I've been blessed to represent southwest Anchorage and the input you've given me has been invaluable.
The ideas you've shared in emails, phone calls and at your door have helped me write policy that has had
a positive change on our neighborhood and the state of Alaska. Together we've built parks and better
football, soccer and softball fields so that our kids have healthy alternatives. We've tackled the tough
issues we face today like domestic violence, crime and traumatic brain injury. But we've also looked to
our future and laid a foundation for innovation, economic development and a bright future for our
children.
I have always found that the best ideas for legislation come from listening to Alaskans. That is why
I insisted that the Legislature hold hearings across the state before developing an energy policy.
From Southeast to Northwest and from Anchorage to small villages on the Yukon we held hearing after
hearing in order to understand what Alaskans wanted from an energy policy. By working with Alaskans
rather than dictating solutions from Juneau, we developed policies that will drive Alaska's economy
into the future.
I firmly believe that it is important for the legislature to get out of Juneau and bring the policy
debates about the challenges Alaska faces back to Alaskans. We can do this not by moving the capitol,
but by expanding the committee process and taking committee hearings to different parts of the state.
As the chair of the Senate Energy Committee and the special Committee on World Trade, Technology
and Innovation I have always held hearings during the interim because I believe that you cannot wait
to go to Juneau to find out what Alaskans think. As your Senator I will continue to bring the
Legislature's work back to our community so that we can all engage in the process. After all, it has
been your help that has made me successful in fighting for our district and Alaska.
Our Economy
Even though it is declining, oil production still provides one third of the jobs and 90% of
Alaska's general fund revenues. Making Alaska a competitive place to do business and opening our
doors to development is critical if we are to maintain the level of prosperity we have enjoyed for
the past forty years. But making Alaska competitive does not mean giving away Alaska's resources.
Article eight of Alaska's constitution states that Alaska's resources should be developed "for
the maximum benefit of its people." Oil production must benefit both Alaskans and the companies
that invest in Alaska. This last session I sponsored a bill that made several small changes to
Alaska's oil tax system that both encourage exploration for new resources and correct unfair aspects
of our tax system. Although that bill was signed into law, some of the other initiatives I offered
were not.
Working with my colleagues I developed a method of incentivizing Alaska hire that will pass
constitutional muster. The Supreme Court has said we cannot mandate a certain level of Alaska hire,
but we certainly can make tax credits contingent on Alaska hire. I strongly feel that if we are willing
to be creative and work together, we can make our tax system benefit both industry and Alaska;
strengthening the partnership that has made Alaska a global leader in the responsible development of
oil and natural gas.
Natural Gas Supply
Anchorage depends almost entirely on natural gas for both our space heating and electricity.
The existing natural gas fields in Cook Inlet are running out and in the near term we have a
problem producing enough gas on the coldest days of winter to meet the demand for it. That is why
during the last session I worked on both near term and long-term solutions to our gas supply problem.
To deal with the near term problem I introduced legislation that offered incentives to new drilling
in the Inlet. Following the passage of my Senate Bill 309, Alaska saw the most competitive lease sale
we have seen in years in the Cook Inlet. With these new incentives industry is being attracted back
to the Inlet. More investment will lead to more drilling, new discoveries of natural gas and good
jobs in Southcentral.
But drilling alone won't solve our problem. That is why I led the fight to develop a bullet line
from the North Slope to Southcentral. In addition to the big export projects (AGIA and Denali) we will
have a plan to build a bullet line done by next July and be ready to move forward regardless of whether
a large project is going to work. If a big project is going to happen however, all the work we are
doing on a bullet line applies to a spur line and enable gas to be delivered to Alaskans.
By incentivizing new development in Cook Inlet today and preparing to build a bullet line
tomorrow, Alaska is taking the steps necessary to secure our economic foundation for the next
generation.
Renewables
Alaska's economy will always depend on the development of our nonrenewable resources. More and
more however, we need to find ways to meet Alaska's energy needs with renewable sources of energy
so that we can export hydrocarbons for revenues. During the last legislative session I pushed to
appropriate funding to start the permitting and preconstruction work on a large hydroelectric
project. Whether it is a scaled down Susitna Dam or the Chakachamna project, Alaska will benefit from
the low cost, reliable power hydroelectric provides.
I also worked to rewrite Alaska's regulatory system for geothermal power (Senate Bill 143) and
this year, companies are already drilling for geothermal resources near Mt. Spurr. Like hydropower,
geothermal provides the type of clean, reliable, stably priced power industry needs to invest.
By modernizing our regulations, we've ensured that this promising resources will be developed safely
and bring new revenues to the State.
But like traditional resource development projects, renewables face the same permitting and
regulatory battles Alaskans are all too familiar with. That is why I worked with industry and
stakeholders to streamline the regulatory process for renewable resource development. By cutting
through the red tape we've managed to encourage private sector development in our renewable sector.
For example, the geothermal project at Mt. Spurr and the wind project at Fire Island represent more
than $500 million in private sector spending. These two project potentially will provide hundreds of
good paying jobs and clean power for our economy.
Conservation
As we develop our renewable and nonrenewable resources we must also consider how efficiently we
use our resources. Currently, the State spends more than $50 million per year on electricity, water
and heat for State buildings. By investing in energy efficiency we can save millions each year
and generate thousands of good paying jobs. This session I took the lead in developing the Omnibus
Energy bill (Senate Bill 220) which included a revolving loan fund for retrofitting public
facilities. This program will not just benefit the State, but also enable the Municipality of
Anchorage, our School District and the University of Alaska to retrofit their facilities.
By making public buildings more energy efficient we can save taxpayer money and make sure
funding goes to classrooms and programs rather than unnecessary heating bills.
Innovation
Alaska's vast renewable energy resources and unique challenges also make it the perfect laboratory
to test emerging energy technologies. Whether it is small scale wind power or diesel fuel from fish
waste, coal or biomass, Alaska can be a leader in developing, testing and commercializing the next
generation of energy technology. Just as we have led the world in horizontal drilling and other oil
and gas related technologies we can be the leader in innovative energy solutions for the next generation.
This is why I fought so hard to create the Emerging Energy Technology Fund, which through a pilot
project from the Denali Commission and now state funds, is already leading to the testing of new
technologies in Alaska. I want to see an Alaska where the next energy technologies are developed
here and then exported to the world.
Social Issues
Alaska has one of the highest rates of brain injury in the nation and yet there was no
specific program in the state that addresses brain injuries. As a result, Alaska urban and
rural residents are being discharged to their homes with little understanding of brain injury or
access to in-state rehabilitation, severely impacting their families. This session, I sponsored
SB 219, a first step to helping survivors cope by allowing State government to address this issue.
In recognizing the importance of collaboration, the bill creates an opportunity for private,
public, tribal, and military entities to work together to begin building a comprehensive brain
injury program in the state. In creating a brain injury specific program, it is important to
evaluate, supervise, and coordinate standards for and availability of services for survivors. And
without the proper data, it is impossible to determine what services are best and recommendations
for improvement of prevention, assessment, treatment and care; therefore, the Department of Health
and Social Services will track brain injury survivors over a period of time. It is my hope that
we will be able to reduce the incidence of brain injury but also to better provide for
those who are survivors.
