Budget to allow gasline at last

• Alaska Capital Budget contains funding for Enstar pipeline to Homer
By Naomi Klouda
Homer Tribune
The biggest Homer project in the state’s lofty 2010 capital budget spending plan is $4.8 million to build a gasline from Anchor River to Homer, a plan that could open dozens of jobs and solve a long-standing energy problem for the Lower Kenai Peninsula.
The gasline tops a short but substantial list of projects named in the $2.8 billion 2010 Alaska Capital Budget these final days of haggling before the Alaska Legislature adjourns at midnight Monday.
On the table is another $1 million for Cook Inlet Aquaculture, aimed at stimulating fisheries, $250,000 for Karen Hornaday Park improvements, $1 million for a new deep water dock at the Homer Harbor and $30,000 for the struggling Homer Community Schools Program.
Since the massive budget faces hurdles in the Alaska House Finance Committee this week before it is handed off for House approval and the governor’s signature, Homer could end up with more projects — or less, according Sen. Gary Stevens and Rep. Paul Seaton‘s offices. One factor that could help the Kenai Peninsula during budget scrutiny this week is Kenai Rep. Mike Chenault’s powerful position as Speaker of the House. The Kenai Peninsula has seen far less monies than several other regions. So far, Anchorage is in line to receive $400 million in total spending, while even the less populous Ketchikan area is in line for $51.8 million.
Total estimates for spending on the Kenai Peninsula hadn’t yet been calculated. Those numbers will be made available later this week when more is settled, according to Steven’s office.
“It’s a living, breathing document right now,” said Rep. Paul Seaton aide Katie Koester. “The gasline is the most important project we have worked on. But there is a lot on the table.”
Homer City Manager Walt Wrede, in Juneau for the last two weeks of the session, feels cautious optimism for the natural gasline project’s position on the 148-page budget. The long-awaited gasline to Homer would help the area in a number of ways, he said.
“Natural gas would help on a lot of fronts. First of all, it would mean construction jobs,” Wrede said. “Hopefully, it will also help the local economy by bringing down the cost of heating fuel and energy costs in general.”
More Enstar customers on the gasline also ensures costs are distributed over a larger area, thus bringing down Enstar’s costs, he noted. And natural gas is a cleaner-burning fuel.
In an unusual move, the City of Homer is placed as the overseer for gasline construction in the appropriation’s language. This means the $4.8 million would go to the city for contracting out construction.
“It is outside the city limits,” Wrede said.  But this is important enough that I think it will get it done.”
Local politicians and potential customers have lobbied for the line after a supply of natural gas was identified at a North Fork drilling test site by Armstrong Cook Inlet, LLC., in the previous two seasons. A petition circulated by Alaska’s Rainbow Resources gathered signatures of those interested in connecting to a natural gas line under consideration by Enstar Natural Gas. Enstar’s gas line currently extends to Happy Valley, leaving out the communities of Anchor Point and Homer. Enstar’s plan would involve the construction of two pipelines. One would originate from the North Fork well — located about six miles east of Anchor Point off North Fork Road — to Anchor Point and Homer. The other would connect Anchor Point to the existing Kenai Kachemak Pipeline at Happy Valley.
Enstar has estimated the project to be complete in 5-10 years.
This is the costliest capital budget in state history, critics and proponents contend. Funding for about half the budget, or more than $1 billion, is federal money allocated in the American Recovery and Reinvestment Act. Much of the other half would come from the Alaska General Fund.
What isn’t yet — and might not be found on this year’s budget — is the issue of erosion on the Sterling Highway at Mile Post 153-154. Also, the City of Homer has not yet seen allocations for requested water and sewer funding.
The city also has requested $2 million for the Main Street fixes, to be added to the city’s current $2 million available for that project. Wrede said it has yet to show up on the budget.
Capital budget appropriations for the area include:
• $1 million; Cook Inlet Aquaculture for deferred maintenance projects. The money would be used for hatcheries operated at Tutka Bay Lagoon and the Trial Lakes Hatchery near Moose Pass.
• $1 million; Homer Deep Water Dock
• $250,000; Phase 1, Karen Hornaday Park improvements
• $1.5 million; Kenai Community Library
• $4.7 million; Seward Library
• $2 million; Seward Port and Harbor for security and fire protection of commercial passenger vessels
• Re-appropriation of $99,500 to the Kenai Peninsula Economic Development District for Cook Inlet tidal power analysis. (Left over from a $5 million appropriation for a Kenai Coal Gasification project.)
• Re-appropriation of money for the Homer Town Center-City Hall project of $1.4 million to be used for renovation of the current Homer City Hall

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