Gasline Act clears two key hurdles in Juneau
FINANCE COMMITTEES: House and Senate panels approve bill.
By SABRA AYRES
Anchorage Daily News
Published: May 11, 2007
Last Modified: May 11, 2007 at 02:21 AM
JUNEAU -- Gov. Sarah Palin's Alaska Gasline Inducement Act was passed by House and Senate Finance Committees late Thursday after more than two months of committee hearing. Palin said she is optimistic lawmakers in both chambers will pass the pipeline bill with all the state's must-have criteria intact.
"Things are going well," Palin said. "Thus far the bill hasn't been gutted, which is good. If we didn't have the must-haves in there, we would have to start over, because then Alaska wouldn't be getting what it deserves."
Palin has said she would veto any bill that did not include her requirements.
AGIA details the criteria and incentives for potential pipeline builders competing for a state license to construct a natural gas pipeline from the North Slope. The state's requirements include a commitment from the applicant to manage a pipeline with low transportation costs to encourage more natural gas exploration.
The administration said the selection process as spelled out in AGIA sets the rules for an open competition that will be attractive to as many applicants as possible.
"This is the first time anyone has set any parameters to create a legitimate way to commercializing Alaska's natural gas," Palin said. "It's fair to the producers to know what the rules are. That way, political pressure cannot play a part in judging the proposals if everyone knows the rules."
Previous methods of selecting a pipeline builder had gotten the state nowhere, Palin added.
The powerful Finance Committees were seen as a possible bottleneck for the bill's progress in the Legislature, but that didn't happen.
Some lawmakers have struggled to find a balance between the governor's commitment to bringing as many applicants to the table as possible and criticism from the major oil producers, which want the state to help minimize the economic risk associated with the massive project.
The amended bill moved out of both the House and Senate Finance Committees with several changes. House members removed a clause that would have required the licensee to deal with labor unions when creating a project labor agreement.
Rep. Harry Crawford, D-Anchorage, strongly disagreed with the amendment, saying it would eliminate the state's ability to ensure Alaska hires. Crawford argued that collective bargaining was the only way to ensure in-state hires. While the state could not mandate Alaska hires, unions could, he argued.
"This is a deal breaker for me," Crawford said.
Pat Galvin, the commissioner of the Department of Revenue and a key player on the administration's gas line team, said the change would not diminish the bill's intent to maximize hires for Alaskans.
"It's a polarizing issue, but our intent with the definition will remain," Galvin said.
In the Senate, the Finance Committee made mostly technical changes in order to bring it closer to the House version.
"We just passed some monumental legislation," said Sen. Charlie Huggins, R-Wasilla, after the vote.
Floor votes on both bills are expected Friday. |
