Legislature(1999 - 2000)
02/02/1999 01:05 PM House TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SSHB 12 - RAIL/UTILITY EASEMENT TO AK-CANADA BORDER
CHAIR MASEK announced the next order of business was Sponsor
Substitute for House Bill 12, "An Act relating to an easement for
the extension of the Alaska Railroad to the Alaska-Canada border."
Number 1300
REPRESENTATIVE JEANETTE JAMES, Alaska State Legislature, read the
following sponsor statement into the record:
Why is this bill necessary? Many of you were around here when
I did this for establishing or authorizing a corridor from
Fairbanks to the Seward Peninsula, and at that time we already
had an identified corridor between Eielson Air Force Base and
the Canadian Border which was deleted in 1995.
In 1982, a corridor was delineated by statute connecting
Alaska's existing railroad with the Canadian border. In 1994,
I sponsored and passed HB 184 authorizing $10,000 for a study
determining the cost of acquiring the right-of-way within that
corridor. In 1995, the Department of Transportation (DOT)
reached a cost estimate of $6,363,000 to acquire the
right-of-way. Of the $10,000 appropriated by HB 184 for this
study, a total of $7,876 was expended.
On May 5, 1996, the 1982 application to the Bureau of Land
Management (BLM) was withdrawn by order of DOT due to "lack of
interest," in spite of my 1994 legislation which certainly
indicated a continuing interest. This was the purpose of my
1994 legislation, to keep that alive, but it didn't work.
In 1999, SSHB 12 re-authorizes delineation of the corridor,
subject to legislative appropriation. Thus this bill carries
no fiscal impact. It merely re-authorizes and updates the
1982 statute.
I might insert here that the delineation of the corridor that
was done in 1982 was a basic delineation by aircraft
identifying a center line from Eielson to the Canadian border.
No surveys and no other exercises, except the estimate of how
much it would cost to acquire the right-of-way within it, have
been done.
Both the Canadian and Russian governments, as well as our own,
are increasingly interested in a United States-Asia link via
rail through Alaska. SSHB 12 allows eventual funding from any
source, private or governmental, and I want the authorization
on the books now so we aren't scrambling for it when or if
project funds become available.
Advantages to Alaska are obvious: resource development,
tourism, job opportunities for ALL areas of Alaska, with
controlled access and without the expensive maintenance
problems of other modes of transportation.
Number 1445
REPRESENTATIVE JAMES reiterated that she has been a long-standing
advocate for rail access as surface transportation to connect our
resources in the state of Alaska. She argued that rail access is
more environmentally friendly. She added that controlled rail
access does not carry with it the problems that highways and roads
do, such as the need for emergency services, state troopers and
garbage pick up.
REPRESENTATIVE JAMES pointed out that she has removed the "Eielson
Air Force Base to the Canadian border" inference in this bill,
because it is her belief that the corridor should be in the best
route available. She reported on meeting in Anchorage with
interested individuals from the Yukon Territory, and they agreed to
meet again this spring in Whitehorse. They defined some of the
economic benefits to include: entering into lease agreements with
coal fields, increased tourism, and tapping into the approximately
2500 tankers per year that Mapco alone sends into the Yukon
Territory.
Number 1575
REPRESENTATIVE JAMES added that there may be some federal funding
available if public support was raised; however, there is a current
zero fiscal note. She clarified that the additions to the zero
fiscal note estimate what the cost would be to actually delineate
this corridor, and any appropriation for that figure would have to
be set in a separate bill or through the budget process. She
reiterated that SSHB 12 does not ask for this money, but simply
asks that the bill be on the record. She believes that a long-term
fiscal note of the implications of this rail access would be very
positive for the state of Alaska.
Number 1641
REPRESENTATIVE COWDERY asked who the primary land owners would be
for such a corridor.
REPRESENTATIVE JAMES explained that would be determined once the
location of the route was established; however, she would assume
that there would be a mix of state land, Native-owned land, BLM
land, and a small amount of privately-owned land. She anticipates
negotiations of land trades for those who may not want to sell
outright.
REPRESENTATIVE COWDERY inquired as to the width of the corridor.
REPRESENTATIVE JAMES clarified that the bill provides for 500 feet
of a right-of-way transportation corridor, and the railway corridor
would be within that 500 feet. The old bill, she stipulated, had
a right-of-way of 300 feet.
REPRESENTATIVE COWDERY related that his experience in the
construction field has led him to believe certain areas containing
steep hills might require additional right-of-way width; however,
he emphasized that special construction easements could be
obtained.
REPRESENTATIVE JAMES added that identification of material sites
would also be asked for along the way.
Number 1760
REPRESENTATIVE COWDERY asked if the 1995 figure of $6,363,000 was
determined by a DOT/PF estimate.
REPRESENTATIVE JAMES confirmed that, and further explained that the
figure was reached by using the value of the existing ownership
within the identified corridor.
CHAIR MASEK wondered about the $3.2 million figure mentioned as a
1982 estimate. She inquired as to whether or not that figure would
be greatly increased now that it is 1999.
REPRESENTATIVE JAMES examined the various costs mentioned
throughout this process. One of the costs, she explained, was to
identify the corridor. After that time, the ownership value of the
land needs to be determined, which would require additional survey
costs. She emphasized, however, that the actual distance in Alaska
is relatively short compared to the distance required from the
Canadian border to connect with British Columbia (BC) Railway. In
1982, BC Railway began the process by laying rail towards Alaska.
It would need to be determined, she added, if the old plans and
existing rail can still be used. This can be done at a later date,
however, when the state legislature is ready to appropriate either
state, private, federal or international funds.
Number 1880
REPRESENTATIVE HUDSON questioned whether or not the sponsor
substitute for HB 12 was ever officially adopted.
REPRESENTATIVE JAMES clarified that the sponsor substitute had been
read across and was the bill before the committee.
Number 1905
REPRESENTATIVE ANDREW HALCRO asked, "With all the federal dollars
that now seem to be coming into the state -- I know that the
railroad just received $28 million for an airport project they are
aiming to do -- what is the likelihood of this coming to fruition
in the next ten years?"
REPRESENTATIVE JAMES informed the committee that she had asked
United States Senator Ted Stevens that same question "a couple of
months ago," and he indicated that public support would be a key
factor. She noted that there is more interest in this now,
especially in the rural communities, than when she first began
talking about this project.
Number 1970
REPRESENTATIVE KEMPLEN inquired if the legislature has ever passed
a resolution asking the United States Congress to provide funding
for expansion of the Alaska Railroad eastward to Canada as a matter
of national interest.
REPRESENTATIVE JAMES replied that this had not been the case since
the 1982 legislation; however, she could not comment on dates
previous to that time. She reiterated that there are a lot more
supporters on this issue now, and it was her belief that such a
resolution might be a worthwhile effort within the next two years.
REPRESENTATIVE KEMPLEN commented that a resolution asking Congress
to appropriate money for the right-of-way and for construction
would be a good way of showing public support for this initiative.
REPRESENTATIVE JAMES emphasized that this would all have to be done
in conjunction with the Canadians. Drafting the language of such
a resolution might be premature until there is an enthusiastic
partnership on both sides of the border; however, the committee was
again reminded of the April meeting in Whitehorse.
REPRESENTATIVE KEMPLEN called attention to the fact that Congress
did appropriate funding for the "Alcan Highway"; consequently,
there is precedent for that type of initiative.
REPRESENTATIVE JAMES agreed that the such a partnership would be
possible.
Number 2110
RUSSELL BOWDRE testified via teleconference from Delta Junction.
He said, "I would just like to state for the record that I do not
know anybody in our area who would be opposed to this railroad. If
there is anyone, I have not talked to them or heard anything from
them. I think you would receive unanimous support all the way from
Tok to Fairbanks and in this area. Anything that would could do to
help you and encourage this, I would like very much for you to let
us know. We would be glad to volunteer our time and effort to give
you a hand."
Number 2165
LAUREL BARGER-SHEEN, Department of Economic Development, City of
Delta Junction, testified via teleconference in favor of SSHB 12.
She read the following written testimony into the record:
For those of you considering this bill, please allow this
letter/statement to represent the interest and desire of the
residents of the Delta region to encourage the expansion of
the Alaska Railroad in an effort to expand the opportunities
for Alaskans and further ratify NAFTA [North American Free
Trade Agreement]. This action would open Alaska to
unprecedented growth and bring us closer to our member nation.
It would allow citizens of the Lower 48 to enjoy a part of
their country they may have never seen before due to the
increased accessibility a rail line would offer.
Our community is at the juncture of two of Alaska's major
highways (the "Alcan" and the Richardson) and the base of the
Alaska Range. The natural beauty and vastness of the area is
unique; one we would like to share with other Alaskans and
visitors. The railroad offers an environmentally friendly
alternative to the growth Alaska will experience. It promotes
responsible development of the area and has the potential to
impact every aspect of life in Alaska positively.
Successful development of Alaska's resources can only be
achieved with an investment in her infrastructure, this type
of infrastructure. This rail corridor is needed to open a
"gateway to the Interior" to support the new "gold rush" and
other natural resource industries, as well as providing
opportunities for our Canadian neighbors. Give Alaskans the
opportunity to compete in a world market. Help us build this
line.
MS. BARGER-SHEEN went on to ask a question regarding the
preliminary site survey conducted in 1982. She wondered if the
committee had considered this survey in their deliberations.
Number 2248
REPRESENTATIVE JAMES agreed that there would be some benefit to
having that survey; however, there are potential changes in land or
ownership that would have be taken into consideration. This survey
can be used, she stated, but may not represent the only way to go.
MS. BARGER-SHEEN informed the committee of their attempts to go
forward with a private partnership through Mr. Bill Sheffield at
the Alaska Railroad Corporation. She volunteered any information
she might have or dedicating any time needed to get this project
moved forward. She recommended that Mr. Sheffield be invited to
the Whitehorse meeting.
REPRESENTATIVE JAMES assured her that Mr. Sheffield is on the list
to be invited.
DENNIS POSHARD, Legislative Liaison/Special Assistant, Office of
the Commissioner, Department of Transportation and Public
Facilities (DOT/PF), testified regarding the fiscal note for SSHB
12. The bill carries a zero fiscal note, he explained, because it
is subject to appropriation. It was the intent to give a good cost
estimate what SSHB 12 would ask the DOT/PF to do in order to
delineate a corridor; however, the estimates are based on the 1982
study with no major route changes. There is a high probability, he
noted, that there will be some necessary route changes due to land
status modifications.
Number 2388
FORMER GOVERNOR BILL SHEFFIELD, President and CEO, Alaska Railroad
Corporation, testified via teleconference from Anchorage on SSHB
12. He emphasized that, even though we are at the end of the
twentieth century, Alaska is still a growing frontier that requires
foresight of the "big picture" to set the stage for long-term
growth. It is his opinion that this bill is a good example of
that, and that now is the time to "draw the straightest and best
line to the Canadian border" before there are a lot of impediments.
Knowing the right-of-way is in place, he added, might spur
development by people who also want to be a part of that growth.
In addition, potential missile defense systems sites, as well as
current and future mine locations, would also benefit from this
railroad.
Tape 99-04, Side B
Number 0028
GOVERNOR SHEFFIELD referred to a map showing the existing rail line
of British Columbia (BC) Railway "going up as far as Chipmunk,
which is above Fort St. James, and about halfway to Dease Lake."
He estimated that it was approximately 400 miles from Fairbanks to
Whitehorse, and a little less than that to the Canadian border.
The viability would be enhanced, he added, if the Canadians
extended their line at the same time. He agreed that the project
would cost a lot of money, but reiterated that this would be a
concern for a future day. He emphasized that the important thing
would be to get the right-of-way set out at this time. He updated
the committee on current Alaska Railroad Corporation right-of-way
projects in other parts of the state that demonstrated their
resolve to look toward the future.
GOVERNOR SHEFFIELD disclosed that the British Columbia Railway has
lost about 40 percent of its coal tonnage in 1998 for export to
Japan, and their contract comes up for contract re-negotiation in
April of 1999. The Japanese, he reported, want to lower price
concessions for the Canadians, and any future coal contract for
Alaska would probably be at a much lower price as well.
Number 0162
GOVERNOR SHEFFIELD indicated that rail line construction is
estimated to be about $2.75 million per mile. By multiplying this
by 500 miles, a fairly good total estimate could be made. However,
he continued, the first step would be to outline the route, and
work with British Columbia Railway and the governments of British
Columbia and the Yukon to acquire the right-of-way. If cooperation
is achieved and it makes sense to build it, the funding could be
found at that time.
Number 0209
CHAIR MASEK asked if the House Transportation Standing Committee
could be provided with a copy of the map that was previously
referred to.
JAMES B. BLASINGAME, Vice President of Corporate Affairs, Alaska
Railroad Corporation, previously introduced by Governor Sheffield
via teleconference, responded that the map was an older map they
received from the British Columbia Railway System, and that he
would be happy to forward a copy to the committee.
GOVERNOR SHEFFIELD added that there is money in the federal budget
to do a transportation study administered by DOT/PF from Fairbanks
to the Arctic, as well as to look at a rail line from Chitina to
Cordova, and a rail line into McKinley.
REPRESENTATIVE HALCRO noted that the original estimate for the cost
of right-of-way in 1982 was $3.2 million, and 13 years later it had
doubled to $6.3 million. He expressed concern that the figure
might be well over $10 million in the next five or six years. He
asked if any effort was being made to apply federal funds to
procure right-of-way in the next year or two.
GOVERNOR SHEFFIELD indicated that the money received has to be
applied to the specific items it was appropriated for; however, the
state of Alaska could apply specifically for additional funding
through the DOT/PF.
Number 0446
REPRESENTATIVE JERRY SANDERS wondered if the 500 miles previously
quoted as costing $2.75 million per mile were all located in
Alaska.
GOVERNOR SHEFFIELD estimated that approximately one-third to a
little less than half of those miles would be in the Yukon.
CHAIR MASEK thanked Governor Sheffield, and returned to Mr. Poshard
from the DOT/PF to continue his testimony.
Number 0500
REPRESENTATIVE HUDSON asked Mr. Poshard if the DOT/PF's Division of
Statewide Planning was currently working on advancing these kind of
long-range plans.
MR. POSHARD assured the committee that the DOT/PF is currently
working on long-range plans, but not specifically related to the
railroad. They have mainly undertaken regional plans in six
regions throughout the state which look at which form(s) of
transportation would be the most effective in each region.
Number 0600
REPRESENTATIVE COWDERY wondered if the railroad has acquired any
additional right-of-ways since 1983.
MR. POSHARD referred the question to the Alaska Railroad
Corporation.
ERNIE PIPER, Alaska Railroad Corporation, provided testimony on
behalf of Governor Sheffield and Mr. Blasingame, who were unable to
remain on teleconference. He stated that the lines being worked on
currently will require some right-of-way changes, but there has not
been any new right-of-way acquired.
REPRESENTATIVE COWDERY wondered if any expansion was being planned
to Western Alaska.
MR. PIPER said no. He indicated that United States Senator Frank
Murkowski was very interested in that; however, such a project
would require a lot of movement across federal lands.
REPRESENTATIVE COWDERY noted that the Wishbone Hill area in the
Matanuska Valley has the potential for some high-grade coal. He
stated that there used to be a corridor in that area, but he
believed some of the right-of-way was currently in the Matanuska
River. He asked if there were any plans to develop it and how wide
it is.
MR. PIPER stated that the right-of-way was still there, and assured
Representative Cowdery that he would inform him of the width of the
corridor and any further information regarding it.
Number 0755
CHAIR MASEK questioned why the DOT/PF closed their application in
1996.
MR. POSHARD reported that the DOT/PF received a phone call from the
BLM asking if they were serious about acquiring the land. Since
there was no appropriation on the books from either the federal or
the state government, the staff made the decision to allow BLM to
take those applications off the table and close the files.
REPRESENTATIVE HALCRO pointed out that this type of an easement
would fall into a long-range transportation plan.
MR. POSHARD agreed that this is the type of thing the DOT/PF will
be looking at; however, he emphasized that they never owned or
acquired any of that property at that time. It was his belief that
the individual who made the decision to close the files felt that
it was unlikely the railroad was to be constructed any time soon.
He added that, given the circumstances, the same decision might not
have been made today.
Number 0885
MR. BOWDRE from Delta Junction asked a follow-up question. He
wondered how much research had been done in talking to the
different entities that would benefit from this railroad to see
what their potential use would be. He cited various examples of
organizations that he felt should be contacted.
REPRESENTATIVE JAMES replied that there were no actual paper
tallies; however, they are actively involved in the talking stages.
She reported that she had spoken to the transportation committee
chair at the Fairbanks Chamber of Commerce that morning, and
reminded everyone that the April meeting in Whitehorse would
include many of these individuals. The Delta Junction and Tok
Chambers of Commerce, she added, would also be invited to the
Whitehorse meeting.
Number 1024
CHAIR MASEK asked for further testimony. Hearing none, she asked
if there were any motions from the committee to entertain.
REPRESENTATIVE HALCRO made a motion to move SSHB 12 out of
committee with individual recommendations and the attached zero
fiscal note(s), and asked unanimous consent. There being no
objection, SSHB 12 has been moved from House Transportation
Standing Committee.
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