CHAIRMAN SHARP brings up HB 183 (TRANSPORTATION CORRIDOR: FAIRBANKS-NOME) as the first order of business before the Senate Transportation Committee today. The chairman calls the prime sponsor as the first witness. Number 019 REPRESENTATIVE JEANNETTE JAMES, prime sponsor of HB 183, states the bill would authorize the Department of Transportation & Public Facilities (DOT) to delineate a corridor from Fairbanks to the Seward Peninsula for rail use. This delineation is subject to legislative appropriation, though other funds, such as federal and or private funds, could be used. The sunset clause for HB 183 is the year 2055. REPRESENTATIVE JAMES believes rail would be preferable to a road, due to all the problems associated with roads. Number 077 SENATOR LINCOLN asks Representative James why, under paragraph (2) on page 1, "impacts to subsistence" is not included. REPRESENTATIVE JAMES responds HB 183 does include "impacts on and service to adjacent communities", SENATOR LINCOLN does not agree that phrase would protect subsistence uses. If folks reside outside a community, or have a trapline or something outside a community, that activity would not be protected. Number 100 REPRESENTATIVE JAMES understands the concerns of Senator Lincoln, but she does not know if the legislature can define subsistence at this point in time. She has no problem with recognizing subsistence as a very wise use of our resources in this state. CHAIRMAN SHARP says the committee can work on amending HB 183. Number 122 SENATOR LINCOLN says she does not like the term "...significant environmental impact..." under subparagraph (E), and would like to perhaps delete the word "significant". REPRESENTATIVE JAMES states she would consider that a friendly amendment. Number 134 SENATOR LINCOLN says she is also concerned with subparagraph (A) on page 2, wondering whether native lands would come under state condemnation. REPRESENTATIVE JAMES replies she does not know if eminent domain would apply to native lands. She cannot answer that question at this time. However, she does not see natives objecting to a railroad over their lands, as it would benefit them also. Native corporations could lease their lands for use as part of this rail corridor, and they would then receive revenue from those leases. Number 164 CHAIRMAN SHARP says the committee will request a clarification from legal services on whether native land would be subject to condemnation and eminent domain. Number 175 SENATOR KERTTULA makes an observation that perhaps the resources necessary to build and maintain the railroad corridor be provided for in HB 183. Area adjacent to the rail corridor should be set aside for use in the building and maintaining of that corridor, at the same time the corridor is established. He suggests language be inserted on page 1, lines 11 and 12, stating, "...shall encompass gravel, rock, and other resources needed to construct and maintain the railroad.", and thinks that language is necessary in the interest of the public and of the state. Number 232 SENATOR KELLY asks if this railroad could potentially connect up with the Russian Railroad system. REPRESENTATIVE JAMES replies it would be about 1,100 miles from the Russian Railroad, though there is a very strong interest in building a trans-continental railroad. She supports a trans- continental railroad, but does not think this project is dependant upon a transcontinental railroad. Right now, China is expanding their railroad to meet the Russian railroad. So if the state does connect with the Russian railroad, it will give the state access to China, as well as Russia. The American Railway Association has established a technical committee on the Bering Straits tunnel and the trans-continental railway. They will be meeting in Fairbanks on May 24 & 25, 1994. Number 265 CHAIRMAN SHARP asks if there are any more questions for Representative James. Hearing none, the chairman calls a representative from DOT to testify. Number 269 HELVI K. SANDVIK, Deputy Commissioner, Department of Transportation & Public Facilities (DOT) states the department supports HB 183. The department believes it would go a long ways towards dealing with transportation planning issues that the state is facing. DOT has prepared a fiscal note on HB 183. It would require a fairly significant capital investment. She does agree with Senator Kerttula that resources needed for construction and maintenance of the rail corridor should be set aside. Number 280 SENATOR LINCOLN asks how much DOT's fiscal note is for. MS. SANDVIK replies the total is 7.3 million dollars over a two year period. SENATOR KELLY asks Representative James if a rail system to Nome would connect to a Russian road system. REPRESENTATIVE JAMES responds there is no rail or road system in the Russian Far East with which an Alaskan railroad to Nome could connect. She notes that the bill does not have a fiscal note, because it is subject to legislative appropriation or the availability of other funds. Number 296 CHAIRMAN SHARP announces his staff will work with Representative James to work on language to include the language suggested by Senator Kerttula. The chairman also wants to address Senator Lincoln's concerns. The chairman announces that HB 183 will be held to work on those changes.