Legislature(2021 - 2022)BARNES 124

04/28/2021 03:15 PM House LABOR & COMMERCE

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03:24:51 PM Start
03:26:02 PM HJR19
04:28:27 PM HB149
05:01:38 PM HB146
05:29:26 PM Occupational Safety and Health Review Board
05:30:39 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HJR 19 SUPPORTING INVESTMENT IN INFRASTRUCTURE TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
- Christine O'Connor, Exec. Dir., Alaska Telecom
Assoc. (ATA)
- Alicia Siira, Exec. Dir., Associated General
Contractors (AGC)
- Crystal Enkvist, Exec. Dir., Alaska Power
Assoc. (APA)
- Chris Kolerok, Director of Policy & Government
Affairs, Cook Inlet Housing Authority (CIHA)
- Jim Jager, Director of Business Continuity &
External Affairs, Facility Security Officer,
Port of Alaska
+= HB 149 CHILD CARE PROVIDER COLLECTIVE BARGAINING TELECONFERENCED
Moved HB 149 Out of Committee
-- Invited & Public Testimony --
- Nolan Klouda, Exec. Dir., University of
Alaska's Center for Economic Development
+= HB 146 DISCLOSURE OF WAGE INFORMATION TELECONFERENCED
Moved CSHB 146(L&C) Out of Committee
-- Invited & Public Testimony --
- Mike Walsh, Vice President, Director of Public
Policy, Foraker Group
<Above Item Removed from Agenda>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ Consideration of Governor's Appointees: TELECONFERENCED
- Board of Direct Entry Midwives: Tanya Kirk
- Marijuana Control Board: Casey Dschaak
- Occupational Safety & Health Review Board:
Vincent Perez
         HJR 19-SUPPORTING INVESTMENT IN INFRASTRUCTURE                                                                     
                                                                                                                                
3:26:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced that the  first order of business would                                                               
be  HOUSE   JOINT  RESOLUTION  NO.  19,   "Supporting  widespread                                                               
infrastructure investment in the state."                                                                                        
                                                                                                                                
3:26:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ introduced  HJR  19 on  behalf  of the  House                                                               
Labor and Commerce  Standing Committee, prime sponsor.   She said                                                               
that  Alaska's   infrastructure  has   been  neither   built  nor                                                               
maintained due  to low capital  budgets over the past  six years.                                                               
She pointed out that the  average state unrestricted general fund                                                               
capital budget  between fiscal year  2016 (FY  16) and FY  21 was                                                               
$123  million;  the modest  investments,  she  pointed out,  have                                                               
largely existed  for the sake  of federal highway matching.   She                                                               
said that the Alaska Municipal  League (AML) testified during the                                                               
April 14, 2021, meeting of  the House Labor and Commerce Standing                                                               
Committee that  Alaska has a $22  billion infrastructure deficit,                                                               
with  deferred  maintenance  for  state  facilities  totaling  $2                                                               
billion for the University of  Alaska totaling $1.3 billion.  She                                                               
said that Alaska's  infrastructure has received a  rating of "C-"                                                               
from the  American Society for  Civil Engineers,  Alaska Chapter,                                                               
with marine  highways, ports and  harbors, water,  and wastewater                                                               
all  receiving  a "D"  rating  due  to  lack of  maintenance  and                                                               
construction.    The  marine  highway   system  needs  a  massive                                                               
infusion  of capital,  she said,  and rural  airports across  the                                                               
state have  identified hundreds  of capital  project needs.   The                                                               
Port  of  Alaska at  Anchorage,  which  supports $14  billion  in                                                               
commercial activity, needs significant  investment to ensure that                                                               
it will be safe  in the future.  She noted that  this issue is of                                                               
particular importance  because Alaska has only  three days' worth                                                               
of food at any given time.                                                                                                      
                                                                                                                                
CO-CHAIR  SPOHNHOLZ said  more than  16,000 affordable  homes are                                                               
needed at a cost of $7  billion, and in 2019 the Alaska Broadband                                                               
Task  Force identified  broadband infrastructure  as critical  to                                                               
meeting the need for innovation,  commerce, education, and health                                                               
care.  Renewable energy in  Alaska is critical to reducing energy                                                               
costs,  she   said,  particularly  for  rural   Alaskans;  proven                                                               
technologies  such as  hydropower  and wind  power already  power                                                               
several  areas of  Alaska.   She  pointed out  that the  governor                                                               
understands  the   need  for  more   renewable  energy   and  has                                                               
introduced HB  170, which  would establish a  "green bank."   She                                                               
said he also  understands the need to  address infrastructure and                                                               
has proposed a general obligation  bond to pay for capital needs.                                                               
Congress  is  currently  considering  a  bill  that  could  bring                                                               
"massive" capital  infusion into  Alaska's economy at  a critical                                                               
time,  she said;  HJR 19  would encourage  Alaska's congressional                                                               
delegation to  aggressively pursue  funding for  Alaska's capital                                                               
infrastructure needs.   She noted the population loss  due to net                                                               
outmigration   and  the   existence   of  24,000   jobs  in   the                                                               
construction industry, which deliver a  middle class wage and are                                                               
critical to the economy.                                                                                                        
                                                                                                                                
3:31:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS opened invited testimony on HJR 19.                                                                             
                                                                                                                                
3:31:34 PM                                                                                                                    
                                                                                                                                
CHRISTINE   O'CONNOR,   Executive    Director,   Alaska   Telecom                                                               
Association, provided testimony and  a PowerPoint presentation in                                                               
support of  HJR 19 [hardcopy  included in the  committee packet].                                                               
She explained that it's useful  to think of broadband networks in                                                               
two sections:   "last  mile" and  "middle mile."   The  last mile                                                               
network, she  said, connects a  house or school to  the broadband                                                               
provider; this  piece can connect  houses or  businesses together                                                               
but needs  the middle  mile section to  connect to  the Internet.                                                               
Alaska's middle mile is a  combination of technologies, she said,                                                               
with thousands of miles of  fiber allowing huge capacity and fast                                                               
speeds.   She said that  when fiber can  be built the  system can                                                               
provide  nearly  "future-proof"  capabilities.    Where  building                                                               
fiber  isn't  possible,  she   said,  microwave  networks  enable                                                               
delivery of high-speed broadband;  where fiber or microwave isn't                                                               
available,   multiple  geosynchronous   satellites  provide   the                                                               
connection to the world.                                                                                                        
                                                                                                                                
MS. O'CONNOR pointed  out Alaska's uniqueness in  the middle mile                                                               
situation  compared to  the Lower  48, where  people have  nearly                                                               
ubiquitous  access to  fiber-backed connections.   She  presented                                                               
slide 7,  "Middle Mile is Key  - 2010," which displayed  a map of                                                               
the  middle   mile  network  in  2010   showing  undersea  cables                                                               
connecting Alaska  to the  Lower 48, along  with a  few microwave                                                               
links;  numerous black  dots represent  schools that  were served                                                               
solely  by satellite.   Slide  8, "Middle  Mile is  Key -  2020,"                                                               
showed  the   result  of  massive   investment  in   middle  mile                                                               
connectivity  including  new  infrastructure along  the  northern                                                               
coast; expansion  of microwave networks in  Southwest, Northwest,                                                               
and Southeast  Alaska; new fiber  running up the  Dalton Highway;                                                               
and new terrestrial and subsea  links into Canada.  She presented                                                               
slide 9, "Last  Mile Expansion," which read  as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
 braceright Over 50,000 locations upgraded/new broadband by ATA                                                                 
     members since 2015                                                                                                         
                                                                                                                                
     braceright Projects:                                                                                                       
     braceright Alaska Communications                                                                                           
     braceright Alaska Power & Telephone                                                                                        
     braceright Copper Valley Telecom                                                                                           
     braceright GCI                                                                                                             
                                                                                                                                
3:35:24 PM                                                                                                                    
                                                                                                                                
MS. O'CONNOR  presented slide 10,  "New Middle Mile,"  which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     braceright Alaska Power & Telephone                                                                                        
     braceright Cordova Telecom                                                                                                 
     braceright GCI                                                                                                             
     braceright KPU Telecom                                                                                                     
     braceright Matanuska Telephone Association                                                                                 
     braceright Nushagak Cooperative                                                                                            
                                                                                                                                
MS. O'CONNOR shared further detail  regarding slide 10.  She said                                                               
that Alaska Power & Telephone  (AP&T) has constructed an undersea                                                               
cable between  Juneau, Haines, and  Skagway, and is  doubling the                                                               
capacity of  its microwave network between  Juneau and Ketchikan;                                                               
Cordova Telecom expanded its microwave  network in Prince William                                                               
Sound; GCI completed  a multi-year upgrade at  42 microwave sites                                                               
in Western  Alaska to  add more  capacity; KPU  Telecom completed                                                               
Ketchikan  One,  the  first undersea  connection  to  Canada  and                                                               
connecting to their fiber;  Matanuska Telephone Association (MTA)                                                               
constructed  the  Al-Can  One   project,  the  first  terrestrial                                                               
connection  from Alaska  into  Canada;  and Nushagak  Cooperative                                                               
completed  a  major  expansion  of  their  microwave  network  in                                                               
Dillingham.    She  noted  that  the MTA  and  KPU  projects  are                                                               
providing  new routes  from Alaska  to the  Lower 48  which would                                                               
expand  both  the capacity  coming  into  the state  and  provide                                                               
geographic diversity in case of emergency or disaster.                                                                          
                                                                                                                                
MS.  O'CONNOR said  that  every time  there's  an opportunity  to                                                               
deploy  more resources  to improve  networks, Alaska's  broadband                                                               
providers are doing so.   She then presented slide 11, "ReConnect                                                               
Round 1,"  which displayed the  Cordova Telecom  Cooperative logo                                                               
and read as follows [original punctuation provided]:                                                                            
                                                                                                                                
braceright Dec. 3, 2019 USDA awards Cordova Telecom $18.9M grant                                                                
     to connect Yakutat                                                                                                         
                                                                                                                                
MS.  O'CONNOR  presented slide  12,  "ReConnect  Round 2,"  which                                                               
displayed   the  AP&T   logo  and   read  as   follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
 braceright October 12, 2020 USDA awards $21.5M grant to Alaska                                                                 
      Power & Telephone to connect Coffman Cove and Kasaan                                                                      
     on Prince of Wales Island.                                                                                                 
                                                                                                                                
MR.  O'CONNOR  presented slide  13,  "Reconnect  Round 2,"  which                                                               
displayed a  GCI logo and  read as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
  braceright October 12, 2020 USDA awards $25M grant to GCI to                                                                  
      build an undersea fiber connecting Unalaska, Akutan,                                                                      
     King Cove, Sand Point, Chignik, & Larsen Bay                                                                               
                                                                                                                                
MS.  O'CONNOR  presented slide  14,  "Reconnect  Round 2,"  which                                                               
displayed  the  Arctic  Slope Telephone  Association  Cooperative                                                               
(ASTAC)   logo  and   read  as   follows  [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
braceright November 12, 2020 USDA awards $5.3M grant to ASTAC to                                                                
     connect Kaktovik.                                                                                                          
                                                                                                                                
MR.  O'CONNOR  presented slide  15,  "ReConnect  Round 2,"  which                                                               
displayed  the  TelAlaska  and  MTA logos  and  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
    braceright November 12, 2020, USDA awards $4.1M grant to                                                                    
     TelAlaska & $1.9M to MTA.                                                                                                  
          braceright Brevig Mission                                                                                             
          braceright Teller                                                                                                     
          braceright Caswell                                                                                                    
                                                                                                                                
MS.  O'CONNOR characterized  the  projects as  "transformational"                                                               
and  noted  that  the  program   has  a  rigorous  and  expensive                                                               
application process and requires  significant matching funds from                                                               
each  awardee.   She then  presented slide  16, "Low  Earth Orbit                                                               
Satellites -  LEOS," which read as  follows [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     braceright Starlink                                                                                                        
     braceright One Web                                                                                                         
     braceright Project Kuiper                                                                                                  
     braceright Telesat                                                                                                         
                                                                                                                                
MS. O'CONNOR  said that the  questions of expense,  timeline, and                                                               
availability still exist.   She then presented  slide 17, "What's                                                               
next?"     Slide  17  read   as  follows   [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     braceright Private investment - $1.2B                                                                                      
     braceright Federal                                                                                                         
     braceright State                                                                                                           
     braceright Congress                                                                                                        
                                                                                                                                
MS.  O'CONNOR  pointed out  that  it's  critical to  have  stable                                                               
programs at the federal and  state levels.  President Joe Biden's                                                               
American Jobs Act, she said,  proposed $100 billion for broadband                                                               
and  states  the ambitious  goal  to  bring affordable,  reliable                                                               
broadband to every American.                                                                                                    
                                                                                                                                
3:42:00 PM                                                                                                                    
                                                                                                                                
CHRIS KOLEROK,  Director of Policy  and Government  Affairs, Cook                                                               
Inlet Housing Authority  (CIHA), testified in support  of HJR 19.                                                               
He stated that Alaska's infrastructure  is inadequate; cities and                                                               
boroughs  have relied  on new  housing developments  in order  to                                                               
upgrade  existing roads,  water and  sewer lines,  and stormwater                                                               
systems.  The upgrades are often  needed prior to the building of                                                               
new housing, he  said, and will benefit other new  housing in the                                                               
future, which is  one of the reasons why housing  is so expensive                                                               
to  build  and  why  expensive housing  is  the  only  profitable                                                               
housing to develop.  He  described some of the housing structures                                                               
in Anchorage managed by CIHA  and noted the Association of Alaska                                                               
Housing  Authorities,   a  membership  organization  of   the  14                                                               
regional housing authorities that deliver affordable housing.                                                                   
                                                                                                                                
MR.  KOLEROK said  that Alaska's  housing needs  are diverse  but                                                               
that  there aren't  enough homes  for everyone  or for  those who                                                               
earn  a low  income.   The Alaska  Housing Finance  Corporation's                                                               
2019  housing  assessment  said that  Alaska  needs  over  16,000                                                               
housing  units to  address overcrowding,  he said,  which present                                                               
challenges to students who study at  home and those who need rest                                                               
for work.   When  one person  has a  substance abuse  problem but                                                               
lives in an  overcrowded home, he said, 10 or  15 other people in                                                               
the  home may  have their  lives adversely  impacted.   Nearly 35                                                               
percent of homes in the  Yukon-Kuskokwim region and 20 percent of                                                               
homes in  the Bering Strait  region have incomplete  plumbing, he                                                               
said; families are  left more susceptible to  sickness because of                                                               
the inability  to wash their hands  or clothes.  He  said that in                                                               
Southeast  Alaska 16  percent of  homes are  rated with  a single                                                               
star for  energy efficiency,  along with 13  percent of  homes in                                                               
the Interior  and 11  percent in the  Bering Strait  region; this                                                               
means  families  spend more  of  their  income on  heating  fuel.                                                               
Preserving  and  retrofitting  homes  for  energy  efficiency  is                                                               
essential for families on limited incomes, he said.                                                                             
                                                                                                                                
3:47:51 PM                                                                                                                    
                                                                                                                                
MR. KOLEROK stated that infrastructure  is necessary for housing,                                                               
and he  pointed out that  Anchorage's infrastructure  is outdated                                                               
and was  not designed for the  current population.  He  said that                                                               
some of the storm sewer infrastructure  is a century old and made                                                               
of wood,  and there are  requirements that builders  must upgrade                                                               
roads  before  they  can  start  constructing  housing;  in  some                                                               
instances,   he  said,   the   roads  are   already  slated   for                                                               
improvement.     He  said,   "We  have   a  dearth   of  vertical                                                               
construction in urban  Alaska, and that leads into  a skills gap.                                                               
As capital  projects have slowed, skilled  tradespeople have left                                                               
the  state  because there's  not  enough  projects to  keep  them                                                               
continuously busy."   Mr. Kolerok  said that there is  a constant                                                               
need  to  train new  people,  and  projects  are needed  to  take                                                               
skilled tradespeople  from apprenticeship to journey  status.  He                                                               
said that several years' worth  of capital projects are needed to                                                               
begin a  self-sustaining cycle of  construction and to  support a                                                               
workforce, and  that housing is  infrastructure when  speaking in                                                               
in terms of  workforce, society, and economy; it  is not possible                                                               
to  have   a  well-functioning   workforce  that's   homeless  or                                                               
overcrowded.   President  Joe Biden's  infrastructure initiative,                                                               
he  said, is  a "once-in-a-generation"  chance for  investment in                                                               
housing and  infrastructure.  He pointed  out that infrastructure                                                               
is  an  eligible  spending  item   in  the  Supplemental  Housing                                                               
Development  Grant program  through  the  Alaska Housing  Finance                                                               
Corporation (AHFC).   He then  talked about gap funding  for low-                                                               
income  housing tax  credit projects;  at a  leverage of  $20,000                                                               
per-unit, he said, would mean $10  million to pay for 500 housing                                                               
units  and close  the gap  around housing  developers needing  to                                                               
upgrade infrastructure.                                                                                                         
                                                                                                                                
3:51:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY asked how  the increased cost of materials                                                               
affects housing projects.  He  then asked for alternative ways of                                                               
meeting the housing need.                                                                                                       
                                                                                                                                
MR. KOLEROK replied  that there is no doubt  that materials costs                                                               
have greatly increased.   The large influx of  federal dollars is                                                               
one  of the  few  tools CIHA  has to  directly  address the  cost                                                               
increases, he  said, with the  hope that  improved infrastructure                                                               
would lead to improvements in logistics.                                                                                        
                                                                                                                                
3:54:13 PM                                                                                                                    
                                                                                                                                
CRYSTAL  ENKVIST, Executive  Director,  Alaska Power  Association                                                               
(APA), testified  in support  of HJR  19.   She said  that roads,                                                               
airports,  and ports  won't work  without  electricity, and  that                                                               
Alaska's electricity  utilities have  innovated while  working in                                                               
harsh   conditions.     She   explained   that  power   marketing                                                               
administrations  such  as  the  Bonneville  Power  Administration                                                               
facilitate  lower  electricity  costs   in  many  areas;  Alaska,                                                               
however, lacks the federal investment  enjoyed by many regions in                                                               
the Lower 48.   Alaska's lawmakers now have  the opportunity, due                                                               
to  the  American  Rescue  Plan Act  and  President  Joe  Biden's                                                               
infrastructure bill,  to plan a  future that  includes affordable                                                               
energy.  She described the  effort to transition from diesel fuel                                                               
generation   to   hydropower   and   said   that   infrastructure                                                               
reliability  would  help that  effort,  especially  in areas  not                                                               
connected  to the  larger grid.   She  said there  is a  need for                                                               
investment  in battery  energy  storage  systems, wind  turbines,                                                               
solar and hydropower projects, and  transmission lines to connect                                                               
communities.    She  noted  the   success  experienced  by  rural                                                               
communities in  their efforts to  integrate wind and  solar power                                                               
with  battery  storage backups  and  said  federal funding  gives                                                               
companies the opportunity to continue innovating.                                                                               
                                                                                                                                
3:58:38 PM                                                                                                                    
                                                                                                                                
MS.  ENKVIST   said  that  as  battery   storage  technology  has                                                               
improved,  prices have  decreased, and  battery systems  serve to                                                               
help regulate renewable power and  provide an important backup in                                                               
case a  power plant goes  offline.  The technology  has statewide                                                               
applications in  communities of all  sizes, she  said, especially                                                               
during  the  winter  when  consistent power  is  critical.    The                                                               
Roadbelt  Intertie  project   would  increase  Alaska's  electric                                                               
system  reliability, she  said, allowing  for the  integration of                                                               
more  renewable energy,  enhance  power  reliability to  military                                                               
installations,  provide  redundancy for  the  Anchorage-Fairbanks                                                               
intertie, and  enable economic  development opportunities  in the                                                               
Copper  Valley  region.   The  proposed  run-of-river project  in                                                               
Southwest Alaska,  she said, could generate  power year-round and                                                               
generate up  to 20 megawatts  of power, depending  on seasonality                                                               
and river flow;  electricity and optical fiber  could be provided                                                               
to  Dillingham   and  other  area  communities   to  support  the                                                               
electricity and  broadband needs in  the Bristol Bay region.   In                                                               
South Central  Alaska, she said,  the railbelt utilities  and the                                                               
Alaska Energy Authority  have identified more than  $1 billion in                                                               
transmission  upgrades, removing  constraints,  and allowing  for                                                               
better use  of the  Bradley Lake  hydropower project  that serves                                                               
more than half of Alaska's population.                                                                                          
                                                                                                                                
MS.  ENKVIST said  that renewable  energy  generation requires  a                                                               
grid that can  accommodate the full potential of  such energy, as                                                               
well as  for safety  and reliability.   "There  is no  doubt that                                                               
Alaska can  be a leader in  renewable energy," she said,  "but it                                                               
will take additional  funding from the renewable  energy fund and                                                               
other sources  to get us  there."  Alaska's energy  utilities are                                                               
integrating renewable  energy sources into their  portfolios, she                                                               
said,  and  the  Renewable  Energy   Fund  (REF)  program  is  an                                                               
effective way  to continue investment and  development to benefit                                                               
communities.   Electric vehicle charging stations  continue to be                                                               
installed  by communities  and  businesses, and  as  more of  the                                                               
barriers to  electric vehicle usage are  addressed, more Alaskans                                                               
will  consider electric  vehicle purchases.   Since  the vehicles                                                               
are commonly  charged at night,  she said, electricity  loads are                                                               
occurring during off-peak  hours.  She pointed  out that electric                                                               
vehicles  are  popular in  small  communities  with limited  road                                                               
miles  and  that the  development  of  electric vehicle  charging                                                               
infrastructure would  resolve a  barrier to market  expansion and                                                               
inform future  utility planning.   "Alaska's future relies  on an                                                               
electric system that can fully  employ the technological advances                                                               
of  tomorrow,"  she said,  "but  the  time  to  move us  in  that                                                               
direction  is  now."    She  said  that  the  economy  relies  on                                                               
electricity and the state must  invest in strategic and necessary                                                               
upgrades statewide.                                                                                                             
                                                                                                                                
4:03:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS  noted that  Ms. Enkvist  referenced a  number of                                                               
projects  that  were  sent  to   members  of  the  House  Special                                                               
Committee on  Energy and asked  her to send the  same information                                                               
to members of the House Labor and Commerce Standing Committee.                                                                  
                                                                                                                                
4:04:26 PM                                                                                                                    
                                                                                                                                
JIM JAGER,  Director, Business  Continuity and  External Affairs,                                                               
Port  of   Alaska  at   Anchorage,  Municipality   of  Anchorage,                                                               
presented a  PowerPoint as  part of his  testimony in  support of                                                               
HJR 19.   He presented slide  2, which read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     4.7 MILLION TONS OF FUEL AND CARGO IN 2020                                                                               
                                                                                                                                
     14.3 BILLION IN STATEWIDE COMMERCIAL ACTVITY IN 2019                                                                     
                                                                                                                                
         HANDLES GOODS CONSUNSUMED BY 90% OF ALL ALASKA                                                                         
     RESIDENTS STATEWIDE                                                                                                        
                                                                                                                                
     HALF OF ALL ALASKA INBOUND FREIGHT CROSSES ANCHORAGE'S                                                                   
     DOCK                                                                                                                       
                                                                                                                                
     HALF OF ALL THE FREIGHT THAT CROSSES ANCHORAGE'S DOCK                                                                    
     IS DELIVERED TO FINAL DESTINATION OUTSIDE OF ANCHORAGE                                                                     
                                                                                                                                
       75% OF ALL NON-PETROLEUM MARINE CARGO SHIPPED INTO                                                                     
     ALASKA                                                                                                                     
                                                                                                                                
MR.  JAGER said  that cargo  handling, logistics,  and efficiency                                                               
are driven  by proximity to markets,  infrastructure for handling                                                               
the cargo, and  transportation connections.  He  pointed out that                                                               
54 percent  of Alaska's population  lives within an  hour's drive                                                               
of the  Port of Alaska  at Anchorage.   He said the  port handles                                                               
hundreds  of  millions  of  dollars'   worth  of  mostly  private                                                               
infrastructure  as detailed  on slide  3, which  read as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     125+ ACRES OF CARGO-HANDLING INFRASTRUCTURE                                                                              
                                                                                                                                
     3.1 MILLION BARRELS OF LIQUID FUEL STORAGE                                                                               
                                                                                                                                
     60,000 TONS OF CEMENT STORAGE                                                                                            
                                                                                                                                
     DOCK CRANES, RO-RO TRESTLES, RAIL, PIPLINES, ETC.                                                                          
                                                                                                                                
     SKILLED WORKFORCE                                                                                                        
                                                                                                                                
MR.  JAGER  presented  slide  4, which  displayed  a  graphic  of                                                               
different modes of transportation,  and explained that the marine                                                               
transportation system meets the road  system, which meets the air                                                               
transportation  system,   railroad,  and   pipeline.     He  then                                                               
presented slide  5, which listed commerce,  national defense, and                                                               
disaster response  as the three  functions of the Port  of Alaska                                                               
at Anchorage.  He presented  slide 6, which displayed pictures of                                                               
corroded materials  and read, "Docks  have exceeded  economic and                                                               
design  life  and  are failing  from  age-related  corrosion  and                                                               
obsolescence."  He  said that a 2020  engineering study concluded                                                               
that load  limits would need to  be reduced and docks  would need                                                               
to  be closed  within the  next five  years.   He then  presented                                                               
slide 7,  "Port of Alaska  Modernization Program," which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     ? Replace aging docks and related infrastructure                                                                           
                                                                                                                                
     ? Improve operational safety and efficiency                                                                                
                                                                                                                                
     ? Accommodate modern shipping operations                                                                                   
                                                                                                                                
        ? Improve resiliency  to survive extreme seismic                                                                        
     events and Cook Inlet's harsh marine environment                                                                           
                                                                                                                                
MR. JAGER presented slide 8, which  showed a picture from 2020 of                                                               
construction of  a new dock, and  slide 9, which showed  a recent                                                               
picture of the finished dock.                                                                                                   
                                                                                                                                
MR.  JAGER  presented  slide 10,  "Petroleum  &  Cement  Terminal                                                               
Funding," which read as follows [original punctuation provided]:                                                                
                                                                                                                                
      Remaining PIEP funds State Capital Grant (2012) $28                                                                     
     Million                                                                                                                    
          SB160 State Grant (2013) $48 Million                                                                                
          State GO Bond (2013) $50 Million                                                                              
     State Grant (2019) $20 Million                                                                                       
     Federal Grants                                                                                                         
          MARAD BUILD II Grant (2019) $25 Million                                                                     
          MARAD PIDP Grant (2019) $20 Million                                                                           
     Port Cash/Equity $2 Million                                                                                            
     Bond Proceeds (repaid w/ PoA tariffs) $60 Million                                                              
                                                                                                                                
MR.   JAGER   noted   that  federal   funds   are   critical   to                                                               
infrastructure.   He  then presented  slide 11,  "North Extension                                                               
Stabilization,"  which displayed  an aerial  picture of  the area                                                               
slated  for  construction and  which  read  as follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Phase 1 north extension stabilization $121 M                                                                               
     On-shore facilities replacement $15 M                                                                                      
     Phase 2 north extension stabilization $128 M                                                                               
                                                                                                                                
MR. JAGER presented slide 12,  "2022 construction: $121 million,"                                                               
and slide 13,  "Balance of North Extension:  $128 million," which                                                               
displayed the same picture as slide  11.  He then presented slide                                                               
14, "What's  next?", which read as  follows [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     $1 Billion+ General Cargo Terminal Replacement                                                                           
                                                                                                                                
     ? Cargo Terminal Design and Permitting (2021-24)                                                                           
     ? Phase 1 North Extension Stabilization (2022)                                                                             
     ? Administration Building (2022-23)                                                                                        
     ? Phase 2 North Extension Stabilization (>2022)                                                                            
     ? Cargo Terminal 1 Replacement (2025)                                                                                      
     ? Cargo Terminal 2 Replacement (2028)                                                                                      
     ? Fuels Terminal Incorporation (>2028)                                                                                     
     ? Terminal 3 Demolition (>2030)                                                                                            
                                                                                                                                
MR. JAGER  pointed out  that bonds can  be repaid  using tariffs,                                                               
but several  large projects  can't be funded  by bonds,  which is                                                               
why federal funding is so important.                                                                                            
                                                                                                                                
4:12:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY asked for  clarification about the numbers                                                               
in slide 1.                                                                                                                     
                                                                                                                                
MR. JAGER replied  that 90 percent of  Alaska residents routinely                                                               
use  items  that  have  come   through  the  Port  of  Alaska  at                                                               
Anchorage.                                                                                                                      
                                                                                                                                
REPRESENTATIVE MCCARTY asked about imports.                                                                                     
                                                                                                                                
MR.  JAGER responded  that 90  percent of  all goods  arriving in                                                               
Alaska arrive by  ship or barge; the Port of  Alaska at Anchorage                                                               
handles half  of all types  of cargo, and  half of that  cargo is                                                               
transferred to  a different  mode of  transportation and  sent to                                                               
other parts of the state.                                                                                                       
                                                                                                                                
REPRESENTATIVE MCCARTY  talked about taking  mud out of  the port                                                               
area and asked for alternatives  in case something happens to the                                                               
port.                                                                                                                           
                                                                                                                                
MR. JAGER replied  that redundancies are in place  in other parts                                                               
of the country; if something happens  at the Port of Tacoma there                                                               
are  six  other  nearby  seaports  that  can  handle  the  cargo.                                                               
Alaska's population  is too small  for redundant ports,  he said,                                                               
pointing out  that the  ports at Whittier  and Seward  don't have                                                               
the deep water or necessary infrastructure.                                                                                     
                                                                                                                                
4:16:08 PM                                                                                                                    
                                                                                                                                
ALICE SIIRA,  Executive Director, Associated  General Contractors                                                               
(AGC),  presented  a  PowerPoint  as part  of  her  testimony  in                                                               
support of HJR 19.  She  said AGC is looking forward to providing                                                               
input  as  legislators  develop  strategic,  long-term  plans  to                                                               
maximize funding and prioritize  critical infrastructure needs to                                                               
provide immediate  economic relief and  employment opportunities.                                                               
She presented  slide 2,  "HOW MONEY  FLOWS THROUGH  OUR ECONOMY,"                                                               
which displayed  a graphic showing that  spending by construction                                                               
companies creates indirect impacts,  including vendor spending on                                                               
jobs  and  payroll.    She  then presented  slide  3,  "IN  2019,                                                               
ALASKA'S  CONSTRUCTION  INDUSTRY..."   Slide  3  read as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Employed Alaskans                                                                                                        
                                                                                                                                
      ? Employed 24,000 workers, including wage & salary,                                                                     
     and self-employed workers                                                                                                
            81% Alaska Residents making 86% of Alaska wages                                                                 
            1 in 20 Alaska jobs (5%) was in construction                                                                      
                                                                                                                                
     Paid Alaskans                                                                                                            
                                                                                                                                
       ? Paid $2.3 billion in labor income, or 7% of all                                                                      
     earnings in Alaska                                                                                                         
                                                                                                                                
     Generated Multiplier Effects                                                                                             
                                                                                                                                
       ? Total impacts of 42,000 jobs and $3.4 billion in                                                                   
     wages                                                                                                                      
          ? 9% of total employment in Alaska                                                                                    
          ? 10% of total labor income in Alaska                                                                                 
                                                                                                                                
MS.  SIIRA  presented  slide   4,  "2,507  CONSTRUCTION  INDUSTRY                                                               
EMPLOYERS," which  displayed a table  showing 2019  statistics of                                                               
2,507  total  employers, 16,396  jobs,  and  over $1  billion  in                                                               
wages.                                                                                                                          
                                                                                                                                
4:19:41 PM                                                                                                                    
                                                                                                                                
MS. SIIRA  noted that she skipped  slide 5 and moved  to slide 6,                                                               
"CONSTRUCTION  WAGES,"  which  showed that  wages  for  specialty                                                               
trade  contractors total  $515 million;  for heavy  construction,                                                               
$449 million; and  for building construction, $368  million.  She                                                               
pointed out that  the average annual construction  worker wage is                                                               
$81,258, which  is 43  percent above the  average Alaska  wage of                                                               
$56,983.   She then presented  slide 7, "TOTAL  ECONOMIC IMPACT,"                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
    ?   Statewide    construction   industry-related   jobs                                                                     
     represent 9% of all Alaska jobs (42,000 of 453,788)                                                                        
                                                                                                                                
     ? Construction industry-related activity accounted for                                                                     
       $3.4B in labor income, 10% of Alaska's total labor                                                                       
     income ($32.7B)                                                                                                            
                                                                                                                                
MS. SIIRA presented slide 8,  "STATE/FEDERAL FUNDING FOR STATE OF                                                               
ALASKA CONSTRUCTION  PROJECTS," which  showed the portion  of the                                                               
capital  budget  related to  construction.    She said  that  the                                                               
federal government  has been the dominant  source of construction                                                               
funding since 2014,  as the state's capital  budget has declined.                                                               
She then  discussed the impacts  of COVID-19 and  presented slide                                                               
9,  "CONSTRUCTION  ACTIVITY  IMPACTS,"   which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     ?  As  essential  workers,  the  construction  industry                                                                    
     continued  work on  projects  across Alaska  throughout                                                                    
     the pandemic.                                                                                                              
                                                                                                                                
     ?  However, due  to revenue  constraints, supply  chain                                                                    
     challenges,  and  complicated  logistics,  construction                                                                    
     activity  was  significantly  impacted in  2020;  these                                                                    
     impacts are expected to continue in 2021                                                                                   
                                                                                                                                
MR. SIIRA said  that contracts worth $50  million were cancelled,                                                               
with  another  $50  million  in deferred  spending.    Slide  10,                                                               
"CONSTRUCTION  COMPANY IMPACTS,"  displayed a  chart showing  the                                                               
number of  initial unemployment  claims by  construction workers;                                                               
like  other  industries,  construction  saw a  notable  spike  in                                                               
unemployment  claims in  April 2020,  then the  number of  claims                                                               
trended  downward.     She  said  construction   companies  spent                                                               
hundreds of  millions of  dollars on  overtime pay,  testing, and                                                               
extra  housing at  work sites;  many construction  companies were                                                               
assisted  by  federal  stimulus  funds  and  about  12,000  total                                                               
employees were retained.   She then presented slide  11, "THE BIG                                                               
TAKEAWAYS,"   which  read   as   follows  [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     24,000 construction  jobs, earning  $2.3 B  (81% Alaska                                                                
     Resident Hire and 86% Alaska Resident Wages Paid)                                                                          
                                                                                                                                
     Total Economic  Impact of Industry: 42,000  jobs (9% of                                                                  
     Alaska's jobs) $3.4 B (10% of Alaska earnings)                                                                           
                                                                                                                                
     Oil  prices and  COVID-19  have significantly  impacted                                                                    
     Alaska's   construction   activity   and   construction                                                                    
     companies                                                                                                                  
                                                                                                                                
4:25:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS opined  that the  construction  industry did  an                                                               
"extraordinary" job managing COVID-19.                                                                                          
                                                                                                                                
4:25:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY  asked about  the  supply  and demand  of                                                               
materials in Alaska.                                                                                                            
                                                                                                                                
MS. SIIRA replied  that AGC has noticed supply  chain issues that                                                               
are driving  up the cost of  materials.  She said  that employers                                                               
are getting creative and hoping that the issue levels out.                                                                      
                                                                                                                                
REPRESENTATIVE MCCARTY  asked whether  losing the rail  barge out                                                               
of Prince  Rupert, British Columbia,  was one of the  reasons for                                                               
the supply chain issues.                                                                                                        
                                                                                                                                
MS. SIIRA replied that she would find out.                                                                                      
                                                                                                                                
[HJR 19 was held over.]                                                                                                         

Document Name Date/Time Subjects
HB 146 Letters of Support Received as of 4.26.21.pdf HL&C 4/28/2021 3:15:00 PM
HB 146
HB 146 Ver. B 4.21.21.pdf HL&C 4/23/2021 8:00:00 AM
HL&C 4/28/2021 3:15:00 PM
HB 146
HB 146 University of Minnesota Paper 4.21.21.pdf HL&C 4/23/2021 8:00:00 AM
HL&C 4/28/2021 3:15:00 PM
HB 146
Draft CS HB 146 L&C 4.21.21.pdf HL&C 4/23/2021 8:00:00 AM
HL&C 4/28/2021 3:15:00 PM
HB 146
HB 146 Summary of Changes Ver. A to Ver. B 4.21.21.pdf HL&C 4/23/2021 8:00:00 AM
HL&C 4/28/2021 3:15:00 PM
HB 146
HB 146 Fiscal Note DOLWC-WH 4.5.21.pdf HL&C 4/23/2021 8:00:00 AM
HL&C 4/28/2021 3:15:00 PM
HB 146
HB 146 IWPR Pay Secrecy Report 4.21.21.pdf HL&C 4/23/2021 8:00:00 AM
HL&C 4/28/2021 3:15:00 PM
HB 146
HB 146 Sectional Ver. B 4.21.21.pdf HL&C 4/23/2021 8:00:00 AM
HL&C 4/28/2021 3:15:00 PM
HB 146
HB 146 Sponsor Statement 4.21.21.pdf HL&C 4/23/2021 8:00:00 AM
HL&C 4/28/2021 3:15:00 PM
HB 146
HB 149 Supporting Document - JHU IDEALS 2019 Wage and Compensation Study.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 Supporting Document - Center for Women and Work 4.3.2021.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 Supporting Document - BLS Child Care Worker Occupational Outlook 4.3.2021.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 Supporting Document - The Culture Of Health In ECE 4.3.2021.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 ver A Sectional Analysis.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 ver A Sponsor Statement.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 ver A.pdf HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 Supporting Document - Alaska Early Care and Learning in Alaska Report.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 Supporting Document - American Rights At Work Fund 4.3.2021.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 ppt presentation.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 Fiscal note - DOL, 3.26.21.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
HB 149 Supporting Document - SEIU Presentation.pdf HL&C 4/5/2021 3:15:00 PM
HL&C 4/28/2021 3:15:00 PM
HB 149
Presentation - Alaska Telecom Association, 4.28.21.pdf HL&C 4/28/2021 3:15:00 PM
(H)L&C Infrastructure Resolution.pdf HL&C 4/28/2021 3:15:00 PM
Economic Benefits of Alaska's Construction Industry, 2021 - AGC.pdf HL&C 4/28/2021 3:15:00 PM
HB 149 Raising Wages & Benefits for Child Care Workers Additional Presentation 4.27.21.pdf HL&C 4/28/2021 3:15:00 PM
HB 149
Amendment #1 to CS for HB146 (L&C).pdf HL&C 4/28/2021 3:15:00 PM
HB 146
Presentation - Port of Alaska, 4.28.21.pdf HL&C 4/28/2021 3:15:00 PM
HB 146 Supporting Document - States with Salary History Bans.pdf HL&C 4/28/2021 3:15:00 PM
HB 146
HB 146 Supporting Document - Fiscal Impacts in Other States.pdf HL&C 4/28/2021 3:15:00 PM
HB 146
HB 146 Letter in Support - Alaska AFL-CIO, 4.27.21.pdf HL&C 4/28/2021 3:15:00 PM
HB 146
HB 149 Presentation - CED, 4.27.21.pdf HL&C 4/28/2021 3:15:00 PM
HB 149
Presentation - Associated General Contractors, 4.28.21.pdf HL&C 4/28/2021 3:15:00 PM
HB 149 Letters of Support as of 4.28.21.pdf HL&C 4/28/2021 3:15:00 PM
HB 149