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AGDC bill passes, Luke Hopkins confirmed Cruz, Merrick confirmed without objection; long floor debate for Hopkins as legislators express concerns over governor’s LNG plans KRISTEN NELSON Petroleum News
In separate actions the Alaska Legislature passed a bill relating to Alaska Gasline Development Corp. board membership and confirmed three members to the board.
There was no objection raised to confirmation of two members, Dave Cruz, president of Cruz Cos., current board chair, reappointed to the board by Gov. Bill Walker and Joey Merrick, secretary treasurer of Laborers’ Local 341, appointed by Walker last fall, when the House and Senate met in joint session April 15 to consider the governor’s appointments.
The third appointment, Luke Hopkins, was confirmed only after a vote, prior to which legislators expressed concern or satisfaction with the direction the governor might be taking on a liquefied natural gas project.
Three nonvoting members The legislation, Senate Bill 125, adds three nonvoting legislators to the AGDC board and requires project-related qualifications for future public members of the board.
House Bill 282, by House Speaker Mike Chenault, R-Nikiski, was rolled into SB 125 by Sen. Mia Costello, R-Anchorage, in a House Resources Committee substitute.
The Senate version was a proposal to add two legislators to the AGDC board as nonvoting members, a senator appointed by the Senate president and a representative appointed by the House speaker.
By existing statute the governor names two commissioners to the board - with the commissioners of Natural Resources and Revenue precluded from being named - and appoints five public members who are approved by the Legislature.
In addition to adding legislators to the board as nonvoting members, Chenault’s bill specified qualifications for four of the five public members named by the governor, requiring that the four public members of the board “shall have expertise and experience in natural gas pipeline construction, operation, and marketing; finance; large project management; or other expertise and experience that is relevant to the purpose, powers, and duties of the corporation.”
There is no restriction on the fifth public member.
The committee substitute was amended in House Resources to include a third nonvoting legislator, a minority member to be appointed jointly by the Senate president and the House speaker.
The House approved the CS for SB 125 by a vote of 25-11; the Senate concurred in the House changes by a vote of 16-4.
Issues around legislators serving As the bills passed through committees there was discussion about the constitutionality of the Legislature naming even nonvoting members to the AGDC board, with several committee members noting that legislators serve as nonvoting members on various boards and commissions.
The issue was vetted at a House Resources Committee hearing April 1.
Rep. Paul Seaton, R-Homer, said he had two issues with the bill: that the state constitution doesn’t permit holding of dual offices and that the governor has appointment powers to executive bodies with regulatory responsibility.
Rep. Geran Tarr, D-Anchorage, said she thought designating legislators as nonvoting members was a way to deal with the separation of powers issue, but said she would keep studying the issue.
Rep. Andy Josephson, D-Anchorage, said he shares concerns about turnover on the AGDC board and the direction of the board’s work, but said he opposed the bill because of the constitutional issues which had been raised.
The bill came with a legal opinion questioning its constitutionality. Rep. Kurt Olson, R-Soldotna, said he had seen other bills come with legal opinions, but couldn’t recall the issue going further than that with any of them.
Provisions in the bill include that legislators may participate in all board activities except voting; may not be denied participation in executive sessions; and may not be appointed for a term longer than two years.
Legislative members may not be reimbursed by AGDC for costs related to service on the board or be compensated for participation on the board.
Board members Walker’s appointment of Luke Hopkins, former mayor of the Fairbanks North Star Borough, was approved over objection at the April 15 joint session.
Objections voiced by legislators to Hopkins’ appointment - as well as reasons for support - illustrated the range of legislative views of actions the governor has taken, or discussed taking, on the AKLNG project.
Rep. Kurt Olson, R-Soldotna, said he would be voting against Hopkins because of the mayor’s experience on the Alaska Gasline Port Authority. That project, Olson said, never got traction, and he said there were a number of other people on the board with that experience, making it redundant to add one more.
Rep. Dan Saddler, R-Eagle River, said his opposition was reluctant, but said AKLNG calls for the state to work in full partnership with three partners and to adhere to a specific model. There is, Saddler said, too much evidence this administration has a vision at significant variance to that model, adding that personnel is policy.
Rep. Scott Kawasaki, D-Fairbanks, said he supported Hopkins based on his relevant experience, citing both his local government experience and experience on the port authority board, which spent 15 years trying to bring North Slope natural gas development to the state.
Sen. Anna MacKinnon, R-Anchorage, said while Hopkins has done wonderful things for the state, transparency is needed for AKLNG. Information legislators received in last year’s special session was being filtered, she said, and couldn’t support anyone associated with the port authority because of what she saw as a lack of transparency on that project.
Rep. David Guttenberg, D-Fairbanks, asked to be excused from voting, telling legislators Hopkins is his brother in law. There was an objection and Guttenberg was told he would be required to vote. He then spoke in Hopkins’ favor, saying legislators were criticizing someone for trying to develop gas, when every effort to do so had failed. We don’t criticize the producers or TransCanada for their efforts to develop gas, he said, arguing that Hopkins’ participation on the port authority board gives him more experience than anyone else on the AGDC board.
House Minority Leader Chris Tuck, D-Anchorage, said that in addition to serving on the port authority, Hopkins helped start the gas utility in Fairbanks and spent a year working on financing. He noted that legislators hadn’t objected to Joey Merrick, who has none of that experience.
Sen. Cathy Giessel, R-Anchorage, said her opposition has nothing to do with Hopkins’ character or work as mayor, said he’d been effective on the mayor’s advisory board for AKLNG, but comes with local exposure and perspective, and for a statewide project people with a global perspective are needed.
Another transparency concern Sen. Lesil McGuire, R-Anchorage, said she was opposing the appointment because of lack of transparency and communication by this administration on the project.
Rep. Liz Vasquez, R-Anchorage, said legislators weren’t there to rubberstamp what the governor wants. It’s about checks and balances, she said, and AGDC was constructed to be independent, not politicized. Board members need the right kind of expertise, she said.
Sen. Bill Wielechowski, D-Anchorage, said Hopkins was clearly qualified, said his service on the port authority board was on a policy board, and while it’s been argued that the port authority didn’t get the job done, none of us have gotten the job done, he said.
Rep. Geran Tarr, D-Anchorage, said she would be supporting Hopkins, and said one of the biggest issues is payment in lieu of taxes and that his involvement in the municipal advisory board a huge part of PILT. She also noted that Hopkins had been on the board and if he isn’t confirmed it could delay work on the project.
Sen. Peter Micciche, R-Soldotna, said he stood in support of Hopkins as a man but wouldn’t be supporting him for the AGDC board because of his lack of experience. He said the board was becoming a lay board, with no one with the background to push back on staff, and said he wanted someone who would stand up for Alaskans and who brought competencies to the board.
The vote to confirm Hopkins was 31-27, with the House voting 22-17 and the Senate 9-10.
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