Alaska lawmakers talk energy in D.C.

Published Saturday, March 8, 2008

WASHINGTON, D.C. — A large contingent of state legislators flocked to the nation’s capital this week for the annual spring meeting of the Energy Council.

The four-day conference kicked off Thursday with briefings on federal energy and environmental policies.

One of the primary focuses this year is on the potential impacts of legislation being considered by Congress to limit greenhouse gas emissions through a cap-and-trade program. Democrats are pushing a proposal that would cut emissions 70 percent from current levels by mid-century.

Kenai Republican Sen. Tom Wagoner said a mandatory limit on carbon emissions has implications for Alaska, especially for the Agrium coal-gasification project in Nikiski, which could take advantage of evolving technology to capture and store carbon emissions underground to reduce its pollution levels.

But for most legislators, including Wagoner, the real value in traveling to Washington was the opportunity to corner national policymakers on energy issues of statewide importance, particularly the outlook for a natural gas pipeline.

Legislators are anticipating Gov. Sara Palin’s administration will send them the TransCanada application for review in the next couple of months. Meanwhile, federal feedback on the proposal has been limited to the Alaska congressional delegation, which has generally panned it.

U.S. Senate Energy Committee Chairman Jeff Bingaman, D-N.M., told legislators that Congress was waiting for the state to act.

“We are anxious to do anything more that we can do on the federal level, but frankly no one has come to us and told us what more we can do,” Bingaman said.

Bingaman did not specifically address whether Congress would agree to serve as a “bridge shipper” or approve changes to the $18 billion federal loan guarantee suggested by TransCanada, but he left the door open for further help from the government.

North Pole Republican Sen. Gene Therriault called Bingaman’s comments encouraging, and said he received a similar response from officials at the U.S. Department of Energy.

“They understand why TransCanada would propose some of these creative ideas, but some of them would be a tough lift,” Therriault said.

Alaska Republican Sen. Ted Stevens told legislators last month that it was highly unlikely that Congress would spend more money to help the state get a gas pipeline project moving.

State lawmakers also questioned Energy Department officials on whether the 1989 gas export license granted to Yukon Pacific Corp. could be used by the Alaska Gasline Port Authority to ship liquefied natural gas to Asia.

Federal officials responded that before a decision could be made there would have to be a substantial review process, including how sending Alaska gas to foreign markets would affect domestic prices.

Therriault said the chance to talk directly with federal officials was the real value of the conference. Therriault and other lawmakers met with members of the Federal Energy Regulatory Commission, Department of Energy officials and a few members of Congress. All asked for updates on the gas pipeline process, Therriault said.

“If the Energy Council was held in Poughkeepsie (N.Y.) instead of D.C., I don’t know if I would attend year after year,” Therriault said.

Sitka Republican Sen. Bert Stedman said the trip provides legislators with a perspective on national energy issues that’s often hard to come by in Juneau.

“The more information elected officials have, the better decisions they can make,” he said.

The gathering also gave lawmakers a chance to update representatives of other states on what’s happening in Alaska.

“If nothing else, you get to speak with other legislators who are facing the same problems,” said Charlie Huggins, R-Wasilla.

The council includes legislators from oil-producing states and provinces in the United States and Canada.

Rep. Ralph Samuels, R-Anchorage, said the conference provides a unique opportunity to confer with policymakers and industry.

The entire Alaska delegation was invited Friday to a reception with Enbridge, and later that evening to a dinner hosted by TransCanada. Representatives from Exxon Mobil, BP, ConocoPhillips and BG Group were also around during the conference.

“When you’re in Juneau, you might get to talk to these guys one at a time over a month, but here everyone is in the same place,” Samuels said.

Former state legislator Scott Ogan will speak today on the impact listing of the polar bear could have on energy development in the Arctic and other parts of the country.

Ogan, president of the Alaska chapter of Sportsmen for Fish and Wildlife, said linking the Endangered Species Act and climate change, which the polar bear listing would do for the first time, would open the door to a flood of court challenges by environmental groups.

“If the polar bear is listed, it will affect every energy project in the nation,” he said. “I’m just trying to be the Paul Revere and get the word out.”

While scientists generally agree that it’s difficult to prove climate change is caused by any one specific source, Ogan said that won’t deter environmental groups from trying.

“Proving it and litigating it are different things,” he said. “Some people will litigate just to delay and drive up the costs of a project.”

Rep. John Coghill, R-North Pole, agreed that listing of the polar bear could spell trouble for the Alaska oil patch.

“Don’t go down that road because it’s a roadblock to getting energy for the country,” Coghill said. “They want to use the listing to ratchet up the global warming debate. It’s counterproductive.”

The conference wraps up Sunday, though most legislators said they were heading home today.

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