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Senators reflect on passage of LNG legislation

By Rhonda McBride 9:49 AM March 20, 2014

Democrats hope House will vet multibillion-dollar proposal

JUNEAU – There was plenty of quarterbacking going on at the Capitol Thursday morning after the passage of Senate Bill 138, the legislation which sets the stage for a liquefied natural gas project.

Now  that SB 138 has moved to the House, Democrats are hopeful some changes can be made to the House version of the bill, HB 277.

“I really believe the House is going to take a much harder look,” said Sen. Hollis French. “I think you’ll see a much different bill come back.”

Once the House passes its version of the bill, both bodies get together to reconcile the differences and vote again.

French and other Democrats introduced 16 amendments to SB 138 during the debate leading up to the vote.

The amendments pointed out flaws identified by two consultants, who raise doubts about the legislation and the partnership the administration of Gov. Sean Parnell formed between the state, ExxonMobil, ConocoPhillips, BP and TransCanada to develop an LNG project.

Although the amendments did not survive, Democrats said they feel they have raised awareness about potential problems with the deal now before the Legislature.

“It was extremely valuable,” said Sen. Bill Wielechowski, an Anchorage Democrat who helped fight for the amendments during the floor debate. “I think what it did was crystalize the concerns that existed.”

The amendments raise questions about a number of issues that include the state’s partnership with TransCanada, the ability of municipalities and boroughs to levy property taxes and the risks of the state taking royalty and tax payments in gas rather than cash.

The Senate majority argues the potential rewards outweigh the risks, which at this point involve a cash outlay of less than $100 million.

They also point to the lopsided 15-5 vote, which they say shows the confidence the majority of the Senate has in the bill.

Sen. Anna Fairclough quoted from Mary Anne Radmacher, author of “Lean Forward.”

“If you were asked to take a seat on a rocket ship, you don’t ask which seat. You get on board,” Fairclough said.

The rocket is taking off, and now it’s up to the House to make changes to a bill that would do something that’s never been done before — give the state ownership in an energy megaproject.

Sen. Peter Micciche, a Republican from Soldotna, voted for SB 138. He said it has all the tools to move the project forward.

But he expects the House to make more changes.

“Personally, I’ve not seen a piece of legislation that the Senate has blessed that the House has ever improved,” Micciche said jokingly.

Although Democrats and Republicans remain far apart on the legislation, Fairclough said Tuesday’s debate was impressive.

“We had statesmen on the floor yesterday on both sides of the aisle,” Fairclough said. “I appreciated that nothing got personal, that we talked about the issues important to Alaskans. I really applaud the minority for their efforts.”

And one effort might pay off – the Democrats’ push to hear from two consultants critical of the governor’s natural gas proposal, Roger Marks and Rick Harper. Fairclough believes it’s likely lawmakers in the House will want to question them in upcoming committee hearings.

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