Senate Republicans: TC Alaska/ExxonMobil Agreement
Positive For Alaska and Gas Pipeline

NORTH POLE – The Senate Republican Caucus provided the following comments on today’s announcement by TC Alaska and ExxonMobil regarding their agreement on the Alaska North Slope Gas Pipeline project.

“Certainly today’s announcement is very positive for Alaska and the country.  While it appears that this agreement honors the terms of AGIA while advancing an Alaska Gasline project, we will be very interested to look more closely at all the details, to be assured that the state’s “must haves” in AGIA will be protected.  I appreciate that their announcement continues to acknowledge the possibility of an LNG option that includes a liquefaction facility in Valdez,” said Sen. Gene Therriault, R – North Pole.

While several key aspects of the announcement are worthy of highlighting, such as TC-Alaska remaining the licensee under AGIA, and the open season timeline continues on schedule, Therriault noted, “This agreement marks a serious breakthrough for the gas pipeline project in that ExxonMobil’s partnering acknowledges that TransCanada’s ability to advance a project using the Northern Pipeline Act (NPA) is a significant advantage compared to the National Energy Board (NEB) process in Canada.  For years legislators were told by some that there was no advantage to using the NPA rather than the standard approval process of the NEB.”

“Throughout this process we always predicted that TransCanada and the companies would come together and negotiate an agreement.  This announcement today between TC-Alaska and Exxon goes a long way towards a commitment to see this project through,” said Sen. Tom Wagoner, R-Kenai.

“I am hopeful that today’s announcement will quiet those who appear to have been hoping for failure of the AGIA process,” said Sen. Con Bunde, R-Anchorage.

“We look forward to the continued development of solid construction cost data which the state and other interested parties will need as we approach an open season in 2010,” said Sen. Fred Dyson, R-Eagle River. “Construction of the pipeline is still not assured; however, this agreement is a real step forward.”

Republican Caucus: Senate’s Pared-Down Capital Budget Missing Important Projects
JUNEAU – Even though the Senate today passed a $1.8 billion capital budget that more realistically reflects the uncertain future revenue stream the state now faces, it leaves out some important projects that are key to securing and increasing state revenues.

“While it is good to see a reduction in spending, I think the priorities of the Senate majority are misplaced,” said Sen. Gene Therriault, R-North Pole. “It reminds me of the fateful end of Bad, Bad LeRoy Brown in the old Jim Croce song, who ‘looked like a jigsaw puzzle with a couple of pieces gone’. Now, we haven’t exactly been in a knife fight over this capital budget, but the missing pieces are crucial ones.

“For example, it is distressing that the Senate majority chose not to fund some of the Governor’s requests for much-needed upgrades to the Dalton Highway. The Department of Transportation and Public Facilities has been asking to have these projects funded for several years now, in anticipation of construction of the gas pipeline. Federal stimulus dollars that should have gone into priority transportation projects on Alaska’s major arterial highways were instead diverted to “B” list projects in individual Senators’ districts.”

Sen. Tom Wagoner, R-Kenai, said, “I was appalled, not just at the disparity in the distribution of projects, but that the majority absolutely and inexplicably refused to vote for Sen. Dyson’s green amendment to encourage the use of propane and compressed natural gas in the buses funded by the bill.”

Therriault said two other very important missing pieces are funding for the Governor’s effort on the bullet or spur line and the second phase of a major oil and gas reservoir study currently being undertaken by the Department of Natural Resources.

“These are critically important projects for getting natural gas to the people of Alaska,” Therriault said. “To deliberately leave them out of the budget is simply unconscionable. We are hopeful that the House will include the funds in their version of the bill.”

Senate Republican Caucus: Governor Right to Question Federal Stimulus Dollars that Would Result in Huge Long-Term Operating Budget Commitments

JUNEAU – In light of Governor Sarah Palin’s announcement today that she would accept only $514 million of $930 million offered to Alaska in federal stimulus dollars, members of the Senate Republican Caucus endorsed her approach to keep the state operating budget under control.

“The Governor has said she would accept only those dollars offered for capital projects and is just saying ‘no’ to most of the funding for expansion of government programs,” said Sen. Gene Therriault, R-North Pole. “I think this is a responsible course to take. She may be criticized for refusing more than $400 million in available funding, but by doing so, we will avoid an unsustainable expansion of programs on into the future. I appreciate that she is going to work with the Legislature to review those projects and dollars she questioned, to see if there is a balance we can reach between the strings that are attached and what is in the best interest of Alaskans.”

“This offer from the Congress and the Obama administration is a little bit like having way too much to drink,” said Sen. Con Bunde, R-Anchorage. “A good time may be had by all, but the hangover the next day, and the consequences of what you did while you were drunk, may be with you for a long, long time.”

“The Governor made it clear that the direction she is taking with the federal stimulus dollars only pertains to the State of Alaska, and does not impact any funding for which municipalities, nonprofits, tribal organizations, and other community entities may otherwise be eligible,” said Sen. Tom Wagoner, R-Kenai. “I think part of the job of the Legislature, along with the administration, is to help those local entities identify available grants that are funded through the stimulus package, and apply for those dollars if they do not create an on-going commitment that the local organization cannot sustain.”

“The U.S. economy is going through an especially rough patch, so we have to be very careful how we apply this stimulus,” said Sen. Fred Dyson, R-Eagle River. “In addition, we hope the public will understand the strings that are attached to some of these carrots. For example, one program would get us $28 million, but requires us to adopt a statewide international building code. While a one-size-fits-all code may work in smaller states, the climate and geography in Alaska is so varied that local governments need flexibility in their areas. Through our legislative process, we will determine if we want to take on this requirement.”

# # #

BASIS Link – Fact Sheet – Sponsor Statement – Sectional Analysis
(Documents are in Adobe Acrobat format)

• SB 5 – Partial-Birth Abortion
  Sponsor Statement
  
• SB 6 – Notice & Consent for Minor’s Abortion
  Fact Sheet – Sponsor Statement
  
• SB 7 – Municipal Land Use Regulation
• SB 9 – State Budget Priorities
• SB 15 – Info, Anesthesia, Consent for Abortion
  Sponsor Statement
• SB 16 – Definitions: Person/Child/Human/Etc
• SB 17 – Limited Liability Companies
• SB 26 – Power Cost Reduction/Energy Council
• SB 30 – State Government Missions: General & HSS
  Fact Sheet – Sponsor Statement
  
• SB 34 – Compressed Natural Gas for State Vehicles
• SB 36 – Executive Branch Records Security
  Fact Sheet
• SB 39 – Extend Board of Public Accountancy
  Fact Sheet
• SB 40 – Extend Suicide Prevention Council
  Fact Sheet
• SB 45 – Veterans’ Cemeteries/Fund/License Plates
  Sponsor Statement
• SB 48 – Meetings of Road Service Area Boards
  Fact Sheet
• SB 52 – Salvia Divinorum as Controlled Substance
  Sponsor Statement
• SB 53 – Approp: Bridges, Service Roads, Trail
  Sponsor Statement
• SB 71 – Alternative Energy for Public Works
  Sponsor Statement
• SB 78 – Legislative Audit Division Powers
  Sponsor Statement
• SB 98 – Medical Audit Division Powers
• SB 106 – Reject Recommendation of Compensation Commission
  Sponsor Statement
• SB 137 – Relating to Meetings of the Board of Fisheries
  Sponsor Statement
• SB 146 – AK Firearms Exept from Federal Regulation
• SB 158 – Return of Property
  Sponsor Statement
• SB 181 – Ultrasounds Preceding Abortions
  Sponsor Statement
• SCR 2 – No Wood Bison in Certain Areas
  Sponsor Statement
  
• SCR 3 – Oppose Fed. Control of State Land and Water
  Sponsor Statement
• SJR 3 – Firearms in National Park
  Sponsor Statement
• SJR 4 – AK Territorial Guard Retirement Benefits
  Fact Sheet
• SJR 6 – Oppose H.R. 45 in Congress
  Sponsor Statement
• SJR 7 – Oppose UN Designation of Arctic Ocean
  Sponsor Statement
• SJR 14 – Exemption for Hydraulic Fracturing
  
• SJR 15 – Oppose Assault Weapons Ban
• SR 6 – Oppose TSA Security Rule
  

Senate Republican Minority Caucus Reacts to Indictment
Charges Reflect Badly on Institution

Juneau — The Senate Republican Minority Caucus expressed disappointment at the news today that a sitting legislator has been indicted on federal charges of bribery and conspiracy in the ongoing public corruption investigation surrounding the 2006 PPT and SGDA Natural Gas Pipeline debate.

“The news today of the indictment of a sitting Alaska State Senator is extremely disturbing. This latest development adds to the complexity the Legislature faces to regain the public’s trust and confidence as we forge ahead in making one of the most important public policy decisions in the State’s history,” said Senate Minority Leader Gene Therriault, R-North Pole.

Recognizing that during the 2008 legislative session deliberations would again take place over a proposal for a Natural Gas Pipeline, the Republican Minority Senators sent a private letter to Sen. John Cowdery in December. The letter again expressed grave concern over his continued leadership position in the Senate. All five Minority members urged Sen. Cowdery to resign his Senate seat prior to the January session in the interest of protecting the integrity of the Legislative Branch and the 32,000 constituents of Senate District O.

As discomforting as today’s development is, members of the Senate Republican Minority firmly believe that the ongoing federal investigation and jury trials will help to reinforce that no person is above the law. We believe that through this process the public’s trust will be restored with a Legislature that all Alaskans can and will be proud of.

# # #