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HB 132 sent to governor, veto promised Legislative leadership unable to reach compromise with Gov. Walker; Legislature passes bill to limit use of remaining ASAP funds Kristen Nelson Petroleum News
Fiduciary responsibility vs. negotiating power were key arguing points as legislative leadership and Alaska Gov. Bill Walker squared off over whether the governor can use the $180 million remaining of money authorized to the Alaska Gasline Development Corp. for the Alaska Stand Alone Pipeline project.
The Senate initially approved House Bill 132 March 31; reconsideration was called for, but not taken up April 1. The bill was returned to the House and transmitted to the governor April 1; it is due back from the governor April 18; April 19 is the last day of session.
House Speaker Mike Chenault, R-Nikiski, and Senate President Kevin Meyer, R-Anchorage, said after the March 31 Senate vote on the bill that they had been trying to reach agreement with the governor for what Chenault described as the last month, last month and a half, with numerous meetings in the last few days.
Chenault said that the Legislature has fiduciary responsibility for Alaska’s money and needs comfort with the governor on how money is to be spent.
He noted that the governor has said he would veto HB 132, and said they will continue to work with the governor to try to reach agreement on the Legislature’s behalf that the money will be spent correctly.
Meyer said his concern was what is the backup plan? Sometimes it’s an alternative plan; lately it’s been called a backup plan, he said, and noted that the governor has said he’s dedicated to the Alaska LNG project, but wants access to money in case this falls through and he needs to go forward with his backup plan.
Meyer said that was fine, but the Legislature wants transparency on what the backup plan is. We met with the governor Sunday, Monday, today (March 31), trying to work out what would be amenable to all of us, Meyer said, and thought we were close, but then the governor said he didn’t want his hands tied by having to come back to us with his backup plan in a bill, and said he needs total flexibility in dealing with the oil companies.
As with issues over Medicaid expansion, the Legislature wants the governor’s plan in a bill, Meyer said, adding that if the governor has a different plan than what the Legislature passed, the public has a right to know what it is and how money will be spent.
The governor’s view The gas line was at the top of a list of issues the governor discussed April 1 in an address to Commonwealth North.
He called the Alaska LNG project a tremendous opportunity for Alaska and assured the audience he will not be a governor who starts over, but instead wants to be a governor who finishes something.
But, he said, he is not comfortable putting all of the state’s future in one project. He said the state’s partners in the project have alternatives, and negotiations where the state has only one option can be a little strained.
Walker said negotiations for commercial terms will occur this summer, and said the negotiations will be very difficult for the state if it has no backup.
He also said he was not pleased that the legislation precludes him from meeting with the market and ties his hands on spending on the backup, describing upsizing ASAP as making it a backup.
Walker said he’s not doing it to complete, he’s doing it to have two cars on the track. He said there hasn’t been significant pushback from the producers, although he did say there has been more discussion with one than with the other two.
The governor repeated what he has said before, that he would veto HB 132. Forty votes would be needed to override. There were 38 votes in favor of HB 132 between the House and Senate. Chenault said they’d have some work to do with members, but said he was fairly comfortable with the numbers they have now.
The 45-day period Walker told Commonwealth North he is proposing a 45-day period when an administration team looks closely at all the documents that make up AKLNG. That team will sign confidentiality agreements, he said, and will start work before the end of session.
After that review, Walker said, we’ll determine if a backup plan can be developed in case AKLNG doesn’t go forward.
Chenault said March 31 that the governor was looking at 45 days for a team to look at AKLNG and get back to him, with the potential that if the governor had issues with AKLNG, he’d want to negotiate something different.
Meyer said they told the governor - if you find AKLNG isn’t a good plan - could you do a piece of legislation and call us back into special session so we can deal with it immediately, but said that wasn’t acceptable to the governor.
He said the Legislature is trying to keep this out in the open. AKLNG is the project, Meyer said; we’re having some difficulties on what is the backup.
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