Mike's E-News

Here’s the text of the opinion-editorial piece I co-authored with my friend and fellow representative, Mike Hawker. It ran in the Clarion, along with the Anchorage Daily news, Fairbanks Daily News-Miner, and other outlets.

- – - – -

In his State of the State address last week, Gov. Parnell laid out a roadmap to realizing Alaska’s long-held hope of natural gas development.

Important to us, and to the people of Alaska, that plan distinctly weaves together two goals: Alaska gas for Alaskans, and commercialization of a resource to generate multi-decade economic benefit. Will it work? We can hope so, while forging ahead with new legislation empowering the Alaska Gasline Development Corp. to continue its tremendous work to date. This legislation will strengthen the ability of AGDC to participate in an aligned project, and the ability for an AGDC line to stand on its own.

We applaud Gov. Parnell for recognizing the potential for an Alaska gas pipeline project unlike any we have seen on the table, a hybrid of multiple plans committed Alaskans have worked on for many years. We believe this alignment – of stakeholders, of goals, of work done to date – is the elusive answer to Alaskan gas.

We also commend the Governor for acknowledging the tremendous value AGDC brings to this new, aligned process. Since the legislature created AGDC almost two years ago, the organization has doggedly advanced an in-state line, delivering high-caliber work and meeting milestones laid out in a transparent, statutory framework. The momentum is strong.

While supporting this goal of aligning stakeholders and plans, we want to maintain that momentum in pursuit of instate gas for Alaskans and leave open all options for convergence into an aligned project, such as the governor is promoting. To that end, we will continue advocating for legislation and funding making AGDC flexible, nimble, and as responsive as possible to Alaska’s needs.  If AGDC and the other stakeholders can converge this year, we support such alignment and AGDC will be the strongest possible partner working on behalf of Alaskans. If not, we are resolved to carry on with AGDC’s core mission, an instate line that stands on its own.

The AGDC team has secured rights-of-ways from the North Slope to Southcentral, a valuable asset to a gasline project. The team has prepared the detailed route analysis supporting an Environmental Impact Statement, another asset that will keep a new, aligned project on schedule. In addition, AGDC has developed an aggressive timeline that promises key decisions sooner rather than later.

We are closer than ever to realizing Alaska’s dream of gas, and AGDC has the momentum to keep advancing toward that goal. Legislation we will introduce this week will empower AGDC to develop or to participate in any project related to gas development within the state. AGDC will have the ability to negotiate on an equal footing with private-sector partners. The legislation will define reasonable, efficient regulatory processes, and will make the Alaska Natural Gas Development Authority an AGDC partner to centralize and strengthen the state’s efforts. Looking past a large project, our legislation also postures AGDC for a future role extending the benefits of natural gas across as much of our state as possible.

It is in Alaskans’ interests to solidify their support behind this new gasline concept. However, we can’t wait forever. AGDC can serve as the catalyst to bring all stakeholders – including Alaskans – together in a gasline project, but will also be equipped to stand on its own.

We look forward to presenting our legislation this week in a major step toward ensuring Alaskans’ interests are represented as years of work planning gas development finally come together as a tangible project we can all stand behind.

# # #

When we came to Juneau for the 27th Alaska Legislature we came together as a Majority Caucus to decide what would be the backbone and guidepost for our efforts over the two 90-days sessions. What came of that was the Guiding Principles, one of which is Access to Affordable Energy and Delivering Alaska’s Gas to Alaskans.

I’m proud to say that today, with the help of my friend and peer Mike Hawker, we forwarded a new path for the Alaska Gasline Development Corporation to continue to push forward and work with aligning interests behind the Alaska Stand Alone Pipeline – or any project that delivers gas to Alaskans.

We all recognize the need for in-state energy security and that the AGIA line is not the only option the state needs to be pursuing. Our new version of House Bill 9 offers that way forward and continues the tremendous work done by Dan Fauske and his time at AGDC.

We’ve introduced the working draft of the bill and have requested a hearing with the House Resources Committee to begin the legislative process.

AGDC has fulfilled their role from my original bill – HB 369, and have told us in their report that the pieces within HB 9 are necessary to get to a financing and sanctioning point.

What follows are the links to the materials to go along with the bill.

Press Release: http://housemajority.org/item.php?id=item20120124-321

New HB9 draft: http://housemajority.org/chenault/pdfs/27/HB009_ver_U.pdf

HB9 fact sheet: http://housemajority.org/chenault/pdfs/27/HB009_Fact_Sheet.pdf

AGDC Recommendations: http://housemajority.org/chenault/pdfs/27/ASAP_project_plan_legislative_recs.pdf

Audio from our press conference: http://bit.ly/yyhIWM

Here is the op-ed Anchorage Representative Mike Hawker and I co-wrote on in-state gas and Escopeta, which ran in the Fairbanks Daily News Miner. We’re seeing if any other publishers in the state have an interest in running the piece as well.

By Mike Chenault & Mike Hawker

Encouraging development of Alaska’s energy resources to benefit Alaskans is one of our highest priorities as legislators. To that end, we couldn’t be more pleased with the recent announcement of a major natural gas find in Cook Inlet.

Confirmation of this discovery could significantly improve Southcentral Alaska’s energy security. For now, we are cautiously optimistic and wish Escopeta Oil Company the greatest success proving up this potentially spectacular prospect.

As we celebrate their success, our greater goal must remain a secure, long-term, reasonably priced, clean energy supply for as much of Alaska as possible – energy that allows our communities to thrive.

It is imperative we continue planning toward that goal. Alaska’s future isn’t about North Slope gas over Cook Inlet gas, security for Anchorage over Fairbanks, exports to Asia over North America. And it’s not about a band-aid size fix that leaves the same issues on the table for years to come.

We need all of the options to play out in an overall solution that promises longevity, security, and growth. We must develop a healthy in-state market that delivers gas to consumers and allows exports that help producers maximize the value of their investments. But most of all, we need a strong, central organization such as the Alaska Gasline Development Corporation (AGDC) to bring these elements together for the greatest benefit.

Alaska, we have been here before. For decades, we have hoped for gas –for use at home and as a state revenue-generator – yet we’ve never realized that dream. We’ve watched windows of opportunity slam shut as we endlessly debate which gasline project in the acronym alphabet soup of proposals is best.

This is the time for decisive action defining the future Alaskans want – one where the benefits of gas reach more areas of Alaska than ever.

We recently announced plans for legislation enabling AGDC and an in-state gasline.  House majority members from across the state were adamant that planning a natural gas future cannot be set aside another legislative session. Alaskans also heard that instate gas isn’t only about Anchorage or Kenai. It’s about Fairbanks and the Railbelt, and about the people in communities off the road system who depend on our cities for supplies, educational institutions and health care facilities.

Natural gas is a resource that, by our Constitution, is to be developed for the maximum benefit of Alaskans. While we may not be able to weave a gasline network touching every village and town, we can and should do more to increase the benefits of natural gas throughout Alaska.

AGDC can be the organization that gets the job done. The main mission for Dan Fauske and his top-notch team at AGDC is the in-state line established by Speaker Chenault’s House Bill 369 in 2010.  Our legislative package will empower AGDC to keep the momentum rolling on those plans that are well underway. We believe AGDC has demonstrated tremendous leadership and project management, and we need look no further for a vehicle to take us into a natural gas future.

Our goal is to empower AGDC to be nimble, innovative, and responsive to major shifts in supply and demand around the world, for the greatest benefit of Alaska. If the new Cook Inlet find is a huge as some suggest, we need to consider building a line running north to Fairbanks, allowing the Interior to build out its gas infrastructure as we continue developing another line linking the North Slope.

That may be the exact course AGDC would elect to pursue, given the authority to do so. To reach that point, we must enable, empower and encourage AGDC, maintaining the momentum and world-class work we’ve seen so far.

Alaskans heard Governor Parnell talk recently about the need for humility and flexibility as he pursues alignment of an in-state gasline with the AGIA-sponsored project. Our legislation will position AGDC to be a strong partner in an aligned, commercial project, if that becomes a viable solution. We support that alignment, but we’re also unwilling to stand by and hope for the best. By empowering AGDC and aligning other state efforts, such as ANGDA, we will also be prepared to proceed with a stand-alone, in-state gasline.

Acting decisively and with a unified voice today, we can usher a natural gas future into Alaska, regardless of when the next window opens to the Outside world.

Here’s the text of the press release that our office sent out during my press conference last Friday on the Alaska Gasline Development Corporations’ instate gasline proposal.

Also, here’s a link to the audio of the conference: http://housemajority.org/press.php?p=media&id=317&leg=27

Release:

Speaker maintains in-state gas momentum with new legislation

Bill Represents Next Critical Step: Implementing AK Gasline Dev. Corp. Recommendations; Defining the Project and Expanding AGDC’s Capabilities 

Friday, Nov. 4, 2011, Anchorage, Alaska – Alaska Speaker of the House Mike Chenault today said he will introduce legislation empowering the Alaska Gasline Development Corporation (AGDC) to move forward on plans for an in-state natural gas pipeline.

“I commend Governor [Sean] Parnell for his desire to align the gasline efforts now on the table,” Speaker Chenault, R-Nikiski, said. “This legislation provides the foundation for an in-state gasline that will deliver Alaska gas to Alaskans. Passage will make AGDC a powerful partner in an aligned project and also allow an in-state line to stand on its own.

“My highest priority is making sure the AGDC has every tool available to succeed, whether on its own or as part of a major export project.”

The Speaker praised AGDC President Dan Fauske and his team for the progress made since the Legislature passed Chenault’s House Bill 369 during the 26th Legislature. Fauske’s group delivered its opening report to the Legislature in July, which offered a preliminary plan for development and financing the line.

The new legislation will implement a number of AGDC’s recommendations meant to help define the project and attract private sector investment. Among other things, the package will expand the corporation’s abilities, streamline regulatory processes, and direct collaboration among state agencies, said Rep. Mike Hawker, R-Anchorage. He is working with Speaker Chenault to develop the legislation.

“I couldn’t be more pleased with the progress Dan Fauske and his team at AGDC has made planning an in-state gasline,” Rep. Hawker said. “They are following the core principles of successful megaprojects, and I have complete confidence in AGDC’s ability to bring a commercially viable project to a sanctioning point. Speaker Chenault’s legislation is the next critical step in getting Alaska gas to consumers sooner rather than later.”

The legislation will be designed to keep AGDC’s momentum going, Speaker Chenault said; also stressing it will not close the door on alignment with other projects, such as the line proposed by TransCanada and ExxonMobil under the Alaska Gasline Inducement Act.

The bill will be introduced at the beginning of the second regular session in January.

Please see the attached AGDC recommendations as presented in the July 1, 2011, Project Plan. Also attached is a summary sheet of the potential components of Speaker Chenault’s legislation.

# # #

Summary sheet of proposed legislation: http://housemajority.org/chenault/pdfs/27/AGDC_enabling_legis_summary.pdf

AGDC recommendations: http://housemajority.org/chenault/pdfs/27/ASAP_project_plan_legislative_recs.pdf

AGDC’s full report can be viewed at http://www.gasline.us.com/2011/07/alaska-stand-alone-pipeline-asap-project-plan-july-1-2011/

High School Students – register NOW for classes that will help you qualify for the Alaska Performance Scholarship!

The Alaska Performance Scholarship (APS) is an invitation to excellence for Alaska’s students, parents, and educators.

To be eligible, students must take a specific, rigorous high school curriculum; earn a minimum 2.5 GPA; and do well on a qualifying college or career-readiness exam.  Three award levels are offered and any future Alaska high school graduate may become eligible!

Students could receive up to $4,755* a year!

For more information and specific requirements go to: APS.alaska.gov

To apply, most qualified students need to complete only the Free Application for Federal Student Aid (FAFSA).

Awards can be used at participating colleges or universities in Alaska, or for approved career and technical education programs in the state.

  *Administered by the Alaska Commission on Postsecondary Education, the APS is a program of the State of Alaska and subject to annual approval of funding.

APS_Fact_Sheet_and_Chart

Here is the text of the Caucus press office’s release on the receipt of the AK Gasline Development Corp’s in-state gasline report. As many of you know, this is my number one issue. Like I said before President Fauske gave us the rundown: today is a great day to be an Alaskan. – Mike

SPEAKER, FINANCE CO-CHAIR COMMENT ON ASAP REPORT

AK Gasline Development Corp.’s In-State Gasline Plan submitted today

Tuesday, July 5, 2011, Anchorage, Alaska – Alaska Speaker of the House Mike Chenault and House Finance Committee Co-Chair Bill Stoltze provided the following comments upon receiving the Alaska Gasline Development Corporation’s Alaska Stand Alone Pipeline report today.

Speaker Chenault, R-Nikiski, and Co-Chair Stoltze, R-Chugiak/Mat-Su, were joined by Senate President Gary Stevens, R-Kodiak, Governor Sean Parnell, R-Alaska (via videoconference,) and other legislators, at a press event at the Anchorage Legislative Information Office this afternoon to formally receive the report, which provides options for designing, permitting and financing an in-state natural gas pipeline.

“We all know that today was just the beginning of a large and long process. I am glad to see Dan and his crew put this together. Now is time to dig into it, prepare and start formulating our questions to the members of AGDC about the report further down the line,” Speaker Chenault said. “I’m pretty stoked up about it. The preliminary numbers that came through were above my expectations, but it’s early yet. So now let’s get into it and decide when and how to move to the next phase and get closer to bringing Alaska’s gas to Alaskans.”

AGDC was created with passage of Speaker Chenault’s House Bill 369 during the second session of the 26th Alaska Legislature. AGDC brought together state efforts by DOT&PF, the Governor’s In-State Coordinator and ANGDA, on studying and developing a natural gas pipeline for in-state use. The bill called for AGDC to gather relevant data, commission necessary new data, and submit a report to the legislature by July of this year analyzing the potential permitting, financing, route-planning, and design options for an in-state gas pipeline.

“My district, the Mat-Su, is at the end of the natural gas supply chain right now and we, along with the rest of Southcentral Alaska, are facing an uncertain energy future, so today’s submission was heartening. A good first step,” Co-Chair Stoltze said. “It will take some time to vet this report. Dan and his team are top notch and we look forward to getting further into this project. I’d like to see us get closer to a solution that will allow us to avoid the vagaries of the market, or shortages.”

Copies of the AGDC report and the three-page executive summary outlined by President Fauske at today’s event are available at http://www.gasline.us.com/wp-content/uploads/2011/07/ASAP-Project-Plan_1July2011_WEB1.pdf.

# # #

Background and bill information for HB 369 can be found at http://housemajority.org/spon.php?id=26hb369-422.

For more information contact Speaker Chenault’s office at 907-269-2030.

Here is the Sterling Highway project update: 

Sterling Highway Project Update

Well, we’re done. We accomplished what we said we needed to in the operating budget, and took care of a lot of the wants in different bills and the capital budget. Obviously, one night’s sleep isn’t enough time for careful reflection or analysis just yet. Instead, here are some of the items we’ve worked up on adjournment for the first special session and regular session. Juneau is a wonderful town, and the weather was mostly good over the extra 27 days, but I hope to be back on the KP for a while and reconnect with my wife, kids and friends.

With that, here is the Caucus press release following sine die adjournment, accomplishments by Guiding Principle, and the text of my prepared remarks for our press conference last night, which you can listen to here. The remarks:

The House has insisted on strong public process all session. We’ve heard bills that have been brought before us, by our own members and by the governor. We’ve given the public and other interested people time to review changes we’ve made, and we’ve taken their comments under consideration.

The capital budget may be the strongest example of good public process, even with the odds stacked against the House.

The Senate held its versions for 112 days before the House got a solid look at what was inside. The House was held hostage – make us a promise you won’t change anything, or we won’t hand it over. The Senate eventually moved the capital budget without that guarantee.

House Finance Committee had the capital budget for approximately 120 hours.   The Senate held the bill for 112 days before taking action and passing it to the House.

House Finance held hearings including more than 6 hours of public testimony. The House Finance Committee also held hearings on the most controversial parts, particularly the Senate’s language binding energy projects together.

In addition, the House Energy and Resources Committees held more than 11 hours of hearings over a two day period to vet the energy projects included in the Senate’s version of the capital budget.

The House Judiciary Committee held a hearing lasting three hours to go a little deeper into the constitutionality of the Senate’s proposed language.

If the House had time to do all this, in a public forum, in 120 hours, surely the other body could have managed their process in 112 days.

The Senate’s members, and the House’s members, have had time to understand what’s in the budget and what isn’t. There are no last-minute changes, no new versions held until the final hour.

Most capital budgets aren’t conferenced; the last time a conference committee for the capital budget was held was in 2004.

# # #

I’m sure we’ll be in touch, and posting on here, some time soon. I look forward to getting home and back out in the community to talk about the good we did and talk about some of the decisions we made. Plus, there’s always preparations for next January. Please feel free to get in touch with my office here if you have any thoughts, questions or concerns.

- Mike

Here’s the text of the special session status update our House Majority Office produced:

FOR IMMEDIATE RELEASE     MEDIA ADVISORY

DAY 25 SPECIAL SESSION STATUS UPDATE

Thursday, May 12, 2011, Juneau, Alaska – The Alaska House Majority Caucus is issuing daily status updates during the first special session of the 27th Alaska Legislature. Today is the 25th special session day.

Still at play among the 10 items listed on the governor’s special session proclamation are the FY2012 Capital Budget bills (HB107/SB46,) legislation addressing the Alaska Coastal Management Program (HB106,) and the governor’s proposed performance scholarship plan.

Work today included:

-       The House Finance Committee held a brief hearing to roll out its committee substitute to the capital budget. A hearing on amendments has been scheduled for tomorrow.

-       The Senate Finance Committee canceled a hearing on “bills previously heard/scheduled.” The committee still hold the two outstanding items on the special session proclamation – on ACMP and scholarships. Both were passed by the House during the regular session.

-             Both the House and Senate held brief floor sessions as formalities, but had no new business to manage.

Governor Sean Parnell called the Legislature into a 30-day special session on April 18, a day after the lawmakers adjourned the 90-day regular session without passing operating and capital budgets, among other time-sensitive items.

Eight of the 10 bills on the special session proclamation were in the Senate’s possession at the close of the regular session. The FY2012 Statewide Operating Budget (HB108) and the Alaska Mental Health Trust Budget (HB109) were in a conference committee. The House and Senate approved five of the items on the governor’s proclamation within days. Two more bills – on ACMP and scholarships – have not left the Senate Finance Committee.

The House and Senate gave final approval to the statewide operating and mental health trust budgets on May 6. The Senate voted 13-3 to pass the capital budget to the House on May 10.

The House passed every measure on the governor’s special session proclamation during the regular session, except for the capital budget, which traditionally is first approved by the Senate.

# # #

Here’s the text of today’s House Majority Office special session status update. I had the opportunity to talk about these topics on the Casey Reynolds Show and Dave Stieren Show on AM-750 KFQD today, and they’ll also come up this Friday when I call in to Sound Off, I’m sure.

FOR IMMEDIATE RELEASE: Wednesday, May 11, 2011

DAY 24 SPECIAL SESSION STATUS UPDATE

Juneau, Alaska – With the first special session this year more than three-quarters complete, the House Majority will issue daily status reports from Juneau.

The Senate passed its version of the capital budget to the House May 10. The Senate softened, but did not remove, the controversial contingency language surrounding energy projects. For most of the special session, the Senate refused to forward the budget to the House without guarantees that the House would sign off on the Senate version as-is.

The day’s work, Wednesday, May 11, included:

-          The House Finance Committee listened to more than five hours of public testimony on the House version of the capital budget, HB107.

-          The House Judiciary Committee held a morning hearing on the legality of the Senate’s contingency language in that body’s version of the capital budget, SB46.

-          The Senate Finance Committee canceled a hearing on bills previously scheduled. The committee still holds the two outstanding items on the special session call, one renewing the Alaska Coastal Zone Management Program and another on the governor’s scholarship program. Both were passed by the House in the regular session.

Governor Sean Parnell called the Legislature into a 30-day special session on April 18, the day after lawmakers adjourned the 90-day regular session without passing operating and capital budgets, among other time-sensitive items.

Included in the special session call were 10 bills, all of which were in the Senate’s possession at the close of the regular session. Within days, the House and Senate approved five of those measures. Two of the five other bills –the scholarship legislation and ACMP renewal – have not left the Senate Finance Committee. The House and Senate gave final approval to the state’s operating and mental health trust budgets on May 6. The Senate voted 13-3 to pass the capital budget to the House on May 10.

Per legislative process, the House is waiting to take action on the outstanding items once the Senate moves the bills out of the Finance committee, through a floor vote, and over to the House.

The House passed every measure in the Governor’s special session call during the regular session, except for the capital budget, which traditionally is first approved by the Senate.

# # #