05/07/2019 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

         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.