HB 241-RAIL AND UTILITY CORRIDOR TO CANADA CHAIR KOHRING announced that the final order of business would be HOUSE BILL NO. 241, "An Act relating to a railroad utility corridor for extension of the Alaska Railroad to Canada and to extension of the Alaska Railroad to Whitehorse, Yukon Territory, Canada." RICHARD SCHMITZ, Staff to Representative Jeannette James, Alaska State Legislature, came forth on behalf of Representative James, sponsor of HB 241. He stated: Last legislative session, HJR 51 was passed, which ... was a resolution calling for the connection between the Lower 48 and Alaska by railroad. It would allow for tracks to go between, basically, Eielson Air Force base, where they are now, and Fort Nelson, B.C. [British Columbia]. This is something that Representative James has really believed in for a long time. In fact, the dream of having what we call the Last Transcontinental Railroad has been around since the Alaska Railroad was first constructed before the Second World War. And even at the turn of the century there was talk of building this railroad. It seems that today's infrastructure is a huge issue for building Alaska's economy. ... HB 241 will follow up on the resolution by actually having a piece of legislation that would basically authorize the Alaska Railroad to extend tracks from Eielson. And originally the idea was to go to the Canadian border. But there being nothing there but black spruce and lichen, it would authorize it to go all the way to Whitehorse, Yukon Territory, the idea being that the White Pass Railroad, which connects Skagway with Carcross ... pointed out that the White Pass Railroad is really set up to expand from a narrow gauge to a standard gauge at some point in time in the future, and over the last few years the railroad has proved very successful. At first, it just was back and forth on the dock with a little engine after it shut down when the mines closed down the Yukon. Then they started doing tourist runs a little bit up, and then they went to the Pass, and now they are going all the way to Carcross. ... So, some point in time in the future with a corridor there, there could be a connection right down to the port at Skagway, which could be a big benefit for building the gas line, for example, or the missile defense program. We also heard yesterday ... about a proposal to have these big "super servers" up on the North Slope that would use natural gas, and they would have to have a fiber-optic cable that would come down. ... Well, part of this plan is to have a railroad utility corridor with fiber-optic cable going all the way down along it. Number 0402 REPRESENTATIVE WILSON remarked that she is excited about this and thinks this will help Alaska in the long run. She said it would open up areas for economic development, especially in the mining area along the corridor where there are many minerals. CHAIR KOHRING concurred with Representative Wilson. REPRESENTATIVE MASEK referred to the fiscal note and read, "We assume the State land could be acquired for no cost." She asked, if there were any R.S. 2477 trails or other access routes, whether they would be protected. Number 0288 REPRESENTATIVE JAMES responded that there is the EIS (Environmental Impact Statement) procedure in getting anything done. If there is an R.S. 2477 there to vacate, it would be a decision made by the state, not the railroad. The only time there would be a problem would be if [the corridor] were going the same direction as the railroad; however, it is right down the highway. Had there been [a problem], she surmised that it would be negotiated according to the circumstances. REPRESENTATIVE MASEK asked whether the R.S. 2477s and other access routes are protected for public access. REPRESENTATIVE JAMES answered that she thinks they are automatically protected by the law. They would only be changed through some legal method, with public input. TAPE 01-33, SIDE A Number 0025 REPRESENTATIVE JAMES remarked that it is a good possibility that if there is a connection from Alaska to the North American rail system, and if the rail system is moved through the Seward Peninsula near Nome and has a deep-water port in Norton Sound, [Alaska] could be a "throughput" for materials from Asia to Canada and the Lower 48; it would be easier, with the water transportation, to Alaska than to Seattle. CHAIR KOHRING asked whether there is any opposition in Canada to the railroad extension. REPRESENTATIVE JAMES responded that she is not aware of any. She has met with people in Vancouver, B.C.; Grand Perry (ph); and Calgary. Everyone is excited. CHAIR KOHRING asked whether the closest point of the railroad in Canada to Alaska is Fort Nelson. REPRESENTATIVE JAMES answered that Fort Nelson is one of the areas. She added that [Alaska] has not had any intense relationships with the First Nations people. Number 0298 CHAIR KOHRING asked, "Where do we go from here, assuming that this passes the legislature?" REPRESENTATIVE JAMES responded that this just opens the door for the railroad to something in the event that something is ready to be done. She noted that U.S. Senator Murkowski passed legislation last year that authorized a bilateral commission of 12 U.S. people and 12 Canadian people. The U.S. is just waiting for Canada to pass the same sort of legislation in its federal government. When that happens, there will be the appointment of the 24 people, a $6 million fiscal note from the U.S., and hopefully a similar fiscal note from the Canadians. This committee will be appointed to hire the folks needed to do the feasibility study. CHAIR KOHRING asked what the distance in Alaska would be in comparison to that in Canada. REPRESENTATIVE JAMES responded that it would be about 270 miles; it would be a lot farther on the Canadian side. Altogether, it is about 1,200 miles. Number 0446 CHAIR KOHRING asked who pays what. REPRESENTATIVE JAMES answered that she is not sure. CHAIR KOHRING suggested privatizing the Alaskan leg of the railroad. REPRESENTATIVE JAMES said she thinks that is a good possibility. Number 0521 REPRESENTATIVE MASEK moved to report HB 241 out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, HB 241 was reported from the House Transportation Standing Committee.