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CSSB 31(RES): "An Act relating to a transportation corridor for extension of the Alaska Railroad to Canada and to extension of the Alaska Railroad to connect with the North American railroad system."

00 CS FOR SENATE BILL NO. 31(RES) 01 "An Act relating to a transportation corridor for extension of the Alaska Railroad to 02 Canada and to extension of the Alaska Railroad to connect with the North American 03 railroad system." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 42.40 is amended by adding new sections to article 5 to read: 06 Sec. 42.40.460. Extension of the Alaska Railroad. (a) The corporation may 07 delineate a proposed transportation corridor between the existing railroad utility 08 corridor of the Alaska Railroad and the border of Alaska and Canada. The 09 transportation corridor shall be 500 feet wide except where, in the corporation's 10 discretion, physical obstacles or private land ownership patterns make a narrower 11 transportation corridor appropriate. The transportation corridor may be designated for 12 a use identified under AS 38.35.020(a) or AS 42.40.350(b), and, subject to this 13 section, other transportation and utility uses. The corporation may also identify land 14 for use as rail land that can be developed for terminal, station, and maintenance

01 facilities, switching yards, and other purposes associated with the transportation 02 corridor. The corporation shall prepare a complete legal description of the proposed 03 transportation corridor and the rail land identified under this subsection. 04 (b) In performing the work authorized by (a) of this section, the corporation in 05 consultation with interested parties shall consider the following factors: 06 (1) safety; 07 (2) grade and alignment standards that are commensurate with rail and 08 utility construction standards and that minimize the prospect of at-grade railroad and 09 highway crossings; 10 (3) availability of construction materials; 11 (4) effects on and service to adjacent communities and potential 12 intermodal transportation connections; 13 (5) environmental concerns; 14 (6) use of public land to the maximum degree possible; 15 (7) minimization of probable construction costs; 16 (8) the location of and the opportunity to obtain access to identified 17 natural resources that could contribute significantly to the economic development of 18 the state and Canada; 19 (9) avoidance of possibly unstable ground due to thawing of frozen 20 soils; and 21 (10) prior and established traditional uses. 22 (c) If the corporation identifies all or a portion of the proposed transportation 23 corridor or associated rail land and if the Department of Natural Resources, after 24 consultation with the corporation and potentially affected parties, finds that the 25 location of the proposed transportation corridor and associated rail land minimizes 26 adverse effects on existing and potential rights-of-way and land uses associated with 27 the location, construction, and operation of a gas pipeline in a manner that is in the 28 best interest of the state, 29 (1) the Department of Natural Resources shall reserve the 30 transportation corridor and associated rail land across state land identified by the 31 corporation, subject to valid existing rights and provisions of this section;

01 (2) the department shall continue to manage the land reserved under 02 (1) of this subsection; the department shall consult with the corporation before 03 disposing of an interest in land within the transportation corridor and associated rail 04 land; the department shall condition authorizations for activities on the reserved land 05 to protect the right of the corporation to construct the railroad or other uses identified 06 for the land; 07 (3) the department and the corporation shall cooperate to identify, on a 08 continuing basis and to the extent practicable, the potential crossings for economic 09 development and public access along the land reserved for the transportation corridor 10 and associated rail land; and 11 (4) while the land is reserved for the transportation corridor and 12 associated rail land under this subsection, the department may retain money received 13 from disposal or third-party use of the land. 14 (d) If the corporation notifies the Department of Natural Resources that the 15 corporation will begin construction of a railroad improvement on a segment of the 16 transportation corridor or associated rail land and the corporation has identified a 17 source of funding for the construction, then, as of the beginning of construction of that 18 segment, the department shall delegate authority to manage land within that segment 19 of the transportation corridor and associated rail land to the corporation, including the 20 authority to authorize or permit use of the land by third parties under the provisions of 21 this chapter, subject to 22 (1) valid existing rights; and 23 (2) the authority of the department to 24 (A) identify and reserve rights-of-way for potential future 25 crossings under (g) of this section; and 26 (B) after consultation with the corporation, identify, reserve, 27 authorize, and manage land within the transportation corridor and associated 28 rail land for future right-of-way leases and uses under AS 38.35. 29 (e) Upon completion of construction of the railroad improvement on all or a 30 portion of the reserved transportation corridor or associated rail land, 31 (1) the corporation shall, without cost to the Department of Natural

01 Resources, provide the department with a survey of the state land within a 200-foot 02 corridor, 100 feet on each side of the as-built centerline of track, and the associated 03 rail land; 04 (2) the Department of Natural Resources shall convey the state's entire 05 interest in the land within the boundaries of the survey to the corporation, subject to 06 valid existing rights, and reserving to the state (A) the interests required by 07 AS 38.05.125; (B) the right of the department to identify and reserve rights-of-way for 08 potential future crossings under (g) of this section; and (C) the authority of the 09 department to identify, reserve, authorize, and manage land within the transportation 10 corridor and associated rail land for future right-of-way leases and uses under 11 AS 38.35; the conveyance of land under this paragraph shall be without cost to the 12 corporation except for the direct administrative costs of the department; 13 (3) the Department of Natural Resources shall assign any existing 14 contracts within that segment of the transportation corridor and associated rail land to 15 the corporation; the corporation may thereafter retain the revenue from the conveyed 16 land; the department shall prorate revenue from contracts affecting both conveyed and 17 unconveyed land; 18 (4) the remaining state land in a segment of the transportation corridor 19 in which the corporation has received a conveyance under this section shall be 20 managed by the Department of Natural Resources as a transportation corridor unless 21 the department determines the land is no longer needed for that purpose; and 22 (5) the remaining segments of the transportation corridor in which the 23 corporation has not completed construction and any associated state land designated as 24 rail land shall continue to be managed by the Department of Natural Resources as a 25 transportation corridor and associated rail land under (c) and (d) of this section. 26 (f) Notwithstanding other provisions of this section, before the Department of 27 Natural Resources grants a gas pipeline right-of-way lease under AS 38.35.020(a) 28 across a transportation corridor or associated rail land delineated, identified, reserved, 29 or conveyed under this section, the department shall consult with the corporation; if a 30 railroad improvement has not been constructed on a segment of the transportation 31 corridor or associated rail land that is crossed by the proposed gas pipeline right-of-

01 way, the department may adjust the location of the transportation corridor or 02 associated rail land if the department finds that relocation of the transportation 03 corridor or associated rail land to accommodate the proposed gas pipeline right-of-way 04 is in the best interest of the state. 05 (g) In delegating management authority over or conveying all or a portion of 06 state land to the corporation, the Department of Natural Resources shall reserve the 07 right to authorize, by lease, permit, or other method, a person to cross or construct 08 access across the transportation corridor and associated rail land; however, before 09 authorizing a crossing or construction of access, the department shall obtain 10 concurrence from the corporation that the proposed crossing or construction is 11 consistent with applicable safety standards and, to the extent practical, minimizes 12 effects on railroad operating efficiency. Neither the corporation nor the state is liable 13 for claims arising from public use of the transportation corridor and associated rail 14 land, except to the extent the claims arise from the gross negligence of the state, the 15 corporation, their employees, or their contractors, respectively. The department shall 16 indemnify the corporation consistent with AS 42.40.420(1) - (3) for claims or related 17 litigation arising from an authorization issued by the department under this section, 18 except to the extent the claims arise from the gross negligence of the corporation, its 19 employees, or its contractors. 20 (h) The corporation shall, 21 (1) as the corporation considers appropriate, exercise its authority 22 under this chapter to acquire rights-of-way across land within the transportation 23 corridor and associated rail land that is subject to the corporation's power of eminent 24 domain; 25 (2) upon delineation of the transportation corridor and identification of 26 associated rail land, expeditiously work with federal officials to secure reclassification 27 and withdrawal of federal land for reservations and rights-of-way across the federal 28 land for use as transportation corridor and rail land; and 29 (3) before undertaking acquisition of federal land or expending federal 30 funds, prepare a report evaluating the effects of construction of an extension of the 31 Alaska Railroad across federal land; the statement must satisfy the requirements for an

01 environmental impact statement under 42 U.S.C. 4332. 02 (i) The requirements of AS 38.04.065 and 38.05.300, relating to classification 03 and reclassification of land, are inapplicable to actions taken by the Department of 04 Natural Resources under this section. 05 (j) The Department of Natural Resources shall retain the classifications and 06 reservations of land identified for use as a proposed utility corridor and railroad right- 07 of-way under former AS 19.05.122 until the corporation informs the department in 08 writing that the land is not needed by the corporation for a utility corridor. If, under 09 (a) of this section, the corporation includes land identified under former AS 19.05.122 10 as part of the proposed transportation corridor, the department shall manage that land 11 under provisions of this section. 12 (k) To complete the work authorized by this section, the corporation may enter 13 into agreements relating to the work with the federal government, an agency or 14 instrumentality of the state, a municipality, or a private organization. 15 Sec. 42.40.465. Extension of the Alaska Railroad to connect with the 16 North American railroad system. (a) The corporation may investigate extension of 17 the Alaska Railroad from the border of Alaska and Canada to connect with the North 18 American railroad system. The corporation may acquire land or interests in land in 19 Canada as the corporation considers appropriate for the development, construction, 20 and operation of an extension of the Alaska Railroad to connect with the North 21 American railroad system. 22 (b) In performing the work authorized by (a) of this section, the corporation 23 shall consider the following factors: 24 (1) safety; 25 (2) grade and alignment standards that are commensurate with rail and 26 utility construction standards and that minimize the prospect of at-grade railroad and 27 highway crossings; 28 (3) availability of construction materials; 29 (4) effects on and service to adjacent communities and potential 30 intermodal transportation connections; 31 (5) environmental concerns;

01 (6) use of public land to the maximum degree possible; 02 (7) minimization of probable construction costs; 03 (8) the location of and the opportunity to obtain access to identified 04 natural resources that could contribute significantly to the economic development of 05 the state and Canada; 06 (9) avoidance of possibly unstable ground due to thawing of frozen 07 soils; and 08 (10) prior and established traditional uses. 09 * Sec. 2. AS 19.05.122 is repealed.