Funding light in the legislative tunnel

Although ANGDA approaches the upcoming legislative session with concerns about its funding level, the public corporation sees hope in one pre-filed bill, according to Heinze.

House Bill 44 sponsored by Incoming House Speaker Mike Chenault, R-Nikiski, would pre-approve ANGDA and several other state agencies to issue bonds for energy projects.

Currently, state agencies must get legislative approval before issuing bonds.

The bill would specifically allow ANGDA to issue up to $250 million in bonds.

“This would be providing the board with some very good authority,” Heinze said.

During a special session this past summer, state lawmakers didn’t give ANGDA a $25 million appropriation supported at the time by the administration of Gov. Sarah Palin.

But sinking oil prices in the fall ate a projected revenue surplus and with the release of its proposed fiscal year 2010 budget, the state tempered its initial financial support, setting aside only $5 million for ANGDA, rather than the requested $25 million to $50 million.

If the Legislature cuts funding entirely for the coming fiscal year, Heinze said: “We will live with ourselves, but we will probably have failed” in the goal to hold an open season.

If the Legislature approves only that $5 million budget item, Heinze said ANGDA could probably still prepare for an in-state open season by diverting all its funding resources.

Should ANGDA get the big appropriation it wants, or if it successfully sells bonds early enough in the year, Heinze said it “will have a very aggressive next level of activity.”

ANGDA recently hired a project manager to help with the final push to an open season on the spur line, but based the contract on the project manager’s ability to secure funding.

“If he doesn’t get the money, he doesn’t work,” Heinze said.

—Eric Lidji