Legislature(2017 - 2018)CAPITOL 106
03/07/2017 01:00 PM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): U.s. Arctic Research Commission 2017-18 Goals Report | |
| Presentation(s): Expanding Arctic Martime Capacity & Readiness | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ARCTIC POLICY,
ECONOMIC DEVELOPMENT, AND TOURISM
March 7, 2017
1:08 p.m.
MEMBERS PRESENT
Representative Dean Westlake, Chair
Representative Andy Josephson
Representative Gary Knopp
Representative David Talerico
Representative Bryce Edgmon
MEMBERS ABSENT
Representative Chris Tuck
Representative Mark Neuman
COMMITTEE CALENDAR
PRESENTATION(S): U.S. ARCTIC RESEARCH COMMISSION 2017-18 GOALS
REPORT
- HEARD
PRESENTATION(S): EXPANDING ARCTIC MARTIME CAPACITY & READINESS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
FRAN ULMER, Chair
U.S. Arctic Research Commission
Anchorage, Alaska
POSITION STATEMENT: During the U.S. Arctic Research Commission
2017-18 Goals Report PowerPoint presentation, discussed the
Arctic.
RICHARD BENNEVELLE, Mayor
City of Nome
Nome, Alaska
POSITION STATEMENT: Co-Presented the PowerPoint presentation,
Expanding Arctic Maritime Capacity & Readiness.
JOY BAKER
Nome Port Director
Nome, Alaska
POSITION STATEMENT: Co-Presented the PowerPoint presentation,
Expanding Arctic Maritime Capacity & Readiness.
UKALLAYSAAG THOMAS OKLEASIK, Vice President, Corporate Affairs
Sitnasuak Native Corporation
Nome, Alaska
POSITION STATEMENT: Co-Presented the PowerPoint presentation,
Expanding Arctic Maritime Capacity & Readiness.
ACTION NARRATIVE
1:08:26 PM
CHAIR DEAN WESTLAKE called the House Special Committee On Arctic
Policy, Economic Development, and Tourism meeting to order at
1:08 p.m. Representatives Josephson, Knopp, Edgmon, Talerico,
and Westlake were present at the call to order. Representative
Edgman arrived as the meeting was in progress.
^PRESENTATION(S): U.S. ARCTIC RESEARCH COMMISSION 2017-18 GOALS
REPORT
PRESENTATION(S): U.S. ARCTIC RESEARCH COMMISSION
2017-18 GOALS REPORT
1:09:25 PM
CHAIR WESTLAKE announced that the first order of business would
be a presentation titled, "US Arctic Research Commission's 2017-
18 Goals Report."
1:10:17 PM
FRAN ULMER, Chair, U.S. Arctic Research Commission, noted that
the committee had previously heard "a lot of material" and she
would attempt not to duplicate. Ms. Ulmer advised that the
Arctic Research Commission was created by the 1984 Congress, and
Senator Frank Murkowski's legislation created the commission to
bring the Arctic's relevance forward and have federal agencies
to speak to each other while listening to the people of the
Arctic. She turned to slide 29, and advised that the Commission
is not like the National Science Foundation as it does not have
money to give away, it does not issue permits or run programs,
it provides advice and helps to coordinate the federal agencies'
research efforts
MS. ULMER turned to slide 30, and advised the slide depicts
photographs of the commissioners appointed directly by President
of the United States, and they have terms with specific lengths
of time.
1:12:58 PM
MS. ULMER turned to slides 31-32, and advised that the
commission produces the "Report on the Goals and Objectives for
Arctic Research 2017-2018 for the US Arctic Research Program
Plan." The report basically focuses on the major issues the
commission distilled from listening to people in the Arctic, the
research community, and other people across the Arctic because,
by law, it is not solely focused on the Alaska piece of the
Arctic, but the Arctic as a whole.
MS. ULMER turned to slide 33, and advised that the report this
year is different because in addition to talking about the goals
and explaining why those issues are the most important, it also
advises of the accomplishments thus far under those various
goals in terms of federal Arctic initiatives by federal
agencies, the National Science Foundation, and universities.
1:14:26 PM
MS. ULMER turned to slide 34, and noted that the commission is
working on what it calls "working groups" which are a composite
of people in Alaska focused on water, mental health, and
renewable energy. These three areas tend to come up repeatedly,
not only in Alaska but in other Arctic remote communities with
"traditional technologies" that actually do not work well.
Alaska needs innovative technologies that are cheaper, easier to
maintain, longer lasting, and fill the needs of its people.
1:15:37 PM
MS. ULMER turned to slides 35-37, and said the slides are short
summaries of the three working groups. Sanitation remains a
huge issue in rural communities where there is not adequate
fresh water or sanitation facilities, and where the state has
seen a reduction in federal spending over the years even with
the need. She related that renewable energy work is ongoing by
different players and this working group has federal, states,
Alaska, Native, private sector, and university partnerships to
be certain they are not duplicating what is being accomplished
in other places. Suicide remains a very sad statistic in Alaska
and people are concerned it is not making as much progress. She
related that this working group is an approach to determining
whether there is a way of measuring early intervention in a
prevention manner, as opposed to a crisis intervention after a
community had already experienced a series of suicides.
1:16:49 PM
MS. ULMER turned to slides 37-40, and advised that the
Interagency Arctic Research Policy Committee (IARPC) was also
created within Senator Murkowski's legislation in 1984 as a
manner in which to have federal agencies partner across agency
boundaries while performing their Arctic science research.
These agencies include: National Aeronautics and Space
Administration (NASA), National Oceanic and Atmospheric
Administration (NOAA), United States Department of the Interior
(DOI), United States Environmental Protection Agency (EPA),
United States Navy, Office of Naval Research (ONR), and many
other federal agencies that for one reason or another, over the
years, have both a statutory mission responsibility with regard
to the Arctic, or scientific expertise relevant to decisions
that need to be made in the Arctic. Every five years, she
explained, the goals are set by the Arctic Research Commission,
and the research plan is prepared by IARPC, it then moves into
the Office of Management and Budget (OMB) to influence and
inform the way in which the President of the United States'
budget moves forward in terms of requesting funding for Arctic
research
1:18:31 PM
MS. ULMER turned to slides 41-44, and explained that the new
Arctic Research Plan 2017-2021 was released last month. The new
plan experienced a lot of vetting, including the IARPS committee
visiting Alaska to receive input from Alaskans. She turned to
slide 41, and advised the slide depicts the four principle
drivers for the research plan as follows: enhancing the well-
being of Arctic residents; advance stewardship of the Arctic
environment; strengthen national and regional security; and
improve the understanding of the Arctic as a component of planet
Earth. She noted that these four drivers nicely reflect the
National Arctic Strategy adopted in 2013.
MS. ULMER turned to slide 43, and noted it is organized in a
variety of ways, and pointed out that each of the research areas
stand on the shoulders of collaborations moving across agencies,
but also involves the public. Information can be found at
iarpccollaborations.org wherein the public can join one of the
teams.
MS. ULMER turned to slides 45-46, and said the slides explain
the Arctic Council. It is fascinating, she described, that
countries such as Chili, India, and Singapore are interested in
the Arctic for reasons such as, shipping, tourism, oil and gas
development, and national security.
1:22:20 PM
MS. ULMER turned to slides 48-51, and advised that two
agreements have been adopted due to the work of the Arctic
Council, which are: search and rescue, and oil spill response.
The upcoming meeting of the May Ministerial in Fairbanks,
hopefully, will see the adoption of the newest third agreement
on international science. She referred to the "US Chairmanship
Theme," and said it addresses climate change, Arctic Ocean
stewardship, and improving economic and living conditions in the
Arctic. Slide 51 depicts the upcoming dates of interest and she
explained the events.
1:22:46 PM
MS. ULMER turned to slides 52-53, and said the 2016 White House
Arctic Science Ministerial was held in Washington, D.C. in
September and was the first time the United States or any
country had held an Arctic Science Ministerial for 25 countries
at the same level as the heads of the National Science
Foundation. The focus of the themes are depicted on slide 52,
and a number of products came out of that event, including new
research partnerships and a summary of what each of those 25
countries are doing in Arctic science. Each of the countries
were asked to provide two pages as to what it was doing as a
country in Arctic science, who was doing it, how was it funded,
what were its priorities, and how did it relate to each
country's national objectives. "Supporting Arctic Science" is a
useful resource document not only for the research community,
but for nations to see what other nations are doing as to the
Arctic.
1:24:22 PM
MS. ULMER turned to slide 54, and drew the committee's attention
to www.arctic.gov, and advised it is the website for the Arctic
Research Commission and includes the IARPC 5-year Arctic
Research Plan, the goals report, information about the White
House Arctic Science Ministerial, what each country was doing,
and everything she spoke about today. She suggested signing up
for the Arctic Update which provides a view, every single day,
as to what is going on in Arctic science.
1:26:27 PM
REPRESENTATIVE KNOPP said he appreciated the sites Ms. Ulmer
offered which includes the people engaged in the Arctic.
MS. ULMER related that other areas of the Arctic are
experiencing the same type of changes as Alaska. Every Arctic
meeting reveals: the changes, whether it has thawing permafrost,
retreat of the sea ice, the fact that winter comes late and
spring come early, and all of these indicators exist across the
Arctic. The documentation of these issues and the attempt to
understand the implications for humans, as well as the eco-
system, is the focus of the work being performed by the Arctic
eight nations, and all of those 25 Arctic nations attending the
science ministerial.
1:28:02 PM
The committee took an at-ease from 1:28 p.m. to 1:31 p.m.
^PRESENTATION(S): EXPANDING ARCTIC MARTIME CAPACITY & READINESS
PRESENTATION(S): EXPANDING ARCTIC MARTIME CAPACITY & READINESS
1:31:42 PM
CHAIR WESTLAKE announced that the final order of business would
be a presentation titled, "Expanding Arctic Maritime Capacity &
Readiness"
1:32:14 PM
RICHARD BENNEVELLE, Mayor, City of Nome, turned to slides 55-57,
referred to the Port of Nome and the expansion to a deep-water
port, and said the City of Nome is perched at the edge of the
Bering Strait. The Port of Nome has been in existence for 32
years, it turns a profit, and its infrastructure includes: a
regional hospital, 350 miles of roads, and alternative runways
at its airports. Alaska has more than one-half of the
coastlines of the entire United States of America and with its
strategic location many things are happening. Western Alaska
benefits from the Port of Nome with 53 communities traveling
from Bethel to Point Barrow for commerce.
1:37:12 PM
JOY BAKER, Nome Port Director, advised that the Sitnasuak Native
Corporation (SNC) has been a "great partner" with the City of
Nome in joining forces to pursue the development of a deep-water
port in Nome.
1:37:58 PM
UKALLAYSAAG THOMAS OKLEASIK, Vice President, Corporate Affairs,
Sitnasuak Native Corporation, advised that slide 57 depicts the
Sitnasuak Native Corporation (SNC) who is partnering with the
City of Nome for the development of a deep-water port. Today,
SNC is one of the largest corporations and is headquartered in
the City of Nome but also has operations in Anchorage, the
Matanuska-Susitna Valley, California, Virginia, and Porto Rico.
The Franklin D. Oleosin, Sr. Tank Farm Facility is a shore-based
bulk fuel storage, at 6 million gallons, "and it was only
possible with the port expansion" which opened it up for the SNC
to expand and provide the important service of safety of the
marine shore-based refueling versus off-shore refueling.
1:39:38 PM
MS. BAKER turned to slide 58, and reiterated previous testimony
that the Arctic is changing quickly as to the traffic,
development of the many different resources off-shore, Graphite
One is being developed for export at the Port of Nome, the
onshore CBQ with Norton Sound Economic Development Corporation,
and the fisheries continues to grow with a home port fishing
fleet working out of the City of Nome. The City of Nome is
preparing and making changes as it can in order to address the
increased demand and growth.
1:40:52 PM
MR. BENNEVELLE turned to slide 59, and advised that the tourism
demands on the City of Nome are about 6-7 cruise ships per year,
people fly in or take the railroad, or arrive for the Iditarod.
The sense of history and what is happening in the Far North is
real to those visiting the City of Nome, he commented.
MS. BAKER turned to slides 60-61, and noted that it depicts the
City of Nome's traffic since 1995, and the trend continues to
increase over time with anchor traffic showing a significant
jump in 2016, 387 vessels this summer is a 138 percent increase
over 2015. She explained that it includes: research traffic;
cargo vessels; gravel export to Hooper Bay, and anchored traffic
for four and five tanker vessels transferring fuel ship-to-ship
and ship-to-shore. Ms. Baker explained that slide 61 depicts a
one-day snapshot, on July 23, 2016, this is a typical day in
July and August for vessel traffic off of the City of Nome. She
describes it as "musical docking" to accommodate all ships'
resupply needs and get the ships into the three docks on the
causeway. The average occupancy for 2016 was 74 percent for the
port docks, and in July it was 92 percent.
1:45:25 PM
MR. BENNEVELLE commented that when Shell Oil "pulled out" many
people thought that was the end of the Arctic, which was untrue.
He said, the future is here in a real sense and, as a state and
nation, people need to be ready for events down-the-road.
During his meeting with the Corp. of Engineers, he was advised
that it decided to make a known port specific study using the
data gathered over the three-years it reviewed ports to the Far
North. He said, "We are a go for the Corp. of Engineers."
1:46:48 PM
REPRESENTATIVE TALERICO referred to slide 61, and asked what the
passengers would do, what they were looking at in port.
MR. BENNEVELLE responded that those ships are not passenger
ships, most are tankers or other related businesses. The City
of Nome receives approximately 2,400 tourists a year who had
previously asked about gold and dogs, and now they ask about
climate change and Native culture. The City of Nome exports
millions of tons of gravel to projects all over the state, which
shows the vitality of the region, town, and the industry around
the town.
1:48:33 PM
MR. BENNEVELLE responded to Representative Talerico that he was
looking at a vessel on the slide.
REPRESENTATIVE TALERICO noted a lot of marine traffic that he
did not know was there.
MR. BENNEVELLE remarked that when Senator Lisa Murkowski visited
the City of Nome last summer she was surprised to see 12 ships
in port, and he commented that the City of Nome has a huge
amount of fuel coming in and exporting out to the regions from
"Bethel up."
1:49:54 PM
MR. OKLEASIK turned to slide 62, and explained that preparation
and community engagement are key to the changing Arctic.
Preparation includes working with the industry and its users,
involving communities for barges, fuel, equipment, goods, and
the region's fishing vessels. He said a big change is the
global traffic, the cruise ships, and making sure the
communities are engaged. He commended the City of Nome in its
vision 32-years ago to invest in a port and its development over
the years, and commented that as to the environmental impacts
and the impacts to subsistence, the community is fortunate to
have a Port Commission with local people sitting on that
commission who have, over time, been able to work through issues
as a community. Some of the issues are larger now, they are
global in nature with tankers off-shore, and it is engaged with
the state and federal governments and industry. The City of
Nome has a lot of that engagement in place currently.
1:51:21 PM
MS. BAKER turned to slide 63, and said the slide depicts the
typical off-load of cargo, 10-15 barges per year for the
mainline cargo arriving from Seattle and Anchorage. The docks
can get congested and fill up, the picture shows two cargo
barges working side-by-side rafting in order to discharge to
shore and get their southbound loads backloaded onto the barges.
MS. BAKER turned to slide 64, and said the slide depicts the
City of Nome's infrastructure growth beginning in 1925 - 2016,
and that in 1985, the City of Nome was instrumental in
developing the causeway itself as well as the ongoing projects
that built the docks, industrial pads, and additional floating
docks. As the demand has increased, the City of Nome has worked
to meet that demand and build the necessary infrastructure, but
not without considerable commitment from its funding partners.
MS. BAKER turned to slide 65, and noted that it reflects an
example of some of the ships encountered in port, including the
Canadian Navy for its resupply and two NOAA ships. The ship in
red is called a "dock-wise vessel" and is actually semi-
submersible allowing it to sink and load smaller ships from
"down south," carry the smaller ships to the north, sink the
vessel, and float the smaller ships off of the vessel.
1:54:45 PM
MR. OKLEASIK turned to slide 66, advised that the picture
depicts the infrastructure in place. The City of Nome Port is a
developed port with a whole network of services, such as a U.S.
Customs agent, TSA, regional airport, hospital, National Park
Service, the City of Kawerak Visitors Center, and museums, he
described. This port is cost-effective in expansion and because
it achieved its potential at the 90 percent mark, and it just
needs that last 10 percent. The expansion of this port leads to
a domino effect in allowing other Arctic ports to develop,
particularly the exportation of gravel and rock.
1:56:29 PM
MR. OKLEASIK turned to slide 67 and explained that it is beyond
shore infrastructure, and noted that in green it read "Fuel
Header" which is directly connected from the storage tanks and
it can be connected to a high-speed unit to refuel ships through
the Nome Port. Bonanza Fuel is the subsidiary with the capacity
services and availability and is owned by Sitnasuak Native
Corporation (SNC). He offered that this has become an important
market for the marine business in order to have a safe manner in
which to refuel, but also because SNC is a Native Corporation
based in Alaska. Therefore, he explained, the marine fuel and
sales it performs is part of a sustainable development because
when SNC puts its shareholders to work, it puts its community to
work, and when it pays dividends, it pays out in Nome. He
highlighted that the SNC is working with its port to make sure
it provides the services and capacity needed, but also that the
benefit goes directly back into the Arctic.
1:57:54 PM
MR. BENNEVELLE commented that some ports are industry specific
or military specific, and the beauty of the Port of Nome is that
it is a community of the region and of Western Alaska, and
Western Alaska has a lot to offer to the future and economy of
the state. The state is going through difficult financial times
but, he said, sometimes it is important to step back and look
further down the road and see the larger picture.
1:59:00 PM
MS. BAKER turned to slide 68, and advised that the Corp. of
Engineers selected the City of Nome as the most cost-effective
site to develop for the first Arctic deep-draft port. The Corp.
of Engineers, in its decision to rescope the regional study's
data for the Nome site into a Nome specific study, will now
proceed forward under the new provision provided under the WIIN
Act, which includes the Water Resources Development Act (WRDA),
allowing for the consideration of the viability of the region.
It will also allow other mitigating factors in the project site
development that support the strategic element of protecting the
resources in the Arctic, and the Arctic itself.
2:00:02 PM
MS. BAKER turned to slides 69-73, and said the slides depict the
elements of what the expansion would be, such as, 2,000-2,500-
foot extension in the Armor Breakwater, optimizing the existing
Outer Harbor Basin down to minus 28 feet, thereby, allowing the
port to capture a number of vessels being missed currently by a
few feet of depth. In addition to taking the dock down to 36
feet, it will bring in all of the tanker traffic that currently
transfer ship-to-ship off-shore, as well as the larger military
vessels, into the dock for resupply.
2:00:47 PM
MR. BENNEVELLE concluded the presentation by underscoring the
existing traffic, businesses coming into Alaska or at least
traveling by Alaska, and described that this is the future for
Alaskans and the country.
2:01:41 PM
REPRESENTATIVE TALERICO referred to the port buildout, and asked
Mr. Bonneville whether he sees that as a substitute for the need
of another port further north.
MR. BENNEVELLE responded that there will be infrastructure
further north, but it has to start someplace and the City of
Nome is perfectly positioned to meet that first step. Yes, he
said, there will be further infrastructure.
2:02:45 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee On Arctic Policy, Economic Development, and
Tourism meeting was adjourned at 2:03 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| City-SNC Port of Nome Presentation House Arctic-ED-Tourism Comm March 2017.pdf |
HAET 3/7/2017 1:00:00 PM |
|
| Fran Ulmer Update for Alaska Legislature.pdf |
HAET 3/7/2017 1:00:00 PM |