HOUSE BILL NO. 362 "An Act authorizing the exchange of land between the Alaska Railroad Corporation and Eklutna, Inc., between the Alaska Railroad Corporation and the United States Department of the Army and the United States Department of the Air Force, between the Alaska Railroad Corporation and Chugach Alaska Corporation, and between the Alaska Railroad Corporation and the Municipality of Anchorage; and providing for an effective date." REPRESENTATIVE LISA MURKOWSKI, SPONSOR testified in support of the legislation. She noted that House Bill 362 authorizes the Alaska Railroad Corporation to enter into several land exchange agreements needed for a track upgrade and realignment project. The bill approves exchanges of Railroad landholdings for equivalently valued land owned by the Air Force and Army on Elmendorf AFB and Fort Richardson, Ekiutna, Inc., Chugach Alaska Corporation and the Municipality of Anchorage, and certain landowners in the Birchwood area. Federal legislation is also necessary because of the land swap with the military. The Alaska Railroad Corporation (ARRC) is working with the Washington delegation to get this passed. The exchanges outlined in HB 362 will allow the ARRC's track realignment project between Anchorage and Wasilla to proceed, and will also allow the Department of Transportation and Public Facilities to relocate a portion of the Seward Highway just north of Seward. Upgrading and realigning the track will increase safety and efficiency. Straighter track is safer due to reduced track and equipment wear, consistency in train handling, increased sight distance, and reduced maintenance requirements. Running time between Anchorage and Wasilla would also be decreased from 95 minutes to 53 minutes, making commuter service more viable. The railroad plans an investment of $45-60 million for the improvements. These funds will come from federal transportation grants as well as the ARRC's operating revenues. No general funds will be required. Representative J. Davies questioned the impact on the highway system. WENDY LINDSKOOG, ALASKA RAILROAD CORPORATION (ARRC) provided information on the legislation. She explained that grade separated crossing at the military base would be paid by the Department of Transportation and Public Facilities. The movement of the tracks helps to facilitate the department's work. The cost of the grade separated crossing at Beach Lake Park would be incurred by the railroad. The grade separated crossing along the Seward Highway is a Department of Transportation and Public Facilities' project. The Department of Transportation and Public Facilities has asked the railroad to move the track over through land exchanges to accommodate the project. Co-Chair Mulder questioned if there is a plan to relocate fiber optic cable. Ms. Lindskoog affirmed that the plan is to relocate the fiber optic cable so that it would remain within the railroad right-of-way. This is part of the railroad's cost. In response to a question by Representative Phillips, Ms. Lindskoog affirmed that arrangements have been made with the military. Representative Phillips questioned if the rails between Wassila and Anchorage would support a fast train and if there is an ability to lease out the tracks for a commuter fast track. CRAIG HUGHES, PROJECT ENGINEER, ALASKA RAILROAD CORPORATION (ARRC) testified via teleconference. He noted that the railroad had not looked at the market for a commuter service. He stressed that travel time would be reduced from 95 minutes to 53 minutes. The improved track would support a train operating at 50 miles an hour. The rail currently runs at 35 miles an hour. Representative Phillips noted that Amtrak operates at 75 to 80 miles an hour. Mr. Hughes responded that the tracks would not support a train operating at 75 - 80 miles an hour. Representative J. Davies questioned if there has been a cost analysis of what it would take to support a 75 to 80 miles an hour computer rail. Mr. Hughes responded that the cost of the project has not been figured at anything over 60 miles an hour. Ms. Lindskoog pointed out that light and heavy rail cannot be mixed. Representative Grussendorf questioned if there has been discussion of game on tracks. Mr. Hughes explained that they found that snow depth is a greater factor than speed. In response to a question by Co-Chair Mulder, Ms. Lindskoog observed that the interest of the Chugaik Corporation is in Seward. Co-Chair Therriault questioned if the language on page 3, lines 2 - 16 were absolutely necessary for the legislation. (a) Contingent upon the conveyance to the Alaska Railroad Corporation by the Chugach Alaska Corporation of an equivalent interest in real property onto which the railroad utility corridor may be relocated, the Alaska Railroad Corporation is authorized to convey the corporation's entire interest in approximately 6.4 acres of railroad utility corridor between railroad mileposts 14 and 15, within Township 2 North, Range 1 East, Sections 6 and 7, Seward Meridian, to the Chugach Alaska Corporation. (b) The conveyances described in this section are made for the purpose of realignment of the railroad to allow relocation of the Seward Highway by the Department of Transportation and Public Facilities to improve highway operations and enhance safety. (c) Land conveyed by the Chugach Alaska Corporation to the Alaska Railroad Corporation shall be held and managed by the Alaska Railroad Corporation in accordance with AS 42.40. (d) This section constitutes legislative approval under AS 42.40.285(1) for the Alaska Railroad Corporation to convey its entire interest in the land described in (a) of this section. Ms. Lindskoog responded that the language is not necessary for straightening of the track. She emphasized support for creating a grade-separated crossing that would help the general safety of the public. She thought that the Department of Transportation and Public Facilities would view the language as important. In response to a question by Representative J. Davies, Representative Murkowski stressed the importance of straightening the track and did not want to see the bill derailed by adding pieces of other legislation. She thought that the other bills would be acceptable. Lindskoog stressed the importance of straightening the track. Co-Chair Mulder pointed out that HB 362 could be the locomotive to pull other legislation along. HB 362 was heard and HELD in Committee for further consideration.