Legislature(2019 - 2020)BARNES 124
04/23/2019 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HJR14 | |
| SB54 | |
| SJR11 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HJR 14 | TELECONFERENCED | |
| += | SB 54 | TELECONFERENCED | |
| + | SJR 11 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
April 23, 2019
1:04 p.m.
MEMBERS PRESENT
Representative Louise Stutes, Co-Chair
Representative Adam Wool, Co-Chair
Representative Matt Claman
Representative Harriet Drummond
Representative Andi Story
Representative Dave Talerico
Representative Sara Rasmussen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 14
Urging the Alaska Congressional delegation to pursue
infrastructure funding for a deep draft Arctic port in Nome;
requesting the Department of Transportation and Public
Facilities to send a letter from the state to the Alaska
Congressional delegation supporting a deep draft Arctic port in
Nome; and requesting the Department of Transportation and Public
Facilities to work collaboratively with the City of Nome on a
deep draft Arctic port in Nome.
- MOVED HJR 14 OUT OF COMMITTEE
SENATE BILL NO. 54
"An Act approving the transfer of certain Alaska Railroad
Corporation land; and providing for an effective date."
- MOVED SB 54 OUT OF COMMITTEE
CS FOR SENATE JOINT RESOLUTION NO. 11(TRA)
Urging the United States to issue a Presidential permit
authorizing a railroad crossing of the Alaska-Canada border from
state land into Yukon, Canada; and supporting cooperation
between the United States and Canada to establish a public-
private partnership for construction of a railroad from Alberta,
Canada, to the state that would connect the Alaska Railroad to
the North American railroad system.
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HJR 14
SHORT TITLE: URGING SUPPORT FOR NOME DEEP-DRAFT PORT
SPONSOR(s): REPRESENTATIVE(s) FOSTER
03/25/19 (H) READ THE FIRST TIME - REFERRALS
03/25/19 (H) TRA
04/18/19 (H) TRA AT 1:00 PM BARNES 124
04/18/19 (H) Heard & Held
04/18/19 (H) MINUTE(TRA)
04/23/19 (H) TRA AT 1:00 PM BARNES 124
BILL: SB 54
SHORT TITLE: ALASKA RAILROAD CORP. LAND TRANSFERS
SPONSOR(s): SENATOR(s) COGHILL
02/13/19 (S) READ THE FIRST TIME - REFERRALS
02/13/19 (S) TRA, FIN
03/12/19 (S) TRA AT 1:30 PM BUTROVICH 205
03/12/19 (S) Heard & Held
03/12/19 (S) MINUTE(TRA)
03/14/19 (S) TRA AT 1:30 PM BUTROVICH 205
03/14/19 (S) Moved SB 54 Out of Committee
03/14/19 (S) MINUTE(TRA)
03/15/19 (S) TRA RPT 4DP
03/15/19 (S) DP: HUGHES, WILSON, SHOWER, KIEHL
03/20/19 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/20/19 (S) Heard & Held
03/20/19 (S) MINUTE(FIN)
03/28/19 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/28/19 (S) Moved SB 54 Out of Committee
03/28/19 (S) MINUTE(FIN)
03/29/19 (S) FIN RPT 4DP 5NR
03/29/19 (S) DP: VON IMHOF, MICCICHE, HOFFMAN,
BISHOP
03/29/19 (S) NR: STEDMAN, SHOWER, WIELECHOWSKI,
OLSON, WILSON
04/05/19 (S) TRANSMITTED TO (H)
04/05/19 (S) VERSION: SB 54
04/08/19 (H) READ THE FIRST TIME - REFERRALS
04/08/19 (H) TRA
04/18/19 (H) TRA AT 1:00 PM BARNES 124
04/18/19 (H) Heard & Held
04/18/19 (H) MINUTE(TRA)
04/23/19 (H) TRA AT 1:00 PM BARNES 124
BILL: SJR 11
SHORT TITLE: U.S.-CANADA RAILROAD PRESIDENTIAL PERMIT
SPONSOR(s): TRANSPORTATION
04/05/19 (S) READ THE FIRST TIME - REFERRALS
04/05/19 (S) TRA
04/09/19 (S) TRA AT 1:30 PM BUTROVICH 205
04/09/19 (S) Moved CSSJR 11(TRA) Out of Committee
04/09/19 (S) MINUTE(TRA)
04/10/19 (S) TRA RPT CS 3DP 1NR NEW TITLE
04/10/19 (S) DP: HUGHES, SHOWER, KIEHL
04/10/19 (S) NR: WILSON
04/15/19 (S) TRANSMITTED TO (H)
04/15/19 (S) VERSION: CSSJR 11(TRA)
04/16/19 (H) READ THE FIRST TIME - REFERRALS
04/16/19 (H) TRA
04/23/19 (H) TRA AT 1:00 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE NEAL FOSTER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, relayed the three
priorities of HJR 14.
RAY WARD
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 14.
DOUG WALRATH, Director
Northwestern Alaska Career & Technical Center
Nome, Alaska
POSITION STATEMENT: Testified in support of HJR 14.
JOY BAKER, Port Director
City of Nome
Nome, Alaska
POSITION STATEMENT: Responded to an issue raised during the
hearing on HJR 14.
SENATOR JOHN COGHILL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, spoke to the intent of SB
54 to fix a previous oversight.
RYNNIEVA MOSS, Staff
Senator John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information regarding SB 54 on
behalf of Senator Coghill, prime sponsor.
JON COOK, Chair
Board of Directors
Alaska Railroad Corporation
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 54.
AIMEE BUSHNELL, Staff
Senator Shelley Hughes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented CSSJR 11(TRA) on behalf of
Senator Hughes, prime sponsor.
SENATOR SHELLEY HUGHES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, provided information
during the hearing on CSSJR 11(TRA).
TIM SULLIVAN, JR., Director of External Affairs
Alaska Railroad Corporation
Anchorage, Alaska
POSITION STATEMENT: Responded to a question during the hearing
on CSSJR 11(TRA).
ACTION NARRATIVE
1:04:32 PM
CO-CHAIR ADAM WOOL called the House Transportation Standing
Committee meeting to order at 1:04 p.m. Representatives
Drummond, Claman, Story, Stutes, and Wool were present at the
call to order. Representatives Talerico and Rasmussen arrived
as the meeting was in progress.
HJR 14-URGING SUPPORT FOR NOME DEEP-DRAFT PORT
1:05:04 PM
CO-CHAIR WOOL announced that the first order of business would
be HOUSE JOINT RESOLUTION NO. 14, Urging the Alaska
Congressional delegation to pursue infrastructure funding for a
deep draft Arctic port in Nome; requesting the Department of
Transportation and Public Facilities to send a letter from the
state to the Alaska Congressional delegation supporting a deep
draft Arctic port in Nome; and requesting the Department of
Transportation and Public Facilities to work collaboratively
with the City of Nome on a deep draft Arctic port in Nome.
1:05:59 PM
REPRESENTATIVE NEAL FOSTER, Alaska State Legislature, as prime
sponsor, relayed the three priorities of HJR 14: to urge the
congressional delegation to pursue infrastructure funding; to
request the Department of Transportation & Public Facilities
(DOT&PF) send a letter to the congressional delegation
supporting a deep draft Arctic port in Nome; and to request
DOT&PF to work collaboratively with the City of Nome to provide
technical support.
1:06:41 PM
CO-CHAIR WOOL opened public testimony on HJR 14.
1:07:07 PM
RAY WARD relayed his personal connection to Alaska. He said the
melting of the ice in the Northwest Passage has provided
opportunity for an economic boon for the maritime industry. He
opined that Alaska needs to invest not only in the Port of Nome,
but in other Arctic coast regions of Alaska. He said Norway,
Finland, Greenland, Russia, and Canada have already geared up
for this maritime boon, and cruise liners have made many voyages
to the Northwest Passage. He relayed that this passage cuts
travel time in half when compared to passage from the Atlantic
to the Pacific via the Panama Canal. Mr. Ward stated that
Alaska's congressional delegation needs to lobby the U.S.
Department of Defense (DoD) for the installation of a U.S. Naval
or U.S. Coast Guard (USCG) headquarters in the Arctic region.
He said currently Alaska's Arctic coastline is "wide open" to
invasion from China, North Korea, and Russia. Mr. Ward
mentioned fish migration caused by warming of waters, and he
warned that without a military presence in the Arctic region,
Alaska will be subject to violation of the [Magnuson-Stevens
Fishery Conservation and Management] Act, which designates a
[U.S. exclusive economic zone up to] 200 miles [offshore] that
applies to fishing by foreign vessels. He relayed the
imperative nature of the development of and investment in the
Arctic region. He further suggested the construction of a
pipeline from the natural gas fields already developed to the
Arctic coast, because it is transported by cargo tankers.
1:13:17 PM
DOUG WALRATH, Director, Northwestern Alaska Career & Technical
Center, testified in support of HJR 14. He credited the
previous testifier for covering points regarding military
defense and economic competitiveness. He remarked that many
people in the Lower 48 are probably not aware that the U.S. is
an Arctic nation, and as a result, the country is "woefully
unprepared" compared to other Arctic nations, which he said is
surprising when considering the other accomplishments of the
U.S. He said the voice of Alaska's congressional delegation is
required to advocate for a deep draft Arctic port in Nome,
Alaska, which he suggested is "really advocating on behalf of
the U.S. as a whole."
1:15:32 PM
CO-CHAIR WOOL, after ascertaining that there was no one else who
wished to testify, closed public testimony on HJR 14.
1:15:38 PM
The committee took an at-ease from 1:15 p.m. to 1:17 p.m.
1:17:17 PM
CO-CHAIR STUTES asked whether the issue presented in HJR 14 had
been seen by the legislature before. She said she thinks it is
"an interesting, exciting process."
1:17:42 PM
REPRESENTATIVE FOSTER responded, "This is the first time we have
presented this resolution."
CO-CHAIR STUTES asserted that she has seen the information
before, and she reiterated her enthusiasms for the subject.
REPRESENTATIVE FOSTER confirmed that the topic of Alaska's
Arctic passageway has been presented over the years in various
forms.
1:18:29 PM
REPRESENTATIVE RASMUSSEN inquired whether the bill sponsor would
be amenable to an amendment to add the Port of Alaska, because
it is in need of financial assistance.
REPRESENTATIVE FOSTER deferred the question to Joy Baker.
1:19:31 PM
JOY BAKER, Port Director, City of Nome, stated that HJR 14 is
concerned with shipping in the Arctic and is not specifically a
financial request. She said she thinks tying the Port of Nome
to Anchorage would defeat the purpose of trying to develop
maritime infrastructure in Arctic waters.
1:20:27 PM
CO-CHAIR WOOL echoed that the proposed joint resolution is not a
request for funding and that it seems to be specifically for
Nome. He remarked that the name, "Port of Alaska," was coined
such but may not really be its proper name, and it could be
confusing to have a Port of Alaska and a Port of Nome. He asked
Representative Rasmussen if she wished to pursue an amendment.
1:21:29 PM
REPRESENTATIVE RASMUSSEN answered no.
1:21:44 PM
REPRESENTATIVE STORY stated that she's pleased to see HJR 14
shed light on the importance of an Arctic port "for development
and for ... security reasons." She predicted the proposed joint
resolution would be well received on the House floor.
1:22:08 PM
CO-CHAIR WOOL returned to the idea of a natural gas pipeline,
which was brought up by a testifier. He suggested that the port
being frozen much of the year might make it difficult to have
reliable transport of natural gas.
1:22:43 PM
REPRESENTATIVE FOSTER said Co-Chair Wool is correct that the
port is frozen for a portion of the winter, and although the
port thawed unexpectedly early in 2019, ships cannot make it
into port year round.
1:23:30 PM
CO-CHAIR STUTES moved to report HJR 14 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HJR 14, was reported out of the House
Transportation Standing Committee.
SB 54-ALASKA RAILROAD CORP. LAND TRANSFERS
1:24:06 PM
CO-CHAIR WOOL announced that the next order of business would be
SENATE BILL NO. 54, "An Act approving the transfer of certain
Alaska Railroad Corporation land; and providing for an effective
date."
1:24:33 PM
SENATOR JOHN COGHILL, Alaska State Legislature, as prime
sponsor, stated that SB 54 would correct an oversight related to
the Healy land transfer "from the railroad to the buyers." He
said he thinks SB 54 would benefit the Healy area, the Alaska
Railroad Corporation, and the purchaser.
1:25:34 PM
RYNNIEVA MOSS, Staff, Senator John Coghill, Alaska State
Legislature, on behalf of Senator Coghill, prime sponsor,
pointed out that SB 54 does not address a new sale, rather it
relates to a sale that was approved by the legislature [in
previous legislation] wherein Ms. Moss said she had made a
mistake. She echoed Senator Coghill's remark that the proposed
legislation would correct the oversight.
1:25:52 PM
CO-CHAIR WOOL opened public testimony on SB 54.
1:26:02 PM
JON COOK, Chair, Board of Directors, Alaska Railroad
Corporation, related that he has also served on "the Real Estate
Committee" for the past nine years. He stated that board's
support of SB 54. He explained that the buyer paid for a
portion of land on a lake in Healy, Alaska, for a hotel complex;
this was made possible under legislation passed last year. The
buyer "pre-paid the remaining portion" that [was not previously
allowed due to an oversight]. He said the board would
appreciate anything the legislature can do to move SB 54
quickly, because "one day in May is worth three in October," and
the buyer is ready to go to work on the project.
1:27:05 PM
CO-CHAIR WOOL, after ascertaining that there was no one else who
wished to testify, closed public testimony on SB 54.
1:27:16 PM
CO-CHAIR STUTES moved to report SB 54 out of committee with
individual recommendations and the accompanying zero fiscal
note. There being no objection, SB 54 was reported out of the
House Transportation Standing Committee.
SJR 11-U.S.-CANADA RAILROAD PRESIDENTIAL PERMIT
1:27:44 PM
CO-CHAIR WOOL announced that the final order of business would
be CS FOR SENATE JOINT RESOLUTION NO. 11(TRA), Urging the United
States to issue a Presidential permit authorizing a railroad
crossing of the Alaska-Canada border from state land into Yukon,
Canada; and supporting cooperation between the United States and
Canada to establish a public-private partnership for
construction of a railroad from Alberta, Canada, to the state
that would connect the Alaska Railroad to the North American
railroad system.
1:28:15 PM
AIMEE BUSHNELL, Staff, Senator Shelley Hughes, Alaska State
Legislature, presented CSSJR 11(TRA) on behalf of Senator
Hughes, prime sponsor. She prefaced her remarks by specifying
that CSSJR 11(TRA) is a "railroad resolution" different from a
railroad resolution being sponsored by Representative Talerico.
She said CSSJR 11(TRA) would urge the federal government to
issue a presidential permit to allow a railroad to cross from
Canada into Alaska. She explained that presidential permits are
necessary to allow infrastructure between the U.S. and
neighboring countries. She indicated that the impetus for CSSJR
11(TRA) was the approach of two companies in Canada to the
Senate Transportation Standing Committee. The presidential
permit is necessary in order for those companies to convince
their investors that such a project is feasible. She clarified
that CSSJR 11(TRA) "is not tied to either company." Ms.
Bushnell stated that the intent of CSSJR 11(TRA) is "to open the
economic opportunities for Alaska and allow commerce to come
in." She said the rail line would connect to the North American
Rail System. She indicated that [Congress] has sought to make
this connection for over 100 years. She concluded that CSSJR
11(TRA) would be "that next step" [to securing the presidential
permit].
1:30:38 PM
MS. BUSHNELL, in response to a question from Co-Chair Wool, said
the sponsor of CSSJR 11(TRA) thought it best to allow the
aforementioned companies to come forward to speak rather than
speaking on their behalf.
CO-CHAIR WOOL noted that would occur at the next hearing on
CSSJR 11(TRA).
1:31:08 PM
REPRESENTATIVE STORY observed that the proposed joint resolution
includes language about the presidential permit and a
requirement to check with indigenous citizens. She expressed
her appreciation of CSSJR 11(TRA).
1:31:38 PM
CO-CHAIR WOOL asked what else would be required other than a
presidential permit.
MS. BUSHNELL responded that she would have to get back to Co-
Chair Wool with an answer. She said the companies in Canada
would be concerned with crossing the land of indigenous people.
1:32:31 PM
REPRESENTATIVE RASMUSSEN expressed interest in seeing a map of
possible routes for a rail line.
MS. BUSHNELL said she could procure "a map of what both
companies envisioned."
CO-CHAIR WOOL related he would like visual aids brought to the
committee by the next hearing of CSSJR 11(TRA).
MS. BUSHNELL, in response to a query from Co-Chair Wool, related
that one of the companies addresses a route from Alberta to
Alaska ("A2A"), while the other proposes "Generating for Seven
Generations" ("G7G"). She said both plans would start in Fort
McMurray in Canada and come through Delta Junction, directly
across the border from Canada. The G7G plan would go from Delta
Junction to [Valdez], [following] the Trans-Alaska Pipeline
route. The A2A plans on going up to Fairbanks and "taking the
rail line down."
1:34:24 PM
SENATOR SHELLEY HUGHES, Alaska State Legislature, as prime
sponsor of CSSJR 11(TRA), stated that the project would not
require a funding allocation from the State of Alaska. She said
Congress "granted us the authority to have this rail since
1914." She indicated that of the up to 1,000 miles allowable,
"we only have 500 right now." She added, "This would be an
added 250." She posited that at the time of westward expansion,
the event of most significance was the connection of the rail
line. She said, "The product that would be shipped pencils out
for the business interests that have looked at it." She said
the rail could benefit numerous ports in Alaska.
SENATOR HUGHES, in response to Co-Chair Wool, confirmed that $17
billion is the estimated cost of the overall project; it would
come from private investment. She said the applicable companies
have had conversations with indigenous peoples and have been
good at "getting their social license." Those conversations
will continue.
1:37:57 PM
REPRESENTATIVE RASMUSSEN sought to confirm that the project
could add infrastructure for those communities that do not
presently have connectivity to the rest of the state.
SENATOR HUGHES pointed out that there would be infrastructure
added to come into Delta Junction, then there are roads from
Delta Junction to Fairbanks and rail out of Fairbanks. She
added, "There would be some new areas where it would be
stretched across."
REPRESENTATIVE RASMUSSEN asked, "So, it would connect in at
Fairbanks?"
SENATOR HUGHES answered yes. She said the other plan would be
"to feed the bitumen, liquify it, and put it into TAPS [the
Trans-Alaska Pipeline System]." She indicated that the rail
line includes a substance much like children's play sand, which
makes cleanup of any spilled substances easier, because "it
doesn't seep into the ground." She said there would be "well-
made containers." She pointed out that currently the Alaska
Railroad Corporation is certified to carry diesel, which is a
more volatile substance.
REPRESENTATIVE RASMUSSEN inquired if this might develop into a
passenger line between Canada and Alaska.
SENATOR HUGHES answered that the initial development is intended
for the movement of products; however, there could be expansion
into tourist travel. In that event, she said the same border
crossing requirements used at custom stations along roadways
would apply to railway border crossings. Senator Hughes, in
response to a follow-up question, deferred to Tim Sullivan to
explain how [a transition from cargo to passenger carrier] could
work.
1:41:20 PM
TIM SULLIVAN, JR., Director of External Affairs, Alaska Railroad
Corporation, proffered that conversations are still ongoing to
figure out how such a transition could work.
1:41:41 PM
CO-CHAIR STUTES asked for confirmation that the intent of the
rail line is to transport fuel.
SENATOR HUGHES answered that what she is calling "the anchor
tenet" is bitumen. She said, "Anything else on top of that is
icing on the cake." She noted that shipping ports from Alaska
to Asia are closer than shipping from other ports.
1:43:23 PM
CO-CHAIR WOOL noted that bitumen is also referred to as "tar
sands." He summarized that the bitumen would be transported via
rail into Alaska, to an Alaska port, then exported somewhere
else for refinement.
SENATOR HUGHES confirmed that is correct.
CO-CHAIR WOOL inquired whether a line starting in Alberta would
also connect to the Lower 48.
SENATOR HUGHES answered that "Alberta is connected to the Lower
48." She said she is not certain, but "there may be something
coming from different directions in Alberta."
1:44:28 PM
REPRESENTATIVE CLAMAN asked how many miles would be covered with
the estimated cost of $17 billion.
SENATOR HUGHES answered that from Alberta to the border of
Alaska is 1,200 miles, and from the Alaska border to Fairbanks
is 250 miles. In response to a follow-up question, she
confirmed the cost would cover the entire distance.
REPRESENTATIVE CLAMAN remarked that $17 billion sounds low.
1:45:10 PM
MR. SULLIVAN stated that $17 billion is a rough estimate. The
typical cost for building rail line ranges between $8 to $10
million per mile; the $17 billion estimate is derived based on
$10 million per mile.
1:45:48 PM
SENATOR HUGHES offered her understanding that if the
presidential permit is granted and all goes as planned, the rail
could be installed by 2022.
CO-CHAIR WOOL noted that [Representative Talerico] has proposed
legislation to get a train from Fairbanks to Delta, and he
suggested the two could be done at the same time.
1:47:17 PM
REPRESENTATIVE DRUMMOND related an anecdote of traveling from
Anchorage to Haines and described seeing Walmart and Sam's Club
trucks heading south. She found out that the trucks had
originated from Anchorage. At that time, West Coast ports were
congested, and it was faster for those companies to send their
materials overland from the port in Anchorage to the Midwest
markets. She said this eye-opening occurrence took place about
10 years ago.
[CSSJR 11(TRA) was held over.]
1:48:58 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 1:49
p.m.