00                   HOUSE CONCURRENT RESOLUTION NO. 19                                                                   
01 Urging the Alaska Industrial Development and Export Authority to present a business                                     
02 case to the Alaska State Legislature that includes a method for financing, a plan to                                    
03 solicit proposals for a public and private venture, and an analysis of the economic                                     
04 feasibility of a state-built and privately operated fuel storage facility that would serve                              
05 the public interest by providing Alaskans with a reliable source of jet fuel, diesel, and                               
06 gasoline at competitive prices.                                                                                         
07 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
08       WHEREAS, after investigating gasoline prices in the state in 2008, both the House                               
09 Judiciary Committee and the attorney general found that the unique structural characteristics                           
10 of Alaska's petroleum products market contribute to historically high gasoline prices when                              
11 compared to prices in other states; and                                                                                 
12       WHEREAS Alaskans rely primarily on three types of liquid fuels: jet fuel, diesel fuel,                          
13 and gasoline; and                                                                                                       
14       WHEREAS the state's geographic isolation, limited options for receiving fuels from                              

01 refineries outside of the state for use in the state, and limited supply storage options increase                       
02 the cost of fuel to users in the state; and                                                                             
03       WHEREAS the state's limited fuel storage capability at ports of entry restricts the                             
04 ability of in-state suppliers to receive bulk shipments of fuel from refiners outside of the state                      
05 to supplement fuels produced by in-state refiners; and                                                                  
06       WHEREAS the inability to store fuels delivered to the state in large volumes results                            
07 in the acquisition of smaller volumes at higher costs; and                                                              
08       WHEREAS the greatest fuel demand in the state is for Jet-A fuel used for aviation,                              
09 heating, and power generation; and                                                                                      
10       WHEREAS the majority of jet fuel used in the state is used at the Ted Stevens                                   
11 International Airport in Anchorage and at the Fairbanks International Airport, the                                      
12 diversionary airport for Anchorage; and                                                                                 
13       WHEREAS diesel fuel is used in vehicles, ships, and boats, and for heating; and                                 
14       WHEREAS gasoline primarily is used in automobiles, boats, snow machines, and                                    
15 recreational vehicles; and                                                                                              
16       WHEREAS the state's demand for diesel and gasoline is the lowest of any state,                                  
17 making it impractical and uneconomical for out-of-state suppliers to ship large quantities of                           
18 fuel products to the state; and                                                                                         
19       WHEREAS the ability to store a significant volume of fuel in the state could provide                            
20 energy security, allow the military in the state to protect national security, meet seasonal                            
21 increased demands for fuel, and protect and enhance the economic viability of the Ted                                   
22 Stevens International Airport; and                                                                                      
23       WHEREAS the preparation of a business case for a fuel storage facility in the state                             
24 that describes the economic viability of a fuel storage facility financed by the Alaska                                 
25 Industrial Development and Export Authority and operated by a third party with storage                                  
26 capacity leased to users, distributors, and other interested parties would assist the Alaska State                      
27 Legislature in plotting the best course to meet the fuel needs of Alaskans at competitive                               
28 prices;                                                                                                                 
29       BE IT RESOLVED that the Alaska State Legislature urges the Alaska Industrial                                    
30 Development and Export Authority to present a business case to the Alaska State Legislature                             
31 that includes a method for financing, a plan to solicit proposals for a public and private                              

01 venture, and an analysis of the economic feasibility of a state-built and privately operated fuel                       
02 storage facility that would serve the public interest by providing Alaskans with a reliable                             
03 source of jet fuel, diesel, and gasoline at competitive prices.