Stevens, Sheffield, Murkowski to testify for in-state gas

A dizzying list of former Alaska leaders is being rounded up to testify in favor of Sen. Lesil McGuire's bill shifting in-state natural gas plans from the administration to the fast track via the railroad.

Among those expected to weigh in by phone or in person on Thursday are former U.S. Sen. Ted Stevens; former governors Bill Sheffield and Frank Murkowski; and former state senator and now railroad chairman John Binkley, McGuire confirmed.

This comes after Stevens surprised state politicians, pipeline watchers and media on Friday when he told Commonwealth North that Alaska should drop support for a large-diameter pipeline to Canada, as proposed under AGIA, and instead focus on an in-state line -- or rather, two lines. One would fuel gas to Valdez for export to Asia markets, while the other would feed Southcentral and the Railbelt, population centers looking for reliable energy.

The statements were a far cry from Stevens' previous support of a large-diameter pipeline.

His support goes way back. At his urging, Congress passed the Alaska Natural Gas Pipeline Act in 2004, setting the stage for $18 billion in federal loan guarantees for a pipeline project, establishing the federal coordinator's role, and crafting special federal regulatory rules good only for an Alaska project.

McGuire said the list of people set to speak on behalf of her bill is an attempt to "raise the dialogue" about Alaska and its natural gas future. While not ready to suggest scrapping AGIA, McGuire said she tried unsuccessfully to talk former Gov. Sarah Palin out awarding the AGIA license to TransCanada (although earlier, McGuire and all but one other lawmaker had voted for AGIA), and now is trying to find a way forward for instate gas.

House Speaker Mike Chenault also has a bill in play that would move instate gas to the railroad's jurisdiction. His plan involves more agencies, and is pending before the House Finance Committee.

The hearing on McGuire's bill -- SB 287 -- is scheduled for 3:30 p.m. Thursday, March 18.