04/10/2025 01:00 PM House TRANSPORTATION

        HJR 14-PORT MACKENZIE & NORTHERN RAIL EXTENSIONS                                                                    
                                                                                                                                
1:28:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR CARRICK announced that the  next order of business would                                                               
be HOUSE  JOINT RESOLUTION NO.  14, Supporting the  completion of                                                               
the  Port   MacKenzie  Rail  Extension  and   the  Northern  Rail                                                               
Extension; supporting  the increase in defensive  capabilities at                                                               
Fort  Greely, Alaska;  encouraging  a renewed  commitment by  the                                                               
Alaska  Railroad to  a community-minded  approach to  future rail                                                               
expansion;  and encouraging  the development  of critical  Arctic                                                               
infrastructure.                                                                                                                 
                                                                                                                                
1:29:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE, as  prime sponsor, introduced HJR  14.  He                                                               
stated  that the  Northern Rail  Extension project  and the  Port                                                               
MacKenzie  Rail Extension  project would  strengthen the  state's                                                               
infrastructure, defense capabilities, and  resiliency.  He stated                                                               
that  Alaska's strategic  location on  the Arctic  Ocean, coupled                                                               
with the  growing defense operations at  Fort Greely, underscores                                                               
the  urgency for  the need  to  complete the  two rail  extension                                                               
projects, as proposed by HJR 14.                                                                                                
                                                                                                                                
REPRESENTATIVE  MCCABE stated  that the  Northern Rail  Extension                                                               
project  would enhance  the state's  defense infrastructure.   He                                                               
pointed out that the completion is  70 miles from Fort Greely and                                                               
Delta Junction, including  the Tanana River crossing.   He stated                                                               
that  the Port  MacKenzie  Rail Extension  project, with  support                                                               
from  the  Matanuska-Susitna  (Mat-Su)  Borough  and  the  Alaska                                                               
Railroad,  is near  completion.    It would  provide  a range  of                                                               
benefits, including reduced energy  costs, reduced emissions, and                                                               
improved transportation costs of key  goods, such as coal to tide                                                               
water.   He pointed out  that this extension project  would align                                                               
with  the  current  federal administration's  goal  of  unlocking                                                               
Alaska's resources and increasing energy exports.                                                                               
                                                                                                                                
REPRESENTATIVE MCCABE  suggested that  the rail  extensions would                                                               
alleviate road  congestion, enhance supply chain  resilience, and                                                               
create jobs,  while ensuring greater affordability  for Alaskans.                                                               
Furthermore, the  proposed resolution would encourage  the Alaska                                                               
Railroad to  engage with local  communities.  He  summarized that                                                               
the  proposed   resolution  is  not  only   about  transportation                                                               
infrastructure,  but   also  about  securing   Alaska's  economic                                                               
future, strengthening defense,  securing resiliency for residents                                                               
in the  Interior, and  enhancing energy security.   He  noted the                                                               
letters of support for HJR 14.                                                                                                  
                                                                                                                                
1:33:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES commented  on the  letter of  support from                                                               
the mayor and manager of the  Mat-Su Borough.  She noted that the                                                               
letter was  not addressed  to most of  the committee  members and                                                               
questioned  the reason  for this.   She  also questioned  why the                                                               
extension projects had stopped.                                                                                                 
                                                                                                                                
REPRESENTATIVE MCCABE  responded that the letter  in question was                                                               
addressed to  the delegation of  the Mat-Su Borough, as  this was                                                               
who requested the  letter in support.  In response  to the second                                                               
question, he explained that the  projects had not stopped because                                                               
of funding, and  he pointed out the bridge over  the Tanana River                                                               
had cost $2 million.   He added that it is  the longest bridge in                                                               
the state, but  "it goes absolutely nowhere."  He  noted that the                                                               
money  has been  spent,  but the  project is  not  complete.   He                                                               
pointed out  that $184 million  of state  money was spent  on the                                                               
Port  MacKenzie  Rail Extension  project.    He said,  "It's  the                                                               
largest, most  expensive snowmobile trail  in the world,"  and he                                                               
suggested  it is  now a  "highway for  criminals."   He explained                                                               
that there  are 7.2 miles  left to construct.   There had  been a                                                               
right-of-way issue,  he said, but  once this was  resolved, there                                                               
was no more funding.                                                                                                            
                                                                                                                                
REPRESENTATIVE  MCCABE,  in response  to  a  series of  follow-up                                                               
questions, stated  that the  railbed is there,  but there  are no                                                               
tracks.  He added that it is  in good shape, except for some one-                                                               
lane bridges.  He responded that  there is no railroad steel laid                                                               
down yet,  only a roadbed.   He  continued that the  railroad has                                                               
estimated the  cost of  completion to  be $290  million; however,                                                               
from  other sources,  he has  heard  a maximum  estimate of  $150                                                               
million.  He  posed the question of why it  would cost the Alaska                                                               
Railroad   more.      He  noted   that   the   Federal   Railroad                                                               
Administration  has   also  provided  lower  estimates,   and  he                                                               
expressed   the  opinion   that  politics   has  influenced   the                                                               
estimates.   In response to  a question concerning the  number of                                                               
tracks laid  in the  last 25  years, he stated  that no  miles of                                                               
running  track  have been  laid.    He  responded that  he  would                                                               
provide the committee with maps of the projects.                                                                                
                                                                                                                                
1:42:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  CARRICK commented  on the  letter of  support from  the                                                               
Alaska Railroad, which listed the  cost of completing the 32-mile                                                               
Port MacKenzie  Rail Extension  project as  $275 million  to $300                                                               
million.   She questioned how  much this  would be per  mile, and                                                               
she questioned whether this cost  would be reflected in any other                                                               
rail project.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MCCABE responded  that this  would be  around $14                                                               
million per  mile.  He expressed  the opinion that a  fraction of                                                               
the  cost would  finish the  project, and  he suggested  that the                                                               
high price  is because of  politics.   In response to  a question                                                               
concerning whether the railroad  has been proactive, he expressed                                                               
the  opinion that  the Alaska  Railroad's  $484 million  estimate                                                               
speaks for how  proactive the railroad has been.   He stated that                                                               
the  Alaska Railroad  had applied  for a  federal grant  from the                                                               
Consolidated Rail Infrastructure  and Safety Improvements (CRISI)                                                               
Program  last  year,  but  it   had  been  rejected  because  the                                                               
application was incorrect.   He noted that the  railroad plans to                                                               
apply for  the grant again  this year; however, the  railroad has                                                               
said  it  does  not  have  the needed  letters  of  support  from                                                               
Alaska's  Congressional   Delegation  and   the  governor.     He                                                               
expressed  the understanding  that support  has been  voiced from                                                               
these  entities.    He  suggested  that  the  railroad  might  be                                                               
concerned about the anchor tenant  in Port MacKenzie; however, he                                                               
expressed doubt on the concept of  an "anchor tenant."  He argued                                                               
that  for  the  growth  of  resources  in  the  state,  the  Port                                                               
MacKenzie Rail Extension project would need to be completed.                                                                    
                                                                                                                                
1:47:53 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EISCHEID  referenced the  letter  in  support from  the                                                               
Alaska  Railroad and  expressed the  desire to  ask the  railroad                                                               
questions  concerning  the estimated  cost.    He questioned  the                                                               
intent of  the language on page  3, lines 15-19, of  the proposed                                                               
resolution,   which  requests   that  the   railroad  renew   its                                                               
commitment to a "community-minded approach".                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  expressed the observation that  the Alaska                                                               
Railroad  has struggled  with community  relations and  those who                                                               
live on the right-of-way.  He  suggested that this would urge the                                                               
railroad, which is  owned by Alaskans, to take  a more community-                                                               
minded stance with everything.                                                                                                  
                                                                                                                                
CO-CHAIR  EISCHEID  expressed  appreciation  for  the  sentiment;                                                               
moreover,   he   voiced   skepticism  about   organizations   and                                                               
government entities  that are  based away  from communities.   He                                                               
noted  that metropolitan  planning  organizations  have the  same                                                               
concern  with   the  Department  of  Transportation   and  Public                                                               
Facilities' ability to stay sensitive to local concerns.                                                                        
                                                                                                                                
1:51:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR CARRICK expressed appreciation  for the inclusion of the                                                               
clause  under  discussion.    She   noted  that  encouraging  the                                                               
railroad to  be more accessible  to Alaskans also relates  to the                                                               
proposed legislation [HB  26] heard earlier in the  meeting.  She                                                               
shared  a  personal  anecdote  about   railroad  travel  and  its                                                               
affordability  in  the past.    She  noted  that now  flying  and                                                               
driving are  less expensive and  quicker than rail travel  in the                                                               
state.   She opined that if  it were less expensive,  more people                                                               
would  use  the railway.    She  stated  that the  resolution  is                                                               
"critically" important,  noting the support from  mine developers                                                               
and industrial purposes.  She  suggested a clause in the proposed                                                               
resolution to highlight this purpose.                                                                                           
                                                                                                                                
1:53:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE noted  that this  type of  legislation has                                                               
been offered before, and it passed.   He opined that HJR 14 could                                                               
be used in support for the CRISI  grant.  He spoke to the success                                                               
of the  railroad, as it has  not gone bankrupt and  not asked the                                                               
state for  money.  He commended  the Alaska Railroad on  doing an                                                               
admirable   job,  especially   through  the   COVID-19  pandemic;                                                               
however,  he  reiterated  that  the  Alaska  Railroad  works  for                                                               
Alaskans.                                                                                                                       
                                                                                                                                
1:54:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR CARRICK announced that HJR 14 was held over.