HJR 19-NORTHERN RAIL EXTENSION  1:37:49 PM CHAIR MCCABE announced that the first order of business would be HOUSE JOINT RESOLUTION NO. 19, Supporting the completion of the Port MacKenzie Rail Extension and the Northern Rail Extension; supporting the increase in defensive capabilities at Fort Greely, Alaska; encouraging a renewed commitment by the Alaska Railroad to a community-minded approach to future rail expansion; and encouraging the development of critical Arctic infrastructure. 1:38:12 PM JULIE MORRIS, Staff, Representative Kevin McCabe, introduced HJR 19 on behalf of Representative McCabe, prime sponsor, and paraphrased the sponsor statement [included in the committee packet], which read as follows [original punctuation provided]: This resolution advocates for completing two pivotal rail extensions, the Port MacKenzie Rail Extension and the Northern Rail Extension, alongside critical initiatives to fortify our state's infrastructure and defense capabilities. Alaska's strategic position as the sole state bordering the Arctic Ocean highlights the significance of these endeavors, especially given recent expansions in defense infrastructure at Fort Greely. The Alaska Railroad Transfer Act (ARTA) of 1983 reaffirmed Congress's recognition of the railroad's importance in providing freight and passenger rail service to Alaska. Recognizing the necessity of continued services and expansion to meet federal, state, and private objectives, Congress deemed the state's continued operation and expansion of the railroad a fitting public use of the rail system. The completion of Phase 1 of the Northern Rail Extension project, including crossing the Tanana River, represents a significant milestone, bringing the rail line within 70 miles of Delta Junction and Fort Greely. This progress demonstrates our commitment to realizing the full potential of rail transportation in Alaska and lays the foundation for further expansion and connectivity. With the United States Department of Defense expanding the anti-ballistic missile facility and the United States Army developing new training range areas to support the Stryker Brigade, ensuring seamless rail connectivity is crucial to sustaining military operations effectively. Notably, the lack of rail access at Fort Greely, the only military base in Alaska without it, underscores the urgency of this resolution. Moreover, commendable progress by the Matanuska- Susitna Borough and the Alaska Railroad in completing nearly two-thirds of the Port MacKenzie Rail Extension is essential. This extension will substantially reduce energy and transportation costs, improve air quality, and facilitate efficient movement of goods from tidewater to and across Interior Alaska. Furthermore, the extension of the Alaska Railroad from Port MacKenzie to Houston, Delta Junction, and Fort Greely aligns with long-term objectives, promoting economic integration and enhancing transportation networks. These extensions offer significant economic and resource development benefits, particularly for mining operations in Delta Junction and Tetlin, as well as the agricultural industry in the Delta Junction area. In conclusion, this resolution underscores our commitment to fostering economic development, enhancing defense readiness, and promoting community engagement in critical infrastructure projects essential to Alaska's long-term prosperity and security. Your support for this resolution is greatly appreciated. 1:40:10 PM CHAIR MCCABE reminded the committee that this resolution was just about the same as the resolution passed last year and the year before, and resolutions are only good for a year. He said there would be a dignitary coming for a tour of the Port of MacKenzie and he hoped to bring the resolution then. 1:41:04 PM REPRESENTATIVE STUTES asked for confirmation that it is strictly for the rail extension, not the port. CHAIR MCCABE confirmed that was correct. 1:41:34 PM REPRESENTATIVE MINA asked what the projected cost was to complete the remaining 70 miles of the Northern Rail Extension. CHAIR MCCABE responded that last year's cost was north of $1.2 billion, and Port MacKenzie may be close to $250 million. He stated that the tentative plan is to do it in three years. 1:42:23 PM REPRESENTATIVE VANCE stated that she hoped for the resolution to "stand firm on its own" and that the intent is much broader than just defense. CHAIR MCCABE replied that it could be discussed further and there could be a possibility for amendments. 1:43:53 PM REPRESENTATIVE C. JOHNSON asked Chair McCabe who the dignitary was. CHAIR MCCABE said he could not confirm a name yet, but the person is part of an exercise along with approximately 28 others that have been invited to give a presentation. REPRESENTATIVE C. JOHNSON noted there could be an easy conceptual amendment if needed. 1:45:17 PM REPRESENTATIVE MINA asked whether there have been any follow up conversations with the state's congressional delegation regarding the resolution and federal funding opportunities. CHAIR MCCABE confirmed there had been conversations and, in addition, that he was looking for any way to find funding, matching funding, and interested parties. 1:46:34 PM CHAIR MCCABE provided a biography for Lieutenant General Krumm, who would speak as an invited testifier. 1:48:10 PM LIEUTENANT GENERAL DAVID KRUMM, Retired, gave invited testimony in support of HJR 19. He thanked Chair McCabe for the introduction and stated that he was honored to speak to the resolution today. He said although the views he will express are his own and not necessarily the U.S. Department of Defense (DOD), they are informed by his time as a commander. He opined that timing could not be better to discuss the extension because the U.S. needs the infrastructure to expand its economy and better our capabilities for crisis. Having extra rail options would be a substantial improvement, he said, and heavier transport lends itself to the use of railways rather than air or road. He offered his belief that the Port MacKenzie Rail Extension would be a welcome addition for many uses. 1:52:27 PM BILL O'LEARY, President & CEO, Alaska Railroad Corporation, gave invited testimony in support of HJR 19. He stated that the Alaska Railroad Corporation (ARRC) is in full support of the rail extension, and he opined it would fit beautifully within the railroad's economic development. 1:54:32 PM MEGHAN CLEMENS, Director of External Affairs, Alaska Railroad Corporation, gave invited testimony in support of HJR 19. She mirrored comments made by Mr. O'Leary and added that ARRC embraced this approach to economic development, and the community involved approach is one that works well and is necessary when looking at large projects, she said. In relation to both Port MacKenzie and Northern Rail Extensions, she said there had been significant outreach to different stakeholders to put together a coalition to move these projects forward and benefit the state. She further mentioned bonding opportunities that could be useful, as projects may advance in that direction. She said ARRC had a proven track record for managing large projects successfully, which is an important role that can be provided. 1:59:13 PM CHAIR MCCABE invited questions from committee members. 1:59:29 PM The committee took an at-ease from 1:59 p.m. to 2:00 p.m. 2:00:57 PM REPRESENTATIVE VANCE moved to report HJR 19 out of committee with individual recommendations and the accompanying fiscal notes. 2:01:14 PM CHAIR MCCABE objected for the purpose of discussion. 2:01:21 PM REPRESENTATIVE SUMNER stated he supported the resolution. 2:01:27 PM CHAIR MCCABE removed his objection. There being no further objection, HJR 19 was reported out of the House Transportation Standing Committee.