SENATE TRANSPORTATION COMMITTEE March 4, 1993 3:40 p.m. MEMBERS PRESENT Senator Bert Sharp, Chairman Senator Randy Phillips, Vice Chairman Senator Georgianna Lincoln Senator Jay Kerttula MEMBERS ABSENT Senator Tim Kelly COMMITTEE CALENDAR SENATE BILL NO. 130 "An Act making a special appropriation to the Department of Transportation and Public Facilities, northern region, for reconnaissance photography, reconnaissance interpretation, and preparation of a preliminary report for identification and delineation of one or more transportation and utility corridors between Fairbanks and the Seward Peninsula; and providing for an effective date." SENATE BILL NO. 131 "An Act directing the preparation of a preliminary report that identifies and delineates one or more transportation and utility corridors between Fairbanks and the Seward Peninsula for road, rail, pipeline, and electrical transmission purposes; and providing for an effective date." PREVIOUS SENATE COMMITTEE ACTION SB 130 - No previous action to record. SB 131 - No previous action to record. WITNESS REGISTER Keith Gerkin, Deputy Commissioner Department of Transportation and Public Facilities 3132 Channel Drive Juneau, Alaska 99801-7898 POSITION STATEMENT: Answered questions on SB 131. Jim Stimpfle, President Nome Chamber of Commerce Box 251 Nome, Alaska 99762 POSITION STATEMENT: Testified in favor of SB 130. Thomas Sparks Bering Strait Native Corporation Box 1008 Nome, Alaska 99762 POSITION STATEMENT: Testified on SB 130 and SB 131. Emil Portscheller Box 1645 Palmer, Alaska 99645 POSITION STATEMENT: Testified in support of SB 130 and SB 131. ACTION NARRATIVE TAPE 93-11, SIDE A Number 001 CHAIRMAN SHARP called the Senate Transportation Committee to order at 3:40 p.m. Chairman Sharp announced the committee would be hearing SB 130 (APPROP: FAIRBANKS-NOME TRANS. CORRIDOR) and SB 131 (TRANSPORTATION CORRIDOR: FAIRBANKS-NOME). He indicated that this is the first hearing on both bills and the committee will primarily address SB 131. Chairman Sharp, sponsor of both measures read the following statement into the record: SB 130 and SB 131 are intended to initiate preliminary action necessary to properly review and identify the best options for the establishment of a transportation/utility corridor from the Interior's existing transportation distribution hub to the western area of the Seward Peninsula. The futures of those Alaskans residing north of the Alaska Range will require expansion of our existing transportation infrastructure. With the recent completion by the State of Alaska of its remaining land selections allotment, the major land ownership patterns are now slowly coming together. The legislation would direct the Department of Transportation to require aerial reconnaissance photography and interpretation. This work will identify apparent land ownership of areas within transportation corridors to be delineated and which offer the best cost effective options to access this vast resource rich area of our state. The fiscal note is very modest and would authorize that most important first step. A step that will move us toward a more positive economic future for this large portion of Alaska. Number 077 SENATOR RANDY PHILLIPS referred SB 131, page 1, line 13, "(2) an extension of the Alaska Railroad," and asked if the corridor is exclusively for the Alaska Railroad or could a private company ask for a corridor from Nome to Fairbanks. KEITH GERKIN, Deputy Commissioner, Department of Transportation and Public Facilities (DOT/PF), said from the department's point of view, the bill requests them to look at the corridor and all potential purposes. He said their view would be for railroad purposes and they wouldn't be really thinking about who would be the operator. CHAIRMAN SHARP studied a map that the committee members had before them. SENATOR LINCOLN also gave the committee two maps which showed Doyon and federally owned lands. She said it would be beneficial for the committee to have a map that shows the private and village owned lands. Senator Lincoln referred to the fiscal note of $165 thousand and said she wants to know exactly what areas the committee is talking about before the money is appropriated. Number 188 JIM STIMPFLE, President, Nome Chamber of Commerce, was next to testify. He said the Nome Chamber of Commerce is interested in a corridor to the Seward Peninsula. He said there is also a house bill with an appropriation of $7.3 million. He said the difference between $7.3 million and $165 thousand for the same piece of legislation is a bit disturbing. Mr. Stimpfle indicated that he has been doing background research to try and figure out what ongoing studies have been done before. He said the testimony he wants to give is on SB 130 as it is redirecting the amount of money to be divided between the Department of Natural Resources (DNR) and the DOT/PF. DNR is engaged in ongoing reconnaissance work to account for all the lands that the state may own in the future so that any corridor that is planned takes advantage of the mineral potential, the right- of-way necessary to get to those minerals, and other issues such as environmental concerns and the concerns of people who live along the right-of-way. Mr. Stimpfle suggested new language and continued to read his testimony into the record: An Act making a special appropriation to the Department of Natural Resources and the Department of Transportation and Public Facilities to complete alignments, GPS mapping, engineering, and title support services for transportation/energy corridors on state lands between Fairbanks and the Seward Peninsula; and providing for an effective date. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: Section 1. The sum of $770,000.00 is appropriated from the general fund to DNR's Division of Geological and Geophysical Surveys (DGGS), for GPS (Global Positioning System) mapping to identify route resources, viable mineral districts and adjoining resources along proposed corridors; and for the State Pipeline Coordinators Office to coordinate oversight review with in house personal; and for DOT/PF-Northern Region to estimate engineering design systems and provide special project support for RS-2477 assertions, identification and plotting of alignments working with DGGS and the State Pipeline Coordinator's Office. These proposals were drafted for your review and consideration after consulting with the Department of Natural Resources personnel who are currently engaged in determining state land selections to enhance future transportation and energy corridors for all Alaskans. In view of ongoing budget cuts the State of Alaska is facing, it is imperative that appropriate multi-modal right-of-way studies be finished to ensure that rural Alaskans have economic development options available while safeguarding environmental and subsistence life resources on the Seward Peninsula. In general terms, the Nome Chamber of Commerce supports a multi-modal right-of-way corridor to the Seward Peninsula for economic development to encourage eco-tourism to view wildlife and subarctic eco-systems, to develop mining for mineral or energy related employment opportunities for rural residents, with engineered designed safeguards to the environment and to ensure that fish and wildlife resources are available for indigenous Native populations living along or near the right-of-way. These are some of the expressed concerns of the Nome Chamber of Commerce. It is recommended that the Village and Regional Native Corporations on the Seward Peninsula be consulted as to approximate right-of-way corridors near their lands to either maximize economic development strategies and/or preserve subsistence lifestyles. Mr. Stimpfle thanked the committee for listening to his testimony. CHAIRMAN SHARP indicated that DNR does have a substantial amount of aerial photography already available that was taken when there was a land selection process. He said the photos are for utilization so there wouldn't be any duplication of costs in areas where aerial photography already exists. Chairman Sharp noted that Representative Foster is coordinating a similar companion bill in the House. SENATOR KERTTULA said it has been an aspiration of the Seward Peninsula to have a corridor and a surface transportation opportunity. In 1964, a million dollar bond was passed to begin a road to Nome. He commended the work that Mr. Stimpfle has done in trying to make a connection to Cereniki (Sp. ?), Provideniya and to the coast of the Soviet Arctic. THOMAS SPARKS, Bering Strait Native Corporation (BSNC), was next to testify. He said he would like to ask the same question that Mr. Stimpfle regarding the companion bill in the House. He referred to the land status and said the final sections for the state have been made but haven't been prioritized yet. Mr. Sparks said there were a lot of over selections that were made by both the regional corporations (Doyon and BSNC) and the companion village corporations. He said BSNC is in the process of prioritizing the over selections as it is beneficial for the state to receive information so that the state can own property on the Seward Peninsula rather than the federal government. Mr. Sparks said there are some concerns relating to subsistence resources and other factors. BSNC feels that funds should be allocated to assess the corridor so that when or if the railroad is ever built, some of the preliminary right-of- ways and engineering problems are already identified. CHAIRMAN SHARP indicated that the senate bill identifies the first phase of the project. The house bill also identifies the second phase of the project. He referred to the fiscal note and said he assumes that the fiscal note is adequate for the words described in the legislation. MR. GERKIN said the railroad is the most restrictive because it has the greatest constraints in terms of grade and curvature. Number 377 EMIL PORTSCHELLER stated he is a resident of Palmer and has been active in the tourism industry for many years. He said he would like to offer support for the establishment of a corridor. He asked why there may be a need for pursuing the corridor thorough a legislative act as opposed to researching a possibility for the corridor and establishing them in the future through conventional operations or functions of safety. Chairman Sharp indicated that the situation is funding and legislative direction. Mr. Portscheller asked if there is a problem that will prevents us from pursuing the establishment of the corridor through conventional budgeting parameters established through DNR and DOT/PF. Chairman Sharp said the administration would have to decide if it is a project that they would want to include in the administration budget through DNR or DOT/PF. It would have to be initiated throughout the administration. SENATOR LINCOLN said the corridor would go through a majority of the district that she represents. She said a critical component is Tanana Chiefs Conference which is village by village. Doyon is the regional corporation. Senator Lincoln said she believes it is imperative that the Tanana Chiefs be a part of the discussions. There being no further testimony, Chairman Sharp indicated that the bills would be heard again at a later date. Chairman Sharp adjourned the meeting at 4:13 p.m.