Legislature(2025 - 2026)BUTROVICH 205
04/01/2025 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
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| Start | |
| Presentation: Aidea Update on Major Projects | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
April 1, 2025
1:38 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Löki Tobin, Vice Chair
Senator Jesse Kiehl
Senator Bert Stedman
Senator Mike Shower
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION: AIDEA UPDATE ON MAJOR PROJECTS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
RANDY RUARO, Executive Director
Alaska Industrial Development and Export Authority (AIDEA)
Anchorage, Alaska
POSITION STATEMENT: Presented AIDEA Update on Major Projects.
MATTHEW REXFORD, Tribal Administrator
Native Village of Kaktovik
Kaktovik, Alaska
POSITION STATEMENT: Participated in the presentation, AIDEA
Update on Major Projects.
FRED SUN, Tribal President
Native Village of Shungnak
Shungnak, Alaska
POSITION STATEMENT: Participated in the presentation, AIDEA
Update on Major Projects.
PJ SIMON, First Chief
Allakaket Tribe
Fairbanks, Alaska
POSITION STATEMENT: Participated in the presentation, AIDEA
Update on Major Projects.
ACTION NARRATIVE
1:38:08 PM
CHAIR BJORKMAN called the Senate Transportation Standing
Committee meeting to order at 1:38 p.m. Present at the call to
order were Senators Kiehl, Stedman, and Chair Bjorkman. Senators
Shower and Tobin arrived thereafter.
^PRESENTATION: AIDEA UPDATE ON MAJOR PROJECTS
PRESENTATION: AIDEA UPDATE ON MAJOR PROJECTS
1:38:54 PM
CHAIR BJORKMAN announced the presentation AIDEA Update on Major
Projects.
1:39:20 PM
RANDY RUARO, Executive Director, Alaska Industrial Development
and Export Authority (AIDEA), Anchorage, Alaska, introduced
himself.
1:39:41 PM
MR. RUARO advanced to slide 2 and discussed how AIDEA reflects
several bedrock principles in the Alaska Constitution:
[Original punctuation provided.]
Constitutional Authority
Constitution of Alaska
Article VII Health, Education, and Welfare
Section 1. Public Education. The legislature shall by
general law establish and maintain a system of public
schools open to all children of the State, and may
provide for other public educational institutions.
Section 4. Public Health. The legislature shall
provide for the promotion and protection of public
health.
Section 5. Public Welfare. The legislature shall
provide for public welfare.
Article VIII Natural Resources
Section 1. Statement of Policy. It is the policy of
the State to encourage the settlement of its land and
the development of its resources by making them
available for maximum use consistent with the public
interest.
Section 2. General Authority. The legislature shall
provide for the utilization, development, and
conservation of all natural resources belonging to the
State, including land and waters, for the maximum
benefit of its people.
Article IX Finance and Taxation
Section 11. Exceptions. The restrictions on
contracting debt do not apply to debt incurred through
the issuance of revenue bonds by a public enterprise
or public corporation of the State or a political
subdivision, when the only security is the revenues of
the enterprise or corporation. The restrictions do not
apply to indebtedness to be paid from special
assessments on the benefited property, nor do they
apply to refunding indebtedness of the State or its
political subdivisions.
MR. RUARO stated that AIDEA reflects these constitutional
provisions in its legislative intent and findings. These
policies were adopted by the legislature and direct AIDEA to
help develop Alaska's resources for the benefit of all Alaskans.
1:41:22 PM
MR. RUARO advanced to slide 3 and discussed AIDEA's mission and
purpose:
[Original punctuation provided.]
AIDEA's Mission and Purpose
To promote, develop, and advance economic growth and
diversification in Alaska by providing various means
of financing and investment.
AS 44.88.010. Legislative Finding and Policy.
(a) The legislature finds, determines, and declares
that
(1) there exist areas of the state in which seasonal
and nonseasonal unemployment exist;
(2) this unemployment is a serious menace to the
health, safety, and general welfare, not only to the
people in those areas, but also to the people of the
entire state;
(3) the state lacks the basic manufacturing,
industrial, export, small business, and business
enterprises and the other facilities referred to in
this subsection necessary to permit adequate
development of its natural resources and the balanced
growth of its economy;
(4) the establishment and expansion of industrial,
manufacturing, export, small business, and business
enterprises in Alaska and the other facilities
referred to in this subsection are essential to the
development of the natural resources and the long-term
economic growth of the state, and will directly and
indirectly alleviate unemployment in the state;
(11) it is in the state's interest to import private
capital to create new economic activity which would
not otherwise take place in the state.
(b) It is declared to be the policy of the state, in
the interests of promoting the health, security, and
general welfare of all the people of the state, and a
public purpose, to increase job opportunities and
otherwise to encourage the economic growth of the
state, including the development of its natural
resources, through the establishment and expansion of
manufacturing, industrial, export, small business, and
business enterprises and the other facilities referred
to in (a) of this section by creating the Alaska
Industrial Development and Export Authority with the
powers, duties, and functions as provided in this
chapter
(c) It is further declared to be the policy of the
state, in the interests of promoting the health,
security, and general welfare of all the people of the
state, and a public purpose of the state, to
accomplish the objectives set out in (b) of this
section through the provision of financial support to
a federal, state, municipal, or private entity.
MR. RUARO stated that unemployment is considered a serious
menace to Alaskans for various reasons, including the high cost
of living, isolation, and the need to support one's family.
AIDEA helps to promote and fund economic development and is
primarily focused on resource development and export.
1:42:36 PM
MR. RUARO advanced to slide 4 and discussed AIDEA's financial
highlights for fiscal year (FY) 2024:
[Original punctuation provided.]
AIDEA Fiscal Year 2024
Financial Highlights
• $1.49 B Net Position
• $52.8 M Increase in Net Position
• $495 M AIDEA Dividends Approved Cumulative Total
• $20 M AIDEA Dividend Approved for Payment in
FY2026
[Slide 4 contains a bar chart titled "AIDEA net
position" (with data spanning FY2020-FY2024) and a bar
chart titled "AIDEA dividends declared" (with data
spanning FY2022-2026).]
MR. RUARO said that roughly one third of the net asset position
is in a loan portfolio to small and medium-sized businesses.
Several million is in hard assets. The remainder is made up of
the revolving fund and various investments. AIDEA reached its
highest statutory net income in the organization's history in
2024. He surmised that AIDEA's income will continue to increase
in upcoming years. He expressed a high degree of confidence in
AIDEA's investments. He stated that a high return on investment
benefits AIDEA as well as the state treasury and individual
Alaskans. The FY2026 dividend is the highest in a decade. He
surmised that AIDEA's fiscal returns will continue to improve,
and the organization will experience significant growth in the
coming years.
1:45:20 PM
MR. RUARO advanced to slide 5 and discussed AIDEA assets,
projects, bonds, and loans. Slide 5 contains an infographic with
AIDEA assets and projects alongside AIDEA bonds and loans
funded. AIDEA has funded $522,059,965 in bonds and $488,107,252
in loans across the state.
1:45:48 PM
MR. RUARO advanced to slide 6 and discussed the Arctic National
Wildlife Refuge (ANWR):
[Original punctuation provided.]
Arctic National Wildlife Refuge (ANWR)
Section 1002 Area Leases
SECTION 1002 AREA OIL AND GAS LEASES In 2017, Congress
passed the "Tax Cuts and Jobs Act," which directed the
Department of the Interior (DOI) to establish and
manage a competitive oil and gas leasing program in
the Arctic National Wildlife Refuge (ANWR). The
Coastal Plain, often referred to as the 1002 Area,
comprises 1.56 million acres within the 19.64 million-
acre ANWR. AIDEA's leases cover 365,775 acres, legally
acquired in January 2021.
Development of the 1002 Coastal Plain holds fi
potential for economic growth. According to the Final
Supplemental Environmental Impact Statement (SEIS),
leasing and development could generate billions of
dollars in revenue for local, state, and federal
governments while creating thousands of jobs.
March 25, 2025 - Federal District Court Judge Gleason
rules in favor of AIDEA in the case against the United
States Department of Interior for wrongfully canceling
its leases in the Alaska National Wildlife Refuge
(ANWR).
"Today's ruling is about so much more than reinstating
illegally canceled leases in ANWR; it is about
upholding the rule of law in our country," said
Governor Mike Dunleavy. "A rogue federal agency under
the Biden administration should never have had the
power to cancel legally obtained leases. Now the
leasing program can move forward and could result in
more safe, secure energy production right here in
Alaska. President Trump was right on ANWR as well."
[Slide 6 contains a map of ANWR lease lots.]
MR. RUARO briefly discussed the various lease lots in ANWR and
the research AIDEA has done regarding the geology of the Coastal
Plain. AIDEA's experts have expressed confidence that these
areas contain billions of barrels of oil.
1:47:06 PM
MR. RUARO advanced to slide 7 and continued discussing ANWR
section 1002 area leases. Estimated State annual tax and royalty
revenue is $2,002,000. Slide 7 contains tables displaying annual
government revenues and the direct and indirect effects, along
with the estimated number of jobs. He noted the potential for
thousands of jobs in ANWR.
1:48:14 PM
MATTHEW REXFORD, Tribal Administrator, Native Village of
Kaktovik, Kaktovik, Alaska, introduced himself and advanced to
slide 10. He briefly discussed his work history.
1:48:29 PM
SENATOR SHOWER joined the meeting.
MR. REXFORD continued his discussion of Slide 10:
[Original punctuation provided.]
Background
• Currently Tribal Administrator
• Formerly Kaktovik Iñupiat Corporation President
Testified extensively to Congress on opening the
Coastal Plain to Oil & Gas Leasing
• Testified on the 2017 Tax Cuts and Jobs Act
• Testified to the Alaska Legislature on HJR 12 in
2021
• Thank you for allowing us to speak today on our
continued support for Oil and Gas Leasing in the
HOMELANDS of the Kaktovikmiut.
• Our people have lived here for thousands of
years.
• Our position with respect to these lands need to
be heard.
MR. REXFORD indicated that the Native Village of Kaktovik
supports oil and gas exploration in the 1002 Coastal Plain area
of ANWR.
1:49:48 PM
MR. REXFORD advanced to slide 9 and discussed the history of
Kaktovik:
[Original punctuation provided.]
Our History
• Our community has been continually been caught
between federal actions that impact our ability
to realize our visions of a vibrant and
sustainable future.
• The 1971 Alaska Native Claims Settlement Act of
1971 (ANCSA) was supposed to allow our Kaktovik
Iñupiat Corporation (KIC) the economic freedoms
to develop its lands to benefit our community.
• Quickly following ANCSA, the 1980 Alaska National
Interest Lands Conservation Act (ANILCA)
compromised KIC's ability to access and develop
its lands by expanding the Arctic National
Wildlife Refuge and surrounding us
• Kaktovik did not want to be an island in the
middle of a Refuge but it happened anyway.
• Having lived in the Refuge since ANILCA I am here
to tell you that life has been difficult, and
after 44 years the federal management agency has
not performed its duty to our community as
required.
MR. REXFORD emphasized that the City of Kaktovik did not choose
to be surrounded by ANWR. He stated that the federal
government's treatment of the City of Kaktovik is paternalistic
and patronizing. He asserted that the federal government's
mission is to remove the residents of the City of Kaktovik from
the land; however, this land belongs to the City of Kaktovik. He
briefly discussed the progress the City of Kaktovik has made
with respect to ANILCA; however, this progress does not meet the
federal government's commitment to the community.
1:52:00 PM
CHARLES LAMPE, President, Kaktovik Iñupiat Corporation,
Kaktovik, Alaska, introduced himself. He stated that the Iupiat
people are the only indigenous population on the Coastal Plain
and within the boundaries of ANWR, where they own 92,000 acres
of land. He expressed support for AIDEA and said he is looking
forward to partnering to move AIDEA's leases forward. He
expressed frustration that ANWR leases were canceled and stated
that Iñupiat voices were silenced. He paraphrased Slide 16:
[Original punctuation provided.]
• The debate over opening ANWR to oil drilling
gained national attention in 1980, when the
Congress set aside less than 8 percent of the
newly formed Refuge for potential oil and gas
development.
• These lands of ANWR became known as the 1002
Area, after Section 1002 of ANILCA.
• Unstated in ANILCA is that these lands are
home to the Kaktovikmiut.
• We have recognized that we are an 'inconvenient
truth' because we are here these are our
homelands.
• We will not give up on our rights as indigenous
people and the federal government has an
obligation to us through the laws of ANCSA and
ANILCA.
• AIDEA leases were legitimately obtained under the
2020 Coastal Plain Oil and Gas lease sale.
Congratulations on resolution of the lawsuit.
• KIC was financially impacted in a meaningful way
when Secretary Haaland arbitrarily cancelled the
AIDEA leases.
• KIC needs the contracts, and our community needs
the jobs that come with exploration. The
operators of the leases need subsistence
representatives, polar bear guards, cultural
resource experts this is what we can provide.
These are important opportunities for our people.
• We understand that without a significant
discovery these jobs could be ephemeral but
people in Kaktovik need these opportunities to
build resumes and to work with outside companies
to grow their capabilities and capacities.
• We openly admit that oil is critical to our
region. It is the tool that we used to bring us
into modern society.
• ON THE FOLLOWING PAGES ARE SOME CURRENT BEST
PRACTICES FOR NORTH SLOPE OIL AND GAS
MR. LAMPE briefly discussed the benefits a winter access trail
would provide and expressed hope that this would be created
under the new administration.
1:56:16 PM
CHAIR BJORKMAN asked whether Kaktovik Inupiat Corporation has
any wells in production on private lands.
1:56:32 PM
MR. LAMPE replied no and said there are no active wells in the
1002 area or the Coastal Plain. He shared his understanding that
the last well was drilled in the 1980s; however, that well did
not go into production. He expressed hope that AIDEA's
reinstated leases would result in production.
1:56:57 PM
CHAIR BJORKMAN asked about the role of royalty funds in the
community - and what portion of those funds would be put towards
building infrastructure to support the increased industrial
activity in the region that would result from production.
1:57:40 PM
MR. LAMPE replied that the money received from oil industry
infrastructure taxation is used to fund schools, health clinics,
water and sewer, and updating older infrastructure. He expressed
hope that the money received would also go towards these, as
well as creating additional jobs for the community of Kaktovik
and the state. He expressed hope that Kaktovik would be able to
tie into other communities with road access. He opined that
every rural community in Alaska has a right to have year-round
access to other communities.
1:59:04 PM
SENATOR SHOWER commented that advocating for development would
be critical to overcoming any opposition. He expressed hope that
the City of Kaktovik would be communicating their support to
Congress and those in the Lower 48.
2:00:20 PM
Senator Tobin joined the meeting.
2:00:27 PM
MR. LAMPE agreed. He shared that would be traveling to
Washington DC next week to advocate for oil and gas development.
He stated that during the past 4 years, the voices of the people
of Kaktovik were overshadowed by NGOs, environmental groups, and
other indigenous groups that do not have claim to or cultural
history with the Coastal Plains or ANWR. He reiterated that the
Inupiat people of Kaktovik are the only indigenous people that
have survived and thrived in the 1002 Coastal Plains area. He
commented that ANWR is vast and less than 8 percent is under
development. The AIDEA leases are close to 2 percent. He said
that the intention is to let others know that Kaktovik would
like a seat at the table. He added that they depend on the land
and the animals and would never endanger either; however, they
need resources that can provide heating, fuel, education, and
healthcare - which comes from taxation of oil revenue. He
reiterated that the Inupiat people of Kaktovik want their voices
to be heard. He expressed a willingness to work with AIDEA to
advocate in Washington D.C.
MR. LAMPE shared about his experiences testifying before
Congress on this issue. He emphasized the importance of hearing
the voices of those indigenous to the land when deciding these
issues.
2:04:00 PM
MR. RUARO advanced to slide 22 and discussed the Ambler Access
Project. He stated that this is a mandatory access right
guaranteed by federal law under the Alaska National Interest
Lands Conservation Act (ANILCA).
2:04:44 PM
MR. RUARO advanced to slide 23 and discussed the DeLong Mountain
Transportation System (DMTS):
[Original punctuation provided.]
DeLong Mountain Transportation System (DMTS)
Red Dog Mine (Northwest Arctic Borough)
• AIDEA-owned asset.
• AIDEA's return on investment: $296 million
• In 1985, the Alaska Legislature, the Governor,
and AIDEA agreed that some public support was
needed to make Red Dog go forward. After many
hearings, SB 279 and SB 280 were passed by the
Legislature and signed into law.
• In 1986, AIDEA and Cominco (Teck) signed a 50-
year agreement for the financing, construction,
use, operation, and maintenance of the DMTS.
Payments commenced on July 1, 1990, and the
initial term will conclude on June 30, 2040.
• In 1987, funds for the road and port were $180
million. (Part of the financing involved issuing
$130,250,000 in tax-exempt revenue bonds based on
a 50-year agreement with Cominco (Teck))
• AIDEA expanded port facilities in 1997 by funding
an additional $85 million for port expansion and
amended and reinstated the DMTS agreement.
• Project continues to yield significant dividends
for NANA (royalty of $255 million in 2021 and
shares ~60 percent of the royalty with other
Regional Corporations).
• Future opportunities also exist (Aktigiruq
prospect could be one of the largest undeveloped
zinc deposits in the world).
[Slide 23 contains an infographic to illustrate the
benefits from AIDEA's investment to the state and NWAB
economy.]
2:06:57 PM
MR. RUARO advanced to slide 24 and discussed the West Susitna
Access Project:
[Original punctuation provided.]
West Susitna Access Project
The West Susitna Access Project is more than a
transportation initiative it is a cornerstone of
Alaska's future prosperity.
This 78-mile road project is located north of
Anchorage and west of Wasilla and will provide access
to many desired resources.
Potential Benefits
• Gold, copper, silver, coal, antimony, and other
mineral resources.
• Opportunities for clean energy, including
geothermal, solar, wind, carbon capture and
sequestration, and biomass resources.
• More than 700,000 acres available for harvest.
• Active energy exploration in the areas of the
Susitna River, including Upper Cook Inlet, where
active oil and gas producing fields exist in the
study area.
• More than 65,000 acres of land has been
identified for potential agricultural uses.
• Many opportunities for recreational access
including snowmachining, fishing, hunting,
boating, recreational mining, and use of cabins.
[Slide 24 contains a map of the West Susitna Access
project.]
MR. RUARO briefly discussed the importance of antimony and
stated that this presents an opportunity to on-shore the
production of antimony and potentially also manufacturing
ammunition in-state. He said there is potential for this project
to have returns that are close to those of the Red Dog Mine.
2:08:17 PM
CHAIR BJORKMAN asked for information about the revenue stream
for both the West Susitna Access Project and the Red Dog Mine.
2:08:40 PM
MR. RUARO briefly explained the method used to fund this type of
project. Companies that plan to utilize the road sign debt
service payment agreements. Repayment (using revenue generated
from the mine) begins once the road is complete. Once repayment
is complete, AIDEA continues to receive a toll or tariff for use
of the road.
2:09:27 PM
CHAIR BJORKMAN asked whether the public has access to DMTS.
2:09:35 PM
MR. RUARO shared his understanding that the public has partial
access. He noted that there are significant restrictions.
2:10:02 PM
CHAIR BJORKMAN asked whether the public would have access to the
West Susitna Access Project Road.
2:10:08 PM
MR. RUARO replied yes. He explained that this road is intended
to be open to public access for recreation. He noted Borough
property and potential housing developments as well as millions
of acres of state land running along the road as it travels
west. He reiterated that there will be opportunity for public
use of the road.
2:10:52 PM
SENATOR TOBIN asked about the dates of the upcoming public
comment period.
2:11:17 PM
MR. RUARO shared his understanding that the public notice in
question is for the Department of Transportation and Public
Facilities (DOTPF) section of the road, which falls under a
separate public process. He said that he does not have this
information but could provide it.
2:11:56 PM
SENATOR TOBIN asked about AIDEA's public process.
2:11:59 PM
MR. RUARO answered that AIDEA's process begins with filing for a
permit. This is followed by the public process with the federal
permitting agency (Army Corp of Engineers). He briefly described
the National Environmental Policy Act (NEPA) process. AIDEA is
currently engaging with the public in stakeholder meetings,
which will continue.
2:12:44 PM
SENATOR TOBIN shared that she has heard concerns regarding the
timeliness of AIDEA's notice to stakeholders. She asked for more
detailed information about the notification and engagement
process. She emphasized the importance of ensuring that all
voices are heard.
2:13:06 PM
MR. RUARO acknowledged her request.
2:13:11 PM
SENATOR SHOWER said he has attended meetings where AIDEA has
been actively engaged with the public and answering questions.
2:14:11 PM
MR. RUARO advanced to slide 25 and discussed the Ambler Road
Project:
[Original punctuation provided.]
Access to Opportunities
Estimated Total Tax and Royalty Revenue $1,144,785,127
Potential Benefits
Mine Construction
• 2,777 direct jobs with $286 million in wages
annually
• 2,034 additional indirect and induced jobs with
$108 million in wages annually
Mining Operations
• 495 direct jobs with $72 million in wages
annually
• 3,436 additional indirect and induced jobs with
$228 million in wages annually
Road Construction and Operations
• An annual average of 360 direct jobs over the
road construction period
• Up to 81 direct annual jobs for road operations
and maintenance over the life of the road
Government Revenue Generation
• $393 million in mining license tax revenues
• $524 million in corporate income taxes
• $214 million in production royalties
• $13 million in claim rents
MR. RUARO explained that Ambler Road would travel 200 miles from
the Dalton Highway to the Ambler Mining District. This access
route was guaranteed in ANILCA. He briefly discussed the history
of the associated mining sites and offered examples to
illustrate the resources in each.
2:17:06 PM
FRED SUN, Tribal President, Native Village of Shungnak,
Shungnak, Alaska, advanced to slide 26 and gave an overview of
the community of Shungnak:
Shungnak, on the west bank of the Kobuk River, was
originally located 10 miles further upstream at Kobuk
until river erosion and flooding forced the village to
relocate. Issingnak is the Iñupiat word for jade,
which is found throughout the neighboring hills.
Shungnak is an Iñupiat village where subsistence is an
important part of the economy.
Native Village of Shungnak:
• Incorporated in 1967
• 15 miles from the proposed Ambler Access Road
• Population in 2020: 272
• Median Household Income: $76,667
• In the Northwest Arctic Borough
MR. SUN emphasized the need for jobs. He stated that many tribal
members are moving away from the community due to the high cost
of living and lack of job opportunities. There are over 600
enrolled tribal members; however, only 270 tribal members are
currently living in Shungnak.
2:18:35 PM
MR. SUN emphasized the importance of resource development,
noting that the Red Dog Mine has been the largest employer of
Shungnak shareholders for 40 years. Many shareholders were
employed at Bornite during exploration. He briefly discussed
these jobs. He stated that the younger generations are eager to
learn, especially when this leads to guaranteed jobs. Royalties
from resource development support community infrastructure (e.g.
schools and village public safety officers (VPSOs)). He
explained that this money goes from the mine to the Northwest
Arctic Borough and then to the community.
2:20:47 PM
MR. SUN said the Ambler access road inspired hope that there
could one day be a road to Shungnak, as the village is only 15
miles away from the proposed road location. He listed the
various costs that would be lowered as a result of road
connection, including construction supplies and fuel costs. He
briefly discussed the process and challenges related to housing
construction. The cost of fuel (both heating and vehicle) is $10
per gallon. He emphasized the burden of the high cost of living
and discussed how this impacts the subsistence lifestyle. He
shared a story about a well-known elder who relayed the need to
adapt and move forward in order to provide opportunities for
future generations. He pointed to high suicide rates in the
region and emphasized the importance of creating opportunities
for future generations. He shared that his sons work at the Red
Dog Mine and expressed gratitude for the opportunities and sense
of confidence this has given them. He acknowledged that there is
limited work at the Red Dog Mine and said additional
opportunities are needed so that others in the community can
share these benefits.
2:24:28 PM
PJ SIMON, First Chief, Allakaket Tribe, Fairbanks, Alaska,
advanced to slide 27 and discussed the Allakaket community:
[Original punctuation provided.]
Allakaket is on the south bank of the Koyukuk River,
southwest of its junction with the Alatna River,
approximately 190 air miles northwest of Fairbanks and
57 miles upriver from Hughes. The village of Alatna is
located directly across the river.
• Village of Allakaket:
• Incorporated in 1975
• 34 miles from the proposed Ambler Access Road
• Population in 2020: 177
• Median Household Income: $25,000
• Unorganized Borough
MR. SIMON shared about the Village of Allakaket's process of
coming to a position of support for the Ambler Road Project. He
shared that, prior to mining in the region, the median income
was $12,000. He listed the various mining operations in the area
surrounding Allakaket. He emphasized the importance of providing
youth with opportunities and shared that the village has lost
many youths to suicide due to a lack of opportunity. He pointed
out that all the available training programs are federally
funded and noted a lack of state-funded training programs. He
commented that this project would provide work for young
Alaskans. He shared about his experience finding work and
supporting his family and surmised that the Ambler Road Project
would increase access to opportunities. He briefly discussed the
education levels of villagers and how the need for education
impacts villagers' employment opportunities.
2:28:25 PM
MR. SIMON emphasized that the Village of Allakaket fought the
idea of land and resource development for many years. He said
that it is difficult to request help when others are not
familiar with life in the region. He invited the committee to
visit Allakaket to gain a better understanding of village life.
There is no water or sewer in Allakaket, which results in
illness. He pointed out that some who live in Allakaket are US
military veterans. He emphasized that the Village of Allakaket
is seeking greater independence and self-sufficiency. He
expressed appreciation for the support Allakaket has received
from AIDEA. He commented that one tactic of environmental groups
involves pitting Alaska Native groups and individuals against
each other and opined that this is not very effective. He
briefly discussed the role he plays in his community and the
variety of jobs this includes on a given day. He reiterated that
Allakaket supports development and emphasized the importance of
providing opportunities for youth and creating better citizens.
He shared an April Fool's Day joke.
2:32:27 PM
CHAIR BJORKMAN commented on the importance of speaking the truth
about situations, even if others take offense. He opined that
this creates an opportunity for education and can create greater
understanding. He noted that there are state facilities for
training around the state. He asked if there are specific trades
that Allakaket residents are interested in that are not
available at the nearby training facilities.
2:33:32 PM
MR. SIMON replied that Allakaket residents are more interested
in drillers helper, Class B CDL, Class A CDL training, culinary
arts, first aid and CPR, etc. He briefly discussed the village's
location in relation to various mining projects and suggested
that the state create a mobile training unit in Allakaket or
nearby, so that residents do not have to travel to Kotzebue or
for training.
2:36:07 PM
SENATOR TOBIN noted that mobile training was previously offered;
however, that program is no longer funded. She opined that it is
a great idea to consider ways to continue to invest in quality
programs that have helped people across the state become
successful and self-determinate.
2:36:47 PM
MR. SUN commented that Shungnak benefits from the training
facility in Kotzebue, which conforms to the needs of the Red Dog
Mine. He listed several trainings that are available and made
possible by the Red Dog Mine. He expressed hope that this same
opportunity could be shared by the residents of Allakaket.
2:38:11 PM
CHAIR BJORKMAN noted the change in attitudes toward development
of natural resources and some surrounding land. With respect to
the road projects, he asked whether the communities of Allakaket
and Shungnak would support or oppose having an open access road,
which would allow for further land development.
2:39:27 PM
MR. SUN replied that the Village of Shungnak supports an
industrial access road (with allowable commercial use to bring
goods and services to the community) and does not support a
public access road. He noted that support for the road has grown
as a result of increased education.
2:40:27 PM
MR. SIMON replied that the Tribe of Allakaket supports
development with the understanding that it would be a private
road. He acknowledged that the road would take many years to
build; however, it would create immediate opportunities for
young people. He briefly discussed the training programs
available through the Yukon-Koyukuk School District. He said he
cannot say with certainty that the residents of Allakaket would
prefer a closed or open use road.
2:42:30 PM
CHAIR BJORKMAN noted public tension around using public funds to
build infrastructure that only certain Alaskans can use. He
questioned the appropriateness of using public funds in this
way, particularly when the area is made up of public lands (both
state and federal) and private property. He opined that the
ANILCA provisions apply to all Alaskans. He briefly discussed
the Public Land Survey System (PLSS) and reiterated his concern
about using public funds in a way that does not benefit
everyone. He noted that there are complex factors related to
AIDEA projects and opined that these need to be carefully
considered.
2:45:43 PM
MR. SUN shared his understanding that public funds were used to
construct the Dalton Highway; therefore, public access was later
granted. He shared his understanding that the Ambler Access Road
Project would be constructed using private investment dollars
and therefore public use would not be granted.
2:46:47 PM fix
MR. SIMON stated that he is not a scholar of the Alaska
Constitution; rather, he is advocating on behalf of the future
generations in his community. He expressed understanding of
Senator Bjorkman's concerns; however, he pointed out that state
funds would be used to provide infrastructure for a mining
company (which would provide many jobs). He pointed out that
compromises are always made and shared that he is a shareholder
in Doyon Limited but is not able to access certain roads in
Prudhoe Bay. He reiterated his understanding of the concerns and
expressed his hope that the state of Alaska would invest in the
training of Alaskans. He emphasized the importance of building
up the Alaskan workforce (rather than depending on out-of-state
workers).
2:48:42 PM
MR. RUARO returned to the topic of accessible training and
stated that AIDEA is working through the available funding
options to create a solution. He listed several potential
funding sources and offered an example of a successful training
program in rural Alaska.
2:50:02 PM
SENATOR KIEHL asked about the plan for the road once the mines
have closed.
2:50:29 PM
MR. RUARO replied that there may be significant tailings to
clear, and this will take time. The road would still be needed
during this process. He surmised that the road will always be
needed and opined that, if there came a time when the road was
not needed, the ultimate decision about the road should be left
to the local communities (with some input from the state). He
pointed out that AIDEA's investment would be repaid several
times by then.
2:51:28 PM
SENATOR KIEHL pointed out that the road would require roughly 80
workers to maintain, which requires paying workers, maintaining
equipment, and purchasing fuel. He asked if the local
communities would be expected to take over these
responsibilities.
2:51:48 PM
MR. RUARO said the decision would lie with the villages. He
added that a maintenance fund could be created (paid into by the
mines) and this could be used once the mines close. He stated
that AIDEA believes the road will be in use for many, many
decades.
2:52:52 PM
SENATOR KIEHL pointed out the potential for market challenges
resulting in mine closures. He shared his understanding that
there is no agreement in place to address those circumstances
and expressed concern. He offered the AIDEA Skagway Ore Terminal
(SOT) as an example, emphasizing that a lack of planning can
result in negative consequences for Alaskans.
2:53:50 PM
MR. RUARO clarified that AIDEA's tenant left SOT in disarray. He
explained that AIDEA offered the Borough $50,000 for clean up;
however, the offer was rejected by the then-Borough Manager. He
expressed a willingness to make the offer again to the new
Borough Manager. He explained that AIDEA was placed in a bad
position with the SOT tenant, who filed for bankruptcy. He said
AIDEA received recovery through Canadian court and offered to
provide those funds to the Skagway Borough. He emphasized that
AIDEA would like to work with the Borough to clean up the
facility and suggested several ways this could occur. He stated
that federal permits require the creation of a reclamation fund,
which would be available for future use.
2:55:33 PM
SENATOR KIEHL said that he does not know why the Skagway Borough
turned down AIDEA's offer. He noted that the offer was $50,000
and the cleanup cost was millions of dollars.
2:55:54 PM
MR. RUARO expressed his appreciation to the committee for
hearing testimony from local voices. He said these projects are
some of the largest in state history and AIDEA is focused on the
end results such as job creation and economic development for
the surrounding communities. He opined that this benefits
Alaska.
2:56:35 PM
MR. SUN shared a video of a Shungnak village meeting that
emphasized the importance of resource development as a way to
enhance quality of life and ensure the success of future
generations.
2:58:31 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Transportation Standing
Committee meeting at 2:58 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 12_06_23_resolution.pdf |
STRA 4/1/2025 1:30:00 PM |
|
| 06_14_23_resolution.pdf |
STRA 4/1/2025 1:30:00 PM |
|
| AAP SAC Resolution 2024-01 final.pdf |
STRA 4/1/2025 1:30:00 PM |
|
| Allakaket_Village_Council (1).pdf |
STRA 4/1/2025 1:30:00 PM |
|
| Hughes res 24-08 Ambler access road (1).pdf |
STRA 4/1/2025 1:30:00 PM |
|
| Native Village Kobuk Resolution 25-09.pdf |
STRA 4/1/2025 1:30:00 PM |
|
| Native Village of Shungnak Resolution 24-06.pdf |
STRA 4/1/2025 1:30:00 PM |
|
| NWAB Resolution of Support - AAP 4-2023.pdf |
STRA 4/1/2025 1:30:00 PM |
|
| Ruby Resolution of Support.pdf |
STRA 4/1/2025 1:30:00 PM |
|
| SAC RES 2024-01 Addendum.pdf |
STRA 4/1/2025 1:30:00 PM |
|
| UPDATED AIDEA 2025 Annual Update.pdf |
STRA 4/1/2025 1:30:00 PM |
|
| (S) TRAN 4-1-2025.pdf |
STRA 4/1/2025 1:30:00 PM |