Legislature(2023 - 2024)BARNES 124
02/28/2023 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Alaska Industrial Development and Export Authority | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
February 28, 2023
1:01 p.m.
MEMBERS PRESENT
Representative Kevin McCabe, Chair
Representative Sarah Vance, Vice Chair
Representative Tom McKay
Representative Craig Johnson
Representative Louise Stutes
Representative Genevieve Mina
MEMBERS ABSENT
Representative Jesse Sumner
COMMITTEE CALENDAR
PRESENTATION(S): ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT
AUTHORITY
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
RANDY RUARO, Executive Director
Alaska Industrial Development and Export Authority
Department of Commerce, Community, and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Gave a presentation on the Alaska
Industrial Development and Export Authority.
BRANDON BREFCZYNSKI, Deputy Director
Alaska Industrial Development and Export Authority
Department of Commerce, Community, and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Assisted in a presentation on the Alaska
Industrial Development and Export Authority.
JOSIE WILSON, Director
Communications and External Affairs
Alaska Industrial Development and Export Authority
Department of Commerce, Community, and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Assisted in a presentation on the Alaska
Industrial Development and Export Authority.
ACTION NARRATIVE
1:01:55 PM
CHAIR KEVIN MCCABE called the House Transportation Standing
Committee meeting to order at 1:01 p.m. Representatives McKay,
Vance, and McCabe were present at the call to order.
Representatives C. Johnson, Stutes, and Mina arrived as the
meeting was in progress.
^PRESENTATION(S): ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT
AUTHORITY
PRESENTATION(S): ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT
AUTHORITY
1:02:27 PM
CHAIR MCCABE announced that the only order of business would be
the Alaska Industrial Development and Export Authority
presentation.
1:03:02 PM
RANDY RUARO, Executive Director, Alaska Industrial Development
and Export Authority, Department of Commerce, Community, and
Economic Development, began a PowerPoint presentation "Alaska
Industrial Development and Export Authority Overview" [hard copy
in committee packet]. He began on slide 2 and explained the
mission and history of the Alaska Industrial Development and
Export Authority (AIDEA). He said AIDEA's statutory mission is
to create economic growth and jobs, which has been designated as
a public purpose by the Alaska State Legislature. He further
explained that AIDEA is designated as a subdivision of the
state, and a public entity. He shared that AIDEA originated in
1967 and has been a self-sustaining corporation with $463
million in dividends since 1996, with over $3.5 billion invested
into economic development in Alaska. He stated that this year's
dividend totaled $17.9 million, and dividends are rising. He
referred to negative statements from a "certain entity" and
expressed his belief that AIDEA can rebut the comments and show
that it is doing well.
1:05:11 PM
MR. RUARO moved to slides 4 and 5 to talk about how AIDEA's
mission ties in with the Statehood Act. He referred to Article
8 of the Alaska State Constitution, which puts forth that Alaska
develop its resources to the maximum extent possible. He
informed members that the U.S. Supreme Court has said that
statehood acts are not only federal statute but are also
compacts that cannot be changed later by Congress, especially in
cases of land grants to states. He said it is important to
remember that when Alaska's statehood rights are interfered
with, the legal question is raised on whether federal agencies
have the authority to interfere.
1:06:19 PM
MR. RUARO moved to slide 6 to talk about Section 6(i) of the
Statehood Act. He said that the section states that all grants
of statehood lands shall include mineral deposits and the right
to prospect for, mine, and remove the minerals. He said the
language was put in intentionally by Congress since it had
identified that Alaska was rich with resources but needed to
sustain itself. He said the Act granted the right not only to
look for minerals in Alaska, but to remove them as well. He
suggested that the language means that the state has a floating
easement, whenever it is needed, to get statehood minerals off
statehood lands. He said that, at the chair's consent, he would
be willing to provide more detail into Section 6(i). He
emphasized the importance of the Statehood Act's legislative
history.
CHAIR MCCABE responded that any information Mr. Ruaro could
provide would be helpful.
1:08:09 PM
REPRESENTATIVE STUTES queried Mr. Ruaro about his statements
regarding mineral rights under the Statehood Act. She stated
that his characterization comes off as sounding like the state
can mine anywhere it wants to collect the resources, and
further, that like there is no permitting process to collect the
minerals.
MR. RUARO explained that in the case of statehood lands, which
he noted is about one quarter of the state, the state does have
a right to mine, prospect, and remove minerals. He said the
mineral rights are still subject to mitigating conditions that
are discussed with the federal government. He provided an
example: the Army Corps of Engineers has jurisdiction over
wetlands, which means that on statehood lands the corps could
perform an environmental review that is not National
Environmental Policy Act (NEPA) related. He offered his
understanding that there is an opportunity for the federal
government to weight in with mitigating conditions but said he
does not think the federal government can come in and say, "No
development."
REPRESENTATIVE STUTES stated that she understands the comments,
but said that if there is permitting required, then the state
must undergo the permitting process. She asked if her statement
is correct.
MR. RUARO suggested that the permitting process is a different
process than permitting on state lands. He said that the
federal agency should be constrained by its promise to the
state, in such that it should not outright deny the state it's
right to develop on its lands. On federal lands, he said, the
federal government has more leeway.
1:10:38 PM
MR. RUARO returned to the presentation on slide 7. He stated
that the statehood vision has not turned out well. He said one
reason is because the federal permitting process, NEPA, is being
applied to all sorts of projects, from green energy to oil and
gas projects. He said the NEPA process is what the study,
"Progress Denied: A Study on the Potential Economic Impact of
Permitting Challenges Facing Proposed Energy Projects," covers.
He explained that the study shows how the NEPA process takes an
average five to seven years to complete but could take longer if
there is litigation involved afterward. Further, he said the
study discussed that NEPA, though well intentioned, causes
significant delay of opportunity for Alaskans.
1:11:39 PM
MR. RUARO moved to slide 8 to report on the progress of several
AIDEA transportation projects. He said the projects include the
FEDEx Corporation maintenance repair and operations facility:
the West Susitna Access project; the Ambler Access project; and
1002 leasing. He said there is an access component to just
about everything because of time and distance for shipping. He
stated, while on slide 9, that the Ambler Access project is a
priority project, which is a planned 211-mile road that would go
off the Dalton Highway and into the Ambler mining district. He
said that for Ambler specifically, Congress said there should be
an easement and access for the project. He recounted that when
the Alaska National Interest Lands Conservation Act (ANILCA) was
passed in the 1980s, former U.S. Senator Ted Stevens had made
sure to protect Ambler. He relayed that the mineral presence in
Ambler has been known for decades to be significant, and so
Senator Stevens wrote language into ANILCA that allowed for the
easement right off the Dalton Highway and into the Ambler mining
district. He reported that there were a number of mining
claims, and jobs available, but said AIDEA is working through
court issues since there has been litigation against Ambler. He
stated that AIDEA will still progress forward as fast as it can.
He said that Ambler is a project where, because of ANILCA and
the Statehood Act, AIDEA's stance is that the federal government
does not have the right to say, "No project." He said that
while some reasonable conditions can be imposed, the federal
government cannot just say to the state, "You don't have the
right to develop on state lands." That is a significant
difference compared to most projects.
1:13:36 PM
CHAIR MCCABE asked how the Federal Government feels about
AIDEA's stance.
MR. RUARO said he is not sure whether the Federal Government
agrees with it.
CHAIR MCCABE asked if the Federal Government is the "hold-up" on
the Ambler Road project, or if there have been other barriers.
MR. RUARO answered that U.S. Department of Interior (DoI) Deputy
Secretary Tommy Beaudreau had filed an affidavit with the court,
which stated that DoI must further review its previous process
under the Trump Administration. He explained that the court
agreed that the U.S. Bureau of Land Management (BLM) should be
allowed to study further, and then issue a new decision. He
said the review is currently underway.
CHAIR MCCABE sought confirmation that federal lands are
involved, there is an easement - and there is already an
easement granted under ANILCA - but now the Federal Government
is wanting to study Ambler Road further.
MR. RUARO responded that Chair McCabe's recounting is correct.
He elaborated that, for the Ambler Road project, there has been
an agreement reached between AIDEA and BLM. He said BLM is
going to move forward with the study, and AIDEA will be moving
forward with a field season, but only if allowed. He shared
that a number of plaintiffs have come forward and asserted to
the court that the state is not in control of its own lands, and
further, that Alaska Native Settlement Claims Act (ANCSA)
corporations are also not in control of their own lands. He
said that is the matter before the court right now. He stated
that AIDEA disagrees with that assertion.
CHAIR MCCABE asked what BLM is studying.
MR. RUARO answered that BLM is studying matters relating to
historical cultural sites along the easement route, as well as
subsistence issues. Following the review, BLM will report to
the court and issue a new decision. He said the draft decision
timeline is due this fall, and so there will be an opportunity
for the public to weigh in on the decision.
1:16:00 PM
MR. RUARO returned to the presentation on slide 10. He spoke on
the FEDEx facility project, which he stated has been an "anchor"
project at the Ted Stevens International Airport. He said AIDEA
is in negotiations with FEDEx to get additional improvements, as
well as increase the term of the lease by a few years. He said
that AIDEA thinks that the airport has been a great location.
1:16:34 PM
CHAIR MCCABE inquired about the FEDEx hangers. He relayed that
FEDEx no longer flies the "74" plane, but rather Boeing's 777,
which has a longer wingspan. He asked if the 777s will fit in
the hanger.
MR. RUARO expressed his belief that the Boeing 777s will fit.
He noted that FEDEx is also considering other expansion
opportunities at the airport. He said the presence of
polyfluoroalkyl substances (PFAS) in the ground is creating
issues, and so AIDEA is figuring out how to construct on ground
that is contaminated with PFAS.
1:17:14 PM
MR. RUARO returned to the presentation on slide 11 to talk about
the West Susitna Access project. He shared that the first 7- to
8-mile section of the road was built in 2012/2013 by Alaska's
Department of Natural Resources (DNR). He said the access
project would extend the road another 92 miles, as well as build
a crossing over the Susitna River. He noted that West Susitna
has great recreational value for Alaskans, and the area around
Skwentna is highly mineralized. He reported that the West
Susitna Access project is currently before the Army Corps of
Engineers. He said AIDEA submitted four pages of information
that was requested by the corps, and AIDEA is moving forward on
the access project as quickly as it can.
1:18:11 PM
CHAIR MCCABE asked if the review pertains to the wetlands.
MR. RUARO answered yes.
CHAIR MCCABE relayed his understanding that only about 1 percent
of the whole (road) is wetlands.
MR. RUARO confirmed that is correct. He commented that the
project is not "thousands and thousands of acres." He said the
access project is a priority project for AIDEA, and then he
turned the committee's attention to Mr. Brefczynski, the person
who is leading the access project.
1:18:50 PM
BRANDON BREFCZYNSKI, Deputy Director, Alaska Industrial
Development and Export Authority, Department of Commerce,
Community, and Economic Development, reiterated that AIDEA has
submitted four pages of requested materials to the corps to
begin the process in procuring a third-party contractor and
start work on the environmental impact statement (EIS). He
explained that the EIS is estimated to have a two-year timeline.
He stated that the EIS is a required process, as will be other
permitting processes that must occur at the same time. He
shared that the hope is the project will begin in the second
quarter of 2025.
1:19:39 PM
MR. BREFCZYNSKI moved to slide 12 to provide details about the
purpose of the West Susitna Access project and why it is a
priority for AIDEA and the governor's administration. He echoed
Mr. Ruaro in that there is tremendous recreation and mineral
activity in the area. He said there are also opportunities for
agriculture, forestry, and - potentially - oil and gas, as there
are some oil and gas reserves in the area. He said that, a
couple weeks ago, DNR put out a public notice for exploration
licenses in the north and south areas of the road.
1:20:21 PM
MR. BREFCZYNSKI moved to slide 13 to discuss how important
mining is for the Alaska and U.S. economies. At the national
level, he said, there is need for critical minerals that are
used to make technological devices. In the West Susitna area
where the road would end, there are several mining deposits that
contain the minerals used for "every day, modern life."
1:20:52 PM
CHAIR MCCABE asked Mr. Brefczynski to explain the term
"transitional economy," which is shown on slide 13. He shared
that he has heard this term used frequently and wants the
committee, and the public, to understand the term.
MR. BREFCZYNSKI deferred to Ms. Wilson to answer the question.
1:21:26 PM
JOSIE WILSON, Director, Communications and External Affairs,
Alaska Industrial Development and Export Authority, Department
of Commerce, Community, and Economic Development, explained that
the term "transitional economy" is being brought up frequently
because of the growing talk around changing from a resource
economy to an alternative energy economy. She made members
aware that minerals are important towards being considered a
"green economy." She said that most people are unaware that, in
order to have a transitional economy, green economy, or
alternative energy economy, critical minerals are needed.
CHAIR MCCABE asked for further clarification about the materials
required. Solar panels need copper, for example, as do
generators and wind turbines. With the term "transitional
economy," he stressed, people need to understand that mining -
and oil extraction - will be around for a long time. He
suggested that the potential for resource development potential
might be a point to raise in advocating for the access project.
MS. WILSON concurred with Chair McCabe's comment. She added
that there are other important uses for minerals as it relates
to transitional economies.
1:23:46 PM
MR. RUARO spoke further on the benefit of the access project.
He said that AIDEA will work with the Alaska Department of Fish
and Game (ADF&G) to see if there are opportunities to improve
rivers and streams. He said the hope is that there's more
salmon, and more opportunity for everyone.
1:24:26 PM
REPRESENTATIVE VANCE inquired about the engineering of the
access project, which is shown on slide 15. She asked about the
171 culvert crossings and asked if Mr. Ruaro knew whether the
crossings are "fish friendly."
MR. RUARO answered that the crossings will be fish friendly
culverts, which are being designed in partnership with ADF&G.
1:24:55 PM
CHAIR MCCABE shared that he has heard many concerns from Cook
Inlet fishers, as well as sport fishers in the valley, regarding
the Susitna river bridge. He said this is the first opportunity
to flesh out the West Susitna Access project. He said he
assumes there will be more hearings and information distributed
to allow the public to know where the bridge will be placed, how
it will be constructed, and how the salmon will be protected.
He suggested that the bridge is the biggest inflection point for
the project.
MR. RUARO responded that the bridge will be a significant part
of the access project. Further, he said there will be multiple
opportunities for comment and review of the bridge design and
placement.
1:26:04 PM
MR. BREFCZYNSKI returned to the presentation on slide 14 to
discuss potential jobs and wages for borough residents, which
would be borne from the project. He said the slide illustrates
the importance of the access project to the economy and
residents that surround the Matanuska-Susitna Borough,
Southcentral Alaska, as well as residents around the state. He
said the data on the slide originates from the McKinley Research
Group's research report, in which it estimated the potential job
and payroll impacts from the mine deposits and the road project
itself. He stated that the access project would be a "boon" for
Southcentral Alaska.
1:27:03 PM
MR. BREFCZYNSKI moved to slide 15 to outline engineering
components of the access project. He said the road will be
designed to meet "fish standards." It will also contain several
bridge crossings, boat launches, and trail pullouts.
1:27:29 PM
CHAIR MCCABE said his constituents want to know if individuals
can freely drive different vehicles on the road, from "4-
wheelers" to eight-foot-wide snowmobile trailers. He stressed
that an important aspect of this project is public access.
MR. BREFCZYNSKI confirmed that the road will be public access.
1:28:21 PM
MR. RUARO explained that he added slide 16 to the presentation
to show five different R.S. 2477 easements that are in the area
of the access project. He explained that the R.S. 2477s provide
access to the public based on a federal grant of an easement
under an 1867 mining law. He said the R.S. 2477s outlined on
slide 16 are additional access opportunities into West Susitna.
He said he thought it was important to note that, besides the
access project's route, there are other routes in the area as
well.
1:29:10 PM
REPRESENTATIVE STUTES asked Mr. Ruaro to explain what an "R.S.
2477" is.
MR. RUARO answered that "R.S. 2477" is a generic term for a type
of easement that the federal government provided in the 1870s.
The statute stated that anywhere there was public use of open
public lands, an easement was created. The statute was repealed
in 1976. In the West Susitna area, there are five R.S. 2477
easements that could sustain public use and are also codified in
Alaska statute. He noted that there are about 932 such
easements statewide that have been identified, and he said that
if a person were to walk on the R.S. 2477 routes, they would
have a right of public access to do so.
1:30:14 PM
REPRESENTATIVE VANCE inquired about the access project route.
She asked for the reason in creating a new easement when the
proposed route already runs parallel to the existing easements.
MR. RUARO said the question comes down to what the most
buildable route is and how best to keep distance between the
road and the trail. He noted that one R.S. 2477 is the Iditarod
trail. He stated that there are several factors that come into
play when separating the road from the R.S. 2477.
1:31:17 PM
MR. BREFCZYNSKI moved to slide 17 to reiterate that permitting
for the access project is currently underway. He said AIDEA has
submitted information to the U.S. Army Corps of Engineers, to
which the corps acknowledged receiving the information. He
further reiterated that AIDEA is hiring a third-party contractor
to conduct an EIS. He stated that the project has state-right
of-way but will still require other permitting as AIDEA works
through the 404 analysis, as well as Section 106 permitting,
which relates to cultural surveying.
1:32:04 PM
MR. BREFCZYNSKI provided a project timeline on slide 18 [labeled
as 22]. He said AIDEA intends to begin construction, contingent
on all going well, by 2025.
1:32:27 PM
MS. WILSON moved to slide 19. She said that AIDEA is requesting
support in dispelling misconceptions. She shared that there are
going to be information sessions in the Matanuska-Susitna
valley, as well as the project area, in March. The sessions
will aim to provide the same information about the project as
was presented to the committee today. She said AIDEA is urging
any supporters of the project to be advocates for responsible
development of Alaska's resources. She informed members of the
group "Alaskans for Access Coalition," which is seeking to
inform the public about the truth of the West-Susitna access
project. Further, the group "Friends of West Susitna" is also
working to provide facts and information to the public. She
said that there will be opportunities to comment on the project
during the NEPA process. She invited anyone that has questions
to reach out to AIDEA.
1:34:18 PM
CHAIR MCCABE asked if there is a website where people can track
the phases of the project.
MS. WILSON answered that there is a designated section on
AIDEA's website that provides up-to-date information about the
project. She said AIDEA plans to make the webpage have a
shortened uniform resource locator (URL) so the public can more
easily access information about the project. She said ADIEA has
a Facebook page that is now accessible. She said they are not
creating a separate project website, rather, they are directing
people to the project page that is on AIDEA's website or towards
the social media page. She asked if Chair McCabe would suggest
an outside website.
CHAIR MCCABE indicated no and said what Ms. Wilson explained is
fine. He noted there is interest on both sides in the project,
and he wanted to ensure there was a place the public could go to
track the project. He asked the presenters to return to slide
14 to explain where the Whistler, Island Mountain, Raintree
West, and Canyon Creek projects are, as well as what minerals
would be gathered. He said he is already familiar with Estelle.
1:36:52 PM
MR. BREFCZYNSKI answered that the Whistler project has a lease
owned by Goldmining Inc. and contains potential gold and copper
deposits. Island Mountain is also leased to Goldmining Inc. and
is also a gold and copper deposit. Canyon Creek is leased to
the Alaska-Asia Mining Company, is a coal deposit, and is
located south of the proposed access road. He stated that he
will follow up with the committee on the exact locations of the
projects.
CHAIR MCCABE thanked the presenters for the presentation.
1:38:19 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 1:38
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AIDEA Presentation to (H)TRA 2.28.23.pdf |
HTRA 2/28/2023 1:00:00 PM |
AIDEA Presentation to (H)TRA |