SJR 10-ARCTIC: POLICY, USCG, ARCTIC COUNCIL  8:09:11 AM CHAIR LYNN announced that the first order of business was the CS FOR SENATE JOINT RESOLUTION NO. 10(RES) am, Relating to the presence and interests of the state and the nation in the Arctic; urging appointment of a representative of the state to the Arctic Council; relating to icebreakers; and relating to United States Coast Guard operations and facilities in the Arctic. 8:10:37 AM REPRESENTATIVE MILLETT moved to adopt the proposed House committee substitute (HCS) for CSSJR 10, Version 28-LS0542/C, Nauman, 3/22/13, as a work draft. REPRESENTATIVE MILLETT objected for the purpose of discussion. 8:11:10 AM JOE BYRNES, Intern, Senator Cathy Giessel, Alaska State Legislature, presented SJR 10 on behalf of Senator Giessel, sponsor. He stated that SJR 10 would urge Congress and advises the U.S. to increase its interest in the Arctic Council by expanding the U.S. Coast Guard icebreaker fleet to maintain its growing Arctic responsibilities. The joint resolution would advise the U.S. to assert its political, strategic, environmental, and economic interests in the Arctic by pursuing America's vast diplomatic, military, and economic means. He said that interest in the Arctic has been renewed globally due to the diminishing levels of Polar Sea ice, which presents new opportunities to the world. Geologists believe that the Arctic holds the potential for large quantities of natural resources that could promote domestic energy security and Alaska's economy. The decline in amount of Polar Sea ice can enhance commercial interests with an opportunity to reduce international shipping times compared to conventional routes by navigating the Arctic Ocean. Though the rest of the world appears to recognize the potential of the Arctic, there has been relatively inadequate resolve exhibited at the federal level in advancing Arctic interests. 8:12:37 AM MR. BYRNES referred to a handout in the committee packet entitled, "Major Icebreakers of the World," which was published by the U.S. Coast Guard and reveals the number of icebreakers, which indicates how other countries have demonstrated Arctic interests. Icebreakers are essential to carrying out operations in the Arctic and projecting a nation's presence in northern waters. He pointed out that Russia has 17 state-operated icebreakers, Canada has 6, and the U.S. has 3, of which only 1 is currently in service. He said that U.S. interests are at stake in the Arctic, particularly of interest to Alaskans. International Arctic policy affects Alaska uniquely compared to other states. MR. BYRNES said SJR 10 highlights Alaska's engagement with the Arctic Council, which since 1996 has emerged as a leading channel for the discussion of international Arctic affairs among the Arctic states. The relayed [the sponsor's] belief that Alaska's Arctic interests are fundamentally America's Arctic interests, and whatever avenue that is available to convey those interests should be pursued. The U.S. should seek to unlock the Arctic's potential by having the U.S. take a leadership role in guiding international Arctic policy. He stated that adopting the provisions of SJR 10 would be a good first step in advancing that goal. 8:14:08 AM CHAIR LYNN asked whether this resolution has anything to do with the Law of the Sea Treaty. MR. BRYNES answered that SJR 10 does not specifically promote or oppose the Law of the Sea Treaty. 8:14:28 AM REPRESENTATIVE MILLETT asked why Argentina, Chile, and South Africa have ice breakers. MR. BRYNES answered that those countries are near the Antarctic. In response to Representative Isaacson, he offered his understanding that the key on the handout indicates where icebreakers have operated. CHAIR LYNN remarked that it is amazing how many icebreakers Russia has. 8:16:30 AM REPRESENTATIVE HUGHES noted that Russia started building icebreakers in the '60s and the U.S. got a late start. She wondered if Alaska encouraged the U.S. with respect to icebreakers. She expressed curiosity about the history of icebreakers. 8:16:58 AM MR. BRYNES offered his understanding that Alaska's delegation has been fighting for more icebreakers for a long time, but it has only been recently, due to global warming and Arctic ice melting, that the interest has shifted to the Arctic. 8:17:29 AM SENATOR CATHY GIESSEL, Alaska State Legislature, Juneau, Alaska, as sponsor of SJR 10, interjected that Alaska was a new state in the '60s, and the country is just now realizing that it is an Arctic nation. She said, "We are attempting to raise the urgency of the need for icebreakers." She said as a result of diminishing Arctic ice, shipping lanes have opened up. She commented that the Bering Strait has become a popular conduit for significant shipping between Asia, the Arctic, and Russia; therefore, the U.S. needs additional icebreakers for national security. 8:18:21 AM REPRESENTATIVE HUGHES asked for the cost of an icebreaker, whether any private companies build them, and if the state could consider building one. MR. BRYNES answered that that the cost issue was raised in the Senate Resources Committee meeting on 3/4/13. According to a High Latitude Study provided to the Congress in July 2011, and reported in a Congressional Research Service report, the cost for one ship would be about $856 million. The report also estimated that building six ships would cost $4.7 billion. He noted that major ice breakers, the Nathaniel B. Palmer and the Aiviq, are privately owned. SENATOR GIESSEL added that the Aiviq is owned by Royal Dutch Shell plc, was at one time harbored in Seward, but is being transported to Asia for additional retrofitting. She said that the Sikuliaq is an Arctic-equipped research vessel operated by the University of Alaska Fairbanks. 8:20:44 AM MR. BRYNES, in response to the chair, said the icebreakers owned by the U.S. are operated by the U.S. Coast Guard, which reports to the U.S. Department of Homeland Security. In response to Representative Keller, said he does not know all the locations in which the Arctic Council has met, but knows it meets on a rotation schedule, which began in 1996, with Canada as chair, then rotated to the U.S. in 1998. He referred to page 3, [lines 18-20], which notes that "following the chairmanship of Canada beginning in May 2013, the United States will assume chairmanship of the Arctic council in May 2015". REPRESENTATIVE KELLER expressed curiosity as to when Alaska would be chairing the Arctic Council. 8:22:51 AM REPRESENTATIVE ISAACSON questioned the effectiveness of the resolution. He referred to language on page 2, [lines 11-14], which states that the U.S. Coast Guard "does not have a base on or adjacent to the Arctic Ocean, inhibiting the nation's ability to respond to situations", and then highlighted language on page 4, [lines 14-15], which "urges the United States to continue to assert its political, strategic, environmental, and economic interests in the Arctic". He asked for the likelihood of a base ever existing in Alaska. He recalled that former U.S. Coast Guard members have indicated that the Midwest U.S. has not yet recognized the U.S. as an Arctic nation; therefore, because of the prohibitive costs of an icebreaker, it may be a long time before one is built. He further asked for the likelihood of SRJ 10 gaining traction in Congress. MR. BRYNES expressed the sponsor's hope that the proposed joint resolution would have a receptive audience in Congress. The Alaska Congressional Delegation has always been supportive of increasing the number of icebreakers in the U.S. Coast Guard fleet, as well as supporting the construction of Arctic posts. In 2012, Senator Begich co-sponsored an amendment to the U.S. Coast Guard Reauthorization Act, which would prolong the life of one of the four aging icebreakers. He offered his belief that measures such as this one emphasize to the Lower 48 the reasons icebreakers are important to the U.S. 8:25:34 AM SENATOR GIESSEL encouraged members to become active members in the Pacific NorthWest Economic Region (PNWER), which has a subcommittee called Arctic Caucus, which has been focused on these issues. She reported that PNWER comprises Alaska and the Northwest and Yukon Territories of Canada. She explained that the caucus provided the momentum for the Northern Waters Task Force and ultimately the Arctic Policy Commission that Alaska has formed. She agreed that the U.S. has federal financial issues; however, if the concern is never raised, it will never happen. She stated that with the Arctic Council's presence in the U.S., the state is partnering with Canada to emphasize the North American Arctic to potentially effectively leverage the Arctic presence. She characterized the involvement as being a "challenging uphill battle," which [Alaska and Canada] are fighting together. REPRESENTATIVE ISAACSON noted the resolution calls for a member of the State of Alaska to serve on the Arctic Council. He asked whether SJR 10 is being "done in cooperation" or is "knocking on the door" to raise awareness. SENATOR GIESSEL answered it is the latter. She reported that a northern Canadian First Nations woman from Nunavut chairs Canada's position on the Arctic Council, and she indicated that the proposed resolution asks that an Alaskan be considered to chair [the United States' position on the council]. She indicated that Lt. Governor Mead Treadwell is the governor's designee as official delegate from Alaska to speak on Arctic issues before the federal government. 8:28:52 AM REPRESENTATIVE HUGHES recalled reading that during recent chairmanship of the Arctic Council by Norway, Finland, and Sweden, focus has been on environmental protection, and now that Canada will be chairing, followed by the U.S., the emphasis will be on North American issues. She said she was delighted that part of the emphasis will be on resource development and perhaps shipping. She expressed an interest in how the emphasis would change. She further asked whether Western States support the Arctic, in particular, for additional icebreakers - due to the impact it will have on the Arctic shipping route. SENATOR GIESSEL explained that the Arctic Council has a very broad emphasis which includes environmental, shipping, and resource development. She related that the Alaska Arctic Policy Commission (AAPC) is actually divided into [policy teams], and she heads the team focused on [oil and gas development, resources, and mining]. Consequently, she has been reviewing other Arctic nations in the council, and she has found each of them to have a balanced perspective for each of the issues, including transportation, development, and environment. She turned to the Western states and pointed out that she is also a member of the Energy Producing States Coalition (EPSC), whose members are predominately Western states that produce energy. She said she has been trying to emphasize the Arctic importance to the coalition. She encouraged members to make their voices known to other states as they participate in meetings in the Lower 48 and other countries. 8:31:22 AM REPRESENTATIVE MILLETT removed her objection to the motion to adopt the proposed House committee substitute (HCS) for CSSJR 10, Version 28-LS0542/C, Nauman, 3/22/13. There being no further objection, Version C was before the committee as a work draft. 8:31:55 AM REPRESENTATIVE MILLETT moved to report HCS CSSJR 10, Version 28- LS0542/C, Nauman, 3/22/13, out of committee with individual recommendations and the accompanying fiscal notes. REPRESENTATIVE KELLER objected. 8:32:12 AM A roll call vote was taken. Representatives Gattis, Hughes, Isaacson, Keller, Kreiss-Tomkins, Millett, and Lynn voted in favor of reported Version C for SJR 10 out of committee. Therefore, HCS CSSJR 10(STA) was reported out of the House State Affairs Standing Committee by a vote of 7-0.