Legislature(2025 - 2026)BUTROVICH 205
03/20/2025 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SJR12 | |
| SB104 | |
| SJR11 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SJR 12 | TELECONFERENCED | |
| *+ | SB 104 | TELECONFERENCED | |
| *+ | SJR 11 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 20, 2025
1:35 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Löki Tobin, Vice Chair
Senator Jesse Kiehl
Senator Mike Shower
MEMBERS ABSENT
Senator Bert Stedman
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 12
Urging the United States Congress and the National Oceanic and
Atmospheric Administration to address outages of National Data
Buoy Center stations.
- HEARD & HELD
SENATE BILL NO. 104
"An Act relating to the transfer of a title on the death of the
owner; and providing for an effective date."
- HEARD & HELD
SENATE JOINT RESOLUTION NO. 11
Urging the United States Congress to enact a Jones Act waiver to
facilitate transportation of domestic liquefied natural gas
between ports in the state.
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SJR 12
SHORT TITLE: NOAA BUOY OUTAGES
SPONSOR(s): SENATOR(s) DUNBAR
02/26/25 (S) READ THE FIRST TIME - REFERRALS
02/26/25 (S) TRA
03/20/25 (S) TRA AT 1:30 PM BUTROVICH 205
BILL: SB 104
SHORT TITLE: VEHICLES/BOATS: TRANSFER ON DEATH TITLE
SPONSOR(s): SENATOR(s) KAWASAKI
02/19/25 (S) READ THE FIRST TIME - REFERRALS
02/19/25 (S) TRA, STA
03/20/25 (S) TRA AT 1:30 PM BUTROVICH 205
BILL: SJR 11
SHORT TITLE: JONES ACT WAIVER FOR LNG SHIPS
SPONSOR(s): SENATOR(s) MYERS
02/26/25 (S) READ THE FIRST TIME - REFERRALS
02/26/25 (S) TRA
03/20/25 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
SENATOR FORREST DUNBAR, District J
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SJR 12.
JOHN GUTHRIE, Maritime Operations Project Manager
Prince William Sound Regional Citizens Advisory Council
(PWSRCAC)
Valdez, Alaska
POSITION STATEMENT: Testified by invitation on SJR 12.
SENATOR SCOTT KAWASAKI, District P
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 104.
JENNA COLQUHOUN, Staff
Senator Scott Kawasaki
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions on SB 104.
LINDA HUBERT, Agent
New York Life Insurance Company
Fairbanks, Alaska
POSITION STATEMENT: Testified by invitation on SB 104.
ABIGAIL O'CONNOR, Attorney
O'Connor Law LLC
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation on SB 104.
SENATOR ROBERT MYERS, District Q
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SJR 11.
MEAD TREADWELL, Chief Executive Officer (CEO)
Qilak Liquified Natural Gas (LNG)
Lloyd's Energy
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation on SJR 11.
ACTION NARRATIVE
1:35:18 PM
CHAIR BJORKMAN called the Senate Transportation Standing
Committee meeting to order at 1:35 p.m. Present at the call to
order were Senators Tobin, Kiehl, Shower, and Chair Bjorkman.
SJR 12-NOAA BUOY OUTAGES
1:36:16 PM
CHAIR BJORKMAN announced the consideration of SENATE JOINT
RESOLUTION NO. 12 Urging the United States Congress and the
National Oceanic and Atmospheric Administration to address
outages of National Data Buoy Center stations.
1:36:24 PM
CHAIR BJORKMAN solicited a motion.
1:36:26 PM
SENATOR TOBIN moved to adopt the committee substitute (CS) for
SJR 12, work order 34-LS0449\H, as the working document.
1:36:40 PM
CHAIR BJORKMAN found no objection and CSSJR 12 was adopted as
the working document.
1:37:10 PM
SENATOR FORREST DUNBAR, District J, Alaska State Legislature,
Juneau, Alaska, introduced SJR 12. He paraphrased from the
following sponsor statement:
[Original punctuation provided.]
SPONSOR STATEMENT
SJR 12: NOAA BUOY OUTAGES
SJR 12 calls attention to a small but important piece
of federal infrastructure: National Data Buoy Center
meteorological stations. Weather buoys provide
important data points for forecasting models and real
time observations that are critical to safe fishing
and navigation in coastal Alaska. They inform mariners
decisions on when to leave harbor and when to return.
Of particular concern is the Seal Rocks Buoy in Prince
William Sound. The Coast Guard relies on this station
to determine if conditions in Hinchinbrook Entrance
are safe for the transit of laden oil tankers
departing the Alyeska Terminal in Valdez. Like many
other NDBC meteorological stations in Alaska, the Seal
Rocks Buoy has experienced lengthy service outages in
the last few years, including the entirety of last
winter. Currently, it has been non-functional since
October 2024. Without this station, the Coast Guard
must rely on spot reports from passing ships and data
from more distant stations to estimate conditions in
Hinchinbrook Entrance.
This situation is dangerous. Hinchinbrook Entrance is
narrow; if a tanker were to lose control there would
be very little time to prevent it from grounding.
Attaching a tow line or performing any other rescue
operations is very difficult in high winds and waves.
If a tanker did ground in bad weather, Prince William
Sound would experience a repeat of the Exxon Valdez
disaster. This would be devastating for the local
environment, fisheries, and tourism. It would cost the
state and federal government tens of billions of
dollars to clean up. When the stakes are this high, it
is essential that safety equipment like the Seal Rocks
Buoy kept in service.
1:38:59 PM
SENATOR DUNBAR continued to paraphrase from the sponsor
statement for SJR 12:
[Original punctuation provided.]
SJR 12 will convey this information to Alaska's
Congressional delegation and the National
Oceanographic and Atmospheric Administration, the
parent agency of NDBC. It will ask NOAA to restore
reliability to NDBC and Seal Rocks Buoy service and
ask Congress to ensure NOAA has the resources to do
so. At a time when federal agencies and services are
under threat, it is important to remind decision-
makers that these functions are critical to Alaska.
1:39:45 PM
JOHN GUTHRIE, Maritime Operations Project Manager, Prince
William Sound Regional Citizens Advisory Council (PWSRCAC),
Valdez, Alaska, gave a brief overview of PWSRCAC. He stated that
oil from the EXXON Valdez can still be found on the beaches
throughout the region and briefly discussed the negative impacts
the EXXON-Valdez oil spill had on wildlife and residents of the
affected communities. He stated that the Prince William Sound
has one of the most comprehensive oil prevention systems in the
country and described this system. He said that weather
information in remote locations is critical to the safe
transportation of oil in the region. He noted that PWSRCAC is
primarily focused on the prompt maintenance of buoys that aid in
oil spill prevention and response; however, he acknowledged that
those stations provide weather information that increases safety
for a wide range of maritime activities.
MR. GUTHRIE expressed particular concern for the weather buoy at
Seal Rocks, which has been functional for only 35 days over the
past year and a half. He briefly explained the ways that weather
impacts safe travel through the area. Data from the buoy allows
the Coast Guard to accurately determine when the passage at
Hinchinbrook Entrance should be closed. When buoy data is not
available, the Coast Guard must rely on data compiled from less
accurate sources. He expressed concern about the safe passage of
oil tankers and accompanying tugboats in high winds and waves.
1:42:02 PM
MR. GUTHRIE stated that having an operational Seal Rocks buoy is
critical to ensuring that loaded tankers and escort tugboats are
only in Hinchinbrook Entrance when winds and seas are below the
closure limits. He reiterated that all National Data Buoy Center
(NDBC) buoys in Alaska provide an invaluable service. The Seal
Rocks Buoy is of particular importance as it is a key component
to the oil spill prevention system in the Prince William Sound.
He emphasized that the risk of another oil spill increases
whenever the buoy is not working.
1:43:04 PM
SENATOR SHOWER asked about buoy maintenance.
1:43:58 PM
MR. GUTHRIE replied that PWSRCAC submitted a National Data Buoy
Center (NDBC) funding request through Senator Murkowski's
office. PWSRCAC is primarily focused on the buoys that impact
oil transportation. He explained that NDBC funds those buoys,
though they do occasionally rely on USCGC Fir (WLB-213), the
Coast Guard buoy tender located in Cordova. Sometimes a vessel
is chartered to perform maintenance work.
1:44:39 PM
SENATOR SHOWER suggested that Senator Sulivan would also be a
good contact.
1:44:55 PM
SENATOR KIEHL agreed that the sensors and systems around Valdez
are important. He emphasized the importance of ensuring that all
buoys in the state are functional, as this increases the safety
of those on the water.
1:45:53 PM
SENATOR DUNBAR responded to Senator Shower's comment. He stated
that Senator Sullivan is one recipient of SJR 12. He then turned
to Senator Kiehl's comment and expressed agreement. He explained
that SJR 12 applies to all buoys throughout the state. He
emphasized that buoy maintenance is a statewide life safety
issue. He pointed out that some members of Congress may not
understand Alaska's unique needs and the ways in which Alaskans
rely on the National Oceanic Atmospheric Administration (NOAA)
and the National Weather Service. He opined that it is important
to communicate those needs to Congress.
1:47:02 PM
CHAIR BJORKMAN emphasized the importance of buoy data reports to
ensure the safety of all navigators.
1:47:59 PM
[CHAIR BJORKMAN held SJR 12 in committee.]
1:48:01 PM
At ease.
SB 104-VEHICLES/BOATS: TRANSFER ON DEATH TITLE
1:48:44 PM
CHAIR BJORKMAN reconvened the meeting announced the
consideration of SENATE BILL NO. 104 "An Act relating to the
transfer of a title on the death of the owner; and providing for
an effective date."
1:49:10 PM
SENATOR SCOTT KAWASAKI, District P, Alaska State Legislature,
Juneau, Alaska, Sponsor of SB 104, introduced himself.
1:49:18 PM
JENNA COLQUHOUN, Staff, Senator Scott Kawasaki, Alaska State
Legislature, Juneau, Alaska, introduced herself.
1:49:22 PM
SENATOR KAWASAKI paraphrased from the sponsor statement for SB
104:
[Original punctuation provided.]
Senate Bill 104
Sponsor Statement
"An act relating to the transfer of a title on the
death of the owner; and providing for an effective
date."
The death of a family member is a difficult experience
for any person. It is an emotional process we all have
or will face that drains an individual's stamina and
motivation. Add to that the legal complications and
costs this familial absence inflicts on a household,
it is no wonder that a death in the family is one of
the most stressful events in a person life. Going
through the probate process can cost a family
thousands, potentially tens of thousands of dollars in
legal and filing fees at a time when an individual is
less able to cope with such financial pressure. SB 104
would provide an option for Alaskans to alleviate such
pressures when a loved one passes.
SB 104 aims to continue the work of the Uniform Real
Property Transfer on Death Act (URPTDA). This piece of
legislation passed in 2014 with unanimous support from
both the House and the Senate and created the Transfer
on Death (TOD) deed, which allows for nonprobate
transfers of real property. TOD deeds allow Alaskans
to select a beneficiary who will receive the property
at their passing and removes that property from the
process of probate which can take anywhere from 6
months to several years to complete. At this time, a
TOD deed cannot be issued for boats and other vehicles
for which the DMV issues titles. SB 104 would
ameliorate this situation.
This piece of legislation would continue the ongoing
effort to reduce costs and stress of probate for
Alaskans by creating a streamlined service through the
DMV through which any Alaskan can designate
beneficiaries for both vehicles and boats by filling
out a simple form. With this TOD deed, an Alaskan
would be able to gain access to a vehicle or boat much
faster than if they had to go through the probate
process. This may seem like a moot point but consider
a situation where a family runs a fishing business
from their family boat. That boat is a crucial part of
the business and not being able to use it for even a
month could lead to bankruptcy. SB 104 would be a
ensure such a situation would not happen.
The TOD titles will be available for all boats and
vehicles for which the DMV provides titles, which also
includes some mobile manufactured homes under
AS.45.29.102(66). The program would be self-sustaining
though the fees collected from the individuals who
file for the TOD deeds.
At no cost to the state, SB 104 will allow countless
Alaskans to pass down boats, vehicles, and some
manufactured homes to beneficiaries with more ease and
will help simplify the potentially complicated,
costly, lengthy, and painful process of probate
following the death of a loved one.
1:51:57 PM
SENATOR TOBIN noted her previous work experience helping
individuals craft estate plans for charitable giving and
commented that the transfer of assets is complicated in Alaska.
She asked about potential associated costs, e.g. slip fees for
boats, and whether these would transfer to the new owner.
1:52:40 PM
MS. COLQUHOUN shared her understanding that all encumbrances and
liens associated with a particular boat or vehicle would be
transferred to the beneficiary with the transfer on death (TOD)
title.
1:53:02 PM
SENATOR KIEHL directed attention to page 3, line 17 of SB 104
and asked whether a beneficiary who disclaimed their interest in
the boat or vehicle would be free from associated fees.
1:53:42 PM
MS. COLQUHOUN shared her understanding that if the beneficiary
disclaims the boat or vehicle, they would be free from any
associated fees.
1:54:06 PM
SENATOR SHOWER noted the difference between a will and a trust
and asked whether trusts should be included. He wondered how SB
104 would change if trusts were included. He shared his
understanding that trusts are simpler.
1:54:58 PM
MS. COLQUHOUN deferred the question.
1:55:31 PM
LINDA HULBERT, Agent, New York Life, Fairbanks, Alaska, said
that she is not qualified to answer the question of whether
trusts should be included.
1:56:47 PM
SENATOR KIEHL directed attention to page 3, line 5 of SB 104,
which states that a title obtained via TOD is effective without
consideration. He shared his understanding that this means the
person to whom the title is transferred is not required to pay.
He asked if there is a problem with consideration of any kind
while the owner is alive. He offered examples to illustrate his
question. He asked if this would impact the efficacy of TOD.
1:57:46 PM
MS. COLQUHOUN replied that "without consideration" means that
the beneficiary does not need to be notified that they are the
TOD beneficiary. She explained that the TOD title does not
impact the owner's ability to make decisions related to the
vehicle prior to their death. If the owner sells the boat or
vehicle, the associated TOD title is void.
1:58:22 PM
SENATOR KIEHL acknowledged that page 3, lines 2-3 states that
the beneficiary does not need to be notified or to accept the
TOD title to be effective. He directed attention to page 3, line
5 and reiterated his understanding that "consideration" refers
to monetary consideration. He asked for clarification.
1:58:39 PM
MS. COLQUHOUN clarified that, with respect to monetary
consideration, the TOD beneficiary would not have to pay for the
TOD deed. This responsibility lies with the TOD owner. If the
owner sold the associated vehicle, the TOD beneficiary would not
receive any of the monetary consideration.
SENATOR KIEHL offered a hypothetical scenario to illustrate his
question. He asked whether the phrase "without consideration"
could potentially invalidate a TOD title due to a previous
financial consideration.
1:59:42 PM
MS. COLQUHOUN replied that she did not have the answer and said
she would provide this information at a later time.
1:59:54 PM
SENATOR SHOWER commented that the distinction of what occurs
while the owner is alive versus after the owner's death relates
to his earlier question of whether to include trusts in SB 104.
He asked to consider this further when that question is
addressed.
2:00:12 PM
CHAIR BJORKMAN announced invited testimony on SB 104.
2:00:29 PM
ABIGAIL O'CONNOR, Attorney, O'Connor Law LLC, Anchorage, Alaska,
testified by invitation on SB 104. She expressed support for
this legislation. She said that vehicles pose significant
challenges for estates and offered examples to illustrate this.
She stated that SB 104 provides a solution for those challenges.
She emphasized that these changes would make Alaskans lives
easier and reduce the stress that surviving family members
experience after the death of a loved one.
2:03:23 PM
MS. O'CONNOR turned her attention to questions. In response to a
question related to beneficiary disclaiming the interest, she
explained that a beneficiary can disclaim a gift. If this
happens, the vehicle is passed on to the estate, as if the
beneficiary had predeceased the car owner. With respect to a
trust being treated as beneficiary, she explained that (as
written) SB 104 would allow this. However, for liability
purposes, she does not generally advise clients to place vehicle
or boat titles in the name of their trust. With respect to
consideration, she offered an example of someone buying a future
interest to illustrate the question and opined that this would
be highly unusual. She opined that it would be more likely for
someone to pay the vehicle owner in order to become co-owner of
the vehicle; in this case, the title would automatically
transfer on death (without a TOD title). She said she does not
believe the language related to consideration would cause any
challenges.
2:06:43 PM
SENATOR SHOWER wondered whether it would be better to define
"trust."
2:07:46 PM
LINDA HUBERT, Agent, New York Life Insurance Company, Fairbanks,
Alaska, testified by invitation on SB 104. She gave a brief
history of her work in the life insurance industry in Alaska.
She emphasized that a TOD title is a revocable decision. She
opined that a TOD title makes sense and would solve problems for
many. She emphasized the importance of creating greater ease for
those in remote locations. She emphasized the importance of
estate planning, which she said can be a difficult process. She
pointed out that vehicles and boats often place an estate into
probate and SB 104 would avoid this. She reiterated that
simplifying the process creates greater ease throughout this
process and expressed her support of SB 104.
2:11:32 PM
CHAIR BJORKMAN led a chorus of "Happy Birthday" for Senator
Kawasaki.
2:12:03 PM
CHAIR BJORKMAN held SB 104 in committee.
2:12:05 PM
At ease.
SJR 11-JONES ACT WAIVER FOR LNG SHIPS
2:15:24 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE JOINT RESOLUTION NO. 11 Urging the
United States Congress to enact a Jones Act waiver to facilitate
transportation of domestic liquefied natural gas between ports
in the state.
2:15:50 PM
SENATOR ROBERT MYERS, District Q, Alaska State Legislature,
Juneau, Alaska, paraphrased from the following sponsor statement
for SJR 11:
[Original punctuation provided.]
SJR 11 ver. A - Sponsor Statement
JONES ACT WAIVER FOR LNG SHIPS
"Urging the United States Congress to enact a Jones
Act waiver to facilitate transportation of domestic
liquefied natural gas between ports in the state."
Alaska is a natural resource rich state with two main
oil and natural gas producing fields in the Cook Inlet
and the North Slope. However, the Alaska Department of
Natural Resources has projected significant shortfalls
in the Cook Inlet natural gas supply beginning in
2027. While the construction of a natural gas pipeline
will connect the abundant supplies of natural gas from
the North Slope to Alaskans, the economic costs of the
pipeline has delayed construction for almost five
decades. Current projections for the gas line
construction indicate it will not be operational until
2031. This places Alaska in a predicament of
possessing abundant natural gas resources while facing
an energy crisis due to its inability to access the
stranded natural gas. Two import terminal projects are
already being planned to bridge that gap.
While the construction of the natural gas line is the
preferred long-term solution to the energy crisis and
to market Alaska's natural gas for export, several
possibilities have been discussed to sell our natural
gas on the world market, including shipping gas
directly off the North Slope. But if that option is
used, it would place Alaska in the precarious position
of selling our gas without being able to use it
ourselves because of the restrictions in the Jones
Act. The Jones Act requires vessels transporting cargo
between U.S. ports to be built in the United States,
be mostly crewed by American merchant sailors, and be
at least 75 percent U.S. owned. Currently, there are
no large-scale Jones Act-compliant LNG tankers in the
world. This prevents the state from transporting LNG
to Alaskan ports by sea.
Congress has previously granted waivers for the Jones
Act due to the lack of qualified vessels and natural
disasters. In 2010, Congress granted a waiver to allow
foreign-flag vessels used in the anchoring of oil rigs
in the Beaufort or the Chukchi Sea. In addition, the
current Presidential Administration is favorable to
the development of Alaska's natural resources
including LNG and its domestic imports.
The state of Alaska is facing an imminent and acute
need to stabilize its LNG supply to ensure its
domestic energy security and future economic
prosperity. SJR 11 respectfully urges the United
States Congress to recognize Alaska's contributions to
national energy security and to enact a Jones Act
waiver that facilitates the urgent transportation of
domestic LNG between Alaskan ports until Jones Act-
compliant vessels are available. Fundamentally, SJR 11
seeks to allow Alaska to utilize its own domestic
natural gas during this energy crisis.
2:19:27 PM
SENATOR MYERS said that Puerto Rico recently received a natural
gas shipment that was made possible by a Jones Act waiver.
2:20:24 PM
MEAD TREADWELL, Chief Executive Officer (CEO), Qilak LNG,
Lloyd's Energy, Anchorage, Alaska, testified by invitation on
SJR 11 and emphasized that this legislation is focused on
bringing gas to Alaska. He noted several attempts to bring gas
to market and briefly discussed these. He said there is interest
in Alaska gas, both within Alaska and outside of the state. With
respect to US-built icebreakers, he said that it would cost
approximately $300 million to build a single US-built ice
breaker for use on the North Slope. He briefly discussed how the
Korean company Hanwha could be instrumental in building those
ships in their US shipyard. He commented that it may be cheaper
to build an icebreaker than a pipeline. He indicated that one
US-built icebreaker may be a possibility. He briefly discussed
potentially reflagging foreign vessels for use.
2:23:54 PM
MR. TREADWELL discussed the benefits of shipping Alaskan gas
within the state. A trans shipping facility in Dutch Harbor has
also been discussed. He emphasized the importance of SJR 11. He
noted a previous short-term waiver (2011) and said this would be
a long-term waiver (similar to the waiver received by Puerto
Rico) that would allow gas to be shipped while the ice breaker
was under construction. He shared that he has testified before
Congress several times in support of US Coast Guard icebreakers
in the Arctic. He briefly discussed this, providing examples and
prices of the polar security cutters. He said the goal is to
receive a waiver for LNG tankers for export for use within
Alaska as well as a potential ice management fleet.
2:26:50 PM
MR. TREADWELL noted a recent agreement between Finland, Canada,
and the US that would help expedite more ice breakers. He shared
his understanding that the current US administration supports
this agreement. He added that the President would like to see 48
ice breakers in the US fleet. He said Quilak LNG is hoping for 7
(including ex management vessels) and added that reflagging
vessels would be very helpful.
2:27:36 PM
SENATOR TOBIN recalled the severe fuel shortage in Nome that
threatened resident's health and safety. She asked if the
potential exists for a similar liquified natural gas (LNG)
shortage for communities along the railbelt.
2:28:44 PM
MR. TREADWELL noted interest in Alaska's LNG opportunities;
however, he indicated that none of these would be completed in
time to address LNG shortages in Cook Inlet. He listed a variety
of alternatives. He commented that there are no other West Coast
LNG ports, although Canada and Mexico have ports that are
nearing production. He stated that Asia has the biggest LNG
market; however, all LNG must go through the Panama Canal.
Alaska will be competing with other LNG buyers along the west
coast. He opined that having access to Alaskan LNG would be
good. He indicated that, as policymakers, the answer to a
potential LNG shortage along the railbelt is to have options. He
acknowledged that every option comes with its own risks.
2:30:58 PM
SENATOR KIEHL asked about reflagging a vessel. He asked whether
this requires a Jones Act exemption. He expressed concerns
related to ownership and crewing. He acknowledged the difficulty
of obtaining a vessel.
2:31:34 PM
MR. TREADWELL shared his understanding that the ships would be
US owned and maintained. He emphasized the high cost of building
a vessel in the US. He directed attention to an article related
to the reflagging of an LNG ship. He opined that it is important
to notify Congress that Alaska may need to reflag vessels in
order to access American LNG. He provided examples of vessel
reflagging. Changes to reflagging may be forthcoming.
2:34:26 PM
SENATOR SHOWER recalled the number of vessels in Russia and
China. He asked about the cost to Alaska if SJR 11 does not
pass.
2:35:13 PM
SENATOR MYERS replied that if SJR 11 does not pass, Alaska could
be in the position of selling Alaska LNG to out-of-state buyers
while not being able to use Alaska LNG in-state. He noted that
the impact depends on which project moves forward to completion.
He emphasized that, regardless of which project is successful,
Alaska will need to import LNG for a period of time; therefore,
an import plant must be built in the Cook Inlet. He stated that
it is preferrable to minimize the amount of time Alaska is
dependent on imported LNG. He opined that it is nonsensical to
have ships moving oil to other countries (e.g. Japan) and not be
able to access the oil for in-state use.
2:37:16 PM
SENATOR SHOWER commented on the high cost of importing LNG.
2:37:50 PM
SENATOR KIEHL asked about the potential price delta between
North Slope LNG shipped a longer distance (in-state) and
Canadian LNG shipped a shorter distance to that same location.
2:38:30 PM
SENATOR MYERS deferred the question. He commented that both
shipping costs and gas costs must be considered. He pointed out
that North Slope gas would cost less. He surmised that, while
the cost to transport gas from Canada may be less, there are
additional costs to consider.
2:39:25 PM
MR. TREADWELL said that all big projects are directed toward
markets in Asia. He briefly described the Asian market. He
provided an example to illustrate the price of gas in the Asian
market compared to the price of gas in Cook Inlet. He stated
that importing gas from Canada and shipping North Slope gas
could save transportation costs. However, he suggested that a
contract could be desirable. He briefly discussed the cost of
regasification and explained that this must also be considered.
He stated that the goal of each supplier is to deliver gas to
Japan for $10-$12.
2:41:52 PM
SENATOR MYERS directed attention to SJR 11, page 1, line 13, and
explained that he has been working with Chugach Electric to
draft language to reword this section. He expressed willingness
to help draft a committee substitute that would incorporate this
language.
2:43:13 PM
[CHAIR BJORKMAN held SJR 11 in committee.]
2:43:25 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Transportation Standing
Committee meeting at 2:43 p.m.