Homer Alaska - Business

House Speaker Mike Chenault, R-Nikiski, wants a bullet line that would transport North Slope gas to Southcentral ready for construction in a little more than year from now, with gas flowing by 2015.

Chenault, who has been pushing hard for the development of an in-state project, introduced legislation that questions the need for having two separate entities overseeing the project and proposes creating a joint in-state gasline development team within the governor's office.

Chenault said that currently both the Alaska Natural Gas Development Authority and the in-state gas pipeline coordinator are trying to address the state's gas future, creating friction in the process.

"One of the more contentious issues we've dealt with for a number of years is people liking one organization more than another and how to fund them both," Chenault said.

In December, Gov. Sean Parnell appointed Bob Swenson to the position of in-state gas pipeline coordinator following the November departure of the former chief, Harry Noah.

Noah, who was appointed by then-Gov. Sarah Palin, testified at a hearing of the House Resources Committee Dec. 15 that the state is working in too many areas.

Chenault's House Bill 369 proposes that instead of waiting for the construction of a much larger trans-Canada project from which to build a spur line, the two organizations combine and include input from several other state agencies.

Chenault suggested in his bill that the team be led by the chief executive officer of the Alaska Railroad Corp., and include the commissioner of the Department of Transportation and Public Facilities, the CEO of the Alaska Natural Gas Development Authority and the in-state gas pipeline coordinator.

Chenault called for the inclusion of the DOT and the Alaska Railroad because the two agencies own large rights-of-way through the state.

The bill also proposes the creation of an in-state gasline steering committee consisting of the president of the Alaska State Senate, the Alaska State House Speaker, the commissioners of the departments of Labor and Commerce, the chair of the Regulatory Commission of Alaska, the executive directors of the permanent fund, Alaska Housing Finance Corp. and Alaska Industrial Development and Export Authority.

It also would include 16 individuals from the public and private sector, as well as municipalities.

"We want to put together an advisory committee with a diverse background of knowledge to get this project moving forward instead of sitting here thinking about it," Chenault said.

He acknowledged that too many heads can sometimes encumber projects, but he added: "I expect there to be a strong chairman of the development team and a strong chairman will be able to leave the discussion and look at the fact versus the fiction."

Chenault is not the only legislator to call for the Alaska Railroad to become involved in the ultimate construction of a bullet line.

Republican Sen. Lesil McGuire, of Anchorage introduced legislation that would expand the Alaska Railroad's authority and direct it to pursue matters like permitting and financing of a so-called bullet line.