85                                                               
acres. This land  is nonessential to rail  operations. ARRC would                                                               
maintain control  of railroad infrastructure,  while the  City of                                                               
Whittier (as landowner) could build  housing, improve the harbor,                                                               
etc. She  emphasized that there  is strong local support  for the                                                               
transfer.  She stated  that, despite  the  agreement between  the                                                               
City  of Whittier  and ARRC,  ARRC cannot  transfer land  without                                                               
legislative approval. She listed  the various ways that committee                                                               
members  are   familiar  with  ARRC.  She   emphasized  that  the                                                               
agreement would have a positive impact  and opined that SB 191 is                                                               
a positive bill that displays  collaboration and agreement on the                                                               
part of ARRC.                                                                                                                   
                                                                                                                                
1:45:47 PM                                                                                                                    
SENATOR  STEDMAN  clarified  that  his district  has  a  railroad                                                               
easement but does not have a railroad.                                                                                          
                                                                                                                                
1:46:03 PM                                                                                                                    
SENATOR KIEHL clarified that the  railroad in his district is not                                                               
ARRC.                                                                                                                           
                                                                                                                                
1:46:15 PM                                                                                                                    
SENATOR  TOBIN asked  whether any  of  the land  that ARRC  would                                                               
transfer has been  contaminated, and if the  citizens of Whittier                                                               
would be responsible for remediation.                                                                                           
                                                                                                                                
1:46:43 PM                                                                                                                    
SENATOR GIESSEL deferred the question.                                                                                          
                                                                                                                                
1:47:03 PM                                                                                                                    
SENATOR TOBIN  noted that Alaska  is located on  Indigenous lands                                                               
and asked  whether the land  might require  archeological survey.                                                               
She pointed  out that there  may be construction  prohibitions if                                                               
an  archeological  survey is  not  completed  prior to  beginning                                                               
construction.                                                                                                                   
                                                                                                                                
1:47:37 PM                                                                                                                    
PAIGE  BROWN,   Staff,  Senator   Cathy  Giessel,   Alaska  State                                                               
Legislature,  Juneau,   Alaska,  emphasized  that  the   City  of                                                               
Whittier wants  to grow; however, this  is hindered by a  lack of                                                               
developable land.                                                                                                               
                                                                                                                                
1:48:07 PM                                                                                                                    
CHAIR BJORKMAN announced invited testimony on SB 191.                                                                           
                                                                                                                                
1:48:19 PM                                                                                                                    
JACKIE WILDE,  City Manager, City of  Whittier, Whittier, Alaska,                                                               
provided  a brief  history of  the land  agreement. She  said the                                                               
City of Whittier has been working  closely with ARRC for the past                                                               
1.5 years to reach an  agreement. The land transfer includes land                                                               
that is  nonoperational for ARRC  but is core  infrastructure for                                                               
the  City  of Whittier.  She  briefly  discussed ARRC's  terminal                                                               
master  plan  and how  the  reduction  of ARRC-owned  land  would                                                               
ensure  the continuation  of  that  plan. She  said  the City  of                                                               
Whittier is looking forward to  the future of the terminal master                                                               
plan. In  response to  the question  related to  the need  for an                                                               
archeological  survey, she  explained that  the City  of Whittier                                                               
was  built for  the military  and suggested  that because  of the                                                               
land's  military history,  an archeological  survey would  not be                                                               
required.  She  noted that  the  City  of  Whittier has  begun  a                                                               
waterfront economic  development plan  and has also  entered into                                                               
an  agreement with  Huna Totem  Corporation for  the new  double-                                                               
berth cruise ship  dock. The City of Whittier  is looking forward                                                               
to   gaining  the   ability  for   future  growth   and  economic                                                               
development.                                                                                                                    
                                                                                                                                
1:50:25 PM                                                                                                                    
SENATOR STEDMAN  asked whether  the municipality  would subdivide                                                               
and sell the transferred land.                                                                                                  
                                                                                                                                
1:50:39 PM                                                                                                                    
MS. WILDE replied that most of  the land is already leased. Those                                                               
leases  would  continue.  She directed  attention  to  a  39-acre                                                               
parcel  adjacent  to  Glacier  Street  that  could  be  developed                                                               
through  private partnerships  to build  multi-family units.  The                                                               
bay  section  would   allow  the  City  of   Whittier  to  create                                                               
recreation  facilities   and  would  bring   additional  economic                                                               
development with cruise ship agencies.                                                                                          
                                                                                                                                
1:51:44 PM                                                                                                                    
SENATOR STEDMAN asked if the deed contains any restrictions.                                                                    
                                                                                                                                
1:51:59 PM                                                                                                                    
MS.  WILDE  replied  no.  She explained  that  the  master  lease                                                               
contains restrictions  and the transfer  of land  would eliminate                                                               
the master lease (and its restrictions).                                                                                        
                                                                                                                                
1:52:10 PM                                                                                                                    
SENATOR  STEDMAN clarified  his  question. He  asked whether  the                                                               
deed  includes  restrictions  that  would  inhibit  the  City  of                                                               
Whittier's ability to sell the land.                                                                                            
                                                                                                                                
1:52:23 PM                                                                                                                    
MS.  WILDE answered  not on  the 39-acre  parcel. She  shared her                                                               
understanding that  the only restrictions contained  in the lease                                                               
apply  to  the   City's  tank  farm  property.   She  said  lease                                                               
restrictions have  not been discussed  in negotiations  and talks                                                               
with ARRC.                                                                                                                      
                                                                                                                                
1:52:45 PM                                                                                                                    
SENATOR STEDMAN commented that development  is often inhibited on                                                               
leased land. He encouraged the  City of Whittier to consider this                                                               
moving  forward. He  stated  that land  sales  result in  greater                                                               
development and  are often more  beneficial to the  community (as                                                               
opposed   to  land   that  is   leased  to   developers  by   the                                                               
municipality).                                                                                                                  
                                                                                                                                
1:53:00 PM                                                                                                                    
REPRESENTATIVE MCCABE joined the meeting.                                                                                       
                                                                                                                                
1:53:55 PM                                                                                                                    
MS. WILDE concurred  and said the majority of  Whittier's land is                                                               
non-taxable.  She indicated  that properties  would be  developed                                                               
and sold in the future. While  the City of Whittier does not want                                                               
to  be in  the business  of  real estate,  waterfront leases  are                                                               
important to the city's economy and future growth.                                                                              
                                                                                                                                
1:54:38 PM                                                                                                                    
CHRISTY  TERRY,  Vice  President, Real  Estate,  Alaska  Railroad                                                               
Corporation  (ARRC),  Anchorage,  Alaska, stated  that  ARRC  has                                                               
worked closely with  the City of Whittier for the  past 1.5 years                                                               
to create  a land  transfer that  holds up  the interest  of both                                                               
parties.  SB  191 is  an  essential  step  in that  process.  She                                                               
briefly  described  the  process,   which  included  public  work                                                               
sessions and regular council meetings,  among others. ARRC's goal                                                               
is  to  reach an  agreement  that  supports economic  development                                                               
while enhancing  transportation infrastructure in the  region. In                                                               
response   to   Senator   Tobin's   questions   about   potential                                                               
remediation and  whether an archeological  survey may  be needed,                                                               
she said  SB 191 is  an essential step  in the process  and would                                                               
allow  ARRC and  the Whittier  City Council  to work  through the                                                               
details, which would include reviewing these types of questions.                                                                
                                                                                                                                
1:56:13 PM                                                                                                                    
SENATOR KIEHL  recalled a small land  sale from ARRC to  the City                                                               
of Whittier within  the past 5-6 years. He asked  the parcel size                                                               
and price per acre for that sale.                                                                                               
                                                                                                                                
1:56:34 PM                                                                                                                    
MS. TERRY replied  that she did not recall and  offered to follow                                                               
up with this  information. She said that ARRC  has worked closely                                                               
with  the  City of  Whittier  on  the  Delong Dock  transfer  and                                                               
wondered if this could be the sale he is referring to.                                                                          
                                                                                                                                
1:56:57 PM                                                                                                                    
SENATOR KIEHL  recalled that the  parcel of land was  adjacent to                                                               
an existing multi-family building. He  noted that SB 191 requires                                                               
a  transfer at  the fair  market  value (FMV)  and asked  whether                                                               
there is a rough sense of the value of the 85 acres of land.                                                                    
                                                                                                                                
1:57:33 PM                                                                                                                    
MS. TERRY replied that the value is roughly $7 million.                                                                         
                                                                                                                                
1:57:40 PM                                                                                                                    
SENATOR SHOWER joined the meeting.                                                                                              
                                                                                                                                
1:57:46 PM                                                                                                                    
SENATOR KIEHL asked about the per-acre value.                                                                                   
                                                                                                                                
1:58:03 PM                                                                                                                    
MS.  TERRY replied  that she  could provide  appraisals for  each                                                               
lot.                                                                                                                            
                                                                                                                                
1:58:38 PM                                                                                                                    
CHAIR  BJORKMAN said  that  information could  be  provided at  a                                                               
later time.                                                                                                                     
                                                                                                                                
1:59:12 PM                                                                                                                    
SENATOR  GIESSEL   said  the   requested  information   would  be                                                               
provided.                                                                                                                       
                                                                                                                                
1:59:21 PM                                                                                                                    
CHAIR BJORKMAN  asked if SB 191  is time sensitive and  whether a                                                               
particular timeframe would facilitate  an advantage for one party                                                               
over the other.                                                                                                                 
                                                                                                                                
1:59:37 PM                                                                                                                    
SENATOR GIESSEL replied that there is no urgent deadline.                                                                       
                                                                                                                                
1:59:53 PM                                                                                                                    
CHAIR BJORKMAN held SB 191 in committee.                                                                                        
                                                                                                                                
        HJR 14-PORT MACKENZIE & NORTHERN RAIL EXTENSIONS                                                                    
                                                                                                                                
2:00:25 PM                                                                                                                    
CHAIR BJORKMAN announced the consideration  of CS FOR HOUSE JOINT                                                               
RESOLUTION  NO. 14(TRA),  Supporting the  completion of  the Port                                                               
MacKenzie  Rail  Extension  and   the  Northern  Rail  Extension;                                                               
supporting  the  increase  in   defensive  capabilities  at  Fort                                                               
Greely, Alaska;  encouraging a renewed  commitment by  the Alaska                                                               
Railroad   to  a   community-minded  approach   to  future   rail                                                               
expansion;  and encouraging  the development  of critical  Arctic                                                               
infrastructure.                                                                                                                 
                                                                                                                                
2:00:49 PM                                                                                                                    
REPRESENTATIVE   KEVIN   MCCABE,   District  30,   Alaska   State                                                               
Legislature,  Juneau,   Alaska,  paraphrased  from   the  sponsor                                                               
statement for HJR 14:                                                                                                           
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                        CS HJR 14 Ver B                                                                                       
                       SPONSOR STATEMENT                                                                                      
     "Supporting the completion of the Port MacKenzie Rail                                                                      
     Extension and the Northern Rail Extension; supporting                                                                      
      the increase in defensive capabilities at Fort Greely,                                                                    
      Alaska; encouraging a renewed commitment by the Alaska                                                                    
      Railroad to a community-minded approach to future rail                                                                    
     expansion; and encouraging the development of critical                                                                     
                    Arctic infrastructure."                                                                                     
                                                                                                                                
     House Joint Resolution 14  advocates for the completion                                                                    
     of the  Port MacKenzie Rail Extension  and the Northern                                                                    
     Rail  Extension,   two  critical  projects   that  will                                                                    
     enhance  Alaska's infrastructure,  economic resilience,                                                                    
     and  national   security.  As   the  only   U.S.  state                                                                    
     bordering the Arctic Ocean, Alaska  plays a key role in                                                                    
     Arctic  strategy,  defense   operations,  and  resource                                                                    
     development.                                                                                                               
                                                                                                                                
     The Port  MacKenzie Rail Extension is  a cornerstone of                                                                    
     Alaska's  long-term economic  and logistical  strategy.                                                                    
     By  providing  a  direct  rail  link  between  Interior                                                                    
     Alaska and tidewater access  at Port MacKenzie, Seward,                                                                    
     Whittier,  and Anchorage,  this  extension will  reduce                                                                    
     transportation  costs,  improve  energy  security,  and                                                                    
     expand  market access  for industries  such as  mining,                                                                    
     agriculture, and  natural gas.  The completion  of this                                                                    
     project  will not  only  strengthen  supply chains  but                                                                    
     also  increase the  state's resiliency  by ensuring  an                                                                    
     alternative  transportation corridor  in  the event  of                                                                    
     highway disruptions  caused by natural  disasters, such                                                                    
     as  earthquakes, or  port congestion  elsewhere in  the                                                                    
     state.                                                                                                                     
                                                                                                                                
     The Northern  Rail Extension remains essential  to U.S.                                                                    
     national security,  particularly with the  expansion of                                                                    
     the  Arctic Mission  at  Fort Greely.  As  home to  the                                                                    
     nation's missile  defense system,  Fort Greely  plays a                                                                    
     critical role  in protecting the  U.S. and  its allies.                                                                    
     Despite this,  it is the  only military base  in Alaska                                                                    
     without  rail  access.  Completing  the  Northern  Rail                                                                    
     Extension  will  provide   a  reliable,  cost-effective                                                                    
     means  of transporting  military equipment,  personnel,                                                                    
     and supplies, reinforcing  the nation's defense posture                                                                    
     in the Arctic as geopolitical competition intensifies.                                                                     
                                                                                                                                
     Significant progress has already  been made. Phase 1 of                                                                    
     the  Northern  Rail  Extension,  including  the  Tanana                                                                    
     River  crossing, has  brought the  rail line  within 70                                                                    
     miles  of Delta  Junction and  Fort Greely.  Similarly,                                                                    
     the  MatanuskaSusitna Borough  and the  Alaska Railroad                                                                    
     have completed nearly two-thirds  of the Port MacKenzie                                                                    
     Rail  Extension, underscoring  the project's  viability                                                                    
     and importance.                                                                                                            
                                                                                                                                
2:02:00 PM                                                                                                                    
REPRESENTATIVE MCCABE  continued to  paraphrase from  the sponsor                                                               
statement for HJR 14:                                                                                                           
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     This  resolution  also  calls  for  a  community-minded                                                                    
     approach to rail expansion,  urging the Alaska Railroad                                                                    
     to work  transparently with residents,  businesses, and                                                                    
     stakeholders   to   ensure   responsible   development.                                                                    
     Furthermore,  HJR   14  urges   Alaska's  congressional                                                                    
     delegation   to  advocate   for   federal  support   in                                                                    
     completing these  essential projects,  recognizing that                                                                    
     while   other   Arctic   nations  invest   heavily   in                                                                    
     infrastructure, the United States  must act to maintain                                                                    
     its leadership in the region.                                                                                              
                                                                                                                                
     HJR  14 represents  a  unified  commitment to  economic                                                                    
     growth,  national security,  and Alaskan  resiliency. I                                                                    
     respectfully  urge   my  colleagues   to  join   me  in                                                                    
     supporting this critical resolution.                                                                                       
                                                                                                                                
2:03:14 PM                                                                                                                    
REPRESENTATIVE  MCCABE   mentioned  that   the  MatanuskaSusitna                                                                
Borough  passed its  2026 budget  appropriating  $6.7 million  to                                                               
construct  a  new  barge  ramp at  Port  MacKenzie,  which  would                                                               
increase  cargo capacity  and economic  potential. He  noted that                                                               
not have a  rail extension at Port MacKenzie would  be a limiting                                                               
factor, since cargo could arrive  at the port but have difficulty                                                               
moving  beyond it.  He noted  that the  Parks Highway  has issues                                                               
with permafrost  and opined that  limiting truck traffic  on that                                                               
highway  would be  helpful to  Department  of Transportation  and                                                               
Public Facilities  (DOTPF). He pointed out  economic and resource                                                               
development benefits  for mining  operations and for  the farming                                                               
industry in  the surrounding communities.  He stated that  HJR 14                                                               
compliments a  recent House Resolution to  expedite the liquified                                                               
natural gas  (LNG) project. He  noted strong federal  support. He                                                               
stated  that  advancing  these projects  would  bolster  national                                                               
energy  and  transportation  security  while  ensuring  sustained                                                               
economic  benefits  to  Alaskans.  He   noted  that  this  is  an                                                               
important  part  of  the  Alaska  Railroad  Corporation's  (ARRC)                                                               
Consolidated Rail Infrastructure  and Safety Improvements (CRISI)                                                               
Program  grant  application.  He  emphasized  the  importance  of                                                               
communicating legislative support.                                                                                              
                                                                                                                                
2:06:18 PM                                                                                                                    
SENATOR STEDMAN recognized the need  for an anchor tenant to make                                                               
the  economics  work.  He  opined  that  HJR  14  is  timely.  He                                                               
recommended  considering the  addition  of  Fort McMurray,  which                                                               
would take  the project to  Canada. He surmised that  interest in                                                               
rail access is  increasing in the US and Canada.  He said this is                                                               
up  to  the MatSu  delegation  and  suggested  that it  might  be                                                               
beneficial.                                                                                                                     
                                                                                                                                
2:07:43 PM                                                                                                                    
REPRESENTATIVE  MCCABE replied  that he  has considered  this. He                                                               
noted that  it is another 100  miles to the Canadian  border from                                                               
Fort Greeley. He shared about  conversations with the Minister of                                                               
Economic  Corridors in  Alberta,  Canada  and indicated  Canadian                                                               
support. He emphasized  the high cost of  that addition. However,                                                               
many have expressed interest in  using Port MacKenzie if the port                                                               
was connected  to the  railroad. He  noted military  interest. He                                                               
stated that  ARRC is actively  seeking an anchor tenant.  He said                                                               
Port  Mackenzie  is  9000  acres  that are  ready  to  build  and                                                               
suggested that actively moving towards  completion of the railway                                                               
(and applying for the CRISI grant)  is key to unlocking growth in                                                               
the MatSu and the state.                                                                                                        
                                                                                                                                
2:10:03 PM                                                                                                                    
SENATOR  STEDMAN  clarified  that  he did  not  mean  to  suggest                                                               
creating  a single  big project  that would  end at  the Canadian                                                               
border but  had intended to  illustrate the opportunity  that the                                                               
Port MacKenzie rail extension would create.                                                                                     
                                                                                                                                
2:10:38 PM                                                                                                                    
REPRESENTATIVE  MCCABE indicated  his  understanding and  pointed                                                               
out that  Alaska is  the reason  the US is  an arctic  nation. He                                                               
shared his larger  vision for a combined rail that  would lead to                                                               
the  North  Slope  and could  potentially  unlock  the  resources                                                               
available there.                                                                                                                
                                                                                                                                
2:11:29 PM                                                                                                                    
[CHAIR BJORKMAN passed the gavel to Vice Chair Tobin.]                                                                          
                                                                                                                                
2:11:34 PM                                                                                                                    
SENATOR SHOWER emphasized that a  rail to Canada would enable the                                                               
transport  of supplies  in an  emergency. He  opined that  this -                                                               
plus the  potential for military  use and economic  development -                                                               
make a  rail to Canada  a worthwhile investment. He  suggested an                                                               
amendment  that   would  include  language   communicating  these                                                               
benefits.                                                                                                                       
                                                                                                                                
2:12:48 PM                                                                                                                    
REPRESENTATIVE  MCCABE  expressed  uncertainty  that  an  amended                                                               
version of  HJR 14 would have  the necessary time and  support to                                                               
move  through  the  legislative  process.  He  briefly  discussed                                                               
resiliency  in  the  event  of an  earthquake  or  other  natural                                                               
disaster  and surmised  that the  Port  MacKenzie Rail  Extension                                                               
would create  greater resiliency  for ARRC.  He opined  that this                                                               
would also be beneficial to the state.                                                                                          
                                                                                                                                
2:14:08 PM                                                                                                                    
SENATOR SHOWER  wondered if there  is sufficient time to  pass an                                                               
amended version of HJR 14.                                                                                                      
                                                                                                                                
2:14:42 PM                                                                                                                    
VICE CHAIR TOBIN  said the committee would discuss  this with the                                                               
sponsor  of HJR  14  and  suggested that  quick  action would  be                                                               
required.                                                                                                                       
                                                                                                                                
2:15:01 PM                                                                                                                    
VICE CHAIR TOBIN announced invited testimony on HJR 14.                                                                         
                                                                                                                                
2:15:17 PM                                                                                                                    
BILL  O'LEARY,  President  and  Chief  Executive  Officer  (CEO),                                                               
Alaska Railroad Corporation  (ARRC), Anchorage, Alaska, expressed                                                               
support  of   HJR  14.   He  stated   that  ARRC   supports  rail                                                               
infrastructure in Alaska in general,  and the Port MacKenzie Rail                                                               
Extension  (PMRE)  and  the  Northern  Rail  Extension  (NRE)  in                                                               
particular. He  said ARRC has  hired an engineering firm  to come                                                               
up  with a  project estimate  for completing  PMRE and  submitted                                                               
competitive federal grants  for the completion of  PMRE and phase                                                               
two  of  the  NRE.  ARRC has  also  submitted  a  Congressionally                                                               
directed  spending   request  to  members  of   Alaska's  federal                                                               
delegation in  support of completing  phase two of the  NRE. ARRC                                                               
has  worked  closely  with the  MatanuskaSusitna   Borough,  Port                                                               
MacKenzie staff, and Representative  McCabe to identify potential                                                               
customers for PMRE. He briefly discussed this process.                                                                          
                                                                                                                                
MR. O'LEARY stated that ARRC  has also worked with the Matanuska                                                                
Susitna  Borough and  Representative  McCabe to  come  up with  a                                                               
funding strategy  to complete PMRE  in lieu of an  anchor tenant.                                                               
He briefly  discussed the CRISI  grant and  the MatanuskaSusitna                                                                
Borough's  request for  $58 million  in matching  funds from  the                                                               
State  of Alaska.  He said  that ARRC  is actively  advocating at                                                               
both the  state and federal  levels for the advancement  of these                                                               
projects. He said that PMRE and  NRE will result in a substantial                                                               
increase in transportation  efficiency in Alaska, as  well as new                                                               
opportunities in resource exports, energy solutions, and cross-                                                                 
industry  project development.  He emphasized  that PMRE  and NRE                                                               
and  large  projects  with statewide  benefits  and  moving  them                                                               
forward will depend  on more than ARRC. He opined  that HJR 14 is                                                               
an  important  opportunity for  the  legislature  to confirm  its                                                               
support of the completion of the PMRE and NRE.                                                                                  
                                                                                                                                
2:18:27 PM                                                                                                                    
CLARK  HOPP,  Chief  Operating  Officer  (COO),  Alaska  Railroad                                                               
Corporation (ARRC),  Anchorage, Alaska, expressed support  of HJR
14. He  said he  has 35  years in  the construction  and railroad                                                               
industries and would be excited to see both projects completed.                                                                 
                                                                                                                                
2:19:14 PM                                                                                                                    
SENATOR TOBIN opened public testimony on HJR 14.                                                                                
                                                                                                                                
2:19:33 PM                                                                                                                    
PATRICK   SHARROCK,   representing   self,   Anchorage,   Alaska,                                                               
testified  with concerns  on  HJR 14.  He said  he  has lived  in                                                               
Anchorage for 78 years and has  followed the PMRE project for the                                                               
past  17 years.  He briefly  discussed information  received from                                                               
ARRC  and stated  that  no  indication was  made  of new  mineral                                                               
developments or  port improvements. He  noted that close  to $200                                                               
million was  previously spent on  the project and  questioned the                                                               
current levels  of support.  He opined  that PMRE  is unnecessary                                                               
and expensive.                                                                                                                  
                                                                                                                                
2:22:20 PM                                                                                                                    
DAVID  GRIFFIN, Port  Director, Port  McKenzie, Matanuska-Susitna                                                               
Borough, Anchorage,  Alaska, testified in  support of HJR  14. He                                                               
said that Port MacKenzie is  owned and operated by the Matanuska                                                                
Susitna Borough  and serves as  a marine gateway  to Southcentral                                                               
and Interior  Alaska. He  briefly described  the port  and stated                                                               
that the area is ready  for development. He briefly described the                                                               
PMRE and opined that this  extension is key to unlocking Alaska's                                                               
natural resource  potential. He opined that  this extension would                                                               
drive new economic opportunities for  Alaska and the US and would                                                               
positively impact  National Security and military  operations. He                                                               
referred to  several recent US  executive orders and  opined that                                                               
Port MacKenzie is  the logical port for  natural resources coming                                                               
from the surrounding area along the railbelt.                                                                                   
                                                                                                                                
2:24:58 PM                                                                                                                    
JACK  BARRETT, Meritage  Communities, Wasilla,  Alaska, testified                                                               
in support of HJR 14. He  briefly discussed the importance of the                                                               
Port  MacKenzie  Rail  Extension  (PMRE). He  pointed  out  large                                                               
differences in the  cost of importing versus  exporting items and                                                               
stated that this needs to be  considered. He opined that PMRE has                                                               
great  potential  and not  finishing  the  extension would  be  a                                                               
missed opportunity.                                                                                                             
                                                                                                                                
2:26:48 PM                                                                                                                    
VICE CHAIR TOBIN closed public testimony on HJR 14.                                                                             
                                                                                                                                
2:26:53 PM                                                                                                                    
SENATOR SHOWER noted  that the end of the  legislative session is                                                               
fast  approaching  and  withdrew   his  request  for  a  friendly                                                               
amendment to  HJR 14.  He said  that he would  like to  work with                                                               
Representative McCabe  to draft a separate  resolution to address                                                               
the potential extension of the rail to Canada.                                                                                  
                                                                                                                                
2:27:23 PM                                                                                                                    
SENATOR  STEDMAN  agreed  that  there is  limited  time  and  the                                                               
extension from  Fort McMurray  to Alaska  would be  better suited                                                               
for  a  separate resolution.  He  suggested  moving HJR  14  from                                                               
committee due to the late date.                                                                                                 
                                                                                                                                
2:27:52 PM                                                                                                                    
REPRESENTATIVE MCCABE  expressed his appreciation.  He reiterated                                                               
that HJR 14 is necessary for Alaska to receive the CRISI grant.                                                                 
                                                                                                                                
2:28:35 PM                                                                                                                    
SENATOR STEDMAN  noted an upcoming  Energy Council  and suggested                                                               
that this would be a good time to discuss the issue.                                                                            
                                                                                                                                
2:29:13 PM                                                                                                                    
[VICE CHAIR TOBIN solicited the will of the committee.]                                                                         
                                                                                                                                
2:29:14 PM                                                                                                                    
SENATOR STEDMAN moved  to report [CSHJR 14(TRA)],  work order 34-                                                               
LS0776\I,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
2:29:31 PM                                                                                                                    
VICE  CHAIR  TOBIN  found  no objection  and  CSHJR  14(TRA)  was                                                               
reported from the Senate Transportation Standing Committee.                                                                     
                                                                                                                                
2:29:48 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Vice  Chair Tobin  adjourned the  Senate Transportation  Standing                                                               
Committee meeting at 2:29 p.m.                                                                                                  

Document Name Date/Time Subjects
SB 191 STRA Presentation.pdf STRA 5/15/2025 1:30:00 PM
SB 191
SB 191 Sponsor Statement, v. A.pdf STRA 5/15/2025 1:30:00 PM
SB 191
SB 191 Sectional Analysis, v. A.pdf STRA 5/15/2025 1:30:00 PM
SB 191
SB191-DCCED-ARRC-05-09-25.pdf STRA 5/15/2025 1:30:00 PM
SB 191
SB 191 Support Document - Areas of Interest Map.pdf STRA 5/15/2025 1:30:00 PM
SB 191
SB 191 Support Document - Whittier RES Approving Land Purchase.pdf STRA 5/15/2025 1:30:00 PM
SB 191
SB 191 Support Document - Whittier-ARRC Memorandum of Understanding.pdf STRA 5/15/2025 1:30:00 PM
SB 191
CS HJR 14 Ver B Sponsor Statement 5.9.25.pdf STRA 5/15/2025 1:30:00 PM
HJR 14
CS HJR14 Ver B Explanation of Changes Ver N to B 5.9.25.pdf STRA 5/15/2025 1:30:00 PM
HJR 14
CS HJR14 Ver B Fiscal Note.HTRA.5.9.25.pdf STRA 5/15/2025 1:30:00 PM
HJR 14
CS HJR 14 Letters of Support Recv'd as of 5.9.25.pdf STRA 5/15/2025 1:30:00 PM
HJR 14
CS HJR 14 Ver B Support Documentation Port MacKenzie Rail Construction Status-Map.5.9.25.pdf STRA 5/15/2025 1:30:00 PM
HJR 14
CS HJR 14 Ver B Support Documentation Port MacKenzie Aerial w Rail Loop.5.9.25.pdf STRA 5/15/2025 1:30:00 PM
HJR 14
CS HJR 14 Ver B Support Documentation Rail to Resources Map.5.9.25.pdf STRA 5/15/2025 1:30:00 PM
HJR 14
CS HJR 14 Ver B Support Documentation NRE Project Map.5.9.25.pdf STRA 5/15/2025 1:30:00 PM
HJR 14
CS HJR 14 Ver B Support Documentation. A2A - Alaska Map.5.9.25.pdf STRA 5/15/2025 1:30:00 PM
HJR 14
CS HJR14 Ver B Support Documentation NRE map.5.9.25.pdf STRA 5/15/2025 1:30:00 PM
HJR 14
ARRC SB191 - STRA Response.pdf STRA 5/15/2025 1:30:00 PM
SB 191