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Dear friends and
neighbors,
Supporting A Gasline for Alaskans (SAGA)
The SB
280,
Governor's "most important bill this session", is in its 32th
hearing in Senate Resources Committee since March 20. To see
those meetings, scroll down to the Senate Resources meetings
section.
Progress:
Working every day to get
gas pipeline bill passed and to Governor.
May 14th - 3:30pm - Recorded
Meeting, Documents, Presentation
SB 280 - Supporting A
Gasline for Alaskans Act
· Dept of Revenue Presentation
May 15th - 9:00am - Recorded
Meeting, Documents, Presentation
SB 280 - Supporting A
Gasline for Alaskans Act
May 15th - 3:30pm - Recorded
Meeting
SB 280 - Supporting A
Gasline for Alaskans Act
Glenfarne is a private
company, came to our state,
requiring no taxes on a gaspipeline with Alaska’s gas.
· They are positioned to make more than $6.8
billion on this project…if we do what Governor Dunleavy wants to
do.
· but they share no financial information with
us
Governor's bill on March
20 proposes elimination of
all taxes for local and state government.
· Essentially no taxes allowed.
· State of Alaska= Zero from FY27-30; up to $9
million/year from 2034-36.
· Communities = Zero FY27-30, then up $65
million/year by 2036.
· This is devastating for local government. We
work to find middle ground – support pipeline, support local
government.
Alaska jobs - Glenfarne says 12,000
jobs but currently only labor agreement is with Lower 48 unions.
· Alaska doesn’t have enough workforce or
specialized skills to fill 12,000 jobs.
· In Senate bill - require priority Alaska hire
Economic development – Glenfarne plans work
camps with restricted entrance and egress.
· Workforce will arrive and leave in work
rotations, workers live in camp and return to home state on
rotation just like North Slope workforce does now
· Our bill requires preference for Alaska
vendors/companies
Work camps – contract with supplier
for food/amenities
· contract for self-contained
EMS/healthcare/emergency services
Loss of revenue – Alaska has no income
or education tax
· Lower 48 workforce wages will deposit in Lower
48 banks in hometowns of vast workforce.
· (When TAPS was built, Alaska had income tax
and education tax.)
Transportation impact – Glenfarne has highway
use agreement with Alaska DOT
· Glenfarne will “repair” road impacts
themselves.
· Alaska Railroad tells us they will lease added
flat cars, engines; expand tracks
Investors – Glenfarne currently
talking to East Coast banks.
· US Dept of Energy/Energy Dominance loan
possible but not currently secured
· AIDEA bond/loans may be possible but $Billions
needed.
Local impacts – North Slope Borough
and Kenai Borough
· both say they want to negotiate their own tax
structure,
· both indicate Legislature should not pass any
legislation so they can negotiate their own structure.
Affordable energy
· Governor’s estimates are $12/mcf with just
pipeline; $5/mcf with export; these are incorporated into the
Senate bill.
· Must add utility service charge to any price
of gas to get a real number.
· Governor assumes zero cost overruns and no
delays
· Glenfarne says they will be responsible for
any cost overruns; that was put in Senate bill.
· Glenfarne numbers assume a 10% return but
industry standard is 12-15%.
Fairbanks needs a spur to bring gas to the city
· Not part of Glenfarne plan
· Senate bill requires it
Senate wants this project
to successfully happen.
· costs should not be borne on the fiscal backs
of Alaskans who will end up paying exorbitant costs of
construction.
· Construction costs are very real and would
fall on Alaskans in prices for the gas commodity.
· Senate says cost overruns not allowed to fall
on gas customers
There is a middle ground.
· It takes more than 2 months to develop
· a complex policy
· for largest gigaproject in North America
· that has generational impact
· This needs to be done right
· this requires transparency about actual cost
(Glenfarne will not share this)
Better plan:
· Investors and legislators need to know actual
costs with secure numbers
· Glenfarne not done with this yet
· Glenfarne should continue to appeal to
investors to get the funds.
· Called Final Investment Decision
· Legislature should continue to be included as
partner, representing the people of Alaska.
· Glenfarne and Legislature should continue to
work together on this gasline for Alaskans
· This takes longer than 2 months.
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