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Alaska life hack: Washington state changes sales tax exemption rules for Alaskans

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Starting Monday, Alaskans shopping in Washington state won’t enjoy the easy sales tax break they have gotten for 54 years. Instead, under a new law passed by Washington legislators, they’ll have to save their receipts and apply later for the sales tax exemption by requesting a refund from the Department of Revenue.

Washington state sales tax is 6.5 percent.

The change in the tax law likely means that most out-of-state shoppers will not take the time to make that application, and that Washington will get tens of millions more in sales tax dollars. The new system also applies to those from other states that don’t have sales tax,  including Oregon, Delaware, Montana and New Hampshire, and some Canadian provinces.

Under the prior system, Alaskans filled out a form at the point of sale, and showed their Alaska ID to obtain the sales tax deduction at the cash register.

According to the Washington Department of Revenue, the refund applies to purchases of tangible personal property, digital products, or digital codes for items to be used only outside Washington State by purchasers who can prove residency in a qualifying jurisdiction.

Refunds have never been available for services such as lodging at hotels, repair services, laundry or dry cleaning, meals, personal services like tattooing or dating services, or title and escrow services.

Also exempt from tax refunds are marijuana products.

To get a refund, you’ll need to save copies of your receipts, have your proof your residency, and apply for the refund after Jan. 1, 2020 for purchases made between Monday, July 1, 2019 and Dec. 31, 2019. You’ll have to have paid at least $25 in Washington state sales tax to qualify. Local sales taxes are not factored into the reimbursement.

The state is banking on getting an additional $175 million into the state treasury through the middle of 2025.

[Read the State of Washington Department of Revenue’s new tax exemption rules]

Trump finishes trade truce, flying back through Anchorage

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President Donald Trump, fresh off of a negotiation of a trade war truce with China, will head back through Alaska on his way to the nation’s capital on Sunday.

A temporary flight restriction has been announced for 7:15 am through 9:45 am Sunday in the airspace around Anchorage and Southcentral Alaska.

As a part of the trade agreement, the United States will lift some of its sanctions against Huawei, China’s multinational information and communications technology infrastructure and smart device maker. Huawei is the No. 1 telecom supplier in the world and is No. 2 for phone manufacturing. But it has run into legal problems after the U.S. Justice Department alleged theft of intellectual property and fraud. Many U.S. companies, such as Google, have extensive trade relationships with Huawei.

The details of the much-anticipated discussions between Trump and China’s President  Xi Jingping at the G-20 summit in Osaka, Japan, have not been fully released.

[Read the timeline on the Huawei trade dispute]

Marilyn Stewart is new leader of Human Right Commission

Marilyn Stewart is the newly appointed executive director of the Alaska Commission on Human Rights. The decision was made by the all-volunteer board of directors of the commission on Friday.

Stewart most recently ran for the House seat occupied by Rep. Matt Claman, representing District 21, Anchorage.  For the past several months she has worked for Gov. Michael Dunleavy as director of outreach. She starts on Monday as the first African-American woman to hold the position in the 55 years of the commission’s history.

Stewart is originally from Alabama. She came to Alaska with the U.S. Army and was stationed at Fort Richardson. In 2012, she was awarded the Freedom’s Sister Award by Ford Motor Company for her community outreach. Previous recipients included Myrlie Evers-Williams, Barbara Jordan, and Rosa Parks.

She is the former director of the Office of Equal Opportunity under Anchorage Mayor Dan Sullivan, small business development program manager at the Alaska Department of Commerce, deputy director of community relations for Gov. Frank Murkowski, and constituent relations aide to Gov. Tony Knowles.

Stewart was the co-founder and first executive director of Bridge Builders of Anchorage, and president/CEO of the Alaska Black Chamber of Commerce.

She was a volunteer on the re-election campaign of Gov. Sean Parnell, and ran for State House in 2016 and 2018 against Rep. Matt Claman, losing both times to the incumbent Democrat.

The position of the executive director of the agency opened up after the former head of the agency posted a note on a man’s truck telling him to remove it from the agency’s parking lot because of its “Black Rifles Matter” decal.

[Read: Human Rights director was regulating what she thought was “hate speech.”]

Marti Buscaglia was disciplined and suspended from her job, and then resigned in April. At the same time, several board members resigned and the staff’s enforcement officer also resigned. The governor has been able to appoint several new board members in the brief time since the scandal took place.

[Read: Human Rights Commission vs. First and Second Amendment]

[Read: Human Rights director resigns]

A ‘devastated’ University of Alaska?

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UNIVERSITY PRESIDENT SHOULD RISE TO THE OCCASION

By TOM WILLIAMS
SENIOR CONTRIBUTOR

I read with interest the response to the Governor Dunleavy’s substantial veto of the University of Alaska’s state-funded budget. In particular, UA President Jim Johnsen called the reductions “devastating” and portrayed a situation that would lead to a spiraling down of the University. Mr. Johnsen was not alone.

The comments to several Anchorage Daily News articles were equally disparaging of those vetoes.

Several of the ADN commenters asserted that Mr. Johnsen had in the past referred to the University of Alaska as a “world class” university. Although Mr. Johnsen actually only used the term “world-class” with respect to research at UA, he did state that UA was keeping a “clear eye on academic excellence.”

If this is the case and not some self-serving fluff, then we should have educators at the UA with significant expertise, including those in public policy, government, finance and business.  I would also think that the UA has administrators with significant amount of practical expertise.

Furthering that line of thinking, if we have such educators and administrators, then dealing with a significant change in public policy and funding should not be nearly as daunting a task as Mr. Johnsen and Board of Regents Chairman John Davies assert.

That is not to say the university does not face significant and real challenges as a result of the governor’s vetoes. However, such qualified administrators and professors should surely be up to the challenge they face.  Perhaps rather than crying about the cuts and expending an all-out effort to have the vetoes overridden, the Board of Regents, administrators and professors should grab hold of the challenge and show just how capable the University of Alaska administration, faculty, and staff are.  Or are they only capable when there is plenty of money for every program and then some?

If Mr. Johnsen and the University of Alaska administration cannot make sound decisions that will ensure the university’s future with a reduced budget, then we can only conclude that they are not the capable administrators they alleged to be. Because a good administrator, let alone an excellent administrator, would simply move forward with identifying the core highest-demand education programs of the university and making sure those programs will remain the best they can be within the available budget. They would quickly announce the programs that would remain a priority within the university to alleviate concerns of those students entering or continuing on in those programs.

Similarly, they would make quick decisions, however painful, about which programs will be dropped so that students and the related faculty can make other plans. As part of the process they would take immediate steps to eliminate as many management levels and low-return functions as possible.

Successfully responding to significant budget cuts is not that daunting if a person is resolved to live within their given budget while remaining committed to offering quality, although reduced, education and research opportunities. The keys are attitude, determination, and willingness. Hard decisions, even politically incorrect decisions, will have to be made.

Unfortunately, not everyone is capable of making those difficult but necessary decisions. I have found that those people who scream the loudest when faced with difficult decisions are the least capable of making good decisions. The person who can best deal with such a challenge will simply start focusing on how to accomplish the goal, rather than bemoaning a dire situation.

Assuming Mr. Johnsen is an effective leader of a university with at least some “world-class” functions, he should get to work instead of bemoaning what lies ahead. If he isn’t up to the task or doesn’t have the stomach for it, then he should resign and let someone else step into that role. It is not that difficult to make good, albeit difficult, decisions.  You just have to be capable and willing.  Let’s see if Mr. Johnsen is both capable and willing to do so.

Tom Williams of Juneau is a 42-year resident of Alaska. He’s worked for aviation-related companies for the past 19 years, was director of two Department of Revenue divisions, including the Permanent Fund Dividend Division, and served on the staff of the Senate Finance and Legislative Budget and Audit committees.  As director of the Department of Revenue Enforcement Division during the significant decline in state oil revenues in the 1980s, he had to make significant reductions to his division’s budget.  He made the best informed and thought-out decisions he could, only to realize that his division provided as good or better service than before he was required to reduce the division’s budget.

American exceptionalism, patriotic assimilation, and the Fourth of July

By WIN GRUENING
SENIOR CONTRIBUTOR

On July 4, 1776, a year after the outbreak of the American Revolutionary War, steeple bells rang throughout Philadelphia.  John Hancock, President of the Continental Congress, had just signed the document later known as the United States Declaration of Independence.

More than a decade later, after the Constitutional Convention in 1787, Benjamin Franklin was asked (as the story goes) what kind of government the Founding Fathers had created behind closed doors in the sweltering heat of a Philadelphia summer. The venerable Franklin, then in his eighties, replied, “a republic, Madam, if you can keep it.”

“Keeping it” or preserving, perfecting, and perpetuating the American democratic republic has always been the overarching concern of America’s greatest leaders.

As Mike Gonzalez, senior fellow at The Heritage Foundation, explains, our Founding Fathers believed adherence to the universal principles of equality, liberty, and limited government contained in these founding documents, as well as the virtues that made our constitutional republic distinctive—thrift, self-reliance, a strong work ethic— would bind Americans together regardless of origin.

George Washington, in a letter to John Adams, stated that immigrants should be absorbed into American life so that “by an intermixture with our people, they, or their descendants, get assimilated to our customs, measures, laws: in a word soon become one people.”

E Pluribus Unum, the official motto in the Great Seal of the United States, exemplifies this desire for unity. In Latin it means “Out of Many, One.”

By 1790, Americans of English stock were already a minority (49.2 percent of the population) throughout the country.

America benefited early on from advantages stemming from the diversity and blending of cultures.

Assimilation became the unifying principle of a country of immigrants.  But today it’s considered an ugly word by the politically correct. Instead, the PC crowd argues for multiculturalism.  While portrayed as an appreciation for other cultures—something all reasonable people support—multiculturalism has divided America by making ethnic differences more important than being American.

Most immigrants faced prejudice and segregation at times.

Our Founders, however, wouldn’t have thought of remedying such injustice by giving groups special privileges or benefits. Instead, the government strove to provide equal opportunity – leaving responsibility for success or failure to the individual.

Indeed, the history of American immigrant ethnic groups is one of overcoming disadvantage, competing and succeeding, and earning a place in their new home.

John Quincy Adams, in an 1819 letter opined, “There is one principle which pervades all the institutions of this country, and which must always operate as an obstacle to the granting of favors to newcomers. This is a land, not of privileges, but of equal rights….”

This is what makes America exceptional.

35 million immigrants entered the U.S. between 1840 and 1920.  Changes in immigration law in the mid-1960s led to another surge in immigration, mostly from Latin America and Asia. The Department of Homeland Security estimates 33.7 million legal immigrants entered the United States between 1970 and 2012.

It’s impossible to argue America is not a welcoming country.

Yet, Hoover Institution Senior Fellow Victor Davis Hanson argues, some are determined to make it less so.

“Our universities and popular culture are at the forefront of salad-bowl and identity-politics policies that obstruct assimilation, integration, and intermarriage — the historical remedies for the natural tensions that arise within multiracial and multiethnic societies. In this perfect storm, at the very moment the world’s poorest citizens from Oaxaca and Central America flooded into America, de facto rejecting the protocols of their home, their hosts’ messaging to them was that they should lodge complaints about the social injustice of their new home and romanticize the culture that they had just forsaken….”

Learning America’s language, history, and laws is not an unnecessary burden. Nevertheless, some Democrat presidential candidates believe this is a structural barrier to immigration. But, being an American citizen cannot simply be a matter of location and desire.

For American immigration to remain the great success story it has been throughout our history, newcomers must adopt American civic values and heritage as their own.

Thus, earning American citizenship, like the Fourth of July, will remain a cause for real celebration.

Win Gruening retired as the senior vice president in charge of business banking for Key Bank in 2012. He was born and raised in Juneau and graduated from the U.S. Air Force Academy in 1970. He is active in community affairs as a 30-plus year member of Juneau Downtown Rotary Club and has been involved in various local and statewide organizations.

Federal agency: Alaska LNG environmental impacts ‘significant’

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The Federal Energy Regulatory Commission released the long-awaited draft environmental impact statement for the proposed Alaska LNG project, and the summary to the 3,764-page document is surprisingly pessimistic in its language.

The massive draft study assesses the impacts to the environment of the construction and operation of the line that would draw natural gas out of North Slope fields and convert it to liquefied natural gas for export and to provide energy for use by homes and businesses in the state.

It’s a project that the Alaska Gasline Development Corporation is tasked with getting the permits and other authorizations needed to construct, own, and operate. It includes a gas treatment plant on the North Slope, a pipeline to Nikiski, and a liquefaction plant and marine terminal.

“We conclude that Project construction and operation would result in temporary, long-term, and permanent impacts on the environment. Most impacts would not be significant or would be reduced to less than significant levels with the implementation of proposed or recommended avoidance, minimization, and mitigation measures, but some impacts would be adverse and significant,” the agency wrote in its summary of the massive document, which includes numerous scientific, environmental and cultural studies.

Environmental groups pounced on that language. The draft EIS will go through a public comment period, and the agency has given them plenty to work with.

“We conclude that constructing the Project would have significant impacts on permafrost due to granular fill placement, particularly for the Mainline Pipeline facilities,” the agency wrote.

“The Project would have significant adverse impacts on wetlands from granular fill placement resulting in substantial conversions of wetlands to uplands. Significant adverse impacts on forest would result from permanent losses or conversions from installation of aboveground facilities, granular fill placement, and vegetation maintenance in the Mainline Pipeline right-of-way.

“For caribou, the impacts on the Central Arctic Herds would likely be significant due to the timing of impacts during sensitive periods, permanent impacts on sensitive habitats, and the Project location at the center of the herds’ range. During the years of simultaneous construction, startup, and operational activities at the Liquefaction Facilities, as well as during flaring events, impacts on air quality could be significant.

“Operational noise associated with the Liquefaction Facilities at the two nearest noise sensitive areas would likely double due to facility operation, which would be considered a significant increase.”

The project would have positive impacts on the state and local economy, but that would be balanced by the adverse impacts on housing, population, and public services, FERC said.

And then the summary includes the phrase “environmental justice communities.” There is no clear definition in any field as to what an “environmental justice community” is, but the federal agency is concerned that Alaska has more than one of them.

“The Project could disproportionately affect environmental justice communities due to impacts on subsistence practices and public health effects based on a Health Impact Assessment prepared by AGDC. However, these impacts are not expected to be high and adverse,” FERC wrote.

“In addition, the construction and operation is likely to adversely affect six federally listed species (spectacled eider, polar bear, bearded seal, Cook Inlet beluga whale, humpback whale, and ringed seal) and designated critical habitat for two species (polar bear and Cook Inlet beluga whale).

“Because the Project would result in substantial impacts on permafrost, wetlands, forest, and caribou (Central Arctic Herds), and since other current or reasonably foreseeable projects in the study area would similarly affect these resources, we found that cumulative impacts on these resources would or could be significant. Visual effects from the Project near the DNPP would be high, so any additional effects in this area from other projects would contribute to cumulative visual impacts, which could also be significant.”

On the upside, FERC said the project would be constructed in compliance with all applicable federal laws, regulations, permits, and authorizations, and that Cook Inlet was considered by the U.S. Coast Guard to be an appropriate site for the terminus.

The massive document has not yet been reviewed by the Alaska Gasline Development Corporation, as it was just released today, but AGDC Interim President Joe Dubler issued the following comment:

“Alaska LNG holds the potential for significant environmental, energy, economic, and employment benefits for Alaskans. Publication of the draft Environmental Impact Statement represents substantial progress toward obtaining the authorization required to build and operate this project.

“We will now begin to thoroughly examine this comprehensive document to understand the commission’s recommendations. The ongoing permitting process incorporates 150,000 pages of data and should give Alaskans confidence that the project’s merits and impacts are being rigorously scrutinized.”

[Read more about the FERC draft environmental impact statement and see all the documents here.]

Dunleavy delivers his budget decisions

HAS COURTS NOW PAYING FOR ABORTIONS THEY DEMAND

Gov. Michael Dunleavy, without getting some of his key legislation passed by the Legislature, is balancing the State budget with savings.

Even then, he said today, the budget is only halfway to being in line with revenues, with $444 million in additional cuts made for a total of about $700 million, which includes the cuts made by the Legislature. The budget excludes a Permanent Fund dividend appropriation.

The deficit remaining is about $850 million, and that money will come out of the Earnings Reserve Account of the Alaska Permanent Fund.

The budget for 2020 is $4.9 billion in general fund spending, a 12.8 percent reduction from the Gov. Bill Walker budget, and the lowest spending level since 2005.

The original budget proposed by Dunleavy would have trimmed 21 percent from the Walker budget, which had grown from the previous year.

Here are some of the highlights of the cuts to state spending:

ITEMS OF INTEREST

MEDICAID ELECTIVE ABORTIONS

The governor vetoed $335,000 from the administrative costs of the court system. It was his way of saying that if the state’s judges insist on standing by their ruling that the State of Alaska must pay for elective abortions with State funds, they’ll have to pony up the money out of their own budget. It’s a small cut to the Judiciary of less than one percent.

$334,000 is the amount the State spend last year on elective abortions. Both the House and Senate passed a budget with intent language that said no state funds may be used to pay for abortions, but an existing State Supreme Court ruling says otherwise.

The federal government prohibits paying for elective abortions with federal funds, due to what is called the Hyde Amendment. And the governor is also opposed to the public treasury being used for elective abortions.

MEDICAID (IN THE DEPARTMENT OF HEALTH & SOCIAL SERVICES)

The legislature reduced the State Medicaid program by $75 million, and the governor added another $50 million in cuts, for a total of $125 million. This leaves $2 billion for Medicaid spending in Alaska.

UNIVERSITY OF ALASKA

As expected, the entire cut to the University of Alaska system is $130.2 million, which includes the $5 million that was cut by the Legislature. This is a huge haircut that will require structural changes in how the university operates, and is something the Board of Regents has begun to tackle, as their funds become scarce July 1. The university system currently has 17 campuses.

SENIOR BENEFITS / WWAMI / PUBLIC BROADCASTING

The entire senior longevity bonus is vetoed. The Senior Benefits Program was established in 2007 and pays cash benefits to Alaskan seniors who are age 65 or older and have low to moderate income.  Cash payments are $76, $175, or $250 each month depending on income. Already the State had suspended some of the April and May payments for the higher-income recipients because of a shortfall in funds.

WWAMI survived the veto pen. The University of Washington School of Medicine’s multi-state medical education program for Washington, Wyoming, Alaska, Montana and Idaho (WWAMI) gives medical students access to training, and is used to recruit doctors to Alaska.

PUBLIC BROADCASTING: The only portion of public broadcasting money not vetoed is for the emergency broadcasting provided primarily to rural areas. Vetoed: $2,036,600 for Radio, $633,300 for TV, and $46,700 for the Alaska Public Broadcasting Commission.

SCHOOL BOND DEBT REIMBURSEMENT

Half of the debt service the State has been paying on local school bonds was vetoed. That means school districts will have to rely upon local taxpayers to pay the full debt service for the schools they built or renovated. The veto totals $48,910,250. Future debt incurred by districts won’t be paid off by the State.

EDUCATION

The Legislature’s attempt to forward fund education for 2021 was vetoed. The governor doesn’t believe it is constitutional to encumber future legislatures or future governors with spending promises unless the money is actually set aside for the purpose, which it is not under forward funding schemes. This is an issue that will likely go to court next month.

ALASKA MARINE HIGHWAYS

The State Ferry System was spared. The governor accepted the plan by Sen. Bert Stedman, co-chair of Senate Finance, to only fund the ferries at $46 million. Stedman has been working to reform the system. This allows the ferry system to continue through the fall, winter, and spring.

POWER COST EQUALIZATION

All funds like the Power Cost Equalization Fund will be swept into the General Fund. From there, the Legislature can reissue those funds to rural communities to help with their power costs when it works on the capital budget in a special session.

EARNINGS RESERVE ACCOUNT 

The governor is putting $1 billion into the corpus of the Permanent Fund to help with inflation proofing and an additional $4 billion, for a total of $5 billion. The Legislature had put $9 billion into the corpus. The veto amount is $5,579,800.

PERMANENT FUND DIVIDEND

The budget presumes a full statutory Permanent Fund dividend, but it’s not in this operating budget. It will need to be a stand alone budget bill or a component of the yet-to-be-enacted capital budget.

POSITIONS REDUCED

Through vetoes, 62 full time, 2 part time, and 4 non-permanent positions have been eliminated, for nearly $12 million in reduced payroll costs.

VILLAGE PUBLIC SAFETY OFFICERS

$3 million in vetoes to the program, which is already in excess of what they can spend. There are 25 vacancies in the VPSO program and they have struggled to fill those for a long time.

OCEAN RANGERS PROGRAM

The Ocean Rangers program is vetoed, for $3,409,100 in savings.

 

MRAK Almanac: Scottish Highland Games, Gathering of historic war planes

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6/28: Governor’s budget vetoes are likely to be released midday. Stay tuned to Must Read Alaska for news and updates.

6/28:Rally to defend the Permanent Fund dividend, hosted by Permanent Fund Defenders, at the Anchorage Legislative Information Office, 1500 W. Benson Blvd, 9-10 am.

6/28:Alaska’s “FaRRthest North Ruff Riders” motorcycle club will do a midnight ride from Anchorage House of Harley, stopping in Girdwood for gas, then on to Portage Glacier. More events over the weekend including a free community BBQ at the American Legion Jack Henry Post 1 backyard, 840 W. Fireweed Lane, 12 – 4 pm. Bouncy house for the kids and face painting. More information about all the events here.

6/28-30 and July 4-7: Wasilla Summerfest.Carnival, food, parades, rodeo, fireworks, Mayor’s picnic, BBQ competition, car show, and more. Details here.

6/28:Fairbanks 15th Annual Charity Golf Tournament to raise funds for programs and service for military families stationed in Alaska. 8 am shotgun start and wraps up in the afternoon with awards, door prizes and a fiesta feast. Location is Chena Bend Golf Course, Fairbanks. Visit website at https://www.asymca.org/alaska-golf or to learn more.



6/28: Filipino-American Society of Fairbanks summer picnic. Playground Pavilion, Pioneer Park. Bring your favorite dish. Starts at noon.

6/29: Gathering of Warbirds. Come out to Merrill Field 9 am – 7 pm to celebrate our past and inspire the future. This is the first ever Gathering of Warbirds at Merrill Field, and it’s an invitation to anyone who owns a warbird in Alaska to bring it. Come out to the Wings of Freedom for a BBQ celebrating Independence Day and get up close and personal with our living history museum, 2400 E 5th Ave. Anchorage. Details here.

6/29: Recall Cathy Giessel organizational meeting, Scenic Park Elementary School, 3933 Patterson St., Anchorage, 11 am-noon.

6/29: Equality Parade, otherwise known as Gay Pride Parade. Starts at 11 am between 9th Ave. and E Street in downtown Anchorage. 50 groups/floats and 500 people are expected, the organizers say. PrideFestival will be held on starting at noon at Delaney Park Strip, on the corner strip of Ninth Avenue and E Street.

6/29:38th Annual Alaska Scottish Highland Games — Athletics, Piping and Drumming, Dancing, Tug O War, Rugby, Kilted Mile, Shortbread, Bagpipes, Tall Tales, Scotch Tasting, Alaskan Men in Kilts, Vendors, Caber Toss, Geneology, Scottish Music, Gathering of the Clans, Birds of Prey, The Salmon Toss, Highland Cow, Crafts, Camping, Tea Tent, Children’s Throwing Events, Scotch Eggs. At the Alaska State Fair Grounds. Tickets here.

6/29:Middle Fork Trailwork day for volunteers constructing a new one-mile section of the Middle Fork of Campbell Creek Trail. The new section will replace and realign an old, unsustainable stretch. Meet at the Prospect Heights Trailhead at 10 am. Details here.

6/30:Alaska Scottish Club Piping and Drumming workshop. Both bagpipers and drummers are encouraged to participate. Noon – 3 pm at 3428 Purdue St, Anchorage, AK 99508,

6/30: Alyeska Downhill Cup,a mountain bike, single-track race from 2-6 pm, free entry with lift ticket. Alyeska Resort in Girdwood.

Alaska Railroad pens agreement on rail connection to Lower 48

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The Alaska Railroad Corporation and the Alaska to Alberta Railway Development Corporation signed a master agreement of cooperation to build a 1,500-mile connection between the Alaska Railroad and Canadian railroads that serve the Lower 48.

The agreement was announced after approval by the Alaska Railroad Corporation Board of Directors today.

The two railroad companies will cooperate in applying to the Alaska Department of Natural Resources for a right-of-way guaranteed under state law for a rail connection to Canada. They will then develop a joint operating plan that will specify the new track needed to connect Alaska’s rail to Canada, and upgrades needed for rail facilities, bridges, and track on the Alaska Railroad’s line that runs from Seward to North Pole.

The entire project is expected to cost approximately $13 billion, according to a press release from the Alaska Railroad Corp. Full construction would begin after a right-of-way is approved by state authorities, a presidential border crossing permit is received, environmental reviews are conducted by the U.S. and Canada, and two national agencies – the Surface Transportation Board in the US and the Canadian Transportation Agency – give their approvals.

Various Native groups in Canada and Alaska Native entities, whose traditional lands are crossed by the route, have been consulted and invited to participate in the economic benefits of the project. A full project description for the rail link in the U.S. and Canada is expected to be completed this year.

“A rail connection between Alaska and Canada and the rest of the United States is a project that has been talked and dreamed about for close to a century,” said Alaska Railroad President and CEO Bill O’Leary. “Completing that connection has amazing potential for Alaska and this agreement between the Alaska Railroad and A2A Rail is an important first step to get the project underway.”

“We are pleased to reach this milestone with the Alaska Railroad,” said Sean McCoshen, CEO and co-founder of A2A Rail. “It will help assure global investors that obtaining a right-of-way in Alaska is achievable, and sets up major cooperation in permitting, operations, and marketing with the Alaska Railroad. We expect this project to generate significant economic activity in Alaska and Canada.”

Read the summary of the master agreement here.

In operation since 1923, the Alaska Railroad is a full-service passenger and freight railroad with more than 650 miles of track and more than 600 full-time year-round employees. It is owned by the State of Alaska and governed by a seven-member board appointed by the governor.

The Alaska – Alberta Railway Development Corporation was established by Sean McCoshen to build, own, and operate a new railway connecting the Alaska Railroad and Alaska tidewater ports to northern Alberta (1,500 miles).