Alaska Conservation Voters

Alaska Conservation Voters

Conservation Watch

2008 - No. 14
1st Special Session - TransCanada Gasline Proposal

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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

Sue Ely
Legislative & Communications Manager
sue@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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In This Special Session Issue:

Legislative Update, 24 Hour Rule and More...
 Lawmakers are holding hearings across the state on TransCanada’s AGIA natural gas pipeline proposal (TC proposal).  This is an excellent opportunity for Alaskans to learn more about the TC gas pipeline proposal and ACA encourages everyone to attend hearings near them.  Based on the available information, ACA supports TC’s proposal because it aligns more closely with our own pipeline criteria than the Producer’s Denali project. ACA’s Natural Gas Pipeline Position paper is available here.  Rejecting the TC proposal in favor of the producer’s Denali project could result in billions in lost revenue for the state, a less transparent process and/or costly delays in construction of the pipeline.

Background

ACA believes that the United States and the world must actively pursue the development and integration of new energy sources that are clean and renewable in order to strengthen the US economy, reduce dependence of foreign sources of energy, and to reverse global climate change that is threatening our way of life. Alaska is in a unique position to help shape the energy future of the US while maintaining Alaska’s prosperity. 

 

Alaska’s natural gas supplies are a valuable commodity for its citizens.  While not a renewable energy source, natural gas is cleaner burning than other fossil fuels and can provide feedstock and financial capital to spur further innovation in renewable energy.  ACA recognizes that a natural gas pipeline that meets the principles listed below can be a “bridge” to Alaska’s future of relying on clean, reliable and affordable renewable energy.

 

The state is now working to build that “bridge” by considering a proposal from TransCanada under the AGIA licensing system.  The Palin Administration has come out in favor of the TransCanada proposal as it meets the criteria laid out in AGIA.  A competing proposal from the Producers, the Denali Project, is also a possibility for the state.  Only by comparing proposals, gathering additional information and engaging the public can we select the best alternative for Alaska.  While more information is needed before deciding on a standalone LNG proposal, ACA is pleased to learn that the Trans-Canada proposal will allow for an LNG option under the open access provision.

 

Here are some of the Governor’s reasons for supporting the TC proposal
According to the Governor's website, the following are some of the major factors influencing the State's decision to support TransCanada's proposal:

  • TC Alaska has commitment to a 75/25 debt to equity structure would increase the value of the project to the state by more than $8 billion over a possible Producer Project structure. 
  • TC Alaska has committed to enforceable benchmarks. Alaska has never seen enforceable timelines in any previous gasline plan.
  • TC Alaska has committed to “distance-sensitive” rates for Alaska’s gas. TC Alaska’s proposed distance-sensitive rates ensure that Alaskans will pay just the costs incurred to ship gas from the North Slope to one of the five off-take points within Alaska, unlike today where Alaskans pay the competitive price on the world markets.
  • TC Alaska has offered to construct a “Y line” from Delta Junction to an LNG processing facility in Prince William Sound if shippers express sufficient demand for that project as the work on the overland project progresses. Approving the TC Alaska project will enhance the likelihood of a successful “Y line” LNG project.
  • A smaller “bullet line” from the North Slope to Southcentral Alaska will not interfere with the TC Alaska project
  • TC has committed to five off-take points along the main line, the TC Alaska project also offers the potential for construction of spur lines that will make natural gas available as a source of energy to communities throughout the state.

Here’s why ACA supports the TransCanada proposal

Based on the available information, ACA supports TransCanada’s AGIA proposal because it aligns more closely with our criteria than the Denali project.  The TC Proposal is an open access gasline that is likely to generate billions of dollars for Alaskans.  The TC proposal also appears better suited to facilitate in-state use of our natural gas and propane.  We can no longer afford to export energy without using some to meet the needs of Alaskans.  Finally, by maximizing benefits to Alaskans, portions of the revenue from the TC proposal could be used to fund renewable energy and efficiency projects and research.  While there is nothing in AGIA to ensure this will happen if the TransCanada proposal is approved, we would like this connection established in a statewide energy plan. 

 

Important Considerations

Our support for the TC proposal is tempered with several concerns and we anticipate working with the administration to address them. Even though the pipeline itself may be designed to minimize environmental impact, there is legitimate concern about whether or not our natural gas will be used to fuel the environmentally disruptive Alberta Tar Sands projects. It is critical to explore measures that would incentivize the flow of gas to the US and away from the Alberta Tar Sands projects. 

 

The production of crude oil from tar sands produces three times more greenhouse gas emission than conventional crude oil. This means that if our natural gas is used for Alberta Tar Sands, we move backwards not forward toward a clean, sustainable energy future.  Development of the Tar Sands is opposed by numerous conservation, social and indigenous First Nations groups.  The risks of tar sand oil extraction also include the clear-cutting and strip mining of huge portions of intact boreal forest ecosystem, and the creation of vast un-reclaimable toxic lakes of wastewater.  Both proposals incur this risk.


Upcoming Hearings - Legislators need to hear from YOU!

 

Hearings are planned for across the state for lawmakers to hear from citizens about the proposed TransCanada Corp. natural gas pipeline license.  It is important that lawmakers say yes to the TransCanada proposal while also understanding the environmental considerations and implications. Please go to a hearing near you and let your thoughts and concerns be heard!

 

  • FAIRBANKS: Thursday, June 12th through Saturday, June 14th Carlson Center
  • ANCHORAGE: June 16th – June 20th, Howard Johnson hotel downtown
  • MAT-SU: June 24, Palmer Train Depot
  • KENAI PENINSULA: June 26, Soldotna Sports Center
  • BARROW: June 30 and July 1, Eben Hopson Middle School
  • KETCHIKAN: July 8, Ted Ferry Civic Center

Additional Information: Explore the links below to learn more.

 

ACA Position Papers:

AK State Website about AGIA and TransCanada: http://www.gov.state.ak.us/agia/

TransCanada's Website: TransCanada Website

News Coverage: