Two House Republicans want to cut funding for the state’s gas line corporation. During a House Finance committee meeting, Rep. Tammie Wilson proposed cutting more than $10 million from the state’s operating budget, earmarked for the Alaska Gasline Development Corporation.
“It doesn’t belong in the operating budget,” Wilson said. “And not just that, I think the bigger discussion is, what project are we talking about and what one are we funding at this point?”
Wilson’s referring to the two separate funds the legislature has funneled money into for two separate gasline projects. One, a smaller diameter in-state pipeline; the other, the massive Alaska LNG project that would pipe gas down for the North Slope, then ship it to markets in Asia.
Anchorage Republican Lance Pruitt proposed a similar amendment to the budget, highlighting the corporation’s mission to develop gas infrastructure.
“Well if they’re an infrastructure project, shouldn’t they be competing with the other infrastructure projects that are out there,” Pruitt said.
Pruitt and Wilson say infrastructure projects should compete for capital funds, not money used to operate the state.
The two Republicans got some pushback from other members of the finance committee.
Rep. David Guttenberg, D-Fairbanks, said the corporation is working on two gasline projects as one is a backup for the other.
Additionally, Guttenberg said, Gov. Bill Walker has been communicating with the federal government and cutting funds for the corporation could send a mixed message.
“If we start pulling this money back, it’s going to tell them that we don’t really care and they don’t have to do anything. We don’t want to do that,” Guttenberg said.
Wilson’s amendment was shot down on a 7-3 vote.
Corporation spokesperson Rosetta Alcantra said it’s not clear what the agency will do if that transfer isn’t approved.
“We haven’t fleshed out a plan,” Alcantra said.
Alcantra said the corporation would try to use the funds it currently has, but didn’t elaborate on how. She said the corporation has taken steps to be more transparent to lawmakers. She says it has been giving bi-monthly reports to legislators. And, offering a deeper dive for legislators willing to keep quiet.
“We’ve also been asked about working with individual legislators to do a confidentiality agreement,” Alcantra said. “We have started that ball rolling, AGDC is very interested in working with the legislature and the ones, the individuals who want to peek in the tent.”
So far, Alcantra said, no one has signed one of those agreements.
Rashah McChesney is a photojournalist turned radio journalist who has been telling stories in Alaska since 2012. Before joining Alaska's Energy Desk, she worked at Kenai's Peninsula Clarion and the Juneau bureau of the Associated Press. She is a graduate of Iowa State University's Greenlee Journalism School and has worked in public television, newspapers and now radio, all in the quest to become the Swiss Army knife of storytellers.
