Bills aim to boost in-state gas line plans

With a large-diameter gas pipeline uncertain and years out, some lawmakers want to put an in-state natural gas pipeline on the fast track by turning plans over to the Alaska Railroad.

While a huge pipeline such as TransCanada is proposing could link Alaska's natural gas with North American markets, flow is still a decade away, and only if major hurdles are overcome.

Natural gas is eyed as a rescue from high home heating and electricity prices, and from potential gas shortages in Southcentral. But gas also offers economic development potential through value-added industries, such as turning gas into liquid petroleum or petrochemicals.

Two proposals hit the table within the past week, and one has pushed its way past other bills for a committee hearing this week. They could gain in momentum with broad support for in-state gas from lawmakers across party lines -- and, new this year, a general realization in Southcentral that in-state gas could save the day.

The plans are timely. A Dave Dittman survey commissioned by the House Republican majority showed overwhelming support for a pipeline delivering gas for in-state use -- and indicated 51 percent of Alaskans polled want the gas for in-state heating, electricity generation and industrial use.

Sen. Lesil McGuire, R-Anchorage, filed Senate Bill 287 (.pdf), which calls on the railroad to shoulder responsibility for in-state gas plans. Her proposal also taps into the Alaska Housing Finance Corporation's bonding capacity. McGuire says her plan pivots on simplicity and on authority outside of state government and the Legislature. Rep. Craig Johnson, a Republican whose district makes up part of McGuire's, filed the identical House Bill 378 (.pdf).

In a separate proposal, House Speaker Mike Chenault, R-Nikiski, is putting his considerable political weight behind House Bill 369 (.pdf). That bill would place in-state gas under the jurisdiction of a four-member group, with guidance from a far-reaching steering committee. The core group would be headed by the Alaska Railroad, with members from the state's Department of Transportation; the Alaska Natural Gas Development Authority and an array of studies it holds; and the in-state gas coordinator, housed under the governor's office.

Chenault said the key to his proposal is involving several key parties, each bringing a critical element. The Alaska Railroad would head the core group, offering strong project management, leadership, rights-of-way expertise and funding. The state's Department of Transportation holds valuable rights-of-way along roads, which could cut pipeline costs and timelines. The Alaska Natural Gas Development Authority's assets include costly studies, already complete, on environmental and engineering issues along one possible route. Likewise, the in-state gas office has spent several million studying routes, engineering and design.

"We're interested in what project brings gas to Alaskans at the earliest possible convenience, with a reasonable price attached," Chenault said. "We think it's the way to go. It brings more stakeholders into the mix."

Sen. Charlie Huggins, R-Wasilla, and Reps. Mark Neuman, R-Mat-Su, and Jay Ramras, R-Fairbanks, joined McGuire at a press conference Thursday to show support for the plan. They're part of the 17-member in-state gas caucus that recently formed in the Legislature. Ramras said he supports all plans, and has signed on as a co-sponsor to both House proposals.

"We are so blessed as a state to have this resource," McGuire said. "We feel that for 34 years we've had a dream to get a pipeline ... But that really it's time for us in this caucus to focus on how we can look at both an in-state gas pipeline and then the opportunity to develop in other ways our in-state gas."