HJR 15-SUPPORT ARCTIC CAUCUS  10:22:49 AM CHAIR HERRON announced that the first order of business would be HOUSE JOINT RESOLUTION NO. 15, Relating to collaboration with the Yukon and the Northwest Territories through the Pacific NorthWest Economic Region and its Arctic Caucus to address common issues. CO-CHAIR HERRON called a brief at-ease due to technical difficulties. 10:23:08 AM CO-CHAIR HERRON called an at-ease from 10:24 a.m. to 10:28 a.m. due to technical difficulties. 10:28:53 AM CO-CHAIR HERRON introduced Mr. Earl. 10:29:15 AM ROB EARL, staff, Representative Bob Herron, Alaska State Legislature, introduced HJR 15 on behalf of Representative Herron, prime sponsor. Mr. Earl informed the committee that HJR 15 encourages the legislature to support the Arctic Caucus within the Pacific NorthWest Economic Region (PNWER). The Pacific NorthWest Economic Region was founded in 1991 and is the only statutory, non-partisan, bi-national, public-private partnership in North America. The organization includes five U.S. states, two Canadian territories, and three Canadian provinces; its mission is to increase the economic well-being and quality of life for all citizens of the region, to coordinate provincial and state policies, to identify and promote models of success, and to serve as a conduit for the exchange of information. Mr. Earl noted that PNWER addresses issues through eighteen working groups, one of which is the Arctic Caucus that includes legislators, governmental officials, and business and non-profit leaders working to responsibly develop North America's Arctic. The caucus began meeting in July 2010, for the purpose of providing a forum for Alaska, Northwest Territories (NWT), and Yukon Territory (YT) to discuss issues of mutual concern, share information, and identify areas of possible collaboration; for example, to promote a pan- northern approach to federal government. The resolution addresses this approach and states "the Arctic Caucus will also strive to promote a synchronized message detailing the common needs of the Arctic Caucus member regions to their respective federal governments and emphasizing that coordinated U.S./Canadian federal policies are vital for the well-being of the region's citizens." He advised the resolution's final resolve calls on the governments of YT and NWT to join Alaska in an enduring alliance to pursue common goals. 10:32:22 AM MR. EARL provided a PowerPoint presentation titled, "HJR 15 - Support Arctic Caucus." Slide 2 indicated that the combined land area of NWT and YT is larger than Alaska, but Alaska's population is almost ten times that of the two territories. Slide 3 was a map of the Arctic Caucus and he pointed out the expense of traveling to Whitehorse, Inuvik, and Yellowknife from Anchorage. Slide 5 provided economic information about the region. Slide 6 indicated that Arctic populations across the Arctic Ocean vastly outnumber the population on Alaska's side. In fact, almost one-half of Arctic residents live in Russia. Mr. Earl pointed out that United Nations (UN) mapping includes all of Alaska's population in its Arctic totals. Slide 7 indicated that Alaska has the third largest indigenous population behind Canada and Greenland. Slide 8 was a map of the two major sea routes through the Arctic Ocean; the Northern Sea Route follows the northern coastline of Russia and the Northwest Passage follows the coastline of Canada. Slides 9 and 10 indicated that there is increasing vessel traffic in the Arctic Ocean and Bering Strait, up from an estimated 325 transits per year. Slide 11 displayed extended continental shelf claims under the United Nations Convention on the Law of the Sea (UNCLOS). Under the provisions of UNCLOS, coastal countries have resource control over an Exclusive Economic Zone (EEZ) from shoreline out to the edge of the continental shelf or 200 miles, whichever is farther. He pointed out that the continental shelf around Alaska is "narrow" except for an area near the maritime border with Russia, where the U.S. can make an extended Continental Shelf Claim north of the U.S. EEZ after UNCLOS is ratified by the U.S. Senate. Slide 13 was a map of extended claims by country. 10:37:56 AM REPRESENTATIVE TUCK asked how claims are made. MR. EARL advised that claims are made to the UN for judgment. 10:38:19 AM CHAIR HERRON clarified that the basis of Russia's claim is that the territory is an extension of the Continental Shelf, and that would pertain to the U.S. as well. MR. EARL explained that Slide 14 indicates an area about the size of New Jersey that is under a maritime border dispute between the U.S. and Canada. Canada has delineated its maritime border as an extension of the land boundary, whereas the U.S. has drawn the boundary perpendicular to the coastline. 10:39:33 AM MATT MORRISON, Executive Director, Pacific NorthWest Economic Region (PNWER), noted that during PNWER's twenty-year history two Alaskans have served as its president. Mr. Morrison opined the point of the Arctic Caucus is the importance of relationships in accomplishing goals for a large geographic area; in fact, provincial and state efforts can be combined for a greater voice in the federal capitals of Ottawa and Washington, D.C., and throughout the region. Members of PNWER are: Alaska, Alberta, British Columbia, Idaho, Oregon, Montana, Saskatchewan, Washington, Yukon Territory, and Northwest Territories. He relayed that an example of PNWER'S expanding spheres of cooperation between its members is the facilitation of enhanced driver's licenses that will serve as passports within the region. Another example is PNWER's Legislative Energy Horizon Institute. Graduates of the institute are state and provincial legislators who participated in a bi-national effort with the U.S. Department of Energy and Canadian provinces to study energy policy. Prior to the XXI Olympic Winter Games, PNWER formed a border council to address border concerns, which led to further progress toward the Beyond the Border Declaration regarding regulatory compliance and perimeter security issues. In addition, PWNER has hosted legislative visits to the Alberta Oil Sands to discuss royalty issues. The Arctic Caucus was developed in 2009 with strong support from NWT and YT, because of the common concern with states in the U.S. that the federal government in Ottawa "doesn't listen to them," and linking with Alaska creates a different opportunity for attention from Ottawa. Mr. Morrison also pointed out that PNWER contributed to a proposed international rail connection along the British Colombia, Washington, and Oregon corridor which led to $726 million for rail infrastructure improvements. 10:45:26 AM MR. MORRISON advised that the Arctic Caucus is a forum for the northern jurisdictions, although other states and provinces are central to many Arctic issues such as seaports in Washington, and oil sands development in Alberta. The first leadership forum was held in Barrow, Alaska in 2010, and action items that were addressed included advocacy from Canada and PNWER encouraging U.S. participation in the Arctic Council, and promotion of a northern approach on common issues to both federal governments. Other issues addressed included the expansion of the Marine Exchange of Alaska Automatic Identification System (AIS) to support better capacity for search and rescue, including joint training exercises, and the promotion of federal support for the Alaska Highway and Shakwak funding. Other issues identified included: gas pipeline development; UNCLOS; energy development and transmission; joint tourism and marketing; training and workforce development; support of youth exchange programs; completion of an infrastructure gap analysis to provide justification for investment in future cross-border infrastructure. The next two meetings of the Arctic Caucus are scheduled for Portland, Oregon, in July 2011, and in Yellowknife, NWT, in August 2011. Mr. Morrison said at these meetings and others, the Arctic Caucus will push for its action items to Ottawa and the U.S. federal government. He concluded by saying that there will be further developments to implement and support Arctic Caucus initiatives, and he urged support of HJR 15. 10:49:12 AM CHAIR HERRON asked if there has been a reaction to the resolution from PNWER's Canadian members. 10:49:19 AM MR. MORRISON observed there is keen interest in the Alaska legislation by YT and NWT. In further response to Chair Herron, he opined similar action is forthcoming in YT, but both territories are involved in upcoming elections. 10:50:17 AM REPRESENTATIVE KELLER spoke of his personal experiences with Mr. Morrison and expressed his strong support for PNWER. 10:51:51 AM NILS ANDREASSEN, Managing Director, Institute of the North (Institute), noted the hearing was being filmed by a group of young Alaskans who were brought to the State Capitol by the Institute to film a series of tutorials of the state legislature for young Alaskans. He then advised that the Institute was founded to educate Alaskans about the reality, the richness, and the responsibility of the northern regions, thus it provides opportunities for stakeholders from across the Arctic to engage in circumpolar transportation, energy, and infrastructure issues. In addition, the Institute serves the state by connecting local, state, federal, and international parties, often through Arctic Council initiatives which it believes to be the proper international forum for addressing technical, scientific and human challenges. A valuable corollary to the Arctic Council would be a sub-regional forum such as the PNWER Arctic Caucus. The caucus would provide opportunities for Alaska to engage with its neighbors to articulate a pan-northern approach to infrastructure and policy development. Mr. Andreassen turned to several important Arctic issues, such as the responsible management and development of energy and resources that will sustain the economies of northern regions. Furthermore, Alaska's geographic location reinforces its role to respond to increases in Arctic tourism and transportation through the Bering Strait, thus must be in a position to respond to the needs of search and rescue in its waters and beyond. Infrastructure to support transportation activity is needed immediately due to the aging icebreaker fleet and the distance of the region from responders. In fact, the 940 miles from the Coast Guard base at Kodiak to Point Barrow is nearly equal to the distance from Seattle to Los Angeles. He pointed out the state must advocate for investment in critical transportation infrastructure by its participation in sub-regional and international forums. The Institute has strong relationships with Alaska's neighbors, and he stressed that these relationships are crucial in today's world of "mixed media messages and hyper-sensationalism." The Arctic Caucus provides a needed opportunity to produce sound and relevant information to address critical issues. Alaska must play a strong role in decisions affecting northern waters such as Arctic marine shipping, increased activity along Alaska's coast, search and rescue, and Arctic aviation. All of these issues should align with national policies in a spirit of cooperation similar to Canada's commitment to the Arctic in 2010 that included a foreign policy statement to work with international partners for the advancement of the region. The Institute will be hosting the Arctic Policy Forum with presentations from many Arctic neighbors discussing complex regional issues. He closed, advising that further interaction to strengthen relationships can be provided by PNWER's Arctic Caucus. 10:58:53 AM CHAIR HERRON asked for the highlight of the Arctic Policy Forum agenda. MR. ANDREASSEN explained the clear priority of the conference will be the infrastructure deficit revealed by the Arctic marine shipping assessment, and the gaps in Alaska's ability to respond to issues along its coast. 11:00:03 AM REPRESENTATIVE GARDNER observed that Canada has other Arctic provinces and asked why they are not participating in the caucus. MR. ANDREASSEN advised that other territories and states are stakeholders and can participate in Arctic issues through PNWER. CHAIR HERRON observed that the provinces and territories have a different relationship to Ottawa, thus the Arctic is the common denominator in this PNWER sub-caucus. REPRESENTATIVE FOSTER asked for the first step that Alaska can take to solve the gaps in search and rescue response. 11:02:36 AM MR. ANDRESASSEN recalled a recommendation by the leadership forum that called for two processes: to assess and identify benchmarks for infrastructure that is needed at airports such as lighting and modifications at ports, and a baseline assessment of existing infrastructure. CHAIR HERRON paraphrased a letter from Lieutenant Governor Mead Treadwell, indicating Alaska is an important part of our national security, and the governor and lieutenant governor appreciate the resolution. 11:03:59 AM MICHAEL O'HARE, Deputy Director, Division of Homeland Security /Emergency Management, Department of Military & Veterans' Affairs (DMVA), stated there are existing agreements and advisory committees between Alaska and Canada regarding coordination on emergency preparedness, response, and recovery issues. Alaska has the responsibility to ensure that communities are best prepared for any disaster. REPRESENTATIVE FOSTER complimented the division on its response to problems in Savoonga. 11:06:36 AM PAUL FUHS, Board President, Marine Exchange of Alaska, informed the committee that vessels in international trade are required to carry transponders on board to transmit their location. The Marine Exchange, with the support of the U.S. Coast Guard, state funds, and private sector funds, installed an array of antennas in the Arctic and in Alaska to track the vessels. Mr. Fuhs said the amount of current vessel activity in this area is incredible. The tracking system allows analysis of "Arctic domain awareness" and from this data policy can be set on whether there should be established fairways and buffer zones. Tracking also indicates which vessels are following regulations, and if there is a marine casualty, can show the command and control of the assets, response vessel location, equipment location, and the drift zone of an oil spill. Mr. Fuhs offered to display the system to the committee at a later date. He expressed his support of HJR 15 with its focus on Arctic issues such as the U.S. Arctic policy, oceans policy, the law of the sea treaty, the Endangered Species Act, and risk assessment activities of the Bering Strait and Unimak Pass. He opined these are national and international overarching issues that will affect the state. Mr. Fuhs also spoke in support of the capital request by the Institute of the North for an assessment task. He stressed that the state should be "on the front end" of the issues in the Arctic because they are directly tied to economic development. 11:09:53 AM CHAIR HERRON spoke of the importance of the Marine Exchange during the successful rescue of the crew from a freighter in the Aleutian Chain. [HJR 15 was heard and held.]