Legislature(2025 - 2026)BUTROVICH 205
05/15/2025 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SB191 | |
| HJR14 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 191 | TELECONFERENCED | |
| *+ | HJR 14 | TELECONFERENCED | |
HJR 14-PORT MACKENZIE & NORTHERN RAIL EXTENSIONS
2:00:25 PM
CHAIR BJORKMAN announced the consideration of CS FOR HOUSE JOINT
RESOLUTION NO. 14(TRA), 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.
2:00:49 PM
REPRESENTATIVE KEVIN MCCABE, District 30, Alaska State
Legislature, Juneau, Alaska, paraphrased from the sponsor
statement for HJR 14:
[Original punctuation provided.]
CS HJR 14 Ver B
SPONSOR STATEMENT
"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."
House Joint Resolution 14 advocates for the completion
of the Port MacKenzie Rail Extension and the Northern
Rail Extension, two critical projects that will
enhance Alaska's infrastructure, economic resilience,
and national security. As the only U.S. state
bordering the Arctic Ocean, Alaska plays a key role in
Arctic strategy, defense operations, and resource
development.
The Port MacKenzie Rail Extension is a cornerstone of
Alaska's long-term economic and logistical strategy.
By providing a direct rail link between Interior
Alaska and tidewater access at Port MacKenzie, Seward,
Whittier, and Anchorage, this extension will reduce
transportation costs, improve energy security, and
expand market access for industries such as mining,
agriculture, and natural gas. The completion of this
project will not only strengthen supply chains but
also increase the state's resiliency by ensuring an
alternative transportation corridor in the event of
highway disruptions caused by natural disasters, such
as earthquakes, or port congestion elsewhere in the
state.
The Northern Rail Extension remains essential to U.S.
national security, particularly with the expansion of
the Arctic Mission at Fort Greely. As home to the
nation's missile defense system, Fort Greely plays a
critical role in protecting the U.S. and its allies.
Despite this, it is the only military base in Alaska
without rail access. Completing the Northern Rail
Extension will provide a reliable, cost-effective
means of transporting military equipment, personnel,
and supplies, reinforcing the nation's defense posture
in the Arctic as geopolitical competition intensifies.
Significant progress has already been made. Phase 1 of
the Northern Rail Extension, including the Tanana
River crossing, has brought the rail line within 70
miles of Delta Junction and Fort Greely. Similarly,
the MatanuskaSusitna Borough and the Alaska Railroad
have completed nearly two-thirds of the Port MacKenzie
Rail Extension, underscoring the project's viability
and importance.
2:02:00 PM
REPRESENTATIVE MCCABE continued to paraphrase from the sponsor
statement for HJR 14:
[Original punctuation provided.]
This resolution also calls for a community-minded
approach to rail expansion, urging the Alaska Railroad
to work transparently with residents, businesses, and
stakeholders to ensure responsible development.
Furthermore, HJR 14 urges Alaska's congressional
delegation to advocate for federal support in
completing these essential projects, recognizing that
while other Arctic nations invest heavily in
infrastructure, the United States must act to maintain
its leadership in the region.
HJR 14 represents a unified commitment to economic
growth, national security, and Alaskan resiliency. I
respectfully urge my colleagues to join me in
supporting this critical resolution.
2:03:14 PM
REPRESENTATIVE MCCABE mentioned that the MatanuskaSusitna
Borough passed its 2026 budget appropriating $6.7 million to
construct a new barge ramp at Port MacKenzie, which would
increase cargo capacity and economic potential. He noted that
not have a rail extension at Port MacKenzie would be a limiting
factor, since cargo could arrive at the port but have difficulty
moving beyond it. He noted that the Parks Highway has issues
with permafrost and opined that limiting truck traffic on that
highway would be helpful to Department of Transportation and
Public Facilities (DOTPF). He pointed out economic and resource
development benefits for mining operations and for the farming
industry in the surrounding communities. He stated that HJR 14
compliments a recent House Resolution to expedite the liquified
natural gas (LNG) project. He noted strong federal support. He
stated that advancing these projects would bolster national
energy and transportation security while ensuring sustained
economic benefits to Alaskans. He noted that this is an
important part of the Alaska Railroad Corporation's (ARRC)
Consolidated Rail Infrastructure and Safety Improvements (CRISI)
Program grant application. He emphasized the importance of
communicating legislative support.
2:06:18 PM
SENATOR STEDMAN recognized the need for an anchor tenant to make
the economics work. He opined that HJR 14 is timely. He
recommended considering the addition of Fort McMurray, which
would take the project to Canada. He surmised that interest in
rail access is increasing in the US and Canada. He said this is
up to the MatSu delegation and suggested that it might be
beneficial.
2:07:43 PM
REPRESENTATIVE MCCABE replied that he has considered this. He
noted that it is another 100 miles to the Canadian border from
Fort Greeley. He shared about conversations with the Minister of
Economic Corridors in Alberta, Canada and indicated Canadian
support. He emphasized the high cost of that addition. However,
many have expressed interest in using Port MacKenzie if the port
was connected to the railroad. He noted military interest. He
stated that ARRC is actively seeking an anchor tenant. He said
Port Mackenzie is 9000 acres that are ready to build and
suggested that actively moving towards completion of the railway
(and applying for the CRISI grant) is key to unlocking growth in
the MatSu and the state.
2:10:03 PM
SENATOR STEDMAN clarified that he did not mean to suggest
creating a single big project that would end at the Canadian
border but had intended to illustrate the opportunity that the
Port MacKenzie rail extension would create.
2:10:38 PM
REPRESENTATIVE MCCABE indicated his understanding and pointed
out that Alaska is the reason the US is an arctic nation. He
shared his larger vision for a combined rail that would lead to
the North Slope and could potentially unlock the resources
available there.
2:11:29 PM
[CHAIR BJORKMAN passed the gavel to Vice Chair Tobin.]
2:11:34 PM
SENATOR SHOWER emphasized that a rail to Canada would enable the
transport of supplies in an emergency. He opined that this -
plus the potential for military use and economic development -
make a rail to Canada a worthwhile investment. He suggested an
amendment that would include language communicating these
benefits.
2:12:48 PM
REPRESENTATIVE MCCABE expressed uncertainty that an amended
version of HJR 14 would have the necessary time and support to
move through the legislative process. He briefly discussed
resiliency in the event of an earthquake or other natural
disaster and surmised that the Port MacKenzie Rail Extension
would create greater resiliency for ARRC. He opined that this
would also be beneficial to the state.
2:14:08 PM
SENATOR SHOWER wondered if there is sufficient time to pass an
amended version of HJR 14.
2:14:42 PM
VICE CHAIR TOBIN said the committee would discuss this with the
sponsor of HJR 14 and suggested that quick action would be
required.
2:15:01 PM
VICE CHAIR TOBIN announced invited testimony on HJR 14.
2:15:17 PM
BILL O'LEARY, President and Chief Executive Officer (CEO),
Alaska Railroad Corporation (ARRC), Anchorage, Alaska, expressed
support of HJR 14. He stated that ARRC supports rail
infrastructure in Alaska in general, and the Port MacKenzie Rail
Extension (PMRE) and the Northern Rail Extension (NRE) in
particular. He said ARRC has hired an engineering firm to come
up with a project estimate for completing PMRE and submitted
competitive federal grants for the completion of PMRE and phase
two of the NRE. ARRC has also submitted a Congressionally
directed spending request to members of Alaska's federal
delegation in support of completing phase two of the NRE. ARRC
has worked closely with the MatanuskaSusitna Borough, Port
MacKenzie staff, and Representative McCabe to identify potential
customers for PMRE. He briefly discussed this process.
MR. O'LEARY stated that ARRC has also worked with the Matanuska
Susitna Borough and Representative McCabe to come up with a
funding strategy to complete PMRE in lieu of an anchor tenant.
He briefly discussed the CRISI grant and the MatanuskaSusitna
Borough's request for $58 million in matching funds from the
State of Alaska. He said that ARRC is actively advocating at
both the state and federal levels for the advancement of these
projects. He said that PMRE and NRE will result in a substantial
increase in transportation efficiency in Alaska, as well as new
opportunities in resource exports, energy solutions, and cross-
industry project development. He emphasized that PMRE and NRE
and large projects with statewide benefits and moving them
forward will depend on more than ARRC. He opined that HJR 14 is
an important opportunity for the legislature to confirm its
support of the completion of the PMRE and NRE.
2:18:27 PM
CLARK HOPP, Chief Operating Officer (COO), Alaska Railroad
Corporation (ARRC), Anchorage, Alaska, expressed support of HJR
14. He said he has 35 years in the construction and railroad
industries and would be excited to see both projects completed.
2:19:14 PM
SENATOR TOBIN opened public testimony on HJR 14.
2:19:33 PM
PATRICK SHARROCK, representing self, Anchorage, Alaska,
testified with concerns on HJR 14. He said he has lived in
Anchorage for 78 years and has followed the PMRE project for the
past 17 years. He briefly discussed information received from
ARRC and stated that no indication was made of new mineral
developments or port improvements. He noted that close to $200
million was previously spent on the project and questioned the
current levels of support. He opined that PMRE is unnecessary
and expensive.
2:22:20 PM
DAVID GRIFFIN, Port Director, Port McKenzie, Matanuska-Susitna
Borough, Anchorage, Alaska, testified in support of HJR 14. He
said that Port MacKenzie is owned and operated by the Matanuska
Susitna Borough and serves as a marine gateway to Southcentral
and Interior Alaska. He briefly described the port and stated
that the area is ready for development. He briefly described the
PMRE and opined that this extension is key to unlocking Alaska's
natural resource potential. He opined that this extension would
drive new economic opportunities for Alaska and the US and would
positively impact National Security and military operations. He
referred to several recent US executive orders and opined that
Port MacKenzie is the logical port for natural resources coming
from the surrounding area along the railbelt.
2:24:58 PM
JACK BARRETT, Meritage Communities, Wasilla, Alaska, testified
in support of HJR 14. He briefly discussed the importance of the
Port MacKenzie Rail Extension (PMRE). He pointed out large
differences in the cost of importing versus exporting items and
stated that this needs to be considered. He opined that PMRE has
great potential and not finishing the extension would be a
missed opportunity.
2:26:48 PM
VICE CHAIR TOBIN closed public testimony on HJR 14.
2:26:53 PM
SENATOR SHOWER noted that the end of the legislative session is
fast approaching and withdrew his request for a friendly
amendment to HJR 14. He said that he would like to work with
Representative McCabe to draft a separate resolution to address
the potential extension of the rail to Canada.
2:27:23 PM
SENATOR STEDMAN agreed that there is limited time and the
extension from Fort McMurray to Alaska would be better suited
for a separate resolution. He suggested moving HJR 14 from
committee due to the late date.
2:27:52 PM
REPRESENTATIVE MCCABE expressed his appreciation. He reiterated
that HJR 14 is necessary for Alaska to receive the CRISI grant.
2:28:35 PM
SENATOR STEDMAN noted an upcoming Energy Council and suggested
that this would be a good time to discuss the issue.
2:29:13 PM
[VICE CHAIR TOBIN solicited the will of the committee.]
2:29:14 PM
SENATOR STEDMAN moved to report [CSHJR 14(TRA)], work order 34-
LS0776\I, from committee with individual recommendations and
attached fiscal note(s).
2:29:31 PM
VICE CHAIR TOBIN found no objection and CSHJR 14(TRA) was
reported from the Senate Transportation Standing Committee.