ALASKA STATE LEGISLATURE  SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE  May 7, 2019 3:29 p.m. MEMBERS PRESENT Senator Click Bishop, Chair Senator Chris Birch, Vice Chair Senator Mia Costello Senator Lyman Hoffman Senator Elvi Gray-Jackson MEMBERS ABSENT  All members present COMMITTEE CALENDAR  CS FOR HOUSE JOINT RESOLUTION NO. 10(RES) Supporting development of the road belt electrical transmission line; and urging members of the Alaska delegation in Congress to pursue the development of this high- voltage electrical line in the interior of the state. - MOVED CSHJR 10(RES) OUT OF COMMITTEE HOUSE JOINT RESOLUTION NO. 14 Urging the Alaska Congressional delegation to pursue infrastructure funding for a deep draft Arctic port in Nome; requesting the Department of Transportation and Public Facilities to send a letter from the state to the Alaska Congressional delegation supporting a deep draft Arctic port in Nome; and requesting the Department of Transportation and Public Facilities to work collaboratively with the City of Nome on a deep draft Arctic port in Nome. - MOVED HJR 14 OUT OF COMMITTEE CS FOR HOUSE JOINT RESOLUTION NO. 9(STA) Requesting the United States Secretary of the Treasury to mint not less than 5,000,000 $1 coins honoring Elizabeth Peratrovich under the Native American $1 Coin Act. - MOVED CSHJR 9(STA) OUT OF COMMITTEE PREVIOUS COMMITTEE ACTION  BILL: HJR 10 SHORT TITLE: SUPPORTING ROAD BELT ELECTRICAL LINE SPONSOR(s): REPRESENTATIVE(s) TALERICO 03/04/19 (H) READ THE FIRST TIME - REFERRALS 03/04/19 (H) ENE, RES 03/14/19 (H) ENE AT 10:15 AM CAPITOL 17 03/14/19 (H) Moved CSHJR 10(ENE) Out of Committee 03/14/19 (H) MINUTE(ENE) 03/15/19 (H) ENE RPT CS(ENE) 4DP 2NR 03/15/19 (H) DP: RAUSCHER, PRUITT, FIELDS, SPOHNHOLZ 03/15/19 (H) NR: ZULKOSKY, HOPKINS 03/29/19 (H) RES AT 1:00 PM BARNES 124 03/29/19 (H) Heard & Held 03/29/19 (H) MINUTE(RES) 04/01/19 (H) RES AT 1:00 PM BARNES 124 04/01/19 (H) Moved CSHJR 10(RES) Out of Committee 04/01/19 (H) MINUTE(RES) 04/03/19 (H) RES RPT CS(RES) 7DP 1NR 04/03/19 (H) DP: TUCK, HANNAN, TALERICO, RAUSCHER, RASMUSSEN, SPOHNHOLZ, TARR 04/03/19 (H) NR: HOPKINS 04/26/19 (H) TRANSMITTED TO (S) 04/26/19 (H) VERSION: CSHJR 10(RES) 04/29/19 (S) READ THE FIRST TIME - REFERRALS 04/29/19 (S) CRA 05/07/19 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg) BILL: HJR 14 SHORT TITLE: URGING SUPPORT FOR NOME DEEP-DRAFT PORT SPONSOR(s): REPRESENTATIVE(s) FOSTER 03/25/19 (H) READ THE FIRST TIME - REFERRALS 03/25/19 (H) TRA 04/18/19 (H) TRA AT 1:00 PM BARNES 124 04/18/19 (H) Heard & Held 04/18/19 (H) MINUTE(TRA) 04/23/19 (H) TRA AT 1:00 PM BARNES 124 04/23/19 (H) Moved HJR 14 Out of Committee 04/23/19 (H) MINUTE(TRA) 04/24/19 (H) TRA RPT 6DP 1NR 04/24/19 (H) DP: DRUMMOND, CLAMAN, STORY, TALERICO, WOOL, STUTES 04/24/19 (H) NR: RASMUSSEN 04/29/19 (H) TRANSMITTED TO (S) 04/29/19 (H) VERSION: HJR 14 04/30/19 (S) READ THE FIRST TIME - REFERRALS 04/30/19 (S) CRA 05/07/19 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg) BILL: HJR 9 SHORT TITLE: ELIZABETH PERATROVICH COMMEMORATIVE COIN SPONSOR(s): REPRESENTATIVE(s) JOHNSON 02/27/19 (H) READ THE FIRST TIME - REFERRALS 02/27/19 (H) STA 03/05/19 (H) STA AT 3:00 PM GRUENBERG 120 03/05/19 (H) Heard & Held 03/05/19 (H) MINUTE(STA) 03/12/19 (H) STA AT 3:00 PM GRUENBERG 120 03/12/19 (H) Moved CSHJR 9(STA) Out of Committee 03/12/19 (H) MINUTE(STA) 03/13/19 (H) STA RPT CS(STA) 6DP 03/13/19 (H) DP: VANCE, LEDOUX, WOOL, STORY, KREISS- TOMKINS, FIELDS 03/20/19 (H) TRANSMITTED TO (S) 03/20/19 (H) VERSION: CSHJR 9(STA) 03/22/19 (S) READ THE FIRST TIME - REFERRALS 03/22/19 (S) CRA 05/07/19 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg) WITNESS REGISTER REPRESENTATIVE DAVE TALERICO Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of HJR 10, provided an overview of the resolution. CRYSTAL ENKVIST, Executive Director Alaska Power Association Anchorage, Alaska POSITION STATEMENT: Testified in support of HJR 10. REPRESENTATIVE NEAL FOSTER Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of HJR 14, provided an overview of the resolution. JOY BAKER, Port Director City of Nome Nome, Alaska POSITION STATEMENT: Testified in support of HJR 14. CHARLES LEAN, Vice Chair Port Commission City of Nome Nome, Alaska POSITION STATEMENT: Testified in support of HJR 14. RICHARD BENEVILLE, Mayor City of Nome Nome, Alaska POSITION STATEMENT: Testified in support of HJR 14. WILLIAM HARRINGTON, representing self Anchorage, Alaska POSITION STATEMENT: Testified in support of HJR 14. REPRESENTATIVE DELENA JOHNSON Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of HJR 9, provided an overview of the resolution. MARCY HERMAN, Staff Representative DeLena Johnson Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Provided an overview of HJR 9. RICHARD HANSCOM, representing self Fairbanks, Alaska POSITION STATEMENT: Testified in support of HJR 9. ACTION NARRATIVE 3:29:35 PM CHAIR CLICK BISHOP called the Senate Community and Regional Affairs Standing Committee meeting to order at 3:29 p.m. Present at the call to order were Senators Gray-Jackson, Birch, Costello, and Chair Bishop. HJR 10-SUPPORTING ROAD BELT ELECTRICAL LINE  3:30:23 PM CHAIR BISHOP announced the consideration of House Joint Resolution 10 (HJR 10). 3:30:34 PM REPRESENTATIVE DAVE TALERICO, Alaska State Legislature, Juneau, Alaska, sponsor of HJR 10, explained that the resolution supports the development of a road belt electrical transmission line and urges the members of the Alaska delegation to pursue the development of the electrical transmission line for the state. He detailed that Alaska has a rail belt intertie which runs from Homer to Fairbanks and down to Delta Junction. For years the road belt electrical transmission line has been studied to complete what is called a bus loop that would go up the Glenn Highway and the Richardson Highway and complete a looped electrical system that would provide contiguous power and the ability to have redundancy along the road system. He said one of the reasons for interest in having the Alaska congressional delegation support the road belt electrical transmission line is due to the state's developments with the U.S. Department of Defense at Eielson Air Force Base, Clear Air Force Station Base, and Fort Greely Army Base. The main theme behind HRJ 10 is to support the national defense system by making sure power is available. He explained that as projects proceed at military bases in Alaska, the state's economic base and population base are also expanded. Along the road belt corridor there are 17 smaller communities that will benefit from lower cost energy. Economic development will be improved for communities, mines, and agriculture. He said the first phase of the project will start with a study. Concerns regarding an underground alternative for overhead lines in certain areas will be addressed. 3:31:35 PM SENATOR HOFFMAN joined the committee meeting. 3:34:10 PM CHAIR BISHOP noted that the committee received a comprehensive overview of the road belt electrical transmission line on March 14, 2019. He said Representative Talerico reemphasized the importance and need in support of the resolution to the congressional delegation. 3:34:37 PM CHAIR BISHOP opened public testimony. 3:34:52 PM CRYSTAL ENKVIST, Executive Director, Alaska Power Association, Anchorage, Alaska, testified in support of HJR 10. She said the association supports the deployment of electric transmission infrastructure that brings reliable electricity to Alaskans and stimulates economic development. Should the transmission project receive the necessary funding support from the federal government, the reliability of Alaska's electric system would increase. More renewable energy will be allowed, power reliability to military installations will increase, an alternate power route for the Anchorage-Fairbanks intertie will be provided, and economic development opportunities in the Greater Cooper Valley Region will be enabled. 3:37:08 PM CHAIR BISHOP closed public testimony. 3:37:29 PM SENATOR BIRCH moved to report [CSHJR 10(RES)], version 31- LS0596\S, from committee with individual recommendations and attached zero fiscal note. 3:37:43 PM CHAIR BISHOP found no objection and CSHJR 10(RES) moved from Senate Community and Regional Affairs Standing Committee. 3:37:47 PM At ease. 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. 3:57:20 PM At ease. HJR 9-ELIZABETH PERATROVICH COMMEMORATIVE COIN  3:58:58 PM CHAIR BISHOP announced the consideration of House Joint Resolution 9 (HJR 9). 3:59:17 PM REPRESENTATIVE DELENA JOHNSON, Alaska State Legislature, Juneau, Alaska, sponsor of HJR 9, provided an overview of the resolution. She disclosed that the legislation was suggested by an Alaska 4-H group from Eagle. She detailed that the American Coin Act was passed in 2018 with a proviso that a Native American coin be included. A coin commemorating Elizabeth Peratrovich has been chosen to be the fourth Native American coin. She detailed that the Elizabeth Peratrovich coin will have Sacagawea on the reverse side. She emphasized that there will be no cost to the state. The U.S. Mint is an enterprise fund of the U.S. government which means it makes money from the collector edition runs. She explained that the resolution asks for an extra $2 million in coinage to be distributed through the San Francisco Federal Reserve Bank of San Francisco, Seattle Branch so that the Elizabeth Peratrovich coins can be distributed in Alaska. Typically, collector editions only go to collectors, but the Alaska 4-H group from Eagle requested the resolution to ask for an additional $2 million in coins be distributed in Alaska so that the coin can be used in the state. She emphasized that Elizabeth Peratrovich is a national figure and having her on the commemorative coin will make her the [fourth] singular Alaska Native woman besides Sacagawea on a coin. 4:02:18 PM MARCY HERMAN, Staff, Representative DeLena Johnson, Alaska State Legislature, Juneau, Alaska, advised that Elizabeth Peratrovich would be the fourth singular Alaska Native on a commemorative coin but the first woman other than Sacagawea. CHAIR BISHOP asked if the Elizabeth Peratrovich coin design [NA- 2020-01] was selected. REPRESENTATIVE JOHNSON answered that she was not certain that a final design had been chosen. CHAIR BISHOP commented that he would select Elizabeth Peratrovich coin design [NA-2020-06]. 4:03:30 PM CHAIR BISHOP opened public testimony. 4:03:39 PM RICHARD HANSCOM, representing self, Fairbanks, Alaska, testified in support of HJR 9. He disclosed that he is a member of the Fairbanks Coin Club. He said the current practice of the U.S. Mint is to make dollar coins for sale only to collectors. If the Elizabeth Peratrovich coin is not placed in circulation, the coin will be just another collectors' coin that is unknown to the general public. He explained that the act of placing the Elizabeth Peratrovich coin into circulation will reaffirm the commitment to the Alaska Anti-Discrimination law passed by the Territorial Alaska Legislature in 1945. Circulating the Elizabeth Peratrovich coin will be a fitting way to honor the work of Elizabeth Peratrovich. A circulating coin will be a daily reminder to adults and an educational tool for the children. CHAIR BISHOP noted that he grew up as a coin buff and he supports HJR 9. 4:05:01 PM CHAIR BISHOP closed public testimony. SENATOR GRAY-JACKSON thanked Representative Johnson for bringing the resolution forward. She added that she likes Elizabeth Peratrovich coin design [NA-2020-05]. REPRESENTATIVE JOHNSON summarized that Elizabeth Peratrovich was a stellar figure in the state's history. Prior to the Civil Rights Act of the 1960s, Elizabeth Peratrovich was involved in the Alaska Anti-Discrimination Act of 1945. Elizabeth Peratrovich was a recipient of discrimination and she found her voice and made sure her voice was known in Alaska. REPRESENTATIVE JOHNSON said it is fitting that Elizabeth Peratrovich was chosen to be on the commemorative coin. She added that she is delighted to carry the legislation forward from the Interior Alaska 4-H group from Eagle. 4:06:51 PM SENATOR BIRCH moved to report [CSHJR 9(STA)], work order 31- LS0573\M, from committee with individual recommendations and attached zero fiscal note. 4:07:02 PM CHAIR BISHOP found no objection and CSHJR 9(STA) moved from the Senate Community and Regional Affairs Standing Committee. 4:07:09 PM At ease. 4:08:53 PM CHAIR BISHOP called the committee back to order. 4:09:14 PM There being no further business to come before the committee, Chair Bishop adjourned the Community and Regional Affairs Standing Committee meeting at 4:09 p.m.