Legislature(2025 - 2026)BARNES 124

02/25/2025 01:30 PM House TRANSPORTATION

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Audio Topic
01:33:10 PM Start
01:33:46 PM Presentation: Ports and Harbors of Alaska
02:07:29 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Presentation: Ports and Harbors of Alaska by TELECONFERENCED
Bryan Hawkins, President, Alaska Association of
Harbormasters & Port Administrators
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                       February 25, 2025                                                                                        
                           1:33 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ashley Carrick, Co-Chair                                                                                         
Representative Ted Eischeid, Co-Chair                                                                                           
Representative Genevieve Mina                                                                                                   
Representative Louise Stutes                                                                                                    
Representative Kevin McCabe                                                                                                     
Representative Cathy Tilton                                                                                                     
Representative Elexie Moore                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: PORTS AND HARBORS OF ALASKA                                                                                       
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BRYAN HAWKINS, President                                                                                                        
Alaska Association of Harbormasters and Port Administrators                                                                     
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Gave a PowerPoint presentation on the ports                                                              
and harbors in Alaska.                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:33:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR ASHLEY CARRICK called  the House Transportation Standing                                                             
Committee meeting to order at  1:33 p.m.  Representatives McCabe,                                                               
Stutes, Moore, Eischeid, and Carrick  were present at the call to                                                               
order.   Representatives Tilton and  Mina arrived as  the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
^PRESENTATION: Ports and Harbors of Alaska                                                                                      
           PRESENTATION: Ports and Harbors of Alaska                                                                        
                                                                                                                              
1:33:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR CARRICK announced that the  only order of business would                                                               
be a presentation on the ports and harbors of Alaska.                                                                           
                                                                                                                                
1:34:10 PM                                                                                                                    
                                                                                                                                
BRYAN  HAWKINS, President,  Alaska  Association of  Harbormasters                                                               
and Port  Administrators (AAHPA), gave a  PowerPoint presentation                                                               
on the  ports and harbors  in Alaska  [hard copy included  in the                                                               
committee packet].   He  pointed out on  slide 2  AAHPA's mission                                                               
statement of  serving and promoting  Alaska's ports  and harbors.                                                               
He said that  AAHPA is a nonprofit with 47  harbor members and 60                                                               
supporting businesses.   He  continued that  it leads  the harbor                                                               
grant  program for  the Department  of Transportation  and Public                                                               
Facilities  (DOT&PF).   He  pointed  out the  list  of the  board                                                               
members on the  slide, emphasizing that they are  from across the                                                               
state.    He moved  to  slide  3, which  showed  a  map with  the                                                               
locations  of  AAHPA's  harbor  members.   He  noted  that  river                                                               
communities are becoming  part of the association.   He discussed                                                               
the network  that is  created through AAHPA,  which has  become a                                                               
strong source for the supply chain.                                                                                             
                                                                                                                                
MR. HAWKINS,  in response  to a  question from  Co-Chair Carrick,                                                               
said that  the Nenana Harbor  has been  a AAHPA member  for about                                                               
five years.   He expressed  uncertainty on the amount  of traffic                                                               
taken at  the Nenana Harbor.   He added that when  Emmonak joined                                                               
in  2016,  it was  serving  as  a port,  but  all  it had  was  a                                                               
riverbank.   He stated that  Emmonak had received a  build grant,                                                               
and now  it has a dock  and a barge  landing at the mouth  of the                                                               
Yukon River.   He expressed the understanding  that around 10,000                                                               
people live upriver.                                                                                                            
                                                                                                                                
REPRESENTATIVE  MCCABE pointed  out  that  Port MacKenzie  serves                                                               
around 200,000  people, and he expressed  disappointment that the                                                               
presentation would not directly discuss this port.                                                                              
                                                                                                                                
MR.  HAWKINS,  in  response to  a  question  from  Representative                                                               
Stutes, stated that Port MacKenzie is an operating port.                                                                        
                                                                                                                                
1:41:15 PM                                                                                                                    
                                                                                                                                
MR. HAWKINS  moved to  slide 4, which  read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     - Alaska Ports  and Harbors are an  economic Driver for                                                                    
     the State and the Nation                                                                                                   
                                                                                                                                
     - Alaska  Ports and  Harbor provide a  critical network                                                                    
     of transportation for people and for the supply chain                                                                      
                                                                                                                                
     -  Sound  Port  and  Harbor infrastructure  is  key  to                                                                    
     economy stability, growth and security                                                                                     
                                                                                                                                
     - Workforce  Development is essential to  the longevity                                                                    
     of our infrastructure and our way of life.                                                                                 
                                                                                                                                
MR. HAWKINS  moved to  slide 5, which  read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     - Alaska  has 33,000 miles  of coastline more  than the                                                                    
          entire continental US combined.                                                                                       
                                                                                                                                
     - 82% of Alaskans live in coastal communities                                                                              
                                                                                                                                
     -  70,000 Alaskan  jobs are  in  the maritime  industry                                                                    
          (20% of our work force)                                                                                               
                                                                                                                                
     - Three of the top 10  fishing ports in the U.S. are in                                                                    
     Alaska                                                                                                                     
          Dutch Harbor (first by volume), Kodiak & Naknek                                                                       
                                                                                                                                
     - Tourism is essential to Alaska economy                                                                                   
          Nearly 60% of all tourists arrive via cruise ship                                                                     
          Tourism is  largest private employer  in Southeast                                                                    
          Alaska                                                                                                                
                                                                                                                                
     -  The United  States is  an Arctic  Nation because  of                                                                    
          Alaska                                                                                                                
                                                                                                                                
MR. HAWKINS  moved to  slide 6  and pointed  out facts  about the                                                               
state's ports and  harbors.  He noted that there  are three large                                                               
private  ports in  Alaska,  including  the Trans-Alaska  Pipeline                                                               
System port  in Valdez.  He  stated that the largest  public port                                                               
is the Don Young  Port of Alaska in Anchorage.   He noted that 85                                                               
percent of  the state's  cargo would  go through  this port.   He                                                               
stated that the state has 125  small boat harbors, with 108 being                                                               
under local municipal control.                                                                                                  
                                                                                                                                
1:43:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  questioned who  would control  the harbors                                                               
that are not under local control.                                                                                               
                                                                                                                                
MR.  HAWKINS responded  that the  state owns  these harbors.   He                                                               
explained that,  over time, the  state has been  transferring the                                                               
ownership   of   these   harbors   to  the   local   cities   and                                                               
municipalities.  He  gave the example that in 1999  the state had                                                               
sold the harbor in Homer to the  city for $1.  He added that many                                                               
communities own multiple harbors.                                                                                               
                                                                                                                                
CO-CHAIR  EISCHEID questioned  the designation  of the  Don Young                                                               
Port  of  Alaska in  Anchorage  as  a U.S.  Commercial  Strategic                                                               
Seaport.                                                                                                                        
                                                                                                                                
MR.  HAWKINS explained  that  the  Don Young  Port  of Alaska  in                                                               
Anchorage  is  adjacent  to the  Joint  Base  Elmendorf-Richarson                                                               
(JBER), and  military equipment is  often transported  across the                                                               
dock facility at the port.                                                                                                      
                                                                                                                                
1:45:40 PM                                                                                                                    
                                                                                                                                
MR. HAWKINS said that the  Alaska Society of Civil Engineers does                                                               
periodic evaluations  of the ports  and harbor facilities  in the                                                               
state.  He stated  that in 2017 the state received  a grade D for                                                               
the reasons  listed on slide  7, which read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     - No plan for establishing Arctic Deep Water Port                                                                          
      - Port of Alaska (Anchorage) had no recapitalization                                                                      
     momentum                                                                                                                   
        - Southeast Alaska regional cruise ship approach                                                                        
     accommodating neo-Panamax was incomplete                                                                                   
     - Small Boat Harbor matching ADOT Grant uncertain                                                                          
                                                                                                                                
MR. HAWKINS,  in response  to a  question from  Co-Chair Carrick,                                                               
expressed  uncertainty  on  the  definition  of  a  "neo-Panamax"                                                               
cruise ship.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE  explained  that neo-Panamax  is  the  new                                                               
largest ship,  and these could  not fit through the  Panama Canal                                                               
until its renovation.   He expressed the  understanding that some                                                               
ports  in Southeast  Alaska would  be able  to take  cruise ships                                                               
this size.                                                                                                                      
                                                                                                                                
MR. HAWKINS discussed  the construction of the Port of  Nome.  He                                                               
directed attention  to slide 8,  which read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
      - March 2020: Army Corps of Engineers completed Port                                                                      
     of Nome Modification Feasibility Study & Final EA                                                                          
       - December 2020: Project Authorized by Congress in                                                                       
     2020 WRDA Bill                                                                                                             
       - $505M US Army Corps of Engineers Project w/local                                                                       
     match $126M required                                                                                                       
                                                                                                                                
MR. HAWKINS said that the Nome  project went out to bid; however,                                                               
the  bids had  come  back  too high.    He expressed  uncertainty                                                               
concerning the project at this  point; however, he added that "it                                                               
is not  a dead  issue."   He moved to  slide 9  and slide  10 and                                                               
discussed the cruise  ship ports in Juneau.  He  pointed out that                                                               
the new dock facilities could handle  the bigger ships.  He noted                                                               
that  the docks  had  been dug  in deeper  water,  and they  have                                                               
concrete floats that  accommodate the ship's gangways.   He noted                                                               
other  improvements in  the state,  including new  private cruise                                                               
ship docks in Hoonah, Ketchikan, and Whittier.                                                                                  
                                                                                                                                
MR. HAWKINS  moved to  slide 11 and  discussed the  renovation of                                                               
the Don  Young Port of  Alaska that  has taken place  since 2017.                                                               
He  stated that  the  $208 million  replacement  project for  the                                                               
Petroleum Concrete  Terminal was completed  in 2022.   He pointed                                                               
out that  this port  has received around  $134 million  in grants                                                               
between 2019 and 2022.                                                                                                          
                                                                                                                                
1:51:49 PM                                                                                                                    
                                                                                                                                
MR. HAWKINS discussed  the DOT&PF Harbor Facility  Grant, as seen                                                               
on  slide  12,  which  read   as  follows  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     - Established in 2006                                                                                                      
     - Only fully funded three times                                                                                            
     - Woefully underfunded at the legislative level                                                                            
       - Purpose is to encourage local municipalities to                                                                        
     assume financial and managerial responsivity of small                                                                      
     boat harbors                                                                                                               
     - Requires 50% local match.                                                                                                
       - For most Alaska harbors it is the only source of                                                                       
     grant funding.                                                                                                             
                                                                                                                                
MR.  HAWKINS moved  to  slide 13,  which showed  a  chart on  the                                                               
DOT&PF  Harbor  Facility Grant  funding  for  projects from  2020                                                               
through 2026.                                                                                                                   
                                                                                                                                
MR.  HAWKINS  discussed  the  Municipal  Harbor  Facility  Grants                                                               
Program.  He pointed out the  funding for projects in fiscal year                                                               
2023 (FY 23), as  seen on the chart on slide 14.   He stated that                                                               
during this year the governor's  budget had awarded $16.4 million                                                               
to municipal harbor  projects in the state.  He  pointed out that                                                               
this has  been the  largest grant award  since the  conception of                                                               
the program.   He  added that  there would be  a local  match for                                                               
each  grant request.   He  stated that  in FY  24, $8  million in                                                               
grants had been requested for  three projects; however, only $5.5                                                               
million  was approved,  as seen  on slide  15 and  slide 16.   He                                                               
stated  that only  one grant  project  had been  put forward  and                                                               
awarded in  FY 25, and  it was for $5  million, as seen  on slide                                                               
17.   He continued to slide  18, which addressed the  FY 26 grant                                                               
requests for this  program.  He stated that  these grant requests                                                               
total $7  million for  four projects, while  the total  cost with                                                               
the local  match for  these projects  would be  $30 million.   He                                                               
stated that  local contractors would  be used on  these projects,                                                               
and he expressed  the opinion that these projects  are "very much                                                               
needed."                                                                                                                        
                                                                                                                                
MR. HAWKINS  moved from slide  19 through slide 20,  pointing out                                                               
the "big"  grant wins over  the past few  years.  He  stated that                                                               
the  grant money  received for  these projects  have resulted  in                                                               
upgrades and recapitalization projects  throughout the state.  He                                                               
stated that this  was done by leveraging state  grants with local                                                               
dollars.  He noted the Emmonak dock project on the list.                                                                        
                                                                                                                                
1:57:59 PM                                                                                                                    
                                                                                                                                
MR.  HAWKINS,  in  response to  a  question  from  Representative                                                               
McCabe,  pointed out  that  the  Port Development  Infrastructure                                                               
Program (PDIP) grant is a  Maritime Administration (MARAD) grant.                                                               
He noted  that the port  in Anchorage  has received two  of these                                                               
grants.                                                                                                                         
                                                                                                                                
MR. HAWKINS,  in response  to a  question from  Co-Chair Carrick,                                                               
expressed uncertainty  when the PDIP  grant had been  awarded for                                                               
the Jakolof  Bay Dock in  Seldovia.  He expressed  agreement that                                                               
it might  have been in  FY 23.   He expressed uncertainty  on the                                                               
progress of  this project.  He  stated that he would  report back                                                               
to the committee on this progress.                                                                                              
                                                                                                                                
MR.  HAWKINS stated  that in  2021  the Alaska  Society of  Civil                                                               
Engineers raised the  state's grade for its ports  and harbors to                                                               
a D+.   He discussed the  reasons for this higher  grade, as seen                                                               
on  slide  22,  which  read   as  follows  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     -  Congress authorization  to  designate  Nome as  Deep                                                                    
     Draft Arctic Port was more than a decade in the making                                                                     
     -  Port   of  Alaska  Port  Modernization   Project  is                                                                    
     underway                                                                                                                   
      - Private Investment for Cruise Ship Docks has built                                                                      
     capacity for tourism economy                                                                                               
                                                                                                                                
MR.  HAWKINS  noted that  the  small  boat harbor  grant  remains                                                               
unfunded and  uncertain, so this  had not  helped the grade.   He                                                               
expressed  the  understanding  that Alaska's  ports  and  harbors                                                               
should be receiving a new grade soon.                                                                                           
                                                                                                                                
2:01:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  questioned whether the deep-water  port in                                                               
Nome would require maintenance dredging.                                                                                        
                                                                                                                                
MR. HAWKINS, in  response, expressed uncertainty.   He added that                                                               
the  entrance  to  the  small  boat harbor  in  Nome  has  always                                                               
required maintenance dredging.                                                                                                  
                                                                                                                                
REPRESENTATIVE  MCCABE expressed  the  understanding that  within                                                               
the last few  days, the Alaska Society of  Civil Engineers raised                                                               
the state's grade from  a D+ to a C-.   He questioned whether the                                                               
port in Nome has an anchor tenant.                                                                                              
                                                                                                                                
REPRESENTATIVE STUTES  expressed the understanding that  it would                                                               
be the military.                                                                                                                
                                                                                                                                
MR. HAWKINS expressed uncertainty.                                                                                              
                                                                                                                                
REPRESENTATIVE MCCABE discussed the  barge activity in Cook Inlet                                                               
and  Southcentral Alaska.   He  expressed the  understanding that                                                               
companies are struggling  to find places to work  on their barges                                                               
and places to lay them up  for the winter.  He questioned whether                                                               
ports in this area would be able to accommodate this.                                                                           
                                                                                                                                
MR. HAWKINS expressed  the understanding that there is  a lack of                                                               
moorage space  for barges  in this  area.   He noted  that barges                                                               
would  be too  big  to enter  the  harbors.   He  stated that  in                                                               
Kachemak Bay  there are some  permanent moorings for  barges, and                                                               
some barges  have been hauled  out on  airbags and stored  in the                                                               
marine repair yard.   In response to a follow-up  question on the                                                               
increased  barge   activity  in  Port  MacKinzie,   he  expressed                                                               
agreement that more moorings are needed.   He noted that there is                                                               
no  winter moorage  in  Western  Alaska.   He  stated that  these                                                               
barges could not be left in  the rivers, and when they are hauled                                                               
out on a bank, they need to  be clear of the water because winter                                                               
ice would  create damage.   He stated that  in the past,  much of                                                               
the barge traffic had traveled to the Lower 48.                                                                                 
                                                                                                                                
2:06:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  CARRICK thanked  the presenter,  and  she made  closing                                                               
comments.                                                                                                                       
                                                                                                                                
2:07:29 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Transportation Standing  Committee meeting was adjourned  at 2:07                                                               
p.m.                                                                                                                            

Document Name Date/Time Subjects
Alaska Association of Harbormasters & Port Administrators 02.25.25.pdf HTRA 2/25/2025 1:30:00 PM