HCR 2-EXTEND RAILROAD TO FT. GREELY/DELTA JUNCTION  FATHER TOM MOFFATT, staff to Representative Bob Lynn, sponsor of HCR 2, explained HCR 2 is a resolution in support of extending the Alaska Railroad for approximately 70 miles from North Pole to the new missile defense site at Fort Greeley. HCR 2 was co- sponsored by 25 House members. Member packets contain letters of support from General Pat Gamble, President of the Alaska Railroad Corporation (ARRC); General Craig Campbell, Alaska Adjutant General; Debbie Joslin, national committee woman of the majority party; and former Representative Jeanette James of North Pole. HCR 2 passed the House with a 37 to 1 vote. An extension of the railroad would help support and maintain the missile site, which is critical to national homeland defense and homeland security in Alaska. The railroad extension would also help support the mining industry and agricultural operations in the area and increase economic development from North Pole to Delta Junction. It also puts the Alaska railroad 70 miles closer to a connection with the Canadian railway system for an eventual extension to the Lower 48. FATHER MOFFATT said because HCR 2 is a resolution, no appropriations are required by its passage, nor are environmental studies. HCR 2 does, however, put the Twenty-third Alaska State Legislature on record in support of a railroad extension. He pointed out that Governor Murkowski set forth the rail extension as one of his goals in his state of the state address on January 23. MS. WENDY LINDSKOOG, Director of External Affairs, ARRC, stated support for HCR 2 in its initial form and for the most recent committee substitute (CS), which expands the scope in terms of the different types of revenue available to support a railroad extension: military activities, resource development, and agriculture. CHAIR COWDERY asked if other legislation was introduced to address right-of-way issues. MS. LINDSKOOG said it has. SENATOR OLSON asked for a description of the current industry standards for a railroad right-of-way and what it would be for the extension. MR. PAT GAMBLE, Executive Director of ARRC, informed members that the industry standards are not the measurement that ARRC wants to use. It wants to use the standard that has been successful for the Alaska railroad, which is a 200-foot, fee simple right-of-way plus additional lands that provide for quarries and maintenance areas. He said this particular corridor is one quarter of the distance to the Canadian border so it is being considered as an Alaskan transportation, utility, and communication corridor, as well as a railroad right-of-way. He commented, "The determination of the width of that corridor has to be generous enough to serve several masters here." He said several discussions have taken place on this subject, including a discussion on innovative ways to divide the corridor so that the railroad right-of-way would be within a wider state corridor. He noted that Alaska's standard 200-foot fee simple right-of-way has served the railroad well because it allows for future expansion to build tracks and to make sure that access across rights-of-way is done with proper attention to safety issues. SENATOR OLSON said his understanding is that the anticipated right-of-way for a major portion of the corridor is 200 feet, but there will be a combination right-of-way for other portions. He asked how wide the combination right-of-way would be. MR. GAMBLE said he has heard a width range from 200 feet to one- quarter mile. However, 500 feet is the number that is most frequently used for the corridor itself. He said he believes the width of the corridor will be controlled, to some degree, by the terrain. SENATOR OLSON noted that one-quarter mile is 1,300 feet wide. MR. GAMBLE said ARRC is not saying it needs a one-quarter mile corridor. The need for the corridor itself is a state need to accommodate transportation, a pipeline, fiber optic cable, and underground communication systems. SENATOR OLSON asked whether the impacted communities commented and what their positions are. He pointed out he didn't see a letter of support from Delta Junction. MR. GAMBLE said ARRC has received no correspondence from any of the impacted communities. SENATOR OLSON asked Father Moffatt to address that question. FATHER MOFFATT told members that Representative Lynn's office has had contact with those communities through Representative Harris, who represents the impacted communities. He said the communities support the proposal, although they have not stated their positions in writing. SENATOR OLSON asked if the military submitted a written position on SCS CSHCR 2(CRA). FATHER MOFFATT said that Adjutant General Campbell has testified in support of the resolution at all previous committee hearings. SENATOR OLSON noted Adjutant General Campbell is affiliated with a state department, not the federal government. He said he was looking for a letter from the person in charge of the military bases. FATHER MOFFATT said Representative Lynn has been in contact with the cantonment commander who indicated the extension would be beneficial, but that commander is a field grade officer. He pointed out that by the time the railroad extension is completed, the heavy construction of the missile site would be completed. The Department of Defense has no objection and would not normally lobby for such things. CHAIR COWDERY pointed out this is a resolution to show unified support of a railroad extension so it is conceptual. SENATOR OLSON said he wondered why the committee has not received any documentation in support of the resolution from the entities that will be impacted. CHAIR COWDERY said that documentation would come forward with a railroad bill. SENATOR OLSON stated, "I find it interesting that it comes from a representative that doesn't necessarily represent that area." FATHER MOFFATT pointed out that Representative Lynn has a strong military background and is the chair of the House Committee on Military and Veterans Affairs. CHAIR COWDERY said that although the voters of a specific district elect legislators, they represent the entire state. 2:30 p.m.  SENATOR OLSON said the railroad has operated "in the black" in the past and he wondered how this extension might impact the railroad operations in general in regard to profitability. MR. GAMBLE said that question is uppermost on ARRC's mind. ARRC does not have all of the answers it needs from the military to determine what level of support would be required. For example, would mail support for contractors and the National Guard be necessary? Other supports have not been considered yet and may provide additional revenue opportunities for the railroad to pay for the operations and maintenance of the line. He pointed out the capital costs are extensive. He added that he is not aware of the costs associated with building the military base or expanding existing bases and believes those subjects are ripe for further discussion and analysis. CHAIR COWDERY took public testimony. MR. JAMES SNYDER told members he has watched booms, busts and boondoggles as a Fairbanks resident since 1959 and he considers the railroad extension to be a boondoggle. He does not believe any railroad has run in the black in North America since 1950. He said a railroad extension through Canada would affect the trucking and barge industries in Alaska. He believes the state should not compete with private industry, which has invested millions in this state. He said the U. S. Department of Defense should build the rail extension if it wants one. CHAIR COWDERY pointed out this legislation is a resolution and has no cost associated with it. He then announced that Senator Wagoner joined the committee some time ago. SENATOR WAGONER moved SCS CSHCR 2(CRA) from committee with individual recommendations. Without objection, the motion carried.