02/01/2005 05:00 PM House OIL & GAS

HB 32-APPROP: GRANT TO ARCTIC POWER FOR ANWR                                                                                  
                                                                                                                                
CHAIR KOHRING  announced that the  first order of  business would                                                               
be HOUSE BILL NO. 32, "An  Act making a special appropriation for                                                               
a grant  to Arctic  Power to  promote the  opening of  the Arctic                                                               
National  Wildlife  Refuge  for   oil  and  gas  exploration  and                                                               
development; and providing for an effective date."                                                                              
                                                                                                                                
5:34:52 PM                                                                                                                    
                                                                                                                                
CHAIR  KOHRING, speaking  as the  sponsor, explained  that HB  32                                                               
appropriates  $1.2 million  from the  general fund  (GF) to  fund                                                               
Arctic  Power, a  private nonprofit  organization that  advocates                                                               
for the  opening of  Arctic National  Wildlife Refuge  (ANWR) [to                                                               
oil exploration and development].   He said, "[The appropriation]                                                               
is to  fund [the Arctic Power]  budget, or at least  a portion of                                                               
their  budget,  so that  they  can  advertise and  cover  related                                                               
expenses as it relates to advocating  for the opening of ANWR and                                                               
encouraging   congressmen  to   vote   in   the  affirmative   on                                                               
legislation that they'll have before  them in [Washington D.C.]."                                                               
He noted that the bill  also includes a $100,000 appropriation to                                                               
the  Native Village  of  Kaktovik for  community  outreach in  an                                                               
effort to gain the community's support of the opening of ANWR.                                                                  
                                                                                                                                
CHAIR KOHRING remarked that he  views [the proposed appropriation                                                               
to Arctic  Power] as a small  amount of money when  one considers                                                               
the potential payoff.   He stated that there are  estimates of as                                                               
much  as  ten billion  barrels  of  oil  in the  Arctic  National                                                               
Wildlife Refuge (ANWR).   He opined that, if  [the U.S. Congress]                                                               
is  able to  get  legislation  passed and  signed  into law,  the                                                               
potential  return   will  be  phenomenal   and  well   worth  the                                                               
investment of $1,200,000.  He  remarked that [the legislature] is                                                               
trying to open the Coastal Plain  of ANWR for oil exploration and                                                               
development, not  ANWR as a  whole.  He  said, "In the  course of                                                               
exploring and  developing that area,  we're expecting  that there                                                               
will likely be some additional  unforeseen discoveries that could                                                               
be added to  the potential that is estimated up  there that could                                                               
further reduce our country's need  for imported oil and help with                                                               
our  trade   deficit  and  perhaps  even   improve  our  national                                                               
security."                                                                                                                      
                                                                                                                                
CHAIR KOHRING noted  that Arctic Power has been  in existence for                                                               
12 years  and it received  a $1.8 million appropriation  from the                                                               
legislature two  years ago.   He said,  "We really feel  that the                                                               
timing  is critical  on  this, too.   We  have  a very  opportune                                                               
situation here  where ...  Congress is  very amenable  to opening                                                               
ANWR....    We've  got a  substantial  number  of  prodevelopment                                                               
people who  believe in  enhancing our oil  and gas  industry, and                                                               
that like to support  ANWR.  So the time is  right to really push                                                               
this issue  now.  And then  of course President [George  W. Bush]                                                               
is very supportive  as well and he's pledged  to sign legislation                                                               
if it were to be produced from Congress."                                                                                       
                                                                                                                                
5:37:58 PM                                                                                                                    
                                                                                                                                
KEVIN HAND,  Executive Director,  Arctic Power, said  that Arctic                                                               
Power is  a "nonprofit, grassroots  organization of  citizens and                                                               
businesses from  across Alaska and  across the  nation advocating                                                               
for responsible  exploration and development of  the region which                                                               
contains  [the Coastal  Plain] of  the  Arctic National  Wildlife                                                               
Refuge."   He noted  that Arctic Power  has active  education and                                                               
advocacy programs that are currently  underway in Washington D.C.                                                               
The  programs provide  information such  as caribou  numbers, and                                                               
statistics  on the  nation's  dependence on  foreign  oil to  the                                                               
Alaska delegation  and other members  of Congress.   Arctic Power                                                               
facilitates congressional  tours to  ANWR, and  sends delegations                                                               
of Alaskans to Washington D.C.                                                                                                  
                                                                                                                                
MR. HAND remarked:                                                                                                              
                                                                                                                                
     There is  no one else  out there focused  on advocating                                                                    
     on behalf  of Alaska  for ANWR,  besides ...  of course                                                                    
     our  congressional delegation.    We know  that we  ...                                                                    
     could not  list on  one piece of  paper all  the groups                                                                    
     out there that are opposing  us in this endeavor.... We                                                                    
     are  outspent  many  times over  by  the  environmental                                                                    
     organizations;  it's  an impossibility,  unfortunately,                                                                    
     to match their resources."                                                                                                 
                                                                                                                                
MR. HAND noted  that [the U.S. House Committee  on Resources] put                                                               
out a  press release today with  new poll results showing  that a                                                               
majority of  Americans support responsible development  ANWR.  He                                                               
said,  "The   amount  of  support   with  Americans  is   ...  up                                                               
considerably when  they are  given a  'common sense'  approach to                                                               
responsible  development of  ANWR."   He said  that the  poll was                                                               
facilitated and paid for by Arctic Power.                                                                                       
                                                                                                                                
5:45:32 PM                                                                                                                    
                                                                                                                                
MR. HAND  said that Arctic Power  has a database that  contains a                                                               
record  of every  meeting that  has ever  taken place  between an                                                               
Alaskan and  a member  of Congress regarding  the issue  of ANWR.                                                               
He also  said that  Arctic Power  assembles advocacy  pieces with                                                               
state-by-state  statistics  including  information  on  predicted                                                               
revenue and jobs generated.   He described several coalitions and                                                               
alliances that Arctic Power has  built in Congress and with other                                                               
grassroots organizations.   He outlined  other work  performed by                                                               
Arctic  Power  that "sort  of  [goes]  unnoticed, ...  under  the                                                               
radar,"   including  providing   talking   points  and   advocacy                                                               
materials to legislators.                                                                                                       
                                                                                                                                
MR. HAND remarked:                                                                                                              
                                                                                                                                
     We're going to face  considerable challenges this year.                                                                    
     The green community  is not going to go  away without a                                                                    
     fight.   I understand  that ...  they're going  to come                                                                    
     out with a new caribou  study to combat and ... inflame                                                                    
     the  environmental  argument  in  that  regard....  And                                                                    
     these attacks are only going  to increase as we come to                                                                    
     fruition  here, come  to a  vote  on the  floor of  the                                                                    
     House and the  Senate.  Arctic Power is  ready; we just                                                                    
     require  the resources  to accomplish  all that  we are                                                                    
     asked to  do by the delegation....  Private fundraising                                                                    
     has  been  undertaken  in earnest.  ...  We  definitely                                                                    
     believe ...  that the benefits  to Alaska  far outweigh                                                                    
     any costs.                                                                                                                 
                                                                                                                                
5:52:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS  moved to  report HB  32 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
note.   There being  no objection,  HB 32  was reported  from the                                                               
House Special Committee on Oil and Gas.