House Majority Caucus leadership held a “Special Session: Day 10″ press availability this morning to refocus the public eye on the issues that the caucus feels have led to the impasse before the Legislature and governor. You may find the press release here.

Below is the audio file from the event as well as several video clips.

Audio File

Reps. Chenault and Stoltze answer a Reporter’s Question Regarding the Legislative Process

Reps. Chenault and Stoltze answer a Reporter’s Question Regarding Negotiations

Rep. Chenault Answers a Reporter’s Question Regarding What’s “New” in Negotiations

Rep. Chenault Responds to a Reporter’s Question on the Attorney General’s Recent Opinion

 I haven’t had a lot of time to post a new entry into the blog but find some time on my hands to now do so.  As most of you are aware, the House is at a deadlock with the Senate over contingency language and a nonseverability clause they are attempting to include in this session’s version of the capital budget. 

 The language that is causing the deadlock is as follows:

“Each of the appropriations made in section 7 of this act is contingent on passage by the Twenty-Seventh Alaska State Legislature in the First Regular Session and enactment into law of every appropriation, without reduction of any appropriation, made in section 7 of this act.”

What this does is not allow the governor to line-item veto any of the projects, in the section of the bill that contains many energy projects, without risking the loss of all the appropriations within that section.

To add to all that is nonseverability language that reads:

“Notwithstanding AS 01.10.030, if the contingency language found in Section 39 of this act is held to be invalid then the contingency is not severable from the appropriation made in section 7 of this act.”

This clause states that if a court determines the contingency language is not constitutional, then all the projects found in section 7 are not to be funded if any are vetoed.

House members and I believe the Governor should not be held hostage and be allowed to use the powers that were given to that office through the Constitution.

There are a number of projects within that energy group of which House members and I have a number of questions.  Plus, the funding for the Susitna or Wantana hydro project is also being held hostage because of this contingency language.  I am not saying there aren’t a number of worthy projects included in the capital budget but there are some I don’t believe should have been included for funding at this time.

Presiding officers rarely take the step to leave the podium and deliver remarks. I did today, and here is the text of my speech before the House:

MR. SPEAKER:

I AM RELUCTANT TO STEP DOWN FROM THE PODIUM. BUT IN LIGHT OF WHAT HAS OCCURRED – OR NOT OCCURRED – OVER THE PAST WEEK, IT IS MY OBLIGATION AND MY DUTY TO PUT ON THE RECORD  IN THIS BODY MY CONCERNS.

AS MANY OF YOU KNOW, THE OTHER BODY HAS IN ITS POSSESSION A CAPITAL BUDGET BILL CLOSING IN FAST ON 2.9 BILLION DOLLARS. THAT’S ABOUT A THIRD OF THE COST OF AN INSTATE GAS PIPELINE – AND ABOUT ONE THIRD OF ALL THE MONEY THE STATE COLLECTS IN A SINGLE YEAR.

TODAY IS THE 87^TH DAY OF A 90 DAY SESSION AND WE STILL DO NOT HAVE, IN OUR POSSESSION, THIS 147 PAGE PACKAGE.  AND THIS IS JUST THE CAPITAL BUDGET WE’RE TALKING ABOUT. WE STILL HAVEN’T LAID EYES ON THE SUPPLEMENTAL BUDGET, AND DON’T KNOW HOW MUCH MORE SPENDING WILL BE WRAPPED INTO THAT.

IF WE’RE TO ADJOURN SUNDAY NIGHT – LIKE VOTERS SAID WE MUST AFTER 90 DAYS IN SESSION – THESE SPENDING BILLS MUST BE ON THE FLOOR SATURDAY. THAT’S LESS THAN 48 HOURS FROM NOW. THIS MEANS OUR FINANCE COMMITTEE WILL BE LEFT WITH ONLY A DAY TO DO DUE DILIGENCE AND TO TRY TO HEAR FROM ALASKANS ON THIS BILL.

THE OTHER BODY HAS BEEN IN CONTROL OF THIS BUDGET FOR 87 DAYS SO FAR. THE HOUSE HAS NOT HAD AN OPPORTUNITY TO PROVIDE ITS INPUT, AND IN FACT, HADN’T SET EYES ON IT BEFORE THE ROLL-OUT MONDAY. IN CONTRAST, THE HOUSE TRANSMITTED THE OPERATING BUDGET TO THE OTHER BODY ON THE 10^TH OF MARCH.

WE’VE BEEN PUT IN THE POSITION OF HAVING TO ACCEPT – OR NOT ACCEPT – THIS 2.9 BILLION DOLLAR PIECE OF LEGISLATION WITHOUT ADEQUATE TIME TO DO A THOROUGH REVIEW.

THE OTHER BODY HAS MADE IT KNOWN THEY DO NOT HAVE ENOUGH TIME TO ADDRESS LEGISLATION THAT PROVIDES THE LIFE BLOOD OF OUR STATE’S ECONOMY.

THE FAILURE TO ADDRESS THAT ISSUE WILL HAVE SERIOUS CONSEQUENCES FOR FUTURE GENERATIONS OF ALASKANS.  NOW WE’RE IN THE POSITION OF HAVING ONLY ONE OR TWO DAYS TO PASS ONE OF THE LARGEST CAPITAL BUDGETS IN THE HISTORY OF THE STATE.   WE WILL MAKE THE TIME FOR REAL REVIEW.

IN THE WORDS OF THE PRESIDING OFFICER OF THE OTHER BODY, WE ARE NOT GOING TO BE BULLIED INTO MAKING A RUSHED DECISION ON A $2.9 BILLION CAPITAL SPENDING PLAN.  AGAIN, AS HE SAID, ALASKANS DESERVE ELECTED OFFICIALS WHO WILL NOT RUSH INTO A DECISION. I QUOTE – “WE HAVE TO DO THE RESEARCH, GET THE INFORMATION NEEDED,  DO OUR DUE DILIGENCE. TAKE OUR FIDUCIARY RESPONSIBILITIES SERIOUSLY.”

I DON’T WANT TO STAY HERE A SINGLE DAY LONGER THAN NECESSARY. BUT I’M NOT ABOUT TO LEAVE UNTIL I KNOW I CAN LOOK MY CONSTITUENTS IN THE EYE.  I WANT TO TELL THEM WE HAVE HONORED THE TRUST THEY PLACE IN US TO BE RESPONSIBLE CUSTODIANS OF ALASKA’S FUTURE – AND THAT MEANS ALASKA’S DOLLARS.

I BELIEVE IN THE PROCESS, MR. SPEAKER, AND THIS PROCESS RIGHT NOW IS NOT A GOOD ONE. IT IS BROKEN. I’M DEEPLY DISAPPOINTED THAT WE’VE REACHED THIS POINT, BUT I’M DRAWING THE LINE RIGHT HERE. BEFORE WE SPEND THIS MUCH MONEY, THIS BUDGET WILL RECEIVE THE THOROUGH, RESPONSIBLE VETTING THAT THE PUBLIC DEMANDS AND DESERVES. AND I DON’T CARE HOW LONG THAT TAKES. IF WE CAN’T GET THERE,  I’M READY TO LEAVE AT THE END OF 90 DAYS WITHOUT A CAPITAL BUDGET.  I HOPE ALL OF YOU ARE READY TO DO THE SAME.

THE PRESIDING OFFICER OF THE OTHER BODY MADE OUR ARGUMENTS FOR US WHEN HE SAID, AND I QUOTE: “THE WORLD DOES NOT COME TO AN END IF WE DO NOT ACT NOW.  THE SKY IS NOT GOING TO FALL. LET’S TAKE THE TIME WE NEED TO GET THIS RIGHT.  THESE ARE DIFFICULT TIMES WITH BIG DECISIONS AHEAD OF US. LET’S BE CAREFUL, WISE AND JUDICIOUS IN MAKING DECISIONS THAT WILL AFFECT ALASKANS FOR DECADES TO COME.”

WE ALL HAVE DIFFERENT IDEAS OF WHAT GOOD PROCESS IS. YOU ALL KNOW WHERE I STAND ON THAT ONE. WE DON’T NEED MORE LAWS ON THE BOOKS THAT TAKE AWAY THE RIGHTS OF ALASKANS OR TELL THEM WHAT THEY CAN OR CAN’T DO.  OTHERS WILL SEE IT DIFFERENTLY.  AND THAT IS WHY PROCESS EXISTS – PEOPLE INTRODUCE BILLS. COMMITTEES HEAR BILLS. THEY MAKE AN HONEST EFFORT TO PULL TOGETHER THE INFORMATION THEY NEED TO MAKE SOUND DECISIONS IN THE BEST INTERESTS OF ALASKANS. THEN WE HEAR FROM THE PUBLIC. AND FINALLY, WE VOTE.

BUT WITH THIS BUDGET BILL, THE LACK OF A GOOD, PUBLIC PROCESS BOTHERS ME TO NO END.  THE ASSUMPTION THAT THE HOUSE WILL RAM THROUGH THIS $2.9 BILLION DOLLAR BILL WITHOUT SOUND, PUBLIC REVIEW,  SHOWS A LACK OF RESPECT TO THE HOUSE AND ALASKANS. TELLING THE HOUSE TO RUSH TO A DECISION WITHOUT THE FACTS IS NOT WORKING, AND WILL NOT WORK.  IT’S LIKE THE OTHER BODY TELLING THE HOUSE, “STICK IT.”  (or “TAKE IT OR LEAVE IT.”)

I HAVE THE HIGHEST RESPECT FOR MY COLLEAGUES IN THE OTHER BODY, BUT ON THIS ISSUE, THEY ARE DISRESPECTING THE HOUSE AND ALL ALASKANS BY FAILING TO HONOR OUR PROCESS.

PROCESS IS THE CORE OF OUR HOUSE VALUES. I REFUSE TO BE BACKED INTO A POSITION WHERE I CAN’T LOOK ALASKANS IN THE EYE AND TELL THEM I’VE DONE MY JOB RIGHT.

I WILL NOT BE BULLIED. I WILL NOT BE RUSHED. AND I HOPE YOU ALL WILL STAND WITH ME IN DEFENDING THE INTEGRITY OF THIS INSTITUTION AS WE RECOGNIZE IT IN THE HOUSE.

MR. SPEAKER TO THAT END, WITH THE COOPERATION OF ALL OF YOU IN THE HOUSE, I AM ASKING FOR YOUR SUPPORT IN NOT TOLERATING THIS BEHAVIOR BY THE OTHER BODY.  I AM ASKING THAT WE REFUSE TO TAKE ACTION ON A CAPITAL BUDGET UNTIL WE’VE HAD THE TIME TO REVIEW IT AND TO ASK THE PUBLIC FOR INPUT. THEN, AND ONLY THEN, SHOULD WE BRING THIS BUDGET TO THE FLOOR.

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FOR IMMEDIATE RELEASE                                                                                     PRESS STATEMENT

SPEAKER: NOAA HABITAT DESIGNATION HARMFUL, UNNECESSARY

Agency’s decision closing 3000 miles of Cook Inlet takes effect in 30 days

Friday, April 08, 2011, Juneau, Alaska – House Speaker Mike Chenault, R-Nikiski, released the following statement today regarding the National Oceanic & Atmospheric Association’s Fisheries Service decision to designate 3,016 miles of Cook Inlet as critical Beluga habitat.

Statement

“This is another prime example of the federal government locking up our land and ignoring the calls for caution from the State of Alaska and the Legislature.

“We have continually struck back against the federal government’s lack of consideration of the state’s own data that shows the Beluga population is recovering.

“They are closing off the middle and lower Cook Inlet for federal permits next month. That means no construction, drilling or dredging. What good is exempting the Port of Anchorage if the federal government chokes Alaska’s economy to the point that cargo vessels won’t come calling? What about development of Port McKenzie? Sadly, we’ve feared this decision since they originally listed the Beluga in 2008.

“This rule sends a terribly mixed message. The President of the United States says he wants to lessen reliance on foreign oil – he’s re-opened the permitting process for offshore oil and gas – but with this habitat designation, the feds are blocking just that sort of development. The State of Alaska approved helping to pay for a jack-up rig to hit the Inlet this summer. This federal overreach could jeopardize that work. It is especially troubling for the Kenai, following on the heels of the LNG plant’s closure earlier this year. We were hoping to see the benefit of the state participation in drilling this summer. Now? It’s out the window.

“I am, and will continue to be, indignant on this issue.

“The federal government ignored state data and biologists, and Alaskans and our kids will have to pay for it. That means fewer jobs, less economic multipliers of that payroll, and less energy security and stability for the entire Railbelt region.”

The final rule, filed today, will take effect in 30 days.

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NOAA press release on designation: http://www.alaskafisheries.noaa.gov/newsreleases/2011/cibelugahabitat040811.htm

NOAA Map: http://www.alaskafisheries.noaa.gov/newsreleases/images/cibelugachmap.jpg

Final Rule: http://www.alaskafisheries.noaa.gov/prules/cibeluga_ch040811.pdf

 

Here is the text of the press release from the Majority on passage of my bill to create an in-state gasline fund:

FOR IMMEDIATE RELEASE                                                                                          PRESS RELEASE

HOUSE ACTS TO CREATE IN-STATE GASLINE FUND

Speaker’s HB 203 puts fund in AK Gasline Development Corp. for development

Tuesday, April 5, 2011, Juneau, Alaska – The Alaska State House of Representatives today passed legislation creating a fund the state could invest in to help pay for the planning, development and construction of an in-state natural gas pipeline.

House Bill 203, sponsored by House Speaker Mike Chenault, R-Nikiski, creates the In-State Gas Pipeline Fund within the Alaska Gasline Development Corporation (AGDC,) a subsidiary of the Alaska Housing Finance Corporation. The fund would be repealed 90 days after construction on the line has been completed.

“HB 203 streamlines the funding process for the many aspects of the in-state gas pipeline process,” Speaker Chenault said, referring to prior year appropriations to different state agencies on in-state gas development. “The fund will eliminate the need for multiple appropriations; allow better and easier accounting on expenditures; and give AGDC more control over planning and development of the project.”

 

[caption id="attachment_1595" align="aligncenter" width="430" caption="Final preps for HB203 hearing - meeting with lead staff Tom Wright ahead of my Finance hearing Monday on HB203."][/caption]

The corporation is still in the information-gathering and modeling stages for the project, dubbed the Alaska Stand Alone Pipeline, or ASAP. The Legislature created the corporation through passage of the Speaker’s HB 369 in 2010 to facilitate the construction of an in-state gasline. The corporation will present a report on their progress and development/construction options by July 1.

“Two of our Caucus’s Guiding Principles are Responsible Resource Development and Access to Affordable Energy, and continuing to help facilitate and build the ASAP project fits with those goals,” House Finance Vice-Chair Anna Fairclough, R-Eagle River, said. “Cook Inlet production concerns are a threat to the entire Railbelt region, and providing gas for Alaskans to heat their homes and businesses is – and should continue to be – a paramount goal for this Legislature.”

HB 203 now moves to the Alaska Senate for consideration.

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