"An Act making appropriations from the Railbelt energy fund for preliminary engineering reconnaissance and related work for construction of a natural gas spur line to transport North Slope natural gas to the Southcentral natural gas transmission grid, and to designated municipalities and electrical associations for a Railbelt intertie and an electrical transmission system; and providing for an effective date. "

House Bill 253 appropriates $20 million dollars to conduct maintenance on the Railbelt Electric Intertie. HB 253 also includes $8 million to the Alaska Natural Gas Development Authority (ANGDA) to continue and expand planning for construction of a natural gas spur line to transport natural gas from the North Slope to Southcentral Alaska.

The funds for these proposed projects would come from the Railbelt Energy Fund. These appropriations constitute the remaining balance of the fund, which was created by the Legislature years ago to allocate funding to various projects of the state for electricity generation and transmission.

It is important that Alaskans have the ability, not only to get our gas to market, but also to get gas to the major population centers within Alaska. The future growth of Alaska's economy depends on us having sufficient energy. Looming shortages of Cook Inlet gas must be replaced by North Slope supplies.

Additional funds appropriated in HB 253 would go to the Department of Commerce, Community and Economic Development and be awarded as grants to the City of Seward, the Chugach Electric Association and the Homer Electric Association for repair and maintenance of Railbelt Interties and Electrical Transmission Systems. Chugach Electric Association's construction will take place between Anchorage and Cooper Landing. Homer Electric Association will construct the portion from Cooper Landing to Soldotna.

This money will ensure Anchorage, Fairbanks and the Kenai Peninsula can continue to depend on a reliable source of electricity. This action should reduce costs and guarantee a more dependable electrical system for Alaska's most populous regions.

I urge your support of this legislation.

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