Legislature(2009 - 2010)BUTROVICH 205

02/26/2009 08:00 AM Senate WORLD TRADE, TECH, INNOVATIONS


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08:05:50 AM Start
08:06:48 AM the U.s. Arctic Research Program and Alaska
09:01:56 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Alternative Energy Opportunities and TELECONFERENCED
Technologies in Arctic and Sub-Arctic
Alaska
Presenter: Mead Treadwell, Chair U.S.
Arctic Research Commission
                    ALASKA STATE LEGISLATURE                                                                                  
    SENATE SPECIAL COMMITTEE ON WORLD TRADE, TECHNOLOGY AND                                                                   
                           INNOVATION                                                                                         
                       February 26, 2009                                                                                        
                           8:05 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lesil McGuire, Chair                                                                                                    
Senator Gary Stevens                                                                                                            
Senator Bill Wielechowski                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Hollis French                                                                                                           
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Alternative  Energy Opportunities  & Technologies  in Arctic  and                                                               
Sub-Arctic Alaska                                                                                                               
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record.                                                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Mead Treadwell, Chair                                                                                                           
U.S. Arctic Research Commission                                                                                                 
Anchorage, AK                                                                                                                   
POSITION STATEMENT:  Delivered PowerPoint  on the Arctic Research                                                             
Program and Alaska                                                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:05:50 AM                                                                                                                    
CHAIR LESIL MCGUIRE called the  Senate Special Committee on World                                                             
Trade, Technology  and Innovation meeting  to order at  8:05 a.m.                                                               
Present   at   the  call   to   order   were  Senators   Stevens,                                                               
Wielechowski, and McGuire.                                                                                                      
                                                                                                                                
          ^The U.S. Arctic Research Program and Alaska                                                                      
                                                                                                                                
CHAIR MCGUIRE announced  the business before the  committee is to                                                               
hear from  Mead Treadwell who  has been  asked to talk  about the                                                               
Arctic as well as standard and alternate energy opportunities.                                                                  
                                                                                                                                
8:06:48 AM                                                                                                                    
MEAD  TREADWELL, Chair,  U.S.  Arctic  Research Commission,  said                                                               
this  is  a Presidential  appointment  and  he  is one  of  seven                                                               
commissioners. He  named the  five commissioners  who accompanied                                                               
him to Juneau. He described the  commission as the pilot fish for                                                               
the $400 million  per year Arctic Research  Program that involves                                                               
at least  15 federal  agencies cooperating  with over  12 nations                                                               
and using  research infrastructure worth billions  of dollars. We                                                               
believe this research helps build  the U.S. competitive position,                                                               
he said.                                                                                                                        
                                                                                                                                
The  commission  is,  by  law, charged  with  submitting  to  the                                                               
President and Congress a biannual  report on goals and objectives                                                               
for Arctic research.  The 2009 report will again  ask the federal                                                               
government  to focus  on five  research themes:  1) Environmental                                                               
change in the Arctic and Bering  seas; 2) Arctic human health; 3)                                                               
Civil infrastructure;  4) Natural  resource assessment  and earth                                                               
science; and 5) Indigenous languages, identities, and cultures.                                                                 
                                                                                                                                
He said  that while he was  asked to talk about  energy, he would                                                               
like to highlight  that on the issue of Arctic  human health they                                                               
are being intensive  this year to respond to  the suicide problem                                                               
in Western  Alaska. They are asking  Congress to fund a  study by                                                               
the  National Academy  of Sciences  to  dig deeper  to find  what                                                               
other  medical information  can be  developed to  help fight  the                                                               
problem.  Working with  the National  Institute of  Health, there                                                               
will be  a conference  in Anchorage in  early June  on behavioral                                                               
health problems in the Arctic  region and he welcomes legislative                                                               
participation.                                                                                                                  
                                                                                                                                
MR. TREADWELL referenced the  civil infrastructure research theme                                                               
and  said that  the  U.S. Army  Corps of  Engineers  is taking  a                                                               
leadership role. Finally, he noted  that for the first time since                                                               
the commission was  created in 1984 there is a  social science or                                                               
anthropological theme in  the Arctic research plan.  The point in                                                               
mentioning that indigenous languages,  identities and cultures is                                                               
included as  a research theme  is that this generation  is losing                                                               
the languages  of their grandparents  faster than the  Arctic sea                                                               
ice  is shrinking.  Losing a  language  is a  tremendous loss  of                                                               
human knowledge and is a  serious concern. The commission will be                                                               
encouraging federal agencies to work  with school districts to do                                                               
immersive  language training.  The current  problem is  that even                                                               
though schools have  money for the program, there  is sometimes a                                                               
shortage of qualified teachers.                                                                                                 
                                                                                                                                
8:11:56 AM                                                                                                                    
MR.  TREADWELL said  after  he  became chair  two  years ago  the                                                               
commission urged the  President to review and  revise U.S. Arctic                                                               
policy.  Last  time  the National  Security  Council  adopted  an                                                               
Arctic  policy for  the  U.S. was  in 1994.  The  new policy  was                                                               
signed in January 2009 and  in her confirmation hearing Secretary                                                               
Clinton  said  they  are looking  forward  to  implementing  that                                                               
policy. It  looks at a number  of things, but for  the first time                                                               
it talks about  the policy with respect to climate  change in the                                                               
Arctic, shipping  in the  Arctic, and the  need to  have stronger                                                               
international cooperation on research.  He acknowledged that this                                                               
committee has  urged ratification of  the Law of the  Sea Treaty,                                                               
which  commits the  nation to  work on  international cooperation                                                               
including  joint  search  and rescue  activities,  discussion  of                                                               
regional fisheries agreements, and  other activities to make sure                                                               
that shipping is safe secure and reliable.                                                                                      
                                                                                                                                
After the  Russians planted a  flag on  the surface of  the ocean                                                               
bottom at  the North  Pole, an  issue in  Arctic policy  that has                                                               
been  discussed  at length  centers  on  what is  happening  with                                                               
sovereign rights and  jurisdiction in the Arctic. The  U.S. has a                                                               
maritime  boundary with  Russia  that makes  it  clear that  what                                                               
Russia can  claim under Law  of the Sea  may benefit the  U.S. If                                                               
the treaty is  ratified, the U.S. has the right  under the Law of                                                               
the Sea  to make a  claim to an  area outside the  200-mile limit                                                               
that  is geologically  part of  the continental  shelf. Currently                                                               
work is being done to do  bathymetric and seismic research in the                                                               
Arctic Ocean  to help prove  up the claim. That  will essentially                                                               
add considerable territory to the U.S. off Alaska.                                                                              
                                                                                                                                
CHAIR MCGUIRE  asked to see  a slide  of some of  shipping routes                                                               
that are discussed in the Arctic policy.                                                                                        
                                                                                                                                
MR. TREADWELL  displayed a  slide showing  the Bering  Strait and                                                               
said if you  wanted to enter the Arctic Ocean  for a trans-Arctic                                                               
shipment or  to take  the northern  sea route  across the  top of                                                               
Russia or  to go through  the Northwest  Passage over the  top of                                                               
Canada you  would need  to enter through  the Bering  Strait from                                                               
the Pacific Ocean.  He noted that some people are  calling it the                                                               
"Bering  Gate." You  would exit  the Arctic  Ocean either  to the                                                               
west of Greenland,  to the east of Greenland  through Fram Strait                                                               
near Spitsbergen  or over  the top near  Norway. The  most direct                                                               
route  is  straight across  and  if  ice conditions  continue  to                                                               
change that could be a major  route going past Alaska shores. For                                                               
50 years global aviation has  traversed these great circle routes                                                               
and made  Alaska a  crossroads. What  happens with  shipping over                                                               
the  next  few  years  is  something  the  commission  has  spent                                                               
considerable time and money on.                                                                                                 
                                                                                                                                
8:16:27 AM                                                                                                                    
MR. TREADWELL  noted that it's  of interest to Alaska  that there                                                               
is  a disputed  boundary with  Canada on  the Beaufort  Sea. That                                                               
boundary was last negotiated when  Alaska was owned by Russia and                                                               
Canada  was owned  by Britain.  Documents  only go  to the  ocean                                                               
edge. The  U.S. feels that  it is customary international  law to                                                               
follow the headland  and Canada has a different view.  What is at                                                               
stake is a  6,200 square nautical mile pie slice  within the 200-                                                               
mile limit that, because of  the disputed ownership, is not being                                                               
leased for energy purposes.                                                                                                     
                                                                                                                                
MR. TREADWELL said  much of what the commission  has done looking                                                               
at research on Arctic energy  began with sponsorship of an Arctic                                                               
energy  summit and  International  Polar Year  activity that  was                                                               
held in the fall of 2007  and has continued since. They looked at                                                               
rural energy,  extractive energy, and sustainability  issues. The                                                               
event drew people  from all countries surrounding  the Arctic and                                                               
others across the world.                                                                                                        
                                                                                                                                
Arctic  energy research  in Alaska  has global  implications, Mr.                                                               
Treadwell said. Safer and more  efficient fossil fuel development                                                               
is an  important subject  for research for  a number  of reasons.                                                               
Senator  Murkowski  recently  stressed   the  importance  of  new                                                               
exploration  techniques onshore  and offshore  to safely  get oil                                                               
and gas  up and out.  This is  something the commission  has been                                                               
watching  closely. Longer  winter drilling  seasons in  a warming                                                               
climate led to  the tundra study that helped to  discover ways to                                                               
do this.  The American  people were promised  a robust  oil spill                                                               
research  program  in  the  Arctic,  sub-Arctic  and  around  the                                                               
country but funding for that  program has gradually slipped away.                                                               
The commission  is pushing hard  to coordinate committees  in the                                                               
federal  government to  reengage. The  disputes over  drilling in                                                               
the Beauford and Chukchi seas  highlight the importance. Entities                                                               
in  the federal  government  and industry  are  working on  joint                                                               
programs  in  Norway  to  help improve  cold  weather  oil  spill                                                               
response. The commission again is  calling for stronger oil spill                                                               
research. The state  has in the past been a  player using the 470                                                               
fund, but there  is a similar federal fund  and significant money                                                               
is available.  Hopefully more  of that will  be committed  to oil                                                               
spill research.                                                                                                                 
                                                                                                                                
Safe secure  reliable shipping  also is an  issue in  the Arctic.                                                               
Russian Arctic  oil shipping  has been  increasing over  the last                                                               
few  years as  new  projects  go online  in  the western  Arctic.                                                               
Currently it all heads west  through the Arctic, but it certainly                                                               
has the legal right to head  east through the Bering Strait so it                                                               
is in  Alaska's interest for regimes  to be in place  to see that                                                               
safe shipping is ensured in this area.                                                                                          
                                                                                                                                
Finally,  carbon sequestration  is  a goal  of  the U.S.  climate                                                               
change  technology  program  and  the use  of  gas  hydrates  has                                                               
brought Japanese  investment to  Alaska through a  joint industry                                                               
program.                                                                                                                        
                                                                                                                                
8:21:24 AM                                                                                                                    
SENATOR STEVENS asked  if he intends to talk  more about Alaska's                                                               
rights and responsibilities in Arctic shipping.                                                                                 
                                                                                                                                
MR. TREADWELL replied he will address that topic shortly.                                                                       
                                                                                                                                
He  noted that  the commission  has also  done some  work on  the                                                               
issue  of alternative  energy and  the goal  the governor  set to                                                               
have  50 percent  of  the  state's power  production  to be  from                                                               
renewable energy  is very ambitious. The  motivation for stronger                                                               
research can stabilize costs and  mitigate global climate change.                                                               
The focus on alternative energy  can be rural, urban, and export;                                                               
it  can be  onshore and  offshore; it  can cover  electric power,                                                               
heat and ultimately  all transport modes. Some of  the work going                                                               
on  in  Iceland  on  hydrogen  power  for  ships  could  be  very                                                               
important  to Alaska's  fishing industry  and ultimately  lead to                                                               
more  stabile power  costs for  shipping. Because  of the  issues                                                               
with black carbon, the world may  over time want to commit itself                                                               
to  hydrogen  power  shipping.  That  research  is  important  to                                                               
Alaska.                                                                                                                         
                                                                                                                                
The state  has tremendous natural  assets including  hydro, wind,                                                               
tides, geothermal, waves, biomass, and  solar that can be applied                                                               
to power and other energy needs.  Also, Alaska and the Arctic may                                                               
be a geo-engineering venue as  well. There are some grand schemes                                                               
to mitigate  climate change  in a  faster way  and are  worthy of                                                               
research. He  recapped that between fossil  fuels and alternative                                                               
energy,  Alaska  has  great  opportunity   to  do  research  that                                                               
contributes to the state and the world.                                                                                         
                                                                                                                                
MR.  TREADWELL responded  to a  question and  explained that  the                                                               
idea  of   geo-engineering  is  to   slow  the  heating   of  the                                                               
atmosphere. One  idea is to  darken the atmosphere of  the Arctic                                                               
for about a five-year period  by distributing aerosols or dust in                                                               
the upper  layers. That might  bring enough reduction of  heat to                                                               
bring  back  the Arctic  ice  pack  and  counter the  effects  of                                                               
greenhouse gases. Another project  relates to magnetic forces and                                                               
currents. The  earth has  chimneys at the  North and  South poles                                                               
where particles enter and leave  the earth's atmosphere by riding                                                               
magnetic  currents. There  may be  some way  to manipulate  those                                                               
currents  or  they  may be  unwittingly  manipulated  already  to                                                               
export carbon  dioxide or carbon  molecules. At this  stage those                                                               
are  fanciful science,  but it  would only  happen in  the Arctic                                                               
region so it's important to pay attention.                                                                                      
                                                                                                                                
MR.  TREADWELL highlighted  the  USGS study  that  came out  last                                                               
summer assessing  the undiscovered oil  and gas potential  of the                                                               
Arctic. He displayed a chart that  shows that about 15 percent of                                                               
the world's  undiscovered conventional  oil and about  30 percent                                                               
of the  undiscovered conventional gas  is to be found  within the                                                               
Arctic  Circle.  Thus, the  Arctic  as  a venue  for  traditional                                                               
hydrocarbon production is likely to  be significant for some time                                                               
to come.  It is  something that  Alaska should  keep its  eye on.                                                               
Alaskans  knows about  dependence on  oil revenue  but Russia  is                                                               
certainly dependent on significant  oil revenues nationally based                                                               
on  Arctic oil  production largely  in the  northwest. Norway  is                                                               
also dependent  economically on oil  production in the  North Sea                                                               
and  Greenland has  been  given incentive  by  the government  of                                                               
Denmark  for self  sufficiency from  oil reserves  to potentially                                                               
achieve  political  independence.  Likewise  northern  Canada  is                                                               
dependent  on  working  on  major oil  and  gas  development.  Of                                                               
course, Alaska is working hard to  get its gas to market and find                                                               
new sources on  and offshore. The point is that  the Arctic is an                                                               
energy province  with fossil  fuels being  a significant  part of                                                               
the  region. In  Iceland hydro  and geothermal  power is  a major                                                               
part of the country's economy and exports.                                                                                      
                                                                                                                                
8:28:19 AM                                                                                                                    
Alaskans learned  the hard way  that oil spills can't  be ignored                                                               
so  efforts  to  improve  oil spill  response  in  Arctic  waters                                                               
continue. He noted that lots of  work is going on in the Beauford                                                               
and Chukchi seas, but efforts to  test oil spill response in cold                                                               
weather  has  moved to  Norway  where  more on-water  testing  is                                                               
allowed. We've  been supporting a  joint industry  program there,                                                               
he said. Largely because of  production in the western Arctic and                                                               
Russia,  more  ice-class  tankers   have  been  constructed.  Ice                                                               
capable  tankers  and LNG  tanker  orders  to serve  the  Russian                                                               
market have  been growing  considerably. That  is just  one thing                                                               
the commission  found in the  Arctic shipping assessment  that it                                                               
helped  sponsor   financially.  They  will  take   that  shipping                                                               
assessment to the ministers of  the eight Arctic nations in April                                                               
and one thing it will point  out is that Arctic shipping isn't in                                                               
the future;  it's now. In 2004  close to 5,000 ships  of 100 tons                                                               
or greater were operating in those  waters and it's time that the                                                               
nations get together and make sure it happens safely.                                                                           
                                                                                                                                
CHAIR MCGUIRE questioned how they are regulated today.                                                                          
                                                                                                                                
MR. TREADWELL  explained that there  is a voluntary code  for the                                                               
way ships must be constructed to  operate in the Arctic. The U.S.                                                               
is part of  the Arctic policy signed in January  2009 saying that                                                               
it will go to  the UN with Canada to try to  make that polar code                                                               
mandatory rather than  voluntary. A number of  design changes are                                                               
needed for  a ship  to safely  operate in  Arctic waters,  but to                                                               
make  something compulsory  on  the  world oceans  it  has to  be                                                               
agreed to by  the International Maritime organization.  That is a                                                               
UN body in which all nations  of the world participate. The Coast                                                               
Guard currently is working with  Russia to set up traffic systems                                                               
in the Bering  Strait. Other issues are going on  with the marine                                                               
exchange  where  they  are working  to  build  an  identification                                                               
system for locating ships. Ships  are required to broadcast their                                                               
position but  without receivers to  process the  information it's                                                               
worthless. That issue was on the  front page of the Juneau Empire                                                               
just yesterday, he noted.                                                                                                       
                                                                                                                                
MR. TREADWELL  displayed slides of  the minimum ice cover  in the                                                               
Arctic  Ocean in  2002 and  in 2007  to show  that the  change is                                                               
dramatic. Scientists  have varying  estimates on when  the Arctic                                                               
Ocean might be  ice free in the summer. The  current consensus is                                                               
that  it  will be  around  2030  to  2040,  but there  have  been                                                               
estimates as early as 2013. One  of the reasons this is happening                                                               
is  because the  thick multi-year  ice  that builds  up has  been                                                               
flushing out  of the Fram  Strait east  of Greenland in  the last                                                               
several  years.  Annual-ice  melts  comparatively  easier.  Other                                                               
issues are  that the temperature  of the Arctic Ocean  itself and                                                               
the atmosphere  are warming. Arctic  habitat is  changing quickly                                                               
and  has affected  polar bears  and other  species. Understanding                                                               
what is  happening in the  ice cover  is important and  has given                                                               
the world  a sense  that the  Arctic is  more accessible.  In the                                                               
fossil  energy   field  the  Office  of   Management  and  Budget                                                               
estimated that the lease sale in  the Chukchi Sea last year would                                                               
earn about  $60 million, but the  bid was about $2.7  billion for                                                               
rights to drill in that region.                                                                                                 
                                                                                                                                
8:33:56 AM                                                                                                                    
MR. TREADWELL  said one  thing that  is interesting  about global                                                               
climate change is  that the Arctic exhales carbons  as the tundra                                                               
warms. About one quarter of  the world's carbon dioxide is stored                                                               
terrestrially either in  the boreal forests or  the tundra itself                                                               
so carbon  and methane releases  certainly should be  watched. He                                                               
noted that  gas hydrate  research is  an important  initiative of                                                               
the  U.S.  Department of  Energy,  the  Japanese government,  and                                                               
industry in  Alaska because gas  hydrates may up-well  anyway and                                                               
these deposits could be new sources of natural gas.                                                                             
                                                                                                                                
He displayed  a chart  prepared by Katy  Walter with  UAF showing                                                               
the out-gassing of  methane from a pond. Last  year NOAA reported                                                               
a new  spike of methane in  the atmosphere. Methane is  nearly 24                                                               
times more potent as a greenhouse  gas than CO2 so the Arctic may                                                               
become  a  major  contributor  of  greenhouse  gases  as  warming                                                               
occurs.  There's  an energy  component  and  a climate  component                                                               
there, he said.                                                                                                                 
                                                                                                                                
8:37:16 AM                                                                                                                    
MR.  TREADWELL said  the U.S.  Climate Change  Technology Program                                                               
was   one  of   the  most   unsung  programs   of  the   previous                                                               
administration. It  was a multi-billion dollar  commitment by the                                                               
U.S. to improve alternative energy  technologies. However, it did                                                               
not  look   closely  at  opportunities  for   alternative  energy                                                               
research in  the Arctic.  He said he  believes that  this program                                                               
will  be substantially  revised  in  the present  administration.                                                               
Stimulus  money  is   available  and  is  one   reason  that  the                                                               
commission  produced the  document "Why  the Arctic  Matters: The                                                               
Potential Contribution of Arctic  Research to U.S. Climate Change                                                               
Mitigation Strategy." Right now the  U.S. has aggressive plans to                                                               
develop alternate energy  solutions including: reducing emissions                                                               
from energy  end-use and infrastructure; reducing  emissions from                                                               
energy  supply;   capturing  and  sequestering   carbon  dioxide;                                                               
reducing emissions  of non-CO2 greenhouse gases  such as methane;                                                               
enhancing capabilities  to measure and monitor  greenhouse gases;                                                               
and basic  science to technology development.  The commission has                                                               
repeatedly made the  point that Alaska and the Arctic  need to be                                                               
in on this program.                                                                                                             
                                                                                                                                
MR.  TREADWELL  thanked  Senator  Murkowski  for  the  trips  she                                                               
sponsored  for the  Secretary of  Energy to  come to  Alaska last                                                               
year  and noted  that he  included correspondence  the commission                                                               
has had with  the Department of Energy as well  as the commitment                                                               
made by  the out-going Secretary  of Energy  to put a  staffer in                                                               
Alaska  to   help  develop  more  alternative   energy  research.                                                               
According  to  the  head  of   the  Renewable  Energy  Lab,  that                                                               
commitment will be fulfilled. For over  a decade there has been a                                                               
Department  of Energy  sponsored Arctic  energy office  in Alaska                                                               
but it  is funded through the  DOE fossil fuels program  and thus                                                               
money has  only been  spent on fossil  fuel energy  research. The                                                               
congressional  mandate is  broader than  that and  the commission                                                               
has  asked  the  Secretary  of  Energy  to  include  funding  for                                                               
renewables. Unfortunately,  the only  alternative energy  done in                                                               
Alaska by DOE is considered  an earmark. The commission has asked                                                               
that DOE  embrace the program  and work with Alaska  on something                                                               
that  is vital  not only  to  the state  but to  the country  and                                                               
world.  The point  they've made  repeatedly is  that Alaska  pays                                                               
more for  its energy.  Even costly testing  might cost  less than                                                               
what  is currently  being spent  on diesel  fuel in  200 villages                                                               
that are off the road system  and off the electric power grid. He                                                               
said  that point  has been  made  successfully and  thanks go  to                                                               
Senator Murkowski and the DOE  for committing to have researchers                                                               
in the state.                                                                                                                   
                                                                                                                                
Some work has also been done  to build capacity at the University                                                               
of  Alaska   to  do  work   on  alternative  energy.   There  are                                                               
congressional authorizations that are  unfunded, but the point is                                                               
that as  this committee looks at  many things the state  is doing                                                               
with  its own  funds  to  work in  the  alternative energy  area,                                                               
trying  to leverage  power resources  is something  that everyone                                                               
needs to  work together  on. This means  focusing on  issues like                                                               
gas  hydrates,  inflow,  rivers, power  production,  and  biomass                                                               
replacements.  These  are all  things  DOE  is doing  around  the                                                               
country and  the commission  questions why it  isn't doing  it in                                                               
the Arctic as well.                                                                                                             
                                                                                                                                
CHAIR  MCGUIRE expressed  appreciation  for  the information  and                                                               
said legislators who are going  to the upcoming energy conference                                                               
will echo that request in their scheduled meetings with the DOE.                                                                
                                                                                                                                
MR. TREADWELL  urged the  committee to read  the federal  plan on                                                               
alternative energy  research and asked members  to recognize that                                                               
DOE will probably  be revising it in the  new administration. The                                                               
commission  will work  to  ensure that  the  Arctic component  is                                                               
involved in the revision.                                                                                                       
                                                                                                                                
8:42:37 AM                                                                                                                    
MR. TREADWELL said housing is  another issue he wants to address.                                                               
Alaska Housing  Finance Corporation (AHFC)  did a survey  in 2005                                                               
in  conjunction   with  the  Cold  Climate   Research  Center  in                                                               
Fairbanks  and the  commission  would like  to  see that  program                                                               
become more robust. One way  that Alaskans can help reduce fossil                                                               
fuel energy  use and be  more efficient is to  upgrade insulation                                                               
in houses. He  noted that the money that Alaska  has committed to                                                               
this program represents a significant  percentage of what's being                                                               
done nationwide.                                                                                                                
                                                                                                                                
CHAIR  MCGUIRE related  that the  Senate Resources  Committee had                                                               
the  Cold  Climate Research  Center  visit  this last  week  when                                                               
legislation   was   introduced   implementing  a   lot   of   the                                                               
conservation  recommendations  from  that  report  including  new                                                               
building code requirements.                                                                                                     
                                                                                                                                
8:43:53 AM                                                                                                                    
SENATOR WIELECHOWSKI  added that  the committee is  interested in                                                               
further  conversations  about  alternative energy  resources  and                                                               
ways to reduce energy consumption in Alaska.                                                                                    
                                                                                                                                
MR. TREADWELL said some people  working with the new Secretary of                                                               
Energy have expressed an interest in  coming to Alaska to look at                                                               
opportunities and  needs and  to learn  more about  projects like                                                               
the geothermal project at Chena Hot Springs.                                                                                    
                                                                                                                                
CHAIR MCGUIRE said  this Senate committee would  be interested in                                                               
partnering and helping to host a DOE delegation.                                                                                
                                                                                                                                
MR.  TREADWELL   said  this   is  an   area  where   the  current                                                               
administration  and  the state  have  every  opportunity to  work                                                               
together.  A major  issue in  the  climate talks  that will  take                                                               
place in Copenhagen  this year is how to make  sure that the less                                                               
developed  countries can  advance while  efforts are  underway to                                                               
reduce  carbon use.  Developing  appropriate  energy sources  for                                                               
small villages that are off the grid has global implications.                                                                   
                                                                                                                                
CHAIR MCGUIRE agreed and added  that consumers in China and India                                                               
want consumer items that make  life more comfortable and the U.S.                                                               
could have taken a more leadership role.                                                                                        
                                                                                                                                
8:46:35 AM                                                                                                                    
MR. TREADWELL displayed a slide  showing shipping routes and said                                                               
that a northern sea route saves  up to 40 percent of the distance                                                               
between  eastern  Asia  and northern  Europe  compared  to  going                                                               
through the Suez  Canal. Also, transiting through  the Suez Canal                                                               
is most  constrained in the  fall season  when the Arctic  is the                                                               
most  open. Lloyds  Shipping has  indicated it  might be  able to                                                               
reduce insurance  rates for shipping  in the Arctic if  there are                                                               
better rules and  if there are ship salvage  and tug capabilities                                                               
in  the area.  Alaska needs  to decide  what it  wants to  ensure                                                               
safety. The  commission has been  working on not only  the marine                                                               
shipping assessment, but  also arguing for more  research in this                                                               
area.  He said  it's not  just melting  ice that's  making Arctic                                                               
shipping  routes  potentially   attractive.  It's  also  changing                                                               
technology and global demand for Arctic resources.                                                                              
                                                                                                                                
MR. TREADWELL displayed  a slide of an ice-breaker  built by Aker                                                               
Arctic Technology  of Finland and  noted that it is  propelled by                                                               
an  Azipod, which  consists of  an electrically  driven propeller                                                               
that is  mounted on a  steerable pod  that can turn  360 degrees.                                                               
Essentially it  can make the bow  of the ship the  stern and vice                                                               
versa.  The  next slide  showed  an  ice-breaking container  ship                                                               
built by Aker  Arctic for use by Russia in  the Arctic Ocean. The                                                               
stern is  spoon shaped to  make it  easier to back  through heavy                                                               
ice. One  of the  big issues  in Russia is  whether or  not these                                                               
ice-breaker ships  need to pay  for ice-breaker  escort services.                                                               
This technology has been adopted by  the U.S. and the first Coast                                                               
Guard icebreaker  has been built for  use in the Great  Lakes. He                                                               
noted that ships are being built  that are larger than the canals                                                               
of the world  can handle so the prospect of  bringing those ships                                                               
through shorter sea routes is attracting attention.                                                                             
                                                                                                                                
8:50:23 AM                                                                                                                    
Several years  ago the Legislature  funded a project  that looked                                                               
at the prospect of an Arctic  container shuttle link from Adak to                                                               
Europe.  The finding  was that  trans-Arctic ships  could operate                                                               
360 days a  year. Right now Arctic LNG carriers  are under review                                                               
and  although  the  state  is well  invested  in  pipelines,  the                                                               
changes in Arctic  shipping may ultimately change  the picture on                                                               
pipelines as well.                                                                                                              
                                                                                                                                
CHAIR MCGUIRE asked which countries are currently shipping LNG.                                                                 
                                                                                                                                
MR. TREADWELL  replied there are  LNG shipments in  Arctic waters                                                               
from Russia and  Norway bound mostly for European  ports. He said                                                               
he's  unaware of  any other  LNG Arctic  projects that  have been                                                               
proposed  but  the  issue  has  been studied  in  the  past.  One                                                               
proprietary project shows that at  a certain speed shipping would                                                               
be economic compared to a  pipeline. He surmised that newer ships                                                               
would likely attain that speed. An  issue in Alaska is port depth                                                               
but with the newly accessible Arctic  Ocean the state needs to be                                                               
prepared for energy and mineral development.                                                                                    
                                                                                                                                
CHAIR MCGUIRE  asked if  he's had  conversations with  FERC about                                                               
what an export license would look like.                                                                                         
                                                                                                                                
MR. TREADWELL said no.                                                                                                          
                                                                                                                                
8:53:28 AM                                                                                                                    
MR. TREADWELL urged  the committee to think about  what the Coast                                                               
Guard does  now on other shores  and pointed out that  it doesn't                                                               
have  the capability  to do  that in  the Arctic  right now.  The                                                               
Healy is a  light icebreaker and the  two polar-class icebreakers                                                               
that were commissioned  in the Nixon administration  are ready to                                                               
be retired. Alaska's Congressional  Delegation and the commission                                                               
have worked hard to give the  Coast Guard the capability to build                                                               
new  polar-class  icebreakers  and  came close  in  the  stimulus                                                               
package.  He   suggested  that  a  resolution   from  the  Alaska                                                               
Legislature  in  support  of  icebreakers  is  important  because                                                               
Alaskans and  this Arctic coastline deserve  the same protections                                                               
that the  rest of the  country gets. He encouraged  the committee                                                               
to  invite  Admiral  Brooks  to address  the  committee  on  this                                                               
important  topic  as  part  of   the  state's  homeland  security                                                               
objectives and environmental objectives.                                                                                        
                                                                                                                                
CHAIR MCGUIRE said you can look  forward to a resolution from the                                                               
committee and an invitation will be extended to the admiral.                                                                    
                                                                                                                                
8:56:42 AM                                                                                                                    
MR. TREADWELL  displayed a  map to show  that the  North Magnetic                                                               
Pole  is moving  at an  ever  increasing rate  across the  Arctic                                                               
Ocean  towards  Russia. It's  an  interesting  element of  Arctic                                                               
research  that   has  energy  implications  and   climate  change                                                               
implications. CO2  in the atmosphere  is being  monitored closely                                                               
and is  now at higher  levels than at  even the warmest  times of                                                               
the  earth. A  climate regime  to be  developed in  Copenhagen in                                                               
December will  be an attempt to  get all nations to  sign on. The                                                               
targets that  are chosen and the  timing to get to  those targets                                                               
will have  a dramatic  impact on  what happens  in the  Arctic in                                                               
terms  of  erosion, ice  melt,  shipping,  habitat platforms  for                                                               
wildlife and subsistence users. Alaska  has an important stake in                                                               
what happens in  Copenhagen in December. The  commission has been                                                               
asking  for a  special assessment  of what  the targets  that are                                                               
being  discussed mean  for Arctic  residents  because that's  not                                                               
well understood.                                                                                                                
                                                                                                                                
9:00:01 AM                                                                                                                    
With the melting  icecap the reflectivity in the  Arctic Ocean is                                                               
lessening  and  the solar  radiation  is  being absorbed  by  the                                                               
darker  land   and  dark  blue  ocean   surfaces.  Techniques  to                                                               
stabilize  multi-year ice  will help  show the  world that  we've                                                               
turned  the corner,  but as  yet  modeling isn't  good enough  to                                                               
figure out what targets will help to bring the ice back.                                                                        
                                                                                                                                
MR.  TREADWELL noted  that just  yesterday  the two-year  program                                                               
called the International Polar Year  ended. It was the first time                                                               
since the International Polar Year of  1957 that there has been a                                                               
sustained  assault  by  scientists   from  60  countries  on  the                                                               
mysteries of the  Arctic and Antarctic. Arctic  research plays an                                                               
important  part in  Alaska's economy  and the  knowledge that  is                                                               
being  worked  on  could  play an  important  part  in  answering                                                               
current problems.                                                                                                               
                                                                                                                                
CHAIR MCGUIRE thanked Mr. Treadwell for the presentation and the                                                                
work he's done on behalf of the state and the country. We look                                                                  
forward to continuing the dialog, she said.                                                                                     
                                                                                                                                
9:01:56 AM                                                                                                                    
CHAIR MCGUIRE adjourned the Senate Special Committee on World                                                                   
Trade, Technology and Innovation at 9:01 am.                                                                                    

Document Name Date/Time Subjects
2009.2.26 Treadwell testimony to Alaska Senate Special Committee.pdf SWTI 2/26/2009 8:00:00 AM