News from the Alaska State Legislature, the Office of Senator Kelly
For Immediate Release: May 12, 2018

Legislature Helps Deliver Natural Gas to Interior

Kelly_stamp.jpgSenator Pete Kelly
  ~ Send Email
  ~ Web Site

JUNEAU – The Alaska Legislature today took another step toward clean and affordable natural gas in Fairbanks and North Pole with the passage of legislation extending the bonding authorization for the Interior Energy Project (IEP), a critical financing component of the project.

“This bill got tied up in some weird politics in the House,” said Senate President Pete Kelly (R-Fairbanks). “However, we were able to work with rural House legislators from Northwest and Southeast Alaska to get the Fairbanks project over the finish line.”

The IEP was created in 2013 through the passage of SB 23, and is a joint project between the Alaska Industrial Development and Export Authority (AIDEA) and the Interior Gas Utility (IGU). It includes the liquefaction, transport, storage, regasification, and distribution of natural gas in the Interior. Among its financing package, SB 23 included $150 million in bonding authorization that is set to expire in June of this year. Though none of the bonding authorization has been used, the IEP team plans to deploy it to increase capacity of the LNG facility at Point MacKenzie and expand the gas distribution network to the more outlying areas of the community.

This year, construction began on a 5.2 million-gallon large-scale LNG storage facility in South Fairbanks, which will support future customer growth of the combined utility system. First expanded gas availability is expected in late 2019 with full scale efforts to convert properties with access to the existing distribution system to gas the following year.

“Affordable energy was too big a prize for Fairbanks to let this bill die without a fight,” said Sen. Kelly. “My hat is off to Senator Coghill and Senator Bishop for helping me get the job done.”  

The Senate version of the bill, SB 125, was sponsored by Sen. Kelly. 

HB 119 passed the Senate by a vote of 16 to 3 and the House 37 to 3, for a combined vote of 53 to 6. It now goes to the governor’s desk to be signed into law.

For more information, contact Senate Majority Press Secretary Daniel McDonald at (907) 465-4066.

###

icon-facebook.png Share Share this on Twitter Tweet

News & Videos more >

Senator Pete Kelly

Access to Private Property in Dalton Highway Corridor Restored

FAIRBANKS – Today, a bill restoring access rights to private homesteaded property owners in the James Dalton Highway corridor became law.  Full Story >>

Senator Kevin Meyer

Bill Designating 9/11 as Patriot Day Becomes Law

ANCHORAGE – Today, a bill designating September 11 of each year as Patriot Day was signed into law.  Full Story >>

Senator Peter Micciche

Schools Gain New Tool to Fill Vacancies

Today Governor signed a bill allowing school districts to temporarily fill vacancies with qualified retired teachers.  Full Story >>

Senator Cathy Giessel

Senators Respond to Salmon Initiative Decision

Today the Alaska Supreme Court ruled that major portions of Ballot Measure #1 may appear on November’s general election ballot, despite striking down other un-constitutional...  Full Story >>

Senator David Wilson

New Alaska Law Improves Behavioral Healthcare, Saves Money

ANCHORAGE – Today, a bill to increase Alaskans’ access to affordable behavioral healthcare and save state dollars was signed into law.  Full Story >>

Senator Kevin Meyer

New Law Protects Alaska’s Real Estate Market

ANCHORAGE – Today, a bill ensuring that companies in the business of helping Alaskans appraise real estate can continue to operate was signed into law.  Full Story >>

Senator Peter Micciche

Bill Ensuring Clean Air in the Workplace Becomes Law

ANCHORAGE – A bill to protect Alaskans from the adverse health effects of secondhand smoke in the workplace was signed into law this week by Gov. Bill Walker....  Full Story >>

Senator Bert Stedman

Sen. Stedman Sends Criminal Referral for Leak of Confidential Audit

ANCHORAGE – Today, Sen. Bert Stedman (R-Sitka), chairman of the Legislative Budget & Audit Committee, sent the Department of Law a criminal referral for the unauthorized leak of a...  Full Story >>

Senator Bert Stedman

Sen. Stedman Accepts Appointment to National Petroleum Council

ANCHORAGE – Sen. Bert Stedman (R-Sitka) today announced he will serve on the National Petroleum Council (NPC) following his appointment to the board by the Secretary of the Department...  Full Story >>

Senator Peter Micciche

Bill to Reduce Regulatory Burden on Working Alaskans Becomes Law

ANCHORAGE – A bill to reduce the state’s regulatory burden on barbers, hairdressers, hair braiders and those with student loans was signed into law today by Gov. Bill Walker....  Full Story >>

Find your Senator full map