HJR 26-AK LNG PROJECT WORKFORCE DEVELOPMENT  1:04:32 PM CO-CHAIR BURKE announced that the first order of business would be HOUSE JOINT RESOLUTION NO. 26, Requesting that the United States Congress appropriate authorized federal workforce development funds to train state residents for the development, construction, and operation of the Alaska liquefied natural gas project; and encouraging the hiring of residents and the use of state-based small businesses in the development, construction, and operation of the Alaska liquefied natural gas project. 1:04:44 PM REPRESENTATIVE BILL ELAM, Alaska State Legislature, as prime sponsor, introduced HJR 26. He explained that the resolution urged Congress to appropriate the $20 million in workforce development funds authorized for the Alaska liquefied natural gas project (AKLNG). Congress had authorized this funding specifically to support the workforce training for Alaska natives, rural residents, and dislocated workers for participation in the AKLNG infrastructure. Despite the authorization, the funds had not been appropriated. The resolution further encouraged AKLNG project sponsors and contractors to prioritize hiring trained Alaskans and working with small in-state businesses. He explained how the resolution aligned with existing statute. He pointed out that the training infrastructure already existed across Alaska through regional training centers and apprenticeship programs, but additional funding would be needed to meet the labor needs of the LNG project. He pointed to the long-term benefits of training Alaskan workers rather than relying on out of state work force. The resolution reinforced the state's support for in-state labor and economic development tied to natural resource projects. 1:07:55 PM CO-CHAIR BURKE opened invited testimony. 1:08:08 PM AMY SCHUMACHER, Executive Director, Fairbanks Pipeline Training Center, spoke in support of HJR 26. She explained the importance of gathering sufficient resources in preparation for the proposed AKLNG project. She pointed out that the Fairbanks Pipeline Training Center (FPTC) is the hub for everything that goes to the slope, and the center was ready to train Alaskans. 1:09:15 PM MS. SCHUMACHER responded to several questions by Representative Saddler regarding funding, explaining that FPTC was a multi- craft training trust. The funding includes contractor contributions, some state grants, and support from the construction academy. The FPTC would like to use the federal funds to expand and scale up the annual pipeline training and for outreach classes to introduce people to the pipeline trades. Regarding the question of how the money would be spent, she explained that mainly it would be training, capital improvements, equipment and technology upgrades, and rural outreach. 1:12:58 PM REPRESENTATIVE FIELDS described union activities and spoke of the necessity of scaling up the training, emphasizing the importance of apprenticeship. 1:14:09 PM MS. SCHUMACHER addressed several of Representative Coulombe's questions. She explained that most of the FPTC apprenticeship programs require state residency. People from out of state who seek training are encouraged to become residents. Individuals from out of state would receive safety training, so they would have the safety certification when they go to work. She said the types of trades in the pipeline program include operating engineers, plumbers and pipefitters, laborers, and teamsters. The building trades are represented by the electricians. She explained that FPTC trains on every capacity to build a pipeline such as bringing the pipe in, stringing the pipe out, and welding the pipe together. Each type of worker is familiar with what the other workers are doing. 1:17:29 PM MS. SCHUMACHER, in response to a question from Representative Saddler, explained that if they wait and train during the build, then they are too late. If the gas line does not go through, there are still supporting projects that could benefit from training Alaskans, including all the work on the North Slope. 1:19:34 PM MS. SCHUMACHER responded to a question from Representative Rauscher by first extending an invitation to the committee members to visit FPTC in late October. She explained that each craft learns their own trade. She described the training experienced by the laborers, the pipefitters, the equipment operators, the mechanics, and the teamsters. Each individual craft would be learning their own task, but all would be doing it in coordination with the other crafts, so they understood what it would be like on the job, knowing where to stand and where to be. 1:22:10 PM REPRESENTATIVE FIELDS spoke about the unique environment of the FPTC and explained that unlike schools where skills would be learned individually, students at the FPTC learn to lay long lengths of pipe with all the trades present prior to being on the slope. The training would be coordinated, multi-craft work that no individual training school could do on their own. He pointed out that even if the AKLNG project did not materialize, workers are needed for the Pikka and Willow projects. 1:23:18 PM REPRESENTATIVE ELAM, in response to a question from Representative Hall, explained that he didn't know why the money had not yet been appropriated. He pointed out that the resolution would help keep attention on the issue. 1:24:25 PM KENDRA BROUSSARD, Staff, Representative Bill Elam, Alaska State Legislature, on behalf of Representative Elam, prime sponsor, answered questions regarding HJR 26. In response to a question from Representative Hall, explained that the Alaska Natural Gas Pipeline Act was passed in 2014. 1:25:24 PM MS. SCHUMACHER responded to a question from Representative Hall, explaining that the act was first written in 2004 and amended in 2014. She clarified that 15 percent of the funding was for a pipeline training facility in Fairbanks. 1:25:55 PM GREG CASHEN, Lobbyist, Fairbanks Pipeline Training Center, addressed several questions from Representative Hall regarding why the money for the FPTC had not been appropriated at that time. He described the appropriation process, explaining that the language includes a reasonable expectation that the natural pipeline construction would commence by a date two years after the date of certification. He pointed out that the project had not made it that far, so the money had not been appropriated by congress. He said there was progress and there was a reasonable likelihood of the appropriations going through. The funding would go through the Department of Labor. He described the pipeline training which simulated actual Arctic pipeline conditions including staying in a camp like the North Slope. 1:32:04 PM REPRESENTATIVE SADDLER opined that the political climate at the federal level should support the proposed LNG construction and the thriving oil and gas industry, so the resolution is timely and appropriate. 1:33:02 PM MS. SCHUMACHER, in response to a question from Co-Chair Dibert, explained that FPTC was engaged in training for each of the North Slope trades. She discussed the North Slope pipeline certification required for employment on the slope. 1:35:11 PM WARREN CHRISTIAN, Secretary, Fairbanks Pipeline Training Center; President, North Slope Contractors Association, explained the role of the North Slope Contractors Association regarding pipeline construction in Alaska and the role of the organization in the FPTC. He described his meeting with the Alaska congressional delegation in Washington to address the funding questions. He discussed the recruitment, the training, and the apprenticeship programs sponsored by the unions, and pointed out the value of training rural Alaskans. He explained that the FPTC focuses on bringing in entry level personnel who might be trained in one trade at the FPTC but then might enroll in one of the union apprenticeship programs. The union apprenticeship program at the FPTC then would help bring an individual up to the skill level needed on the North Slope. He pointed out at that time there was work at the Willow, the Santos, and the Coyote projects in pipeline and ice road construction. 1:38:34 PM MS. SCHUMACHER, in response to a question from Co-Chair Dibert, explained that there were five apprenticeships. There were 60 to 80 students during the last two years, and everyone who went through the training went directly to work. 1:40:09 PM REPRESENTATIVE ELAM agreed with Representative Coulombe's suggestion that the governor should be added to the list of recipients of the resolution. 1:42:15 PM The committee took an at-ease from 1:42 p.m. to 1:43 p.m. 1:43:27 PM REPRESENTATIVE FIELDS explained that he had to leave for another meeting but that he supported the resolution. 1:43:45 PM CO-CHAIR DIBERT moved conceptual amendment [1] to add "the Honorable Michael J. Dunleavy, Governor of the State of Alaska," to the recipient's list, following "Congress" on line 24. 1:44:01 PM There being no objection, the conceptual amendment was adopted. 1:44:22 PM The committee took a brief at-ease at 1:44 p.m. 1:45:30 PM CO-CHAIR BURKE opened public testimony on HJR 26. 1:45:47 PM CO-CHAIR BURKE noted there was no one who wished to testify, and closed public testimony on HJR 26. 1:45:55 PM CO-CHAIR DIBERT moved to report HJR 26, work order 34-LS0956\N from committee with attached zero fiscal note and individual recommendations out of committee. There being no objection, HJR 26, as amended, was reported out of the House Resources Standing Committee. 1:46:28 PM The committee took an at-ease from 1:46 p.m. to 1:49 p.m.