HCR 2-EXTEND ALASKA RAILROAD TO FT. GREELY  CHAIR WAGONER asked Mary Jackson to introduce HCR 2. MARY JACKSON, staff to Senator Wagoner, advised her explanation was directed to \Q version of HCR 2. The revisions were made at the request of the department and increase the viability of the railroad line by recognizing economic factors other than just the missile base. The first resolution remained the same, the second added the Stryker Brigade, the third was new to reference the Pogo Mine, the forth was new to recognize the agricultural industry, the fifth was slightly revised, the sixth seventh and eighth were unchanged. The title was changed to reflect the changes and to include Delta Junction. In response to the Chair's question regarding whether the resolution indicated authorization for the project, the answer is no. Statutes are clear that the railroad must get legislative approval for any extension of their lines. The resolution is straightforward and asks the railroad to look into extending their lines. If they determine it is feasible, they would return to the Legislature for action. CHAIR WAGONER asked for questions. SENATOR LINCOLN expressed appreciation for Ms. Jackson's review because she had concerns with the first draft. She noted she had not heard from the railroad regarding the CS, but previous correspondence indicated that additional maintenance and operation expense is a concern. She thought that was still a valid concern. CHAIR WAGONER asked for a motion to adopt the CS \Q version as the working document. SENATOR ELTON made a motion to adopt the \Q Utermohle 3/3/03 version as the working document. There being no objection it was so ordered. SENATOR LINCOLN said she had some question about the railroad support. MS. JACKSON advised the fiscal note was prepared by the railroad and in it they noted there would be additional costs. SENATOR LINCOLN interpreted the analysis section to mean the fiscal impact is a concern. She expressed a desire to hear from the railroad. CHAIR WAGONER said he has spoken with the railroad and because the fiscal note is zero he won't hold the resolution. The only way there would be a fiscal note is if the Governor directs the Legislature to proceed. When the railroad is spending $32,000 per mile for operation and maintenance, a line extension of 70 miles would nearly wipe out their annual profit. GENERAL PAT GAMBLE, President of the Alaska Railroad Corporation, testified the railroad views the resolution as a homework assignment. As Senator Lincoln says, they would begin to study what is feasible and available in the near and long term to be able to generate the revenue that would pay the railroad operation and maintenance. If the Governor signs the resolution, thereby tasking the railroad, they would begin the process. To this point, they have had no in depth discussions with businesses or the military regarding what the revenues might be or how they might develop over time. The generic route has been surveyed several times, but the next step would be to determine the corridor itself. This is not a right of way issue, it's just determining through which 500 feet the route would be surveyed. This would allow them to identify the number of bridges and the type of construction that would be needed. With that information they could project the capital costs for the 70 or 80 mile corridor. The railroad is ready and willing to undertake the task if it comes from the Governor. SENATOR ELTON directed his attention to the last "WHEREAS" and asked if the language was somewhat misleading because they don't know whether or not the extension is consistent with the long- term goals of the railroad. GENERAL GAMBLE said the railroad's long-term goals, as stated in their mission statement, are the community and economic development responsibilities. This is consistent with their mission. There was no further testimony. CHAIR WAGONER asked for a motion to move the resolution. SENATOR GARY STEVENS made a motion to move SCS CSHCR 2 (CRA) \Q version from committee with individual recommendations and zero fiscal note. There being no objection, it was so ordered.