Legislature(1999 - 2000)

02/08/1999 01:05 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE RESOURCES STANDING COMMITTEE                                                                                     
                  February 8, 1999                                                                                              
                     1:05 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
                                                                                                                                
Representative Jerry Sanders, Co-Chair                                                                                          
Representative Scott Ogan, Co-Chair                                                                                             
Representative Beverly Masek, Vice Chair                                                                                        
Representative John Harris                                                                                                      
Representative Carl Morgan                                                                                                      
Representative Ramona Barnes                                                                                                    
Representative Jim Whitaker                                                                                                     
Representative Reggie Joule                                                                                                     
Representative Mary Kapsner                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 12                                                                                        
"An Act relating to a utility corridor and railroad right-of-way                                                                
between the Alaska Railroad and the Alaska-Canada border."                                                                      
                                                                                                                                
     - MOVED SSHB 12 OUT OF COMMITTEE                                                                                           
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 12                                                                                                                     
SHORT TITLE: RAIL/UTILITY EASEMENT TO AK-CANADA BORDER                                                                          
SPONSOR(S): REPRESENTATIVES(S) JAMES, Therriault, Dyson, Harris                                                                 
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/19/99        20     (H)  PREFILE RELEASED 1/8/99                                                                             
 1/19/99        20     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 1/19/99        21     (H)  TRANSPORTATION, RESOURCES                                                                           
 1/29/99       102     (H)  SPONSOR SUBSTITUTE INTRODUCED -                                                                     
                            REFERRALS                                                                                           
 1/29/99       102     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 1/29/99       102     (H)  TRANSPORTATION, RESOURCES, FINANCE                                                                  
 2/02/99               (H)  TRA AT  1:00 PM CAPITOL 17                                                                          
 2/02/99               (H)  MOVED OUT OF COMMITTEE                                                                              
 2/02/99               (H)  MINUTE(TRA)                                                                                         
 2/03/99       129     (H)  TRA RPT  5DP 2NR                                                                                    
 2/03/99       129     (H)  DP: KEMPLEN, SANDERS, COWDERY,                                                                      
                            HALCRO, MASEK                                                                                       
 2/03/99       129     (H)  NR: HUDSON, KOOKESH                                                                                 
 2/03/99       129     (H)  2 ZERO FISCAL NOTES (DOT, DNR)                                                                      
 2/03/99       130     (H)  REFERRED TO RESOURCES                                                                               
 2/05/99       147     (H)  COSPONSOR(S): HARRIS                                                                                
 2/08/99               (H)  RES AT  1:00 PM CAPITOL 124                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
REPRESENTATIVE JEANNETTE JAMES                                                                                                  
Alaska State Legislature                                                                                                        
Capitol Building, Room 102                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-3743                                                                                                      
POSITION STATEMENT:  Testified as sponsor of SSHB 12.                                                                           
                                                                                                                                
DENNIS POSHARD, Legislative Liaison/                                                                                            
   Special Assistant                                                                                                            
Office of the Commissioner                                                                                                      
Department of Transportation                                                                                                    
   and Public Facilities                                                                                                        
3132 Channel Drive                                                                                                              
Juneau, Alaska  99801-7898                                                                                                      
Telephone:  (907) 465-3904                                                                                                      
POSITION STATEMENT:  Answered questions relating to SSHB 12.                                                                    
                                                                                                                                
FRANK MIELKE, Chief                                                                                                             
Right of Way and Utilities                                                                                                      
Southeast Region                                                                                                                
Division of Design and Engineering Services                                                                                     
Department of Transportation                                                                                                    
   and Public Facilities                                                                                                        
6860 Glacier Highway                                                                                                            
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-4541                                                                                                      
POSITION STATEMENT:  Answered questions relating to SSHB 12.                                                                    
                                                                                                                                
LAUREL BARGER-SHEEN                                                                                                             
Department of Economic Development                                                                                              
City of Delta Junction                                                                                                          
P.O. Box 229                                                                                                                    
Delta Junction, Alaska  99737                                                                                                   
Telephone:  (907) 895-1081                                                                                                      
POSITION STATEMENT:  Testified in support of SSHB 12.                                                                           
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-5, SIDE A                                                                                                               
Number 001                                                                                                                      
                                                                                                                                
CO-CHAIR JERRY SANDERS called the House Resources Standing                                                                      
Committee meeting to order at 1:05 p.m.  Members present at the                                                                 
call to order were Representatives Sanders, Ogan, Morgan, Whitaker,                                                             
Joule and Kapsner.  Representatives Harris, Masek and Barnes                                                                    
arrived at 1:09 p.m., 1:10 p.m. and 1:16 p.m., respectively.                                                                    
                                                                                                                                
SSHB 12 - RAIL/UTILITY EASEMENT TO AK-CANADA BORDER                                                                             
                                                                                                                                
Number 032                                                                                                                      
                                                                                                                                
CO-CHAIR SANDERS announced the committee would hear Sponsor                                                                     
Substitute for House Bill No. 12, "An Act relating to a utility                                                                 
corridor and railroad right-of-way between the Alaska Railroad and                                                              
the Alaska-Canada border."  He noted that the Anchorage and                                                                     
Fairbanks Legislative Information Offices (LIOs) were on                                                                        
teleconference.                                                                                                                 
                                                                                                                                
Number 042                                                                                                                      
                                                                                                                                
REPRESENTATIVE JEANNETTE JAMES, Alaska State Legislature, sponsor                                                               
of SSHB 12, presented the bill.  She pointed out that people have                                                               
questioned its necessity, because in 1982 identification of this                                                                
corridor was authorized in statute, to connect Alaska's existing                                                                
railroad with the Canadian border.  She referred to a red booklet                                                               
showing the route, titled "Alaska Railroad Extension Route                                                                      
Selection, Eielson to Canadian Border," dated July 1979 and                                                                     
produced by the Department of Transportation and Public Facilities                                                              
(DOT/PF), which followed a 1979 study.  At that time, there was an                                                              
interest in connecting to the Lower 48 through Canada, and some                                                                 
building of the rail bed towards Alaska occurred in Canada.                                                                     
However, when Alaska didn't go forward with its end, either that                                                                
rail wasn't laid or the portion which had been laid was pulled up.                                                              
                                                                                                                                
REPRESENTATIVE JAMES pointed out that in 1994 she had passed HB
183, which authorized delineation of a corridor from Fairbanks to                                                               
the Seward Peninsula, as well as HB 184, which authorized the                                                                   
$10,000 for a study to determine the cost of acquiring the                                                                      
right-of-way from Eielson to the Canadian border.  She said her                                                                 
purpose had been to let the world know that the issue of this                                                                   
corridor was not dead.  In 1995, the DOT/PF reached a cost estimate                                                             
of $6.363 million to acquire the right-of-way; $7,876 of the                                                                    
$10,000 appropriation was expended in doing so.  However, in 1996                                                               
the application was withdrawn "due to lack of interest," in spite                                                               
of the 1994 legislation that indicated a continuing interest.                                                                   
                                                                                                                                
REPRESENTATIVE JAMES told members the next step is to reauthorize                                                               
delineation of the corridor; SSHB 12 brings the old legislation up                                                              
to date, authorizing the right-of-way but expanding it from 300                                                                 
feet to 500 feet.  She is not expecting any state appropriation for                                                             
this, nor a fiscal note.  The bill says this is subject to                                                                      
legislative appropriation, which would be through other legislation                                                             
or a budget process.  She is asking that it be authorized in case                                                               
federal, international or private money becomes available.  Noting                                                              
that DOT/PF representatives were available to answer questions, she                                                             
informed members that someone from the Alaska Railroad had                                                                      
testified at the earlier House Transportation Standing Committee                                                                
hearing.                                                                                                                        
                                                                                                                                
Number 133                                                                                                                      
                                                                                                                                
CO-CHAIR OGAN referred to the role played by the railroad across                                                                
the Lower 48 in opening up the West.  He said it seems Alaska would                                                             
be well-served by railroad connections to the Lower 48.  Mentioning                                                             
talk of a possible railroad connection to Siberia using a tunnel,                                                               
he expressed support for SSHB 12.                                                                                               
                                                                                                                                
REPRESENTATIVE JAMES said she has been working with people in the                                                               
Yukon Territory, as many have indicated this would benefit them in                                                              
their businesses.  The tourism industry has been particularly                                                                   
interested; although numerous buses bring tourists up the "Alcan"                                                               
(Alaska Highway), tourist industry people have indicated the trip                                                               
would be much cheaper by rail, as one rail car holds two busloads.                                                              
The biggest advantage, however, is that people prefer to use more                                                               
comfortable rail travel instead of going by bus.  There is also a                                                               
big interest in tourism access to the Wrangell-St. Elias Mountains,                                                             
perhaps to relieve pressure on Denali National Park and Preserve;                                                               
there is no way to get tourists to the former location on a two-day                                                             
bus ride.  Representative said she intends to see that this happens                                                             
sometime, although she doesn't know how yet.                                                                                    
                                                                                                                                
Number 191                                                                                                                      
                                                                                                                                
REPRESENTATIVE HARRIS asked what is included in the DOT/PF's 1995                                                               
cost estimate of $6,363,000 to acquire the right-of-way.                                                                        
                                                                                                                                
REPRESENTATIVE JAMES referred members to a one-page document                                                                    
titled, "Right of Way Cost Estimate, State Highway" [provided in                                                                
packets attached  to a two-page letter dated August 7, 1996].  She                                                              
said she assumes there would be some land trades, as well as land                                                               
purchases.                                                                                                                      
                                                                                                                                
Number 207                                                                                                                      
                                                                                                                                
REPRESENTATIVE HARRIS asked how far it would be from the border to                                                              
connect to the Canadian railroad.                                                                                               
                                                                                                                                
REPRESENTATIVE JAMES explained that it is about 400 miles from the                                                              
Canadian border to connect in Canada, and about 380 miles from                                                                  
Eielson Air Force Base to the border.  She pointed out that she                                                                 
hadn't specified from where to where.  The best route may come in                                                               
around Talkeetna, for example, rather than into Eielson.  She is                                                                
asking for the best route, both economically and physically.                                                                    
                                                                                                                                
Number 225                                                                                                                      
                                                                                                                                
REPRESENTATIVE HARRIS asked whether there is an anticipation of                                                                 
working with the Canadian government to develop an easement that                                                                
connects with Canada's infrastructure.                                                                                          
                                                                                                                                
REPRESENTATIVE JAMES said yes.  A small group including herself had                                                             
met once with the Yukon Territory delegation on that issue, and                                                                 
another meeting is planned in Whitehorse, probably in April, with                                                               
representatives from the British Columbia Railway and other                                                                     
interested parties.  She emphasized the need to work together on                                                                
this.                                                                                                                           
                                                                                                                                
Number 243                                                                                                                      
                                                                                                                                
REPRESENTATIVE HARRIS said he applauds the sponsor for taking this                                                              
long-overdue step.                                                                                                              
                                                                                                                                
REPRESENTATIVE WHITAKER concurred, then asked whether                                                                           
Representative James is aware of vested interests that might not be                                                             
well-served by a railroad connection to the Lower 48.                                                                           
                                                                                                                                
REPRESENTATIVE JAMES referred to HB 183 in 1994, involving a                                                                    
connection from Fairbanks to the Seward Peninsula.  She said there                                                              
are always rural residents who like to be remote, and who depend                                                                
upon being remote.  However, a railroad is controlled access.  If                                                               
some people don't want rail travelers to bother their village, the                                                              
railroad can go around and not stop there.  In contrast, others who                                                             
want a connection can build a road to the railroad.  She has found                                                              
a change in the attitudes of rural residents over the last five                                                                 
years; now many want jobs or a small tourism business, for example,                                                             
although they may not be totally sold on the idea yet.                                                                          
Furthermore, Representative James said she is not aware of any                                                                  
economic interests that may not be well-served by this.  In fact,                                                               
a recent conversation indicated that more rail would result in more                                                             
trucking jobs because rail doesn't deliver items to the final                                                                   
destination.  It would be cheaper and safer for truck trailers to                                                               
ride on the train instead of using the "Alcan," and those people                                                                
are supportive of the connection.                                                                                               
                                                                                                                                
Number 305                                                                                                                      
                                                                                                                                
CO-CHAIR SANDERS pointed out that few Alaskan truckers come up over                                                             
the Alaska Highway; most of those truckers are outsiders.                                                                       
                                                                                                                                
Number 310                                                                                                                      
                                                                                                                                
REPRESENTATIVE BARNES asked why the DOT/PF withdrew the order for                                                               
the right-of-way.                                                                                                               
                                                                                                                                
REPRESENTATIVE JAMES said she can only rely on what they told her,                                                              
which is that the Bureau of Land Management (BLM) likes to clear                                                                
applications off the books. She suggested it may have been from a                                                               
perceived lack of interest, although she'd thought the $10,000                                                                  
allocated [in 1994] had indicated the legislature's interest in                                                                 
that corridor.                                                                                                                  
                                                                                                                                
Number 333                                                                                                                      
                                                                                                                                
REPRESENTATIVE BARNES asked whether Representative James had made                                                               
it known to those officials since then.                                                                                         
                                                                                                                                
REPRESENTATIVE JAMES said yes, they'd had many conversations, and                                                               
they now understand that there is an interest.  As she recalled,                                                                
Mr. Poshard had testified that he didn't know if the DOT/PF would                                                               
make that same decision today, and that it was probably a mistake.                                                              
                                                                                                                                
Number 348                                                                                                                      
                                                                                                                                
REPRESENTATIVE JOULE asked whether the Canadians had done anything                                                              
to move their rail line closer to the border.                                                                                   
                                                                                                                                
REPRESENTATIVE JAMES said she could find out.  Her understanding is                                                             
that at the time, the Canadians prepared rail bed and had laid some                                                             
track in Alaska's direction; although they pulled up some track                                                                 
when Alaska didn't go forward, the rail bed is still there to Dease                                                             
Lake.                                                                                                                           
                                                                                                                                
Number 372                                                                                                                      
                                                                                                                                
REPRESENTATIVE KAPSNER asked what the federal government has been                                                               
doing to advance this project.                                                                                                  
                                                                                                                                
REPRESENTATIVE JAMES answered that the "TEA-21" [Transportation                                                                 
Equity Act for the 21st Century] has an emphasis on rail, and some                                                              
money has been allocated for a demonstration project to determine                                                               
access on the other side of Fairbanks and towards Western Alaska;                                                               
that feasibility study is to be done between the railroad and the                                                               
DOT/PF.  Representative James said a number of people had talked                                                                
with U.S. Senator Stevens, and providing there is public support,                                                               
she believes money from the federal government might be available.                                                              
She indicated an agreement with the Canadians would be necessary,                                                               
then added that also in the TEA-21 are national corridor planning                                                               
and border infrastructure programs.  She mentioned NAFTA [North                                                                 
American Free Trade Agreement] and suggested that a connection such                                                             
as rail - which is the best way to move equipment and freight,                                                                  
especially - would certainly assist the economies of not only                                                                   
Alaska but also Canada and the Lower 48.                                                                                        
                                                                                                                                
Number 406                                                                                                                      
                                                                                                                                
DENNIS POSHARD, Legislative Liaison/Special Assistant, Office of                                                                
the Commissioner, Department of Transportation and Public                                                                       
Facilities (DOT/PF), came forward at Co-Chair Sanders' request,                                                                 
saying he had nothing to add but would answer questions.                                                                        
                                                                                                                                
REPRESENTATIVE BARNES asked why the DOT/PF had vacated the                                                                      
right-of-way with the BLM.                                                                                                      
                                                                                                                                
MR. POSHARD deferred to Mr. Mielke.                                                                                             
                                                                                                                                
Number 422                                                                                                                      
                                                                                                                                
FRANK MIELKE, Chief, Right of Way and Utilities, Southeast Region,                                                              
Division of Design and Engineering Services, Department of                                                                      
Transportation and Public Facilities (DOT/PF), told members he is                                                               
acting as chief for the right-of-way committee for the state.  He                                                               
explained that at some point site-specific information is required                                                              
to perfect a BLM application.  The DOT/PF had received a right of                                                               
entry allowing them to go onto the land, survey it and do studies.                                                              
All of the right-of-way work was done; the information is still                                                                 
there; and the route is still delineated on the DNR status plats,                                                               
as far as state lands, and still appears as a reservation.                                                                      
However, the DOT/PF was unable to perfect its application across                                                                
federal lands; the next step would have been the filing of an                                                                   
environmental impact statement (EIS), but there was no funding for                                                              
that.  That is another level in the application process, similar to                                                             
what was done for the Trans-Alaska Gas System, which required                                                                   
setting up an office; obtaining permits, including Title 16                                                                     
permits; doing the EIS; and obtaining a conditional right-of-way.                                                               
Mr. Mielke said there hasn't been the interest or money to go that                                                              
level of application with this project.  He emphasized that the                                                                 
information is there and the application can be resubmitted                                                                     
whenever the state is ready to go forward to that next level.                                                                   
                                                                                                                                
Number 446                                                                                                                      
                                                                                                                                
REPRESENTATIVE BARNES asked if the DOT/PF had notified anyone in                                                                
the legislative branch that money was needed for an EIS.                                                                        
                                                                                                                                
MR. MIELKE said he couldn't answer that, but he finds no evidence                                                               
of it.                                                                                                                          
                                                                                                                                
REPRESENTATIVE WHITAKER suggested the Alaska Railroad Corporation                                                               
could be, or should be, a driving force behind the expansion.  He                                                               
asked whether the DOT/PF had held conversations or corresponded                                                                 
with them about that.                                                                                                           
                                                                                                                                
MR. POSHARD said Representative James has worked diligently with                                                                
the railroad, and the DOT/PF has held discussions with them.  In                                                                
addition, someone from the Alaska Railroad Corporation had                                                                      
testified in the previous committee that they have been involved                                                                
and are interested in moving forward with the corridor delineation.                                                             
                                                                                                                                
Number 469                                                                                                                      
                                                                                                                                
REPRESENTATIVE KAPSNER stated her understanding that the Alaska                                                                 
Railroad Corporation is one of the few utilities that makes money                                                               
for the state.  She asked whether they would be interested in                                                                   
paying for part of it.                                                                                                          
                                                                                                                                
MR. POSHARD replied that he assumes that would be an option,                                                                    
although he hadn't heard it discussed.                                                                                          
                                                                                                                                
REPRESENTATIVE BARNES pointed out that the Alaska Railroad                                                                      
Corporation makes money for itself, not for the state.                                                                          
Furthermore, she can't say they truly show a profit, she said,                                                                  
because they frequently have to go to the federal government for                                                                
additional grants.  For example, last year there was an additional                                                              
$10 million to upgrade portions of the railroad bed.                                                                            
                                                                                                                                
Number 488                                                                                                                      
                                                                                                                                
CO-CHAIR SANDERS referred to the 1994 legislation; he asked when                                                                
the BLM had come back and asked whether there was any interest.                                                                 
                                                                                                                                
MR. POSHARD said he didn't have that information with him, although                                                             
he believes it was in 1996.                                                                                                     
                                                                                                                                
CO-CHAIR SANDERS suggested two or three years is a short time to                                                                
even come back and ask.  Noting that a great deal of interest had                                                               
been expressed, he requested paperwork on how this happened.                                                                    
                                                                                                                                
MR. POSHARD agreed to provide that.  He pointed out that these                                                                  
applications had been on the books, without moving forward, since                                                               
the 1982 study.  He added that the DOT/PF is working with                                                                       
Representative James to correct the situation.                                                                                  
                                                                                                                                
Number 517                                                                                                                      
                                                                                                                                
REPRESENTATIVE BARNES asked what the Administration's position is                                                               
on SSHB 12.                                                                                                                     
                                                                                                                                
MR. POSHARD replied that the Administration has not taken a                                                                     
position, although they are more than willing to work with                                                                      
Representative James and to delineate the corridor, should the                                                                  
legislature appropriate money for that.                                                                                         
                                                                                                                                
REPRESENTATIVE BARNES requested that, whether SSHB 12 has moved out                                                             
or not, Mr. Poshard come back before the committee with what is                                                                 
needed to ensure that the right-of-way work goes forward, and with                                                              
an assurance that the Administration truly supports this effort.                                                                
                                                                                                                                
MR. POSHARD agreed to provide that.  He pointed out that the                                                                    
DOT/PF's "Fiscal Analysis for SSHB 12," submitted with the zero                                                                 
fiscal note, gives a rough estimate of what it would cost to                                                                    
proceed with a new delineation and to acquire the right-of-way.                                                                 
                                                                                                                                
Number 552                                                                                                                      
                                                                                                                                
REPRESENTATIVE BARNES suggested the DOT/PF and the Alaska Railroad                                                              
Corporation move together on it.  She mentioned the economic                                                                    
necessity of having development unrelated to oil.                                                                               
                                                                                                                                
Number 589                                                                                                                      
                                                                                                                                
REPRESENTATIVE HARRIS stated his understanding that there is a zero                                                             
fiscal note because no money has been asked for.                                                                                
                                                                                                                                
MR. POSHARD affirmed that, explaining that SSHB 12 doesn't actually                                                             
require the DOT/PF to do anything unless there is an appropriation.                                                             
The attached fiscal analysis shows that the cost would be a little                                                              
more than $60,000 to complete the work required by SSHB 12, if the                                                              
legislature were to appropriate money.  To move forward and                                                                     
actually acquire the right-of-way would be, obviously, a much                                                                   
larger figure.                                                                                                                  
                                                                                                                                
REPRESENTATIVE HARRIS stated his understanding that SSHB 12                                                                     
reauthorizes what happened in HB 184 [1994].                                                                                    
                                                                                                                                
MR. POSHARD said he believes that is correct, with minor changes.                                                               
                                                                                                                                
REPRESENTATIVE HARRIS asked why the cost of acquiring the                                                                       
right-of-way is now $60,000.                                                                                                    
                                                                                                                                
Number 610                                                                                                                      
                                                                                                                                
MR. MIELKE explained that the DOT/PF wants to verify that the route                                                             
is still the best one, as there have been land status changes, for                                                              
example.  Furthermore, in anticipation of the EIS, they need to                                                                 
look for alternatives.  "If you're doing an EIS, even if there's no                                                             
imaginable other alternative, you've got to look at one, and it may                                                             
be timely to do that anyway," he concluded.                                                                                     
                                                                                                                                
REPRESENTATIVE BARNES recalled that part of the right-of-way was                                                                
delineated during World War II, and that the corridor has existed                                                               
since then.                                                                                                                     
                                                                                                                                
MR. MIELKE said he believes there is a "line on a map somewhere,"                                                               
but no corridor or land was set aside or reserved.                                                                              
                                                                                                                                
REPRESENTATIVE BARNES asked Mr. Mielke to research that, as she                                                                 
remembered differently.  She suggested it was probably laid out                                                                 
when the Alaska Highway was built.                                                                                              
                                                                                                                                
MR. POSHARD said they would be happy to research that.                                                                          
                                                                                                                                
TAPE 99-5, SIDE B                                                                                                               
Number 001                                                                                                                      
                                                                                                                                
CO-CHAIR SANDERS relayed information from the previous committee,                                                               
presented by the Alaska Railroad Corporation, indicating there had                                                              
been testimony in 1994 that building the railroad would run about                                                               
$1 million per mile; at roughly 500 miles, that would be a                                                                      
half-billion dollars.  Co-Chair Sanders said they now indicate it                                                               
would be $3 million per mile.  He questioned why, with 2.5 percent                                                              
[inflation] over the past five years, the cost had gone up so much.                                                             
He suggested the need to move on this now, to avoid these                                                                       
increases.                                                                                                                      
                                                                                                                                
Number 034                                                                                                                      
                                                                                                                                
LAUREL BARGER-SHEEN, Department of Economic Development, City of                                                                
Delta Junction, testified via teleconference in support of SSHB 12.                                                             
She told members Delta Junction residents are enthusiastic about                                                                
the idea of the railroad extending its services to Delta Junction,                                                              
Fort Greely and Canada, which residents believe will provide more                                                               
efficient transportation for the area's goods.  Rail expansion                                                                  
traditionally has brought economic development, which her region                                                                
desperately needs because of the impending closure or realignment                                                               
of Fort Greely in 2001.  Residents believe a public-private                                                                     
partnership might be practical for this project because if the                                                                  
national missile defense siting team chooses Fort Greely as their                                                               
location, they may be willing to chip in funds to further this                                                                  
project.  Ms. Barger-Sheen emphasized that land values are                                                                      
increasing steadily.  She reminded members of what this could mean                                                              
to Alaska's future, including expansion of economic development                                                                 
opportunities for the Interior, as well as support services for                                                                 
Anchorage.                                                                                                                      
                                                                                                                                
Number 065                                                                                                                      
                                                                                                                                
REPRESENTATIVE BARNES asked what the status of agriculture is in                                                                
Delta Junction.                                                                                                                 
                                                                                                                                
MS. BARGER-SHEEN said there have been two or three successive years                                                             
of environmental problems, and they are up against hard times.                                                                  
However, they are exploring exotic meat markets with bison herds,                                                               
as well as other forms of agricultural production.  A dairy                                                                     
processor is interested in expanding operations, and there is a new                                                             
business proposal for a vegetable processing plant.                                                                             
                                                                                                                                
REPRESENTATIVE BARNES asked if the Delta barley project is gone.                                                                
                                                                                                                                
MS. BARGER-SHEEN said no, there are still producers out there,                                                                  
although there has been a substantial shortage of grain due to                                                                  
three years of bad weather.                                                                                                     
                                                                                                                                
REPRESENTATIVE BARNES asked if the bison are still eating the                                                                   
barley.                                                                                                                         
                                                                                                                                
MS. BARGER-SHEEN said yes, and there is now a domestic herd                                                                     
supplying the exotic meat market; there has been substantial demand                                                             
not only from Japan but also locally and in the Lower 48, as the                                                                
meat is leaner than beef.                                                                                                       
                                                                                                                                
REPRESENTATIVE BARNES asked where they get the vegetables for the                                                               
processing plant.                                                                                                               
                                                                                                                                
MS. BARGER-SHEEN replied that there are several local producers,                                                                
including a large potato farm and a large carrot farm.                                                                          
                                                                                                                                
REPRESENTATIVE BARNES mentioned the private prison that it is hoped                                                             
will be located at Fort Greely, suggesting that prisoners, goods                                                                
and services could be transported by rail.                                                                                      
                                                                                                                                
Number 114                                                                                                                      
                                                                                                                                
CO-CHAIR OGAN noted that a statute in Title 16 allows excess bison                                                              
to be used for agricultural purposes.                                                                                           
                                                                                                                                
Number 154                                                                                                                      
                                                                                                                                
REPRESENTATIVE BARNES made a motion to move SSHB 12 from the                                                                    
committee with the attached zero fiscal note(s); she asked                                                                      
unanimous consent.  There being no objection, SSHB 12 moved from                                                                
the House Resources Standing Committee.                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 165                                                                                                                      
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 1:55 p.m.                                                                 
                                                                                                                                
                                                                                                                                

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