(SitNews) Ketchikan, Alaska - It's a busy week for Governor Sean Parnell as he travels the state signing bills into law. Monday, in front of a packed, joint Ketchikan Chamber and Rotary meeting, the Governor signed legislation authorizing the Alaska Industrial Development and Export Authority (AIDEA) to finance the Bokan and Niblack mines on Prince of Wales Island. Senate Bill 99 will also provide a loan of up to $18.6 million for the Blue Lake hydroelectric energy project in Sitka. Senator Lesil McGuire (R-Anchorage) sponsored SB 99.

“This legislation will go a long way toward creating new opportunities for Alaskans and growing Southeast Alaska’s economy as a whole,” Governor Parnell said. “By authorizing AIDEA to issue bonds for the Bokan and Niblack mines, as well as the Blue Lake Expansion Project, we are moving these critical projects, and the many jobs they will create, one step closer to reality. I want to especially commend Senator Lesil McGuire for her work on this crucial legislation.”

These mining projects can be anchor employers for high-paying jobs in Southeast. The governor was joined by mayors from Prince of Wales Island, Ketchikan and Sitka, and Deantha Crockett of the Alaska Miners Association.

“Natural resources are the base of Alaska’s economy. Today’s bill signing further broadens that base by supporting responsible development and creating new jobs while giving a big boost to industry in Southeast Alaska,” said Senator McGuire who sponsored the bill. “These two projects will give the much-needed economic injection into the Ketchikan area in the same way the SETs fund is helping Interior Alaska with the gas-trucking project the Legislature passed last year. The other project will reduce the cost of electricity in Sitka, which is essential to revitalizing the economy in the region.”

First, SB99 allows AIDEA to issue bonds to finance the infrastructure and construction costs of the Bokan-Dotson Ridge rare earth element (REE) project located on Prince of Wales Island about 40 miles southwest of Ketchikan.

REEs are needed to make a wide-variety of items including high-tech military equipment, wind turbines, solar panels, advanced batteries, geothermal steam turbines, plus almost all high-tech consumer goods including flat screen TVs, computers, tablets and cell phones. China currently controls 95-percent of the world’s rare earth elements, but reduced the exports of those elements by 54-percent between 2005 to 2010, and then another by nearly 50-percent in from 2010 to 2011.

“The United States used to be almost self-sufficient in rare earth elements, but now we almost completely rely upon foreign sources for those important minerals,” said Senator McGuire. “We need to move now to become a dominant world player in the development of rare earth elements which are critical for military and economic security, as well as renewable energy systems.”

Second, SB99 also allows AIDEA to issue bonds to finance the development of the Niblack mine project and the Gravina Island Industrial Complex (near Ketchikan) for an ore processing facility. Niblack is a gold, copper, zinc, and silver deposit also located on Prince of Wales Island. During mine operations, Niblack has the potential to provide 200 full-time jobs, with about two-thirds of workers at the mine site and one-third at the processing facility.

Finally, SB99 includes an amendment that if the Alaska Energy Authority (AEA) approves a loan to the City and Borough of Sitka for the Blue Lake Hydroelectric project, the Legislature will authorize AEA to loan up to $18,600,000 from the power project fund for this development.

“Between the two mines and the Blue Lake Hydroelectric Project, this legislation is a win-win situation for Southeast Alaska,” said Senator McGuire. “It will help deliver cheaper electricity to Southeast residents while creating hundreds of jobs for folks in that region.”

The Governor also visited the Ketchikan Pioneers Home while in Ketchikan.

Then on to Fairbanks, where today, the Governor Parnell addressed a joint meeting of the Fairbanks Chamber of Commerce, the Alaska Support Industry Alliance, and the Fairbanks and North Pole Economic Development Corporations. The governor addressed both the Alaska LNG Project and Interior Energy Project.

“With the enactment of SB 138, which I signed right here in Fairbanks last month, we got straight to work on our end of the bargain. I am pleased to announce here today that we have terminated the license with TransCanada under AGIA and have now completed a traditional precedent agreement. Additionally, earlier this month, the AGDC Board of Directors authorized its management to sign the Joint Venture Agreement. The State of Alaska is now ready to execute this Joint Venture Agreement.”

“Let me be clear: The availability and the price of energy in Fairbanks will be determined by decisions made by utilities and the borough. The utilities will need to sign gas contracts. AIDEA has worked effectively. It has produced a viable project to deliver affordable long-term energy to your city. The Interior Energy Project is positioned for success. But now, the utilities – IGU, FNG and GVEA - must make their commitments. Gas contracts - they must act. The time is now.”

Then during a visit to the University of Alaska Fairbanks campus, the governor signed Senate Bill 218, providing the university with $157.5 million of revenue bond issuance authority for the University of Alaska Fairbanks’ Atkinson Heat and Power Plant.

“I appreciate the tireless efforts of the Interior delegation and the community to ensure this aging power plant gets replaced,” Governor Parnell said. “This is a worthy project that will benefit the campus for decades to come.”

The plant provides electricity and steam heat to more than 3.1 million square feet of public facilities on the main campus. The main coal boilers were put into service in 1964 and have reached the end of their 50-year lifespan. The replacement cost of $232 million will be paid for with a combination of funds, including a capital appropriation, general funds, municipal bonds and revenue bonds. The new facility is expected to be completed in 2018.

Governor Parnell also signed legislation creating the University of Alaska Building Fund (UBF). Sponsored by Senator Pete Kelly, Senate Bill 74 establishes the fund and allows the Board of Regents to designate buildings owned by the university as part of the UBF portfolio for the purposes of management, operation, maintenance, and depreciation.

Senator Pete Kelly (R-Fairbanks), headed up work on both bills, backed by the Interior Delegation, Senator John Coghill (R-North Pole ) and Senator Click Bishop (R-Fairbanks).

“Replacing the power plant wasn't ‘a want to have’. It was a ‘got to have’ because we simply cannot let critical infrastructure fail,” said Senator Kelly.

“Senate Bill 74 allows the University to more effectively hold managers accountable for the space they use,” said Senator Kelly. “It also allows the University to build up a fund for building space and go to private sector more easily to meet its needs. In the long term, it should allow the University to manage space more effectively and save the state money.”

While in Fairbanks today, Governor Parnell also signed several other pieces of legislation.

House Bill 154, sponsored by Representative Steve Thompson, designates the Museum of the North, as well as the Alaska State Museum, as cultural and natural history repositories.

House Bill 268, sponsored by Representative Tammie Wilson, adds big bull moose derbies to the list of allowable permits for games of chance and contests of skill that can be issued by the Department of Revenue. The bill gives the Tanana Valley Sportsmen’s Association and the University of Alaska Fairbanks Rifle Team a way to raise funds through a big bull moose derby. It also allows the Valdez Advocates for Victims of Violence the ability raise funds through an ice classic.

House Bill 282, sponsored by Representative Doug Isaacson, amends the Alaska Uniform Residential Landlord and Tenant Act. The legislation incorporates changes to provide protections for both landlords and tenants by providing clarity of individual responsibilities.

House Bill 302, sponsored by Representative Steve Thompson, shortens the timeframe requirement for the Board of Public Accountancy to mail copies of any proposed rule or amendment to each license or permit holder. The bill provides consistency with other public notice deadlines.

Senate Bill 137, sponsored by Senator Click Bishop, extends the sunset of the Alaska Seismic Hazard Safety Commission by 6 years to June 30, 2020.

Wednesday, Governor Sean Parnell will be in Anchorage to sign several pieces of legislation dealing with health care in Alaska. The governor will sign SB 169, legislation establishing a statewide immunization program; SB 135, legislation to extend the Alaska Health Care Commission; and SB 166, legislation to update the Board of Nursing’s statutes. Governor Parnell will be joined by Health and Social Services Commissioner Bill Streur.

While Governor Parnell is traveling the state at the state's expense taking care of business, it should be noted that he is running for reelection in 2014. Among the other major candidates running for the Alaska Governor's seat are Democratic candidate Byron Mallott and Independent candidate Bill Walker.

Edited by Mary Kauffman, SitNews

On the Web:

Byron Mallott (Democratic candidate)
www.byronmallott.com/

Gov. Sean Parnell (Republican, incumbent)
www.parnell2014.com/

Bill Walker (Independent candidate)
www.walkerforalaska.com/

Source of News: 

Office of Governor Sean Parnell
www.gov.state.ak.us

Office of Senator Lesil McGuire (R-Anchorage)
www.ak.leg.gov

 

SitNews ©2014
Stories In The News
Ketchikan, Alaska

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