Alaska Conservation Voters

Conservation Watch

Alaska Conservation Voters
works to protect Alaska's environment through public education and advocacy, and supports pro-conservation candidates for public office.

Conservation Watch (CW) is a weekly publication of ACV highlighting conservation issues in the AK Legislature.

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Contributing Editors

Suzanne Bostrom
Legislative & Communications Manager
suzanne@akvoice.org

David Rogers
ACV Lobbyist

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ACV- Juneau
419 6th Street, #321
Juneau, AK 99801
(907) 463-3366
(907) 463-2554 fax

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ACV- Anchorage
810 N Street #203
Anchorage, AK 99801
(907) 258-6171
(907) 258-6177 fax

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Web Resources

ACV Legislation Page
Bill position papers, back issues of Conservation Watch, and legislative updates

Legislative BASIS
Current bill text, history & committee schedules

Legislature Homepage
Find Your Legislators, party links, committee lists

State Homepage
Links to state agencies and the Governor

 ACV Homepage

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“Our Nation's Energy Markets are hungry for Alaska's gas resources, and Alaskans have waited for decades to see these resources developed. ”
--- Governor Palin in the Transmittal Letter for the Alaska Gasline Inducement Act

In This Issue

• Our Idea of a Good (Daylight Saving) Time
• Reading Between the Pipelines
• Action Briefs
  • On the Move
  • New in Town
• Hearings this Week

Our Idea of a Good (Daylight Saving) Time

This year, Daylight Saving Time (don't forget to change your clock this weekend!) is four weeks longer than last year due passage of the Energy Policy Act in 2005. The Act, which extends Daylight Saving Time by four weeks from the second Sunday of March to the first Sunday of November, is expected to save 10,000 barrels of oil each day due to reduced use of power by businesses during daylight hours.

Reading Between the Pipelines

Governor Palin’s much anticipated gas pipeline bill, the Alaska Gasline Inducement Act (AGIA), was unveiled to the legislature last Friday. AGIA, currently in the Legislature as HB177 and SB104, outlines the incentives the state would give potential pipeline builders in exchange for committing to bring Alaska’s natural gas to market. Palin’s proposal replaces the deal presented last year by former Governor Frank Murkowski that died in the Legislature for a variety of good reasons.

Alaska holds 35 trillion cubic feet of proven natural gas reserves and most geologists agree that there is much more North Slope gas still awaiting discovery. At a time when oil production is on the decline, the pipeline holds the promise of new job and revenue potential for the State. Additionally, due to waning supplies of natural gas in the Anchorage, Mat-Su, and Peninsula area, it is estimated that there could be a severe shortage in natural gas for the region by as soon as 2010 unless steps are taken to develop and bring in North Slope gas.

Prospects for the development of the gasline are promising. Natural gas is currently used to cook and heat in over 70% of U.S. homes and also supplies over 40% of industrial energy needs, but North American reserves of natural gas are decreasing faster than expected relative to this ever-increasing demand and, as Governor Palin indicated, the nation’s energy markets are “hungry” for Alaska’s gas resources.

While there are countless reasons as to why Alaska should develop its North Slope gas reserves, there has been much debate in the last year over exactly how it should be done. Governor Palin’s new gas pipeline legislation addresses many of the concerns that stalled a gas deal last year and moves in a new direction.

There are a number of ways in which the 21-page AGIA departs from last year’s attempt to bring Alaska’s North Slope gas to market. Palin’s proposal would set up incentives and guidelines for proposal reviews with an emphasis on a transparent and competitive process. Some of the primary goals of the new proposal are to initiate an application process that is competitive and open to any interested project sponsor, promote the construction of the pipeline as soon as possible, ensure that the North Slope is open to long-term exploration and development, ensure reasonable tariff rates for transporting the gas, ensure North Slope gas is available to Alaskans, and ensure Alaskans are trained and ready for the new jobs made available to them.

The Act lays out provisions for the following items:

• Incentives to encourage companies to identify development benchmarks & build the gas pipeline
• Incentives to encourage the holders of North Slope gas to commit their gas to the project
• Terms that applications must contain to qualify to compete for the project and incentives
• Criteria and a procedure for evaluating the competing applications
• A public comment period to allow for public review of the applications
• Auditing and enforcement tools to protect state contributions and interests
• Requirements to speed state permits and authorizations related to the project

One large inducement Palin proposes is a state matching contribution of up to $500 million to help the builder offset early upfront costs. Another incentive would be a 10-year freeze on state production taxes for gas that North Slope producers commit to the pipeline at the beginning of the project. We expect there will be vigorous debate over these proposals, among others.

The pipeline builder must also agree to several other terms that are intended to benefit Alaskans. For example, the builder must provide at least five places within the state where gas can be taken out for in-state use and must commit to expanding the pipeline project when new gas is available. In addition, the builder must actively recruit and hire Alaskans and have its headquarters in Alaska. In exchange, the state will provide training programs to ensure that qualified technicians are ready and able to work on the project.

The Governor’s office indicated that the state has set a strict timeline and hopes to move from legislative approval of the bill to pipeline fieldwork by the summer of 2008. Though Palin hopes the Legislature will pass the bill this spring to stay within that time frame, some legislators have already said that it may be difficult to work through issues during the remaining two and a half months of this year’s legislative session.

The Alaskan conservation community through ACV’s sister organization, the Alaska Conservation Alliance, is on record in support of an environmentally responsible gas pipeline project. We will continue to provide updates and commentary as the drama unfolds and look forward to the possibility of seeing a project that is in the best interest of Alaskans move forward as soon as possible.

Hearings are set to begin on both bills in the upcoming week. See the hearing schedule below for more details.

More Information-

Governor’s Transmittal Letter

HB177 & SB104 Text

“Palin Unveils Anticipated Gas Line Proposal” – ADN

“Palin Pipeline Plan Confronts Sore Spots of Murkowski Proposal” - ADN

On the Move

HB26 Geoduck Aquatic Farming Exemption - Rep. Seaton (R-Homer)
CS HB26 (FSH) was heard briefly and moved from House Resources this week. The bill is scheduled to be heard on the House Floor on 3/12. The bill deals with geoduck aquatic farming and says that the Commissioner of Fish and Game may not use the absence of wild geoduck clams in a particular area as a reason for denying an aquatic farm permit. The bill also allows a certified hatchery to transfer geoduck seed to an aquatic farm located in an established fisheries management area that is contiguous to the Gulf of Alaska . In hearings on the bill, Fish & Game and others expressed major concerns about the lack of scientific information available to adequately evaluate potential impacts of introducing fertile geoducks into areas where they are not native.

HB127 McNeil River State Game Sanctuary - Rep. Seaton (R-Homer)
Though HB127 was not heard or moved this week, the Board of Game unanimously voted on Tuesday not to allow bear hunting on lands adjacent to the McNeil River State Game Sanctuary. Without this Game Board action or the passage of HB127, a hunt would have been allowed in this area this summer. HB127 amends the boundaries of the McNeil River State Game Sanctuary to incorporate parts of the Kamishak Special Use Area (SUA).

HB134 Protection of Salmon Spawning Water - Rep. Edgmon (D-Dillingham)
HB134 was heard and held in House Fisheries on Monday, March 5. Rep. Edgmon will now consider proposed revisions to the bill based on public, agency and committee comments. Rep. Seaton, chair of House Fisheries, identified a number of these issues that will need to be fleshed out and addressed before the bill is brought up again. For example, DNR testified that HB 134, as currently drafted, would prohibit the agency from issuing water rights or water use permits in the area. In addition to mining operations, this would include any commercial lodges that do not already have perfected water rights in place, among others. The Committee Substitute examined at the hearing, which will not be on BASIS unless the bill is voted out of committee, can be found here. HB134 would impose strong restrictions for the fresh waters of the Bristol Bay region to protect salmon and salmon habitat.

HB152 Establishing A Renewable Energy Fund - Rep. Harris (R-Cordova)
HB152 was heard and held in House Community and Regional Affairs to allow the bill sponsors time to examine comments and suggestions that were made by the public, the Alaska Energy Authority (AEA) and others at the hearing. HB152 would establish a renewable energy fund to be administered by the AEA. The bill would allow the Alaska Energy Authority, working in consultation with a stakeholder advisory committee, to provide loans and grants to fund viable renewable energy projects and feasibility and reconnaissance studies necessary to launch new renewable energy projects. HB152 has strong bi-partisan support and is a top priority for ACV this session.

HB164 Ocean Rangers & Reporting Vessel Location - House Transportation Committee
HB164 was heard and held in House Transportation on Thursday, March 8. Rep. Johansen, chair of House Transportation said additional hearings on the measure are planned. The proposal addresses the “Ocean Ranger” requirements of Ballot Measure 2, “The Cruise Ship Initiative” that passed in last year’s election. According to the House Transportation Committee, “this bill will allow the Department of Environmental Conservation (DEC) to implement the initiative in a reasonable way” and states that “in no way does HB 164 ease or lessen the federal and state environmental laws that have regulated cruise ship discharges since 2001.” However, significant questions remain about whether the proposed legislation is consistent with the requirements and intent of the Initiative, especially regarding the scope and duration of Ocean Ranger duties. Critics of the bill contend it would weaken the observers' authority and duplicate a state monitoring program already in place. As written, the bill proposes that the observers board the ships only when they are in Alaska ports and not ride them the entire time they are in Alaska waters.Some claim this provision significantly dilutes the “watchdog” intent of the initiative.The legislation also removes the observers' responsibility for inspecting sanitary, health and safety measures on the ships, though advocates for the bill testified that those practices are already regulated heavily under federal law. Another hearing is scheduled for Monday and the committee is expected to address the constitutional issues involved in changing a voter initiative. Rep. Doogan (D-Anchorage) indicated that he expects a lively debate to open up in upcoming hearings over whether the bill goes too far in modifying what Alaska voters approved last year.

HB175 Eminent Domain; Recreational Structures - Rep. Johnson (R-Anchorage)
HB175 is a sequel to last year's controversial revision of eminent domain authorities. This proposal expands eminent domain protections that now apply only to personal residences. It would prohibit the exercise of eminent domain for the purpose of developing recreational facilities or projects if the property to be acquired includes a “recreational structure” (i.e. a seasonal or temporary recreational dwelling). As with the law that currently applies to a primary residence, the measure would also protect that portion of the property attached to or within 250 feet of the landowner's recreational structure. Attempts to insert a similar provision to last year's eminent domain bill, HB318, were unsuccessful. HB175 is scheduled for its first hearing in House Judiciary on Wednesday, March 14.

HB177 Natural Gas Pipeline Project - Released by request of the Governor
HB177 is the house version of Governor Palin’s gas pipeline plan, the Alaska Gasline Inducement Act (AGIA), which was introduced last Friday. As described in the article above, AGIA defines the Governor’s plan to encourage competition and “induce” potential pipeline builders and North Slope gas holders into building a natural gas pipeline that is in the best interest of Alaskans.

HJR12 Resolution Endorsing ANWR Leasing - Rep. Johnson (R-Anchorage)
This House Joint Resolution, which is co-sponsored by Reps. Stoltze (R-Chugiak), Lynn (R-Anchorage), and Gatto (R-Palmer), would urge the United States Congress to pass legislation to open the coastal plain of the Arctic National Wildlife Refuge to oil and gas exploration, development, and production.

SB104 Natural Gas Pipeline Project - Released by request of the Governor
SB104 is the Senate counterpart of HB177.

Hearings this Week

Click on the date in the table below to get the most current schedule information for that day, or check the BASIS hearing schedule. Once a bill has been heard in a particular committee it may be brought up again without public notice or listing on the weekly committee schedule. You can click on a committee name to see a list of its members.