HJR 33-DEVELOP ARCTIC INFRASTRUCTURE & DEFENSE  12:47:54 PM CHAIR LINCOLN announced that the final order of business would be HJR 33, Urging the Alaska delegation in Congress to pursue the establishment of a U.S. Coast Guard port in the Arctic region; supporting the increase in defensive capabilities in the Arctic region; and encouraging the development of critical Arctic infrastructure. CHAIR LINCOLN stated his intent to bring before the committee a committee substitute. 12:48:21 PM REPRESENTATIVE TUCK moved to adopt the proposed committee substitute (CS) for HJR 33, Version 30-LS1350\D, Radford, 2/14/18, as a working document. CHAIR LINCOLN objected for purposes of discussion. 12:48:56 PM The committee took an at-ease from 12:49 p.m. to 12:51 p.m. 12:51:04 PM MICHAL LOWE, Intern, Representative Chris Tuck, Alaska State Legislature, presented HJR 33 on behalf of Representative Tuck, prime sponsor. He outlined the changes made in Version D: [On page 1, line 1, "Arctic naval station"] was changed to ["U.S. Coast Guard port in the Arctic region"]; and [on page 2, line 30, "naval station"] was changed to ["Coast Guard port capable of supporting naval contingency operations"]. 12:52:23 PM CHAIR LINCOLN removed his objection to the motion to adopt Version D. There being no further objection, Version D was before the committee. 12:53:02 PM REPRESENTATIVE TUCK expressed appreciation for the work Mr. Lowe had done as his intern. 12:53:15 PM MR. LOWE spoke to the importance of resolutions as talking points to highlight what a state wants. He said bi-partisanship and unanimity are important in showing "the intent of Alaska." He began a PowerPoint presentation, and drew attention to slide 2, which covered the purpose and scope of the presentation and offered the following bullet points: • Introduce HJR 33 to AET Committee • Cover evolving situation in the Arctic • Provide primary sources and relevant information to support claims • Discuss benefits of port to the state • Major challenges impeding implementation MR. LOWE said the next few slides are overlays he acquired from the Internet. He said receding polar sea ice has opened new sea lanes for vessels, which reduces intercontinental routes by as much as 5,000 miles. He said, "The basis for the U.S. Coast Guard port stems from the opening of sea lanes in the Arctic." He said one route that is important is shown in lime green on a map on slide 3, and it is right above Russia. 12:57:39 PM MR. LOWE directed attention to slide 4, which shows mineral and economic potential of the Arctic. He said the U.S. conducted a survey in 2008 which showed that 13 percent of the world's undiscoverable oil and 30 percent of the world's natural gas lies in the circumpolar Arctic. This potential is attracting interest from other nations; Russia has the most land north of the Arctic circle, and much of its economy lies in the Arctic. He said Russia already gets approximately 20 percent of its gross domestic product (GDP) from the Arctic. China is involved, as well, and he said he would talk about that later. MR. LOWE turned to slide 5, which shows an overlay of military facilities in the Arctic, and he pointed out that the U.S. has none. In contrast, Russia has about 20 [military] facilities lining the northern sea route. He said it is clear that Russia regards this sea route as "a very important route in the future" and wants to ensure its presence there. Mr. Lowe opined that [the U.S.] should have a presence there as well. 1:00:22 PM MR. LOWE showed slide 6, which depicts China's involvement in the Arctic. He said China has written its Arctic policy, declares itself a "near-Arctic state," and seeks to build a "polar silk road." He said China has built an ice breaker and desires to "regulate and manage affairs of the Arctic." China has joined forces with Russia, he said. Further, China recently filed for permanent observer status in the Arctic Council, which it was granted. Mr. Lowe stated that China sees the potential of the Arctic. MR. LOWE directed attention to slide 7, which addresses the National Defense Strategy [of the U.S.], which replaces terrorism with nation-state strategic competition as a primary concern. He said reading this document is important in understanding the shift happening in the nation's military strategy and the need for facilities and investment in infrastructure to shift, as well. MR. LOWE, showing slide 8, stated that federal investment is good for Alaska's economy, and a U.S. Coast Guard base would add to that and provide not only initial stimulus but would boost the economy over time. He mentioned Joint Base Elmendorf- Richardson (JBER) is one of the reasons Anchorage is the population hub of Alaska; the military requires a diverse work force; and the base is an economy within itself. Directing attention to slide 9, Mr. Lowe talked about the mission of the Department of Military & Veterans' Affairs (DMVA). He talked about The Adjutant Generals (TAG) vision for DMVA. He indicated a [Venn diagram] on the slide, which shows "Viable Arctic Strategy," "Engagement with Alaska Communities," and "Emergency Management Capacity," with "Rural Engagement" connecting them all. He said the U.S. Coast Guard does search and rescue, and the station closest [to the Arctic] is in Kodiak, Alaska. He said with an increase of oil tankers and cruise ships through the Arctic sea lane, if one were to get stranded, it may be Canada that would have to help, because a U.S. Coast Guard vessel would not be able to get there in time. In other words, he said, U.S. capabilities in the Arctic are lacking. 1:05:23 PM MR. LOWE turned to slide 10, and he stated that the primary challenge is get the U.S., as a whole, to embrace its role as an Arctic nation. Alaska is the reason the U.S. is an Arctic nation, but the rest of the country does not have that fact in its consciousness or realize the importance of protecting the nation's interest in the region and providing emergency response capabilities to the region. He said there are extended time horizons for construction in the region because of the extreme weather. He said the U.S. is behind in its investment in the Arctic, and he opined that the nation should invest soon. He said there are so many threats that face the nation that it can be difficult to bring attention to the Arctic, but Mr. Lowe stated, "I still think we should try." MR. LOWE showed slide 11, which recapped the PowerPoint and the following ideas that had been covered: the evolving tensions and rising opportunities in the Arctic; primary documents from federal agencies; and benefits to the state economy as well as to the state military missions. 1:07:32 PM REPRESENTATIVE KNOPP offered his understanding that the U.S. Coast Guard had, for the last few years, maintained a seasonal station in Nome, Alaska. MR. LOWE confirmed that that station has been seasonal. He explained that HJR 33 proposes a permanent deep-water port in Nome, with infrastructure development. 1:08:27 PM CHAIR LINCOLN asked Mr. Lowe if he has an opinion regarding an ideal location for an [Arctic] port in Alaska. MR. LOWE answered he does not. He said Nome has graphite development; he mentioned the Chinese and a natural gas pipeline and streaming the natural gas there instead of to Nikiski, Alaska; and development of a U.S. Coast Guard base there. He added that he was not advocating the idea, but it was one he had heard that would give a deep-water port in Nome multiple functions. 1:09:36 PM REPRESENTATIVE TUCK, as prime sponsor of HJR 33, commented that the United States would not be an Artic nation without Alaska. He said that even though the federal government owns approximately 60 percent of Alaska and gives Alaska a lot of federal money, he thinks the federal government overlooks the economic potential of the Arctic, as well as overlooking national security needs. He noted that there had been a presentation to the House Special Committee on Military and Veterans' Affairs by a retired U.S. Coast Guard member regarding the history of the Coast Guard. He opined that it makes sense to have a base "up here." He said the guard had revenue cutters that were small, two-sail ships that collected revenue from merchant ships. Eventually that became the U.S. Coast Guard that exists today in Alaska. He said the guard has brought reindeer to people starving on islands; it has brought building supplies and built infrastructure. He said it makes sense to have a U.S. Coast Guard base [in Nome] so that "we can police our waters." 1:11:40 PM REPRESENTATIVE NEUMAN talked about the tremendous amount of work that was put into the Alaska Arctic Policy Commission and his work on this issue, and he emphasized that there is a strategic plan laid out within the commission regarding development of infrastructure, including telecommunications, what resources are available, and how they can be marketed and developed. He encouraged the committee to look at the findings of the commission. He concluded, "There is a plan for this set out." 1:12:38 PM CHAIR LINCOLN announced that HJR 33 was held over.