SJR 18-SUPPORT SHELL PORT OF SEATTLE LEASE  1:48:15 PM CO-CHAIR NAGEAK announced the next order of business is CS FOR SENATE JOINT RESOLUTION NO. 18(RES), Supporting the leases issued by the United States Department of the Interior to Royal Dutch Shell in the Chukchi and Beaufort Seas; urging the Governor of the State of Washington, the Seattle City Council, and other public officials in the State of Washington to refrain from destructive attacks on the economy, jobs, and lives of the people of this state and the State of Washington and to look first at closing the Boeing production facilities to reduce emissions of carbon dioxide from commercial activity; inviting Royal Dutch Shell to use a port in this state as the homeport of its Arctic drilling fleet if the lease with the Port of Seattle is terminated; and requesting that the Alaska Congressional delegation support restricting the Export-Import Bank of the United States to lending only to small businesses. 1:48:40 PM KARI NORE, Staff, Senator Cathy Giessel, Alaska State Legislature, introduced CSSJR 18(RES) on behalf of Senator Giessel, sponsor. She explained the resolution is in support of Royal Dutch Shell's Port of Seattle leases. The resolution urges Washington to stop interfering with Alaska's economic development, especially when it comes to the development of the oil and gas deposits in the Beaufort and Chukchi seas, as well as the economic development in Alaska's Arctic region. The resolution offers ports in the state of Alaska as other possible ports for Royal Dutch Shell to base its operations if Seattle decides to move forward with its attempts to nullify Shell's current leases at the port. 1:49:48 PM CO-CHAIR NAGEAK opened public testimony, then closed it after ascertaining that no one wished to testify. 1:50:36 PM REPRESENTATIVE JOSEPHSON commented that there is an outstanding article in today's Bristol Bay Times written by Mayor Brower of the North Slope Borough in which she puts forth some good arguments. He reminded committee members that he has already indicated on the House floor that he has real concerns with Shell as an institution because its record in 2012 was really bad. He said he thinks drilling in the Chukchi Sea is a riskier proposition than drilling in the Beaufort Sea. While the resolution is a clever argument in some ways and he takes the point about Boeing, he doesn't know how helpful any of this is. 1:51:38 PM CO-CHAIR TALERICO offered his appreciation and support for the resolution. He said he has read much of the documentation from the governor of Washington and is disappointed with the discussion of Arctic policy without the mention of Alaska. The only reason the U.S. is an Arctic nation is because of Alaska. There was complete misrepresentation in that letter with absolutely no mention of Alaska or Alaska's economy, he said, so he takes offense to what was produced with no prior communication. There could have been some outreach and contact with Alaska's administration. Further, he is disappointed by the letter from Washington that went to Sally Jewell, Secretary of Interior. 1:53:24 PM REPRESENTATIVE HERRON agreed it is a clever resolution and said he has read Mayor Brower's letter to the governor of Washington and the mayor of Seattle and the city council, which he thinks was appropriate. He reported that Mayor Brower gave the same kind of speech when she spoke to Secretary Jewell in Kotzebue. Many people, including Secretary Jewell, didn't realize that in her polite speech Mayor Brower kicked Secretary Jewell in the rear end. The Washington government entities are biting off their nose to spite their face because Alaska is not a colony. This conversation between the state of Alaska and the state of Washington is an issue that Alaska is going to face elsewhere as well. He related that while he was before Congress, Minnesota U.S. Senator Al Franken asked him whether he understands the irony that Alaska wants to drill for its future yet contribute to the carbon footprint so that Alaska's coastal communities will go under water. He said he does not take his vote lightly to pass CSSJR 18(RES) because the resolution emphasizes Alaska's difficult realities in maintaining sustainable communities and to have a vibrant economy for the residents of Alaska. 1:56:21 PM REPRESENTATIVE SEATON said he appreciates the last resolve clause that the legislature invite Royal Dutch Shell to use a port in the state of Alaska. However, he added, he has a question about the second to last resolve clause regarding the legislature requesting the congressional delegation of the state to support restricting the Export-Import Bank of the United States to only small businesses. He noted that this resolve relates to the last whereas clause on page 2 regarding the financing of Boeing by that bank. He said he thinks there are a lot of other things the Export-Import Bank can do and he is not wanting there to be an impact on Alaska businesses or other businesses that are not involved in this dispute. He urged it be put on the record that it is for one company and not a general statement for all import/export activity across the U.S. 1:58:11 PM REPRESENTATIVE TARR noted that the Alaska State Legislature hasn't asked other states when it considers resolutions that pertain to another state; for example, the resolution for New York's Central Park and the resolution for the proposed Keystone pipeline. She urged the legislature to tread carefully in relationships with Alaska's economic partners and to not be confrontational, but rather find ways to resolve the state's concerns in constructive ways in recognition that each legislature is representing its constituents. The Alaska State Legislature needs to hold itself to the same standards that it is asking the other states to uphold. 2:01:21 PM REPRESENTATIVE JOSEPHSON added that Mayor Brower's article was well considered. An irony, though, is that Mayor Brower talks about Alaska needing to buildout the Arctic so search and rescue can be done for hunters drifting on the ice, while the push back from Washington is that there isn't going to be any ice. 2:02:03 PM CO-CHAIR NAGEAK offered a reminder about the history between Alaska and Washington, especially Seattle. In the past Alaska and Washington were closely tied together by the economics and proximity of Alaska to Washington. Seattle used to tout itself as the gateway to Alaska because everything going up to Alaska came through Seattle. U.S. Senator Magnuson from Washington and U.S. Senator Stevens from Alaska created the Magnuson-Stevens Act on fisheries, a relationship of the two states that continues today. Washington depends on Alaska as seen by the crab fishermen from Washington who fish in Alaska waters. Therefore, he said, he was upset when the City of Seattle starting writing resolutions. The two states used to work together and now they are working against each other and that is not good for either state or for Seattle. Alaska is a huge economy for Seattle and this is how Seattle is paying back Alaska. He said he is glad Mayor Brower responded accordingly. 2:06:14 PM CO-CHAIR TALERICO moved to report CSSJR 18(RES) out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, CSSJR 18(RES) was reported from the House Resources Standing Committee.