Natural gas, at last?

• Pipeline, college funding highlight biggest Kenai Peninsula allocations
By Naomi Klouda
Homer Tribune
A long-awaited, often-touted natural gas pipeline from Anchor Point to Homer may finally come to fruition thanks to the Alaska Legislature’s recent passing of $4.8 million in appropriated funding for the plan.
The project has to first survive Gov. Sean Parnell’s veto pen.
Rep. Paul Seaton estimates it to be the biggest economic stimulus project for the lower Kenai Peninsula, which also includes a pressure-reducing station at Anchor Point. Once built, Enstar would be able to sell natural gas to Homer and Anchor Point consumers.
Following the past-paced, final weekend legislative surge, the Kenai Peninsula overall is in line to receive some $147 million in appropriations in a monumental 2010 capital budget that tops $3 billion.
The biggest ticket items are destined for the Kenai Peninsula College, with some $16 million added by Rep. Mike Chenault’s office for new student housing at the campus, as well as $14.5 million for a Kenai Campus Career and Technical Education Center.
The Kachemak Bay Campus is in line to receive $250,000 to help integrate East and West campuses, though Seaton had hoped for a larger appropriation.
One of the problems of past budgets is that the rural campuses are often overlooked as the big dollars are steered toward large urban campuses, Seaton said Monday at the end of the session. Chenault had requested the KPC appropriations several budget years in a row, though this is the first year the plans made it out of the House.
“Our problem is that (University of Alaska) regents hadn’t identified rural projects as priorities, so it’s difficult when they don’t forward those,” Seaton said.
The regents made requests for $100 million for UAF and $80 million for an Anchorage sports center, but nothing for regional campuses, he added.
“We’re trying to fight hard for something the regents haven’t approved and haven’t submitted,” Seaton said. “I don’t know if we need to split from the UAA campus or what. We’ll have to look at that in the next session so there’s some equity.”
The KPC appropriation would help prepare students for industry jobs, a boon that could set up Peninsula residents for job advantages for pipeline construction.
When the capital budget passed from the Alaska Senate to the Alaska House, Seaton was able to secure several district appropriations:
• $100,000 was added at the last minute in the House version of the budget for the Pratt Museum to pursue a schematic design for a new museum building;
• $35,000 for Internet upgrades and safety outreach Kenai Peninsula Boys and Girls Clubs;
• $65,000 for senior housing in Anchor Point for senior housing;
• $50,000 for Willard Road improvements on East End;
• $30,000 for Homer Community Schools.

Seaton’s office estimated that a total of about $7.7 million is going directly to the Lower Kenai communities.
Another economic benefit for Homer, as well as Seward is Seaton’s work on the cruise tax legislation that pays port cities $5 from the state’s $34.50 per person collection.
Homer City Manager Walt Wrede, in Juneau during the closing days of the session, said he was pleased with both the cruise tax and projects planned for Homer.
“I was surprised but pleased about the gasline. That will have big ramifications for Homer in the long run,” he said.
The city also is set to receive $1 million for a deep water dock, $250,000 for Karen Hornaday Park, and $500,000 in Alaska Housing Finance Corp. money for tidal energy studies.
The next stage is seeing what projects do not survive Gov. Parnell’s budget scrutiny.
“I think overall Homer did pretty well,” Wrede said. “There are no big projects sticking out there, but extending gas lines, energy security jobs, deep water docks — those are economic development projects that I think the governor supports.”

Senate District R-House District 35

Homer Projects

• Anchor Point to Homer Natural Gas Pipeline – $4,800,000
• Homer Foundation – $30,000
• Deep Water Dock Expansion, Phase I – $1,000,000
• Karen Hornaday Park Improvements, Phase I – $250,000
• HEA Wind Generation Project – $7,000,000
• Pratt Museum Expansion – $100,000
• Kachemak Bay Campus, New Facility and Bond Reimbursement – $250,000
• Snomads, Willard Road Improvements – $50,000
• Kachemak/Bear Creek Dr. Re-pavement, Preliminary Design – $50,000
• Anchor Point Senior Center Improvements – $65,000
• Nikolaevsk Natural Gas Line Reduction Unit – $250,000

Kenai Peninsula

• Kenai Peninsula Borough Road Improvements – $6,000,000
• Food Bank, Facility Improvements/Expansion – $250,000
• Boys and Girls Clubs – Technology and Internet Safety Outreach – $35,000
• CIRCAC, Cook Inlet Ice Forecasting Network – $60,000
• Cook Inlet Aquaculture Association – $1,000,000
• Watershed Improvements, Clean Water Act settlement – $900,000
• Revegetation, Anchor River and Deep Creek Embankments – CWA settlement – $800,000