Legislature(2017 - 2018)BARNES 124

02/27/2018 11:30 AM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 383 TOURISM MARKETING:BOARD;ASSESSMENT;FUND TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
*+ HJR 33 DEVELOP ARCTIC INFRASTRUCTURE & DEFENSE TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
         HJR 33-DEVELOP ARCTIC INFRASTRUCTURE & DEFENSE                                                                     
                                                                                                                                
12:47:54 PM                                                                                                                   
                                                                                                                                
CHAIR LINCOLN  announced that the  final order of  business would                                                               
be HJR  33, Urging  the Alaska delegation  in Congress  to pursue                                                               
the  establishment of  a  U.S.  Coast Guard  port  in the  Arctic                                                               
region; supporting the increase  in defensive capabilities in the                                                               
Arctic  region;  and  encouraging  the  development  of  critical                                                               
Arctic infrastructure.                                                                                                          
                                                                                                                                
CHAIR LINCOLN stated  his intent to bring before  the committee a                                                               
committee substitute.                                                                                                           
                                                                                                                                
12:48:21 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  TUCK  moved  to   adopt  the  proposed  committee                                                               
substitute  (CS)  for  HJR   33,  Version  30-LS1350\D,  Radford,                                                               
2/14/18, as a working document.                                                                                                 
                                                                                                                                
CHAIR LINCOLN objected for purposes of discussion.                                                                              
                                                                                                                                
12:48:56 PM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 12:49 p.m. to 12:51 p.m.                                                                     
                                                                                                                                
12:51:04 PM                                                                                                                   
                                                                                                                                
MICHAL  LOWE, Intern,  Representative  Chris  Tuck, Alaska  State                                                               
Legislature, presented  HJR 33 on behalf  of Representative Tuck,                                                               
prime sponsor.   He outlined the changes made in  Version D:  [On                                                               
page 1,  line 1,  "Arctic naval station"]  was changed  to ["U.S.                                                               
Coast Guard  port in the  Arctic region"];  and [on page  2, line                                                               
30, "naval  station"] was changed  to ["Coast Guard  port capable                                                               
of supporting naval contingency operations"].                                                                                   
                                                                                                                                
12:52:23 PM                                                                                                                   
                                                                                                                                
CHAIR  LINCOLN  removed his  objection  to  the motion  to  adopt                                                               
Version  D.   There being  no  further objection,  Version D  was                                                               
before the committee.                                                                                                           
                                                                                                                                
12:53:02 PM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TUCK expressed appreciation  for the work Mr. Lowe                                                               
had done as his intern.                                                                                                         
                                                                                                                                
12:53:15 PM                                                                                                                   
                                                                                                                                
MR.  LOWE  spoke to  the  importance  of resolutions  as  talking                                                               
points to highlight what a  state wants.  He said bi-partisanship                                                               
and unanimity  are important in  showing "the intent  of Alaska."                                                               
He began a  PowerPoint presentation, and drew  attention to slide                                                               
2, which  covered the purpose  and scope of the  presentation and                                                               
offered the following bullet points:                                                                                            
                                                                                                                                
        • Introduce HJR 33 to AET Committee                                                                                     
        • Cover evolving situation in the Arctic                                                                                
        • Provide primary sources and relevant information                                                                      
          to support claims                                                                                                     
        • Discuss benefits of port to the state                                                                                 
        • Major challenges impeding implementation                                                                              
                                                                                                                                
MR. LOWE said  the next few slides are overlays  he acquired from                                                               
the Internet.  He said receding  polar sea ice has opened new sea                                                               
lanes for  vessels, which reduces  intercontinental routes  by as                                                               
much as  5,000 miles.   He  said, "The basis  for the  U.S. Coast                                                               
Guard port  stems from the opening  of sea lanes in  the Arctic."                                                               
He said one route  that is important is shown in  lime green on a                                                               
map on slide 3, and it is right above Russia.                                                                                   
                                                                                                                                
12:57:39 PM                                                                                                                   
                                                                                                                                
MR. LOWE directed  attention to slide 4, which  shows mineral and                                                               
economic potential of  the Arctic.  He said the  U.S. conducted a                                                               
survey  in 2008  which  showed  that 13  percent  of the  world's                                                               
undiscoverable  oil and  30 percent  of the  world's natural  gas                                                               
lies in  the circumpolar  Arctic.   This potential  is attracting                                                               
interest from  other nations; Russia  has the most land  north of                                                               
the Arctic  circle, and much of  its economy lies in  the Arctic.                                                               
He  said Russia  already  gets approximately  20  percent of  its                                                               
gross  domestic  product  (GDP)  from   the  Arctic.    China  is                                                               
involved, as well, and he said he would talk about that later.                                                                  
                                                                                                                                
MR. LOWE  turned to slide 5,  which shows an overlay  of military                                                               
facilities in  the Arctic, and he  pointed out that the  U.S. has                                                               
none.   In contrast,  Russia has  about 20  [military] facilities                                                               
lining the northern  sea route.  He said it  is clear that Russia                                                               
regards this sea route as "a  very important route in the future"                                                               
and wants  to ensure its  presence there.   Mr. Lowe  opined that                                                               
[the U.S.] should have a presence there as well.                                                                                
                                                                                                                                
1:00:22 PM                                                                                                                    
                                                                                                                                
MR. LOWE  showed slide  6, which  depicts China's  involvement in                                                               
the  Arctic.   He  said  China  has  written its  Arctic  policy,                                                               
declares  itself a  "near-Arctic  state," and  seeks  to build  a                                                               
"polar silk  road."  He said  China has built an  ice breaker and                                                               
desires to  "regulate and manage  affairs of the Arctic."   China                                                               
has joined forces with Russia,  he said.  Further, China recently                                                               
filed for permanent observer status  in the Arctic Council, which                                                               
it was  granted.  Mr. Lowe  stated that China sees  the potential                                                               
of the Arctic.                                                                                                                  
                                                                                                                                
MR.  LOWE directed  attention  to slide  7,  which addresses  the                                                               
National  Defense   Strategy  [of   the  U.S.],   which  replaces                                                               
terrorism with  nation-state strategic  competition as  a primary                                                               
concern.    He  said  reading   this  document  is  important  in                                                               
understanding  the  shift  happening  in  the  nation's  military                                                               
strategy  and   the  need  for   facilities  and   investment  in                                                               
infrastructure to shift, as well.                                                                                               
                                                                                                                                
MR.  LOWE, showing  slide 8,  stated that  federal investment  is                                                               
good for Alaska's economy, and a  U.S. Coast Guard base would add                                                               
to that  and provide  not only initial  stimulus but  would boost                                                               
the  economy  over time.    He  mentioned Joint  Base  Elmendorf-                                                               
Richardson  (JBER)  is  one  of  the  reasons  Anchorage  is  the                                                               
population hub  of Alaska; the  military requires a  diverse work                                                               
force;  and the  base is  an  economy within  itself.   Directing                                                               
attention to  slide 9, Mr. Lowe  talked about the mission  of the                                                               
Department of  Military &  Veterans' Affairs  (DMVA).   He talked                                                               
about  The  Adjutant  Generals   (TAG)   vision  for  DMVA.    He                                                               
indicated  a [Venn  diagram] on  the slide,  which shows  "Viable                                                               
Arctic  Strategy,"  "Engagement  with  Alaska  Communities,"  and                                                               
"Emergency   Management   Capacity,"  with   "Rural   Engagement"                                                               
connecting them  all.  He said  the U.S. Coast Guard  does search                                                               
and  rescue,  and the  station  closest  [to  the Arctic]  is  in                                                               
Kodiak, Alaska.   He  said with  an increase  of oil  tankers and                                                               
cruise ships  through the  Arctic sea  lane, if  one were  to get                                                               
stranded, it  may be Canada  that would  have to help,  because a                                                               
U.S. Coast Guard  vessel would not be able to  get there in time.                                                               
In  other words,  he said,  U.S. capabilities  in the  Arctic are                                                               
lacking.                                                                                                                        
                                                                                                                                
1:05:23 PM                                                                                                                    
                                                                                                                                
MR.  LOWE turned  to slide  10, and  he stated  that the  primary                                                               
challenge is get the U.S., as a  whole, to embrace its role as an                                                               
Arctic  nation.   Alaska  is the  reason the  U.S.  is an  Arctic                                                               
nation, but  the rest of the  country does not have  that fact in                                                               
its  consciousness or  realize the  importance of  protecting the                                                               
nation's interest in the region  and providing emergency response                                                               
capabilities  to the  region.   He said  there are  extended time                                                               
horizons for  construction in the  region because of  the extreme                                                               
weather.   He said the  U.S. is behind  in its investment  in the                                                               
Arctic, and  he opined that  the nation  should invest soon.   He                                                               
said there are  so many threats that face the  nation that it can                                                               
be  difficult to  bring attention  to  the Arctic,  but Mr.  Lowe                                                               
stated, "I still think we should try."                                                                                          
                                                                                                                                
MR. LOWE showed  slide 11, which recapped the  PowerPoint and the                                                               
following ideas  that had  been covered:   the  evolving tensions                                                               
and rising  opportunities in the  Arctic; primary  documents from                                                               
federal agencies;  and benefits to  the state economy as  well as                                                               
to the state military missions.                                                                                                 
                                                                                                                                
1:07:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP offered  his  understanding  that the  U.S.                                                               
Coast Guard  had, for the  last few years, maintained  a seasonal                                                               
station in Nome, Alaska.                                                                                                        
                                                                                                                                
MR.  LOWE confirmed  that that  station  has been  seasonal.   He                                                               
explained that  HJR 33  proposes a  permanent deep-water  port in                                                               
Nome, with infrastructure development.                                                                                          
                                                                                                                                
1:08:27 PM                                                                                                                    
                                                                                                                                
CHAIR LINCOLN  asked Mr. Lowe if  he has an opinion  regarding an                                                               
ideal location for an [Arctic] port in Alaska.                                                                                  
                                                                                                                                
MR.  LOWE answered  he  does  not.   He  said  Nome has  graphite                                                               
development; he mentioned the Chinese  and a natural gas pipeline                                                               
and  streaming  the natural  gas  there  instead of  to  Nikiski,                                                               
Alaska; and  development of a  U.S. Coast  Guard base there.   He                                                               
added that he was not advocating the  idea, but it was one he had                                                               
heard  that  would  give  a  deep-water  port  in  Nome  multiple                                                               
functions.                                                                                                                      
                                                                                                                                
1:09:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK, as  prime sponsor of HJR  33, commented that                                                               
the United  States would not  be an Artic nation  without Alaska.                                                               
He   said  that   even  though   the   federal  government   owns                                                               
approximately  60 percent  of Alaska  and gives  Alaska a  lot of                                                               
federal  money, he  thinks the  federal government  overlooks the                                                               
economic  potential  of  the  Arctic,   as  well  as  overlooking                                                               
national  security  needs.    He  noted that  there  had  been  a                                                               
presentation  to  the House  Special  Committee  on Military  and                                                               
Veterans' Affairs by a retired  U.S. Coast Guard member regarding                                                               
the history  of the Coast Guard.   He opined that  it makes sense                                                               
to have a base "up here."   He said the guard had revenue cutters                                                               
that  were  small, two-sail  ships  that  collected revenue  from                                                               
merchant  ships.   Eventually that  became the  U.S. Coast  Guard                                                               
that  exists today  in Alaska.   He  said the  guard has  brought                                                               
reindeer to people  starving on islands; it  has brought building                                                               
supplies and  built infrastructure.   He said  it makes  sense to                                                               
have a  U.S. Coast Guard  base [in Nome]  so that "we  can police                                                               
our waters."                                                                                                                    
                                                                                                                                
1:11:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN talked about  the tremendous amount of work                                                               
that was  put into  the Alaska Arctic  Policy Commission  and his                                                               
work on this  issue, and he emphasized that there  is a strategic                                                               
plan  laid out  within  the commission  regarding development  of                                                               
infrastructure, including telecommunications,  what resources are                                                               
available,  and how  they  can  be marketed  and  developed.   He                                                               
encouraged  the  committee  to  look   at  the  findings  of  the                                                               
commission.  He concluded, "There is a plan for this set out."                                                                  
                                                                                                                                
1:12:38 PM                                                                                                                    
                                                                                                                                
CHAIR LINCOLN announced that HJR 33 was held over.                                                                              

Document Name Date/Time Subjects
HB383 ver O -- 2.23.18.PDF HAET 2/27/2018 11:30:00 AM
HB 383
HB383 Sectional Analysis ver O -- 2.23.18.pdf HAET 2/27/2018 11:30:00 AM
HB 383
HB383 Sponsor Statement -- 2.23.18.pdf HAET 2/27/2018 11:30:00 AM
HB 383
HB383 Supporting Document - ATIA Frequently Asked Questions -- 2.23.18.pdf HAET 2/27/2018 11:30:00 AM
HB 383
HB383 Supporting Document - ATIA TID Handout -- 2.23.18.pdf HAET 2/27/2018 11:30:00 AM
HB 383
HB383 Supporting Document - Legislative Audit Report on ATMB -- 2.23.18.pdf HAET 2/27/2018 11:30:00 AM
HB 383
HJR033 ver A -- 2.15.18.PDF HAET 2/27/2018 11:30:00 AM
HJR 33
HJR033 Draft Proposed CS ver D -- 2.15.18.pdf HAET 2/27/2018 11:30:00 AM
HJR 33
HJR033 Sponsor Statement -- 2.15.2018.pdf HAET 2/27/2018 11:30:00 AM
HJR 33
HJR033 Supporting Document 1 -- 2.15.18.pdf HAET 2/27/2018 11:30:00 AM
HJR 33
HJR033 Supporting Document 2 -- 2.15.18.pdf HAET 2/27/2018 11:30:00 AM
HJR 33
HJR033 Additional Document - NDS 2018 -- 2.15.18.pdf HAET 2/27/2018 11:30:00 AM
HJR 33
HJR033 Additional Document -China Arctic Policy -- 2.14.18.pdf HAET 2/27/2018 11:30:00 AM
HJR 33
HJR033 Additional Document - USGS -- 2.15.18.pdf HAET 2/27/2018 11:30:00 AM
HJR 33
HB383 Fiscal Note DOR-TAX -- 2.26.18.pdf HAET 2/27/2018 11:30:00 AM
HB 383
HB383 Supporting Document - Letters of Support -- 2.26.18.pdf HAET 2/27/2018 11:30:00 AM
HB 383
HB383 Supporting Document - Tourism Marketing Fund History - REV -- 2.26.18.pdf HAET 2/27/2018 11:30:00 AM
HB 383
HJR033 PowerPoint Presentation -- 2.26.18.pdf HAET 2/27/2018 11:30:00 AM
HJR 33