HJR 14-URGING SUPPORT FOR NOME DEEP-DRAFT PORT  3:39:24 PM CHAIR BISHOP reconvened the meeting and announced the consideration of House Joint Resolution 14 (HJR 14). 3:40:04 PM REPRESENTATIVE NEAL FOSTER, Alaska State Legislature, Juneau, Alaska, sponsor of HJR 14, explained that the resolution asks for three things regarding the Nome deep draft Arctic port. First, it urges the Alaska congressional delegation to pursue infrastructure funding. Second, it asks the Alaska Department of Transportation and Public Facilities to send a letter to the Alaska congressional delegation supporting the deep draft Arctic port in Nome. Third, it asks the Alaska Department of Transportation and Public Facilities to work collaboratively with the City of Nome to provide technical support. The resolution does not ask for funding from the state. The deep draft Arctic port project has been underway for some time. Due to previous funding, the project is ready and able to complete final feasibility and design. HJR 14, if passed, expresses the legislature's and the department's support for the critical maritime transportation project in Nome. 3:41:31 PM JOY BAKER, Port Director, City of Nome, Nome, Alaska, testified in support of HJR 14. She explained that the Arctic deep draft port is a project that the City of Nome has been moving towards for many years. She addressed, "Arctic Deep Draft Port Study: Site Selection" as follows: • The U.S. Army Corps of Engineers and the Alaska Department of Transportation and Public Facilities evaluated 13 locations in the 2011-2015 "Alaska Deep Draft Arctic Port Study." • Nome was selected as the most cost-effective location for further investigation and initial investment. • Site selection was based on: o Existing Port Infrastructure, o Intermodal Connections, o Uplands Support, o Water Depth, o Navigation Accessibility. She noted that the project was paused when Royal Dutch Shell pulled out of the Arctic in 2015. She addressed, "Port of Nome Modification Feasibility Study" as follows: • 2016 Water Infrastructure Improvements for the Nation Act (WIIN Act) provided new provisions to allow the Nome Arctic Port Study to proceed: o Remote and Subsistence Harbor Authority allows the U.S. Army Corps of Engineers to include non-economic factors in the study and design of projects in the region. o Requires that the U.S. Army Corps of Engineers to consult with U.S. Department of Defense and the U.S. Coast Guard to: square4 Identify national security benefits associated with an Arctic deep draft port. square4 Authorizes the U.S. Army Corps of Engineers to consider such benefits in determining whether an Arctic deep draft port is feasible. • New authorities enabled the U.S. Army Corps of Engineers to execute a cost-share agreement with the City of Nome for further investigation of an Arctic Deep Draft Port: o Study schedule: square4 Federal Cost-Share Agreement (FCSA): • February 2018. square4 Alternatives Milestone: • June 2018. square4 Tentatively Selected Plan: • March 2019. square4 Agency Decision Milestone: • August 2019. square4 MSC Transmittal of Final Report: • March 2020. square4 Chief's Report Signed: • June 2020. 3:43:42 PM MS. BAKER addressed, "Benefits of Developing Maritime Infrastructure in the U.S. Arctic" as follows: • Supports the people and communities in the region. • Addresses elements of increasing maritime traffic. • Responds to growing strategic interest in the region. • Supports development of significant natural resource potential. • Prepares for unique marine environmental challenges. • Captures benefits at regional, state and federal levels, namely in the protection of: o National Security, o Life Safety, o Environmental Safety, o Economic Viability, o Sustaining Culture. She noted that Arctic maritime activity continues to rise due to the available open water and increased interest in navigating the Arctic waters for the purposes of commodity movement, resource development, tourism, geopolitical and strategic reasons. MS. BAKER addressed, "Targeted Benefits of Expansion to Deeper Water" as follows: • National Security & Life Safety: o Critical refuel and resupply support. o Strengthen U.S. presence in Arctic. • Environmental Safety: o Reducing offshore fuel transfers. • Economic and Cultural Sustainability: o Lowering regional transportation costs. • Tourism: o Support increased ship calls with more ice-hardened vessels in construction. • Research: o Enhanced mission support. • Resource Development: o Oil, gas, and mining resupply. She said having a deep draft Arctic port in Nome will save larger ships three to five sailing days to Dutch Harbor for vessels transiting and working in the Arctic. She said the additional scope of the feasibility study is to provide safe, reliable, and efficient navigation for trans- shipping fuel, cargo, and gravel through the Arctic region. 3:45:18 PM She addressed, "Port of Nome Shore-Based Infrastructure Development" as follows: • Nome's Strategic Development Plan: o Thirty-four acres of laydown property available for use. o Sixteen acres in development, more in planning phase. o Moorage expansion area fully permitted and designed: square4 Congestion will be mitigated in the Small Boat Harbor. o Haul-out facilities currently being upgraded and expanded. o Alaska Department of Transportation and Public Facilities' improvements scheduled to 2021. o Alaska Department of Transportation and Public Facilities' Nome Port Road improvements scheduled for 2021. • Port Reception Facilities: o Federal, state, regional and local stakeholders should work together to accelerate construction of port facilities that meet International Maritime Organization (IMO) Polar Code regulations to service U.S. vessels as well as international traffic. o Minimizing operational discharges helps: square4 Protect Arctic marine environment for subsistence hunting and fishing. square4 Enhance maritime operations by extending vessel duration in the region. MS. BAKER said one of Nome's priority projects is developing a port reception facility to accept all forms of ship waste from the regional and Arctic maritime fleets. The project, which is in the planning and design phase, is critical for protecting the marine and environment which many use as a significant source of subsistence foods across the region. 3:46:10 PM She addressed, "Arctic Deep Draft Port: Path Forward" as follows: • Feasibility Study Tentatively Selected Plan: o Extend Causeway 3,500 feet. o Construct three docks in deep basin dredged to 40-foot Mean Lower Low Water (MLLW). o Remove breakwater. o Construct new 3,900-foot causeway with ship dock; o Dredge existing outer basin to 28-foot MLLW. • Project Delivery Schedule: o Chief's Report scheduled to Congress in June 2020. o Water Resources Development Act (WRDA) 2018 allows project to move into design upon signed Chief's Report. o Congress is expected to authorize the project in FY2021-FY2022. o Project bid and construction could start as early as 2023 and last through 2027. She addressed, "Building an Arctic Deep Draft Port at Nome" as follows: • The City of Nome requests project support from the Alaska State Legislature to do the following: o Assist in bringing economic development to the region to support jobs for Alaskan residents. o Assist in sustaining the Alaska Native culture by protecting marine food resources and the environment. o Attract investment capital in maritime infrastructure development through a variety of P3 agreements. o Assist in generating long-term economic benefits to the region, the state and the nation. o Capitalize on opportunities to develop the Arctic's natural resources while sustaining the environment. o Provide suitable maritime infrastructure for Arctic tour ships and attracting more ships to the state. MS. BAKER said the City of Nome is not seeking funding from the legislature but requests support for the projects with the passage of HJR 14. The deep draft port project is essential for supporting the region's economies, the state's natural resources, and the nation's sovereignty and security. Therefore, it is important to demonstrate the state of Alaska's support for Nome's national project. CHAIR BIRCH noted that he was the project manager for Nome's causeway extension in the mid-1980s that the proposed project will be adding to. He said he is very encouraged to see this sort of initiative and direction. He asked if the rock for the project will be locally sourced. MS. BAKER answered yes; the rock quarry east of Nome has a hundred-year life expectancy. SENATOR BIRCH recalled that the quarry has good rock. MS. BAKER replied that it is the highest quality rock along the coast and sought out by many owners and project designers for breakwater stone. CHAIR BISHOP concurred with Senator Birch that the Nome rock quarry has good rock. 3:48:53 PM CHAIR BISHOP [opened public testimony]. 3:49:22 PM CHARLES LEAN, Vice Chair, Port Commission, City of Nome, Nome, Alaska, testified in support of HJR 14. He pointed out that Alaska has 50 percent of the nation's coastline and the Arctic ocean waters are approximately half of Alaska's waters and therefore the Arctic waters account for 25 percent of the country's marine waters and Nome is the central port for the Arctic waters. Nome's port is not only important as a regional hub, but also for the nation. Freight passing through the Bering Strait represents an approximate 40 percent reduction in travel distance. Freight from Alaska going to the East Coast of the U.S. would have reduced cost and is therefore important to Alaska and the region. 3:51:11 PM RICHARD BENEVILLE, Mayor, City of Nome, Nome, Alaska, testified in support of HJR 14. He noted that the only two ways to get from the Atlantic Ocean to the Pacific Ocean by water are the Bering Strait and the Panama Canal. Nome is 70 miles from the Bering Strait. Secondly, other Arctic nations are not looking at the future, they are living in it as we speak. The United States is lagging behind other Arctic nations in infrastructure and strategic preparation. He emphasized that the world is coming to Alaska. CHAIR BISHOP concurred with Mayor Beneville's comments on other Arctic nations. 3:54:08 PM WILLIAM HARRINGTON, representing self, Anchorage, Alaska, testified in support of HJR 14. He said as an Alaskan, the buildout of an Arctic port in Nome is exciting to protect and service the communities in the region. Coupled with the touted railroad through Canada to the Lower 48, there will be centuries of benefits for the northern half of the state. Eighty-five percent of statewide freight passes through the Port of Anchorage, a port located in an active earthquake zone is a strategy that places all the eggs in one basket. He said he encourages a push to open the state's northern extremities to bring affordable and safe transportation via the Nome port expansion and cross-boundary rail link. He added that port expansion at Kotzebue and Bethel should be in the mix to allow for direct delivery from Seattle to lower freight costs and the cost of living throughout the state. 3:56:03 PM CHAIR BISHOP closed public testimony. REPRESENTATIVE FOSTER highlighted that a recent newspaper article warned of the dangers from Russian and Chinese activities in the Arctic. He opined that there is a race for the Arctic. 3:56:59 PM SENATOR BIRCH moved to report HJR 14, version 31-LS0593\M from committee with individual recommendations and attached zero fiscal note. 3:57:15 PM CHAIR BISHOP fund no objection and HJR 14 moved from the Senate Community and Regional Affairs Standing Committee.