Congress Approves Alaska Natural Gas Pipeline
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Environment News Service (ENS)
WASHINGTON, DC, October 12, 2004 (ENS) - Alaska’s Congressional delegation has won passage of several key federal incentives, including an $18 billion loan guarantee, that will enable a natural gas pipeline to be built from Alaska to the Lower 48 states. When completed, the pipeline will carry natural gas from Alaska to the Lower 48 states.
Alaskan legislators were able to insert the natural gas pipeline provisions in both the Fiscal 2005 Military Construction Appropriations Conference Committee report and a bill addressing corporate taxes.
On Saturday, the House of Representatives approved the Fiscal Year 2005 (FY05) Military Construction Appropriations conference report which contains authorizing language for the Alaska natural gas pipeline.
The bill streamlines and clarifies the regulatory process and will facilitate private investment and lower borrowing costs at minimal risk to the federal government through a loan guarantee.
Described as the largest private construction project ever undertaken in the United States, the gas pipeline will take 10 years to permit and construct.
Upon completion, the Alaska natural gas pipeline will decrease U.S. dependency on foreign gas and imports of liquefied natural gas, "generate more than $40 billion in revenues for the federal government and create more than 400,000 jobs," said Alaska Senator Ted Stevens who pushed the legislation through.
“Today is a great day for Alaska and America," said Senator Lisa Murkowski, who wrote the proposals to promote the Alaska natural gas pipeline.
Appointed by her father, former Alaska Senator Frank Murkowski, to fill his seat when he won the Alaska governor's race in 2002, Lisa fulfilled her father's dream of an Alaska natural gas pipeline.
In Juneau, the governor was delighted. “Senators Ted Stevens and Lisa Murkowski, along with Congressman Don Young have succeeded at the Herculean task of delivering on federal legislation that was critical in moving this project forward,” Governor Murkowski said Monday.
“These federal incentives will go a long way in helping efforts to build the pipeline and secure the benefits of this important project for all Alaskans.”
The measures:
· Provide a federal loan guarantee provision of $18 billion, or up to 80 percent of capital costs, to make the project more attractive to the eventual pipeline builder.
· Direct the Federal Energy Regulatory Commission (FERC) to quickly permit the project once certain requirements are met, and provide for expedited judicial review.
· Designate FERC as the lead agency for the National Environmental Policy Act process and requires a single environmental impact study.
· Allow pipeline owners “accelerated depreciation” to claim construction costs on their taxes over seven years instead of 15 years. They also makes a proposed North Slope gas conditioning plant eligible for a tax credit worth $295 million over the same period.
· Create a federal coordinator within the executive branch to provide a single point of contact between federal agencies and pipeline officials.
The state is currently in negotiation with the major oil producers and TransCanada Corp. and is beginning negotiations with Enbridge Inc. The state is also working with the Alaska Natural Gas Development Authority and the Alaska Gasline Port Authority. The federal incentives could apply to any economically viable pipeline project.
“Our Congressional Delegation has delivered on federal legislation that removes a large roadblock to our efforts to make progress in the commercialization of our gas resources,” the governor said.
“They have helped orchestrate an unprecedented federal response to what is regarded as the largest private sector construction project ever undertaken. If we’re successful, it will mean jobs for Alaska families and a reliable source of energy for the American people.”
Both the military appropriations bill and the corporate tax bill are now on their way to President George W. Bush, who is expected to sign both.
Copyright Environment News Service (ENS) 2004. All Rights Reserved. |
