The Seal of the State of Alaska
  Help    

   
Alaska State Legislature
    Home  |  News  |  Legislators  |  Committees  |  Bills  |  Surveys  |  Archives  |  AchievementsAlaska State Legislature
Alaska State Legislature
Alaska State Legislature
Alaska State Legislature
Alaska State Legislature

Advanced Search
Alaska State Legislature
· Gas Pipeline Moves a Major Step Closer  
· Legislature Approves Gas Pipeline Financing  
· Suggest A Link  
Alaska State Legislature
Alaska State Legislature
Alaska State Legislature
· Shallow Gas Development FAQ  
· K-12 Education Plan  
· 10-Point Plan  
· Contact Staff  
· Biography  
· Committee Memberships  
· House Oil & Gas Committee  
· Press Releases  
· Audio Clips  
· Opinion-Editorial  
· Past Press Releases  
· Personal Legislation  
· Co-Sponsored Legislation  
· Past Legislation  
· District Information  
· 24th Legislature  
· 23rd Legislature  
· 22nd Legislature  
· 21st Legislature  
· 20th Legislature  
Alaska State Legislature
Alaska State Legislature

Alaska State Legislature
Alaska State Legislature
23rd Alaska State Legislature
The 23rd Alaska State Legislature
Alaska State Representative Vic Kohring Information

Click image for large 5'' x 7'' portrait
Session:
State Capitol, Room
Juneau, AK 99801-1182
Phone: (907)
Fax: (907) 465-3818
District 14 Area Only Toll Free:
(800) 468-2186
Send Email
Send Public Opinion Message
Subscribe to Newsletter - Privacy Policy

Interim:
600 E. Railroad Ave.
Wasilla, AK 99654
Phone: (907) 373-1842
Fax: (907) 373-4729

716 W. 4th, Suite 680
Anchorage, AK 99501
Phone: (907) 269-0153
Fax: (907) 269-0154

AK Railroad Bonds for Natural Gas Transport
Sponsor Statement for HB 267
Alaska State Legislature
Alaska State Legislature
Attachments Attachments
 
Updated:
May 14, 2003
Ben Grenn
Oil & Gas Committee Aide
465-2186 (Jan-May)
373-1842 (Jun-Dec)

   

"An Act relating to the Alaska Railroad; authorizing the Alaska Railroad Corporation to provide financing for the acquisition, construction, improvement, maintenance, equipping, or operation of facilities for the transportation of natural gas resources within and outside the state by others; authorizing the Alaska Railroad Corporation to issue bonds to finance those facilities; and providing for an effective date."

"It (hb 267) specifically authorizes Alaska Railroad to negotiate issue up to $17 billion in bonds for construction of a natural gas pipeline."
- Rep. Kohring

 

This legislation would be a significant step toward the construction of a natural gas pipeline to commercialize North Slope gas reserves.

HB 267 authorizes the Alaska Railroad Corporation to issue bonds for the pipeline project, leveraging the ability of the corporation to issue tax-exempt bonds for industrial development. This financing plan can push pipeline construction that much closer to reality, resulting in jobs for Alaskans and revenue to the state while delivering natural gas to a waiting public and market.

The Alaska Railroad's ability to issue tax-exempt bonds to finance industrial development was approved in 1983 by the U.S. Congress with the transfer of the Alaska Railroad from federal to state ownership. Congress reaffirmed Alaska Railroad's authority to issue tax-exempt bonds in the Tax Reform Act in 1986.

Estimates prepared by Goldman Sachs and the Department of Revenue suggest the financing plan presented in this bill will increase the economic viability of the natural gas line construction project by saving the facility owners more than $1 billion over the life of the project.

The bill allows Alaska Railroad to provide financing for the acquisition, construction, improvement, maintenance, equipping and operation of facilities for the transportation of natural gas resources within and outside the state. It specifically authorizes Alaska Railroad to negotiate issue up to $17 billion in bonds for construction of a natural gas pipeline.

While Alaska Railroad would issue the bonds, neither Alaska Railroad nor the State would be liable for the debt. The bill requires that prior to issuing bonds, Alaska Railroad must determine that any contract or lease is sufficient to pay back the bonds as scheduled, maintain reserves for the payments, and pay all costs necessary to secure the bonds.

The railroad is a vital link in Alaska's economy. Many towns have sprouted up because of the role of Alaska Railroad, which supported construction of the Alaska Highway during World War II and the subsequent military buildup in our state. It also helped in building the Trans-Alaska Pipeline System; and along its more than 600 miles of track, it carries seven million tons of freight and a half-million passengers each year. Alaska Railroad also provides jobs for 700 Alaskans.

05-14-03

# # #

 
Attachments:
 
· Print Friendly Version
Requires Adobe Acrobat PDF Reader = 1 pages
13 K
 

Sign Up For E-News!

Unsubscribe  Privacy
Alaska State Legislature
· 25th Legislature Info
House Majority
House Minority
Senate Majority
Senate Minority
BASIS
 
· 24th Leg. Special Session Info  
· Oil & Gas Production Tax Information  
· Keyword Search  
· Legislator Districts  
· Photo Table  
· Passed Legislation  
· Past Legislatures  
· More Web Tools  
· Majority Press Staff  
· Information Offices  
Requires Real Audio Player = Adobe PDF Reader  
Requires Real Audio Player = Real Audio Player  
Requires Real Audio Player = MP3 Audio Player  
Alaska State Legislature
Alaska State Legislature
Alaska State Legislature

1 Viewer(s)

Total at this time.
Alaska State Legislature
Alaska State Legislature
   
Alaska State Legislature
Home  |  News  |  Legislators  |  Committees  |  Bills  |  Surveys  |  Archives  |  E-News  |  HelpAlaska State Legislature
Alaska State Legislature
The Official Web Site of the House and Senate Legislative Majorities
for the Alaska State Legislature

To Report Technical Problems or Contact Webmasterse-mail address list