Senate passes Arctic infrastructure bill

The Alaska state Senate has passed a bill authorizing the Alaska Industrial Development and Export Authority, or AIDEA, to offer financing options designed for public-private partnerships in the development of Arctic infrastructure. Senate Bill 140 now goes to the House for consideration there.

Sponsored by Sen. Lesil McGuire, the bill stems from a recommendation in a report published by the Alaska Arctic Policy Commission, an entity that the Legislature established in 2012 to formulate a state Arctic policy and implementation strategy. The report identified a need for public and private investment in Arctic infrastructure, including the aviation and maritime emergency response infrastructure. McGuire is co-chair of the commission, along with Rep. Rob Herron.

“This bill is the culmination of hundreds of hours of work by the members of the Alaska Arctic Policy Commission,” McGuire said in an April 2 press release. “As we traveled the state to listen to the people in the communities, the one recurring theme was the need for Arctic infrastructure. This bill sends the message to the federal government that we feel fortifying and strengthening our assets in the Arctic is critical and we are not afraid to lead this massive undertaking.”

The funding mechanism proposed in SB 140 follows a similar scheme to the Sustainable Energy Transmission and Supply Fund, or SETS fund, that AIDEA already administers. Under the SETS program, AIDEA is providing loans to help with the funding of a North Slope liquefied natural gas plant, to provide a gas supply for interior Alaska.

“This bill gives AIDEA the tools it needs to reach out to the people who are looking to invest in the north. Right now, there is an estimated $100 billion of private capital that is looking for investment opportunities in the Arctic,” McGuire said.

—Alan Bailey