SENATE TRANSPORTATION COMMITTEE April 15, 1997 1:45 p.m. MEMBERS PRESENT Senator Jerry Ward, Chairman Senator Gary Wilken, Vice Chairman Senator Lyda Green MEMBERS ABSENT Senator Rick Halford Senator Georgianna Lincoln COMMITTEE CALENDAR SENATE JOINT RESOLUTION NO. 25 Supporting enhancement of visitor access to Denali National Park and Preserve through development of a northern railroad route corridor access to the vicinity of Wonder Lake. - MOVED SJR 25 OUT OF COMMITTEE SENATE BILL NO. 153 "An Act relating to issuance of special license plates to commemorate the arts." - MOVED SB 153 OUT OF COMMITTEE PREVIOUS SENATE ACTION SJR 25 - No previous Senate action to record. SB 153 - See Senate Transportation Committee minutes dated 4/3/97. WITNESS REGISTER Senator Wilken State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Prime Sponsor of SJR 25. John Gonzales, Mayor Denali Borough PO Box 480 Healy, Alaska 99743 POSITION STATEMENT: Stated that SJR 25 is important. Joseph Fields III Kantishna Holdings PO Box 71047 Fairbanks, Alaska 99707 POSITION STATEMENT: Supported SJR 25. Don Lowell, Special Assistant Department of Transportation & Public Facilities PO Box 71114 Fairbanks, Alaska 99707 POSITION STATEMENT: Discussed the feasibility study. Ted Trueblood, President Tryck Nyman & Hayes Engineers 911 W 8th Avenue Anchorage, Alaska 99501 POSITION STATEMENT: Discussed the rail project. Chip Dennerlein, Regional Director National Parks & Conservation Association 329 F Street, #208 Anchorage, Alaska 99501 POSITION STATEMENT: Opposed SJR 25. ACTION NARRATIVE TAPE 97-11, SIDE A SJR 25 SUPPORT ACCESS TO DENALI/ WONDER LAKE  Number 001 CHAIRMAN WARD called the Senate Transportation Committee meeting to order at 1:45 p.m. and introduced SJR 25 as the first order of business before the committee. SENATOR WILKEN , Prime Sponsor, pointed out the map he had which illustrated the area in discussion. Senator Wilken read the following sponsor statement into the record: SJR 25 calls for the Alaska Legislature's endorsement of a proposed northern access railroad route into Denali National Park. A new northern railroad route, connecting the Alaska Railroad with Wonder Lake, would not only provide enhanced viewing opportunities for Alaskans, but for visitors to the state as well. This could serve to bolster tourism in Alaska, since the Park, the Mountain and all of the surrounding wild beauty would be accessible on a year-round basis, instead of just the summer months. In addition to improving access into the Park, this proposal would enable the state to encourage and monitor development opportunities involving the private sector, without substantially affecting the state's financial resources. This proposed northern access route is supported by the National Park Service Advisory Board along with many of the organizations and communities along the existing Alaska Railroad corridor, including but not limited to the Municipality of Anchorage, Fairbanks North Star Borough, the City of North Pole, the City of Nenana, the City of Seward, and the Matanuska-Susitna Borough. Senator Wilken encouraged the passage of SJR 25 and noted that the committee packets listed the various governmental bodies which endorse the concept. SENATOR GREEN moved to report SJR 25 out of committee with individual recommendations and accompanying fiscal notes. Without objection, it was so ordered. SB 153 SPECIALIZED LICENSE PLATES FOR ARTS  CHAIRMAN WARD announced that SB 153 was the next order of business before the committee. SENATOR GREEN moved to report SB 153 out of committee with individual recommendations and accompanying fiscal notes. Without objection, it was so ordered. Number 073 CHAIRMAN WARD then asked if those on teleconference for SJR 25 would like to testify. JOHN GONZALES , Mayor of the Denali Borough, believed that SJR 25 was an important resolution. Mayor Gonzales informed the committee that this resolution was introduced in 1993. Mayor Gonzales expressed concerns with the current access restrictions to Denali National Park. This access enhancement would create jobs as well. SENATOR WILKEN asked Mayor Gonzales if the Parks Service had completed the study and had he seen any movement on that study. MAYOR GONZALES said that the feasibility study had been completed and sent to Senator Murkowski. That study concluded that the project is feasible. JOSEPH FIELDS III , Kantishna Holdings, pointed out that Kantishna Holdings is developing the Denali Railway system and therefore supports SJR 25. Mr. Fields noted that the committee had been provided with a packet of information. Mr. Fields offered to take questions. SENATOR WILKEN inquired as to Mr. Fields opinion of the Parks Service feasibility study. JOSEPH FIELDS III had not yet seen the entire results of the study, only bits and pieces. The only knowledge of the study is that it determined the project to be technically feasible. In response to Senator Wilken, Mr. Fields said that the report was in final edit and could possibly be provided to the public by the end of the month. Mr. Fields noted that this northern railroad route was recommended by the National Parks System Board over two years ago. Number 161 DON LOWELL , Special Assistant in DOT/PF, informed the committee that he was the lead from the department working with National Parks Service on the feasibility study. The report has not yet been issued for public use. The study stated that a road or railroad is feasible. The National Parks Service was provided with cost estimates of building a road or a railroad and the maintenance of those. The report is still in final review at this time. The Secretary of the Interior should receive a final copy at the end of this month. TED TRUEBLOOD , President of Tryck Nyman & Hayes Engineers, noted that he was a 45 year Alaskan and 25 year professional engineer in Alaska. Mr. Trueblood pointed out that he worked as a civil engineer for ARRC for 14 years. Since that time he has done contract work for ARRC. Mr. Trueblood noted that when he worked with Kantishna Holdings, a preliminary route projection, a cost estimate, and a basic engineering feasibility study were done. In Mr. Trueblood's opinion, as a rail project this is technically feasible. As a privately financed project, it is economically viable and of low environmental impact to the area. Mr. Trueblood acknowledged that there will be some environmental impact with any transportation corridor. The approach by Kantishna Holdings to use a lower capacity rail system, use of natural glass fuel locomotives seems to be of low impact. Number 226 CHIP DENNERLEIN , Regional Director of the National Parks & Conservation Association, explained that NPCA is a national organization with about 500,000 members dedicated to protecting and enhancing national parks. Denali is one of the core 54 units of the National Parks System and is a high priority. Mr. Dennerlein informed the committee that he was also a member of the National Parks System Advisory Board (NPSAB). The NPCA opposes SJR 25 with regard to national resources and visitor opportunity. The National Parks Service has worked for several years to develop two major plans for Denali. Two records of decision, the entrance area to Front Country and the south side, have been signed and have not been litigated against. The decision relevant to the north provide a visitors center, a variety of trails, increased numbers and increased shoulder season use. Mr. Dennerlein mentioned that additional camping facilities would be provided. NPSAB has not endorsed a railroad in Denali National Park. NPSAB adopted a resolution which included 39 recommendations regarding transportation improvements, South Denali improvements, and many more. Those recommendations form the basis for the South Denali plan which has been completed and the Front Country entrance area which has been signed and completed; both are ready for implementation. The Mat-Su Borough unanimously endorsed the South Denali plan. Mr. Dennerlein pointed out that the NPSAB resolution recommended that there was support for rail access on the north, such as being discussed, contingent upon agreement among the stakeholders as to the extent and nature of development in the Wonder Lake area. Mr. Dennerlein said that the National Parks Service did take the recommendations of the NPSAB, managed to create two plans for Denali which have been signed, and undertook a feasibility study. The issues at hand are those of enormous cost and the development that would be triggered by this project. In conclusion, Mr. Dennerlein feared that SJR 25 would create the type of national controversy of 17 years ago when Senator Bell pursued a large scale development in South Denali. The result of Senator Bell's pursuits was that nothing happened in South Denali for 17 years which Mr. Dennerlein feared for this project. Mr. Dennerlein urged the committee to first call for the implementation of those plans that have been signed and jointly developed by the state and federal government. Number 332 CHAIRMAN WARD asked Mr. Dennerlein if he was in favor of the southern route. CHIP DENNERLEIN noted that there are two separate plans. In the south there is a mountain viewing area. Mr. Dennerlein indicated that there are cost prohibitive measures in the north such as bridges. Mr. Dennerlein said that he was looking at a mix for better utilization in the north which would benefit all visitors. SENATOR WILKEN asked Mr. Dennerlein if he supported or opposed the southern access and SJR 25. CHIP DENNERLEIN supported the southern access, but opposed SJR 25. SENATOR WILKEN was embarrassed that visitors to Denali come to view Mt. McKinley, but do not get to do so. Senator Wilken was disappointed in Mr. Dennerlein's lack of vision and understanding of what should be done to enhance the tourism industry which should be environmentally benign. This is an opportunity for that. CHAIRMAN WARD asked if anyone else wished to testify. Not hearing anyone, Senate Transportation Committee was adjourned at 2:15 p.m.