Legislature(2015 - 2016)

2015-04-18 House Journal

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2015-04-18                     House Journal                      Page 1026
HB 132                                                                                                                        
The following letter was dated and received April 17, 2015, at                                                                  
3:35 p.m.:                                                                                                                      
"Dear Speaker Chenault:                                                                                                         
Under the authority vested in me by Article II, Section 15 of the                                                               
Alaska Constitution, I have vetoed the following bill:                                                                          
     CS FOR HOUSE BILL NO. 132(L&C)                                                                                             
     "An Act relating to the purpose, powers, and duties of the Alaska                                                          
     Gasline Development Corporation related to the Alaska liquefied                                                            
     natural gas project and an in-state natural gas pipeline; relating to                                                      
     the in-state natural gas pipeline fund; and providing for an                                                               
     effective date."                                                                                                           
A key purpose of the Alaska Gasline Development Corporation                                                                     
(Corporation) is to develop natural gas pipelines and other                                                                     
transportation mechanisms to deliver natural gas in-state for the                                                               
maximum benefit of the people of Alaska and to provide revenue to                                                               
the State. I object to the bill as contrary to the purposes of the                                                              
Corporation and Alaska's interests. The bill would stifle the                                                                   
Corporation's ability to advance a viable backup option for a natural                                                           
gas pipeline by limiting the ability of the Corporation to spend money                                                          
or take any step to develop an in-state natural gas pipeline through                                                            
which over 50 percent of gas is intended for export by the Corporation                                                          
or another party, until the earliest of certain specified actions or July 1,                                                    
This flaw cannot be fixed by simply adjusting the time barriers,                                                                
because any barrier removes Alaska's leverage in the Alaska liquefied                                                           
natural gas (AKLNG) negotiations and, at the same time, prevents                                                                

2015-04-18                     House Journal                      Page 1027
consideration of a backup option. We cannot afford to proceed with                                                              
blinders of our own making. To be forced to wait over two years to                                                              
develop a viable backup plan would result in no backup plan at all.                                                             
This is a risk I cannot accept. Additionally, CSHB 132(L&C) creates a                                                           
limitation on Alaska marketing Alaska's gas. This limitation goes                                                               
beyond the July 1, 2017 date with no end date on this restriction.                                                              
Therefore, I am vetoing CSHB 132(L&C) because the bill would                                                                    
unnecessarily limit the ability of the State to have our own backup                                                             
plan for a successful gas project that would provide energy to Alaska                                                           
and revenues for Alaska's economic future. I will not subject Alaska to                                                         
this risk in light of our budget situation. My veto does not hamper                                                             
progress on an AKLNG project. Instead, my decision ensures the State                                                            
can move forward in a manner consistent with the assurance that                                                                 
should AKLNG not proceed for any number of reasons, Alaska has a                                                                
legitimate backup plan in place.                                                                                                
We remain diligent in our efforts to move forward on the AKLNG                                                                  
project as our first priority. My decision to veto CSHB 132(L&C) does                                                           
not impede the advancement of the AKLNG project. Instead, my                                                                    
decision will allow the State to move forward, as any responsible                                                               
project developer would; by preserving flexibility to develop and                                                               
negotiate the best result for the state.                                                                                        
For these reasons, I have vetoed CSHB 132(L&C).                                                                                 
Bill Walker