HJR 14-PORT MACKENZIE & NORTHERN RAIL EXTENSIONS  2:00:25 PM CHAIR BJORKMAN announced the consideration of CS FOR HOUSE JOINT RESOLUTION NO. 14(TRA), Supporting the completion of the Port MacKenzie Rail Extension and the Northern Rail Extension; supporting the increase in defensive capabilities at Fort Greely, Alaska; encouraging a renewed commitment by the Alaska Railroad to a community-minded approach to future rail expansion; and encouraging the development of critical Arctic infrastructure. 2:00:49 PM REPRESENTATIVE KEVIN MCCABE, District 30, Alaska State Legislature, Juneau, Alaska, paraphrased from the sponsor statement for HJR 14: [Original punctuation provided.] CS HJR 14 Ver B  SPONSOR STATEMENT  "Supporting the completion of the Port MacKenzie Rail Extension and the Northern Rail Extension; supporting the increase in defensive capabilities at Fort Greely, Alaska; encouraging a renewed commitment by the Alaska Railroad to a community-minded approach to future rail expansion; and encouraging the development of critical Arctic infrastructure." House Joint Resolution 14 advocates for the completion of the Port MacKenzie Rail Extension and the Northern Rail Extension, two critical projects that will enhance Alaska's infrastructure, economic resilience, and national security. As the only U.S. state bordering the Arctic Ocean, Alaska plays a key role in Arctic strategy, defense operations, and resource development. The Port MacKenzie Rail Extension is a cornerstone of Alaska's long-term economic and logistical strategy. By providing a direct rail link between Interior Alaska and tidewater access at Port MacKenzie, Seward, Whittier, and Anchorage, this extension will reduce transportation costs, improve energy security, and expand market access for industries such as mining, agriculture, and natural gas. The completion of this project will not only strengthen supply chains but also increase the state's resiliency by ensuring an alternative transportation corridor in the event of highway disruptions caused by natural disasters, such as earthquakes, or port congestion elsewhere in the state. The Northern Rail Extension remains essential to U.S. national security, particularly with the expansion of the Arctic Mission at Fort Greely. As home to the nation's missile defense system, Fort Greely plays a critical role in protecting the U.S. and its allies. Despite this, it is the only military base in Alaska without rail access. Completing the Northern Rail Extension will provide a reliable, cost-effective means of transporting military equipment, personnel, and supplies, reinforcing the nation's defense posture in the Arctic as geopolitical competition intensifies. Significant progress has already been made. Phase 1 of the Northern Rail Extension, including the Tanana River crossing, has brought the rail line within 70 miles of Delta Junction and Fort Greely. Similarly, the MatanuskaSusitna Borough and the Alaska Railroad have completed nearly two-thirds of the Port MacKenzie Rail Extension, underscoring the project's viability and importance. 2:02:00 PM REPRESENTATIVE MCCABE continued to paraphrase from the sponsor statement for HJR 14: [Original punctuation provided.] This resolution also calls for a community-minded approach to rail expansion, urging the Alaska Railroad to work transparently with residents, businesses, and stakeholders to ensure responsible development. Furthermore, HJR 14 urges Alaska's congressional delegation to advocate for federal support in completing these essential projects, recognizing that while other Arctic nations invest heavily in infrastructure, the United States must act to maintain its leadership in the region. HJR 14 represents a unified commitment to economic growth, national security, and Alaskan resiliency. I respectfully urge my colleagues to join me in supporting this critical resolution. 2:03:14 PM REPRESENTATIVE MCCABE mentioned that the MatanuskaSusitna Borough passed its 2026 budget appropriating $6.7 million to construct a new barge ramp at Port MacKenzie, which would increase cargo capacity and economic potential. He noted that not have a rail extension at Port MacKenzie would be a limiting factor, since cargo could arrive at the port but have difficulty moving beyond it. He noted that the Parks Highway has issues with permafrost and opined that limiting truck traffic on that highway would be helpful to Department of Transportation and Public Facilities (DOTPF). He pointed out economic and resource development benefits for mining operations and for the farming industry in the surrounding communities. He stated that HJR 14 compliments a recent House Resolution to expedite the liquified natural gas (LNG) project. He noted strong federal support. He stated that advancing these projects would bolster national energy and transportation security while ensuring sustained economic benefits to Alaskans. He noted that this is an important part of the Alaska Railroad Corporation's (ARRC) Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program grant application. He emphasized the importance of communicating legislative support. 2:06:18 PM SENATOR STEDMAN recognized the need for an anchor tenant to make the economics work. He opined that HJR 14 is timely. He recommended considering the addition of Fort McMurray, which would take the project to Canada. He surmised that interest in rail access is increasing in the US and Canada. He said this is up to the MatSu delegation and suggested that it might be beneficial. 2:07:43 PM REPRESENTATIVE MCCABE replied that he has considered this. He noted that it is another 100 miles to the Canadian border from Fort Greeley. He shared about conversations with the Minister of Economic Corridors in Alberta, Canada and indicated Canadian support. He emphasized the high cost of that addition. However, many have expressed interest in using Port MacKenzie if the port was connected to the railroad. He noted military interest. He stated that ARRC is actively seeking an anchor tenant. He said Port Mackenzie is 9000 acres that are ready to build and suggested that actively moving towards completion of the railway (and applying for the CRISI grant) is key to unlocking growth in the MatSu and the state. 2:10:03 PM SENATOR STEDMAN clarified that he did not mean to suggest creating a single big project that would end at the Canadian border but had intended to illustrate the opportunity that the Port MacKenzie rail extension would create. 2:10:38 PM REPRESENTATIVE MCCABE indicated his understanding and pointed out that Alaska is the reason the US is an arctic nation. He shared his larger vision for a combined rail that would lead to the North Slope and could potentially unlock the resources available there. 2:11:29 PM [CHAIR BJORKMAN passed the gavel to Vice Chair Tobin.] 2:11:34 PM SENATOR SHOWER emphasized that a rail to Canada would enable the transport of supplies in an emergency. He opined that this - plus the potential for military use and economic development - make a rail to Canada a worthwhile investment. He suggested an amendment that would include language communicating these benefits. 2:12:48 PM REPRESENTATIVE MCCABE expressed uncertainty that an amended version of HJR 14 would have the necessary time and support to move through the legislative process. He briefly discussed resiliency in the event of an earthquake or other natural disaster and surmised that the Port MacKenzie Rail Extension would create greater resiliency for ARRC. He opined that this would also be beneficial to the state. 2:14:08 PM SENATOR SHOWER wondered if there is sufficient time to pass an amended version of HJR 14. 2:14:42 PM VICE CHAIR TOBIN said the committee would discuss this with the sponsor of HJR 14 and suggested that quick action would be required. 2:15:01 PM VICE CHAIR TOBIN announced invited testimony on HJR 14. 2:15:17 PM BILL O'LEARY, President and Chief Executive Officer (CEO), Alaska Railroad Corporation (ARRC), Anchorage, Alaska, expressed support of HJR 14. He stated that ARRC supports rail infrastructure in Alaska in general, and the Port MacKenzie Rail Extension (PMRE) and the Northern Rail Extension (NRE) in particular. He said ARRC has hired an engineering firm to come up with a project estimate for completing PMRE and submitted competitive federal grants for the completion of PMRE and phase two of the NRE. ARRC has also submitted a Congressionally directed spending request to members of Alaska's federal delegation in support of completing phase two of the NRE. ARRC has worked closely with the MatanuskaSusitna Borough, Port MacKenzie staff, and Representative McCabe to identify potential customers for PMRE. He briefly discussed this process. MR. O'LEARY stated that ARRC has also worked with the Matanuska Susitna Borough and Representative McCabe to come up with a funding strategy to complete PMRE in lieu of an anchor tenant. He briefly discussed the CRISI grant and the MatanuskaSusitna Borough's request for $58 million in matching funds from the State of Alaska. He said that ARRC is actively advocating at both the state and federal levels for the advancement of these projects. He said that PMRE and NRE will result in a substantial increase in transportation efficiency in Alaska, as well as new opportunities in resource exports, energy solutions, and cross- industry project development. He emphasized that PMRE and NRE and large projects with statewide benefits and moving them forward will depend on more than ARRC. He opined that HJR 14 is an important opportunity for the legislature to confirm its support of the completion of the PMRE and NRE. 2:18:27 PM CLARK HOPP, Chief Operating Officer (COO), Alaska Railroad Corporation (ARRC), Anchorage, Alaska, expressed support of HJR 14. He said he has 35 years in the construction and railroad industries and would be excited to see both projects completed. 2:19:14 PM SENATOR TOBIN opened public testimony on HJR 14. 2:19:33 PM PATRICK SHARROCK, representing self, Anchorage, Alaska, testified with concerns on HJR 14. He said he has lived in Anchorage for 78 years and has followed the PMRE project for the past 17 years. He briefly discussed information received from ARRC and stated that no indication was made of new mineral developments or port improvements. He noted that close to $200 million was previously spent on the project and questioned the current levels of support. He opined that PMRE is unnecessary and expensive. 2:22:20 PM DAVID GRIFFIN, Port Director, Port McKenzie, Matanuska-Susitna Borough, Anchorage, Alaska, testified in support of HJR 14. He said that Port MacKenzie is owned and operated by the Matanuska Susitna Borough and serves as a marine gateway to Southcentral and Interior Alaska. He briefly described the port and stated that the area is ready for development. He briefly described the PMRE and opined that this extension is key to unlocking Alaska's natural resource potential. He opined that this extension would drive new economic opportunities for Alaska and the US and would positively impact National Security and military operations. He referred to several recent US executive orders and opined that Port MacKenzie is the logical port for natural resources coming from the surrounding area along the railbelt. 2:24:58 PM JACK BARRETT, Meritage Communities, Wasilla, Alaska, testified in support of HJR 14. He briefly discussed the importance of the Port MacKenzie Rail Extension (PMRE). He pointed out large differences in the cost of importing versus exporting items and stated that this needs to be considered. He opined that PMRE has great potential and not finishing the extension would be a missed opportunity. 2:26:48 PM VICE CHAIR TOBIN closed public testimony on HJR 14. 2:26:53 PM SENATOR SHOWER noted that the end of the legislative session is fast approaching and withdrew his request for a friendly amendment to HJR 14. He said that he would like to work with Representative McCabe to draft a separate resolution to address the potential extension of the rail to Canada. 2:27:23 PM SENATOR STEDMAN agreed that there is limited time and the extension from Fort McMurray to Alaska would be better suited for a separate resolution. He suggested moving HJR 14 from committee due to the late date. 2:27:52 PM REPRESENTATIVE MCCABE expressed his appreciation. He reiterated that HJR 14 is necessary for Alaska to receive the CRISI grant. 2:28:35 PM SENATOR STEDMAN noted an upcoming Energy Council and suggested that this would be a good time to discuss the issue. 2:29:13 PM [VICE CHAIR TOBIN solicited the will of the committee.] 2:29:14 PM SENATOR STEDMAN moved to report [CSHJR 14(TRA)], work order 34- LS0776\I, from committee with individual recommendations and attached fiscal note(s). 2:29:31 PM VICE CHAIR TOBIN found no objection and CSHJR 14(TRA) was reported from the Senate Transportation Standing Committee.