Alaska's natural resources are natural treasures, from environmental and economic perspectives. I hope our new U.S. senator successfully balances Alaska's resource potential with appropriate environmental, national security and consumer considerations.
In particular, the federal Minerals Management Service estimates our outer continental shelf holds 27 billion barrels of oil and 132 trillion cubic feet of gas. Developed, this resource would make Alaska the eighth largest oil producer, ahead of Nigeria, Libya, Russia and Norway.
But without these resources, Alaskans face a downward spiraling supply of jobs and career opportunities. Alaska depends on Chukchi and Beaufort resources to some day sustain the trans-Alaska oil pipeline and fill a North Slope gas pipeline ... and for thousands of jobs. America counts on us, too. The oil and gas potential in the Chukchi and Beaufort seas rivals that of the Gulf of Mexico.
Yet in draft legislation circulating for comment as part of his five "Arctic Climate Change Initiatives." Sen. Begich proposed adding a new layer of regulatory complexity to the already demanding federal regulatory system. The draft bill would establish, "an Arctic Regional Citizens' Advisory Council (RCAC) to encourage citizen engagement and oversight of the effective and safe development of Arctic energy resources."
Sound reasonable?
It's not.
Alaska has other advisory councils, created at different times for different purposes with different missions, as the Daily News noted in its Sunday editorial. But this particular advisory council, as proposed, could delay Alaska prosperity, worsen the existing regulatory structure and increase costs to consumers and taxpayers.
How?
It could adopt "recommendations" on "all aspects of energy development in the Arctic." It includes 20 voting members (from Arctic boroughs and villages and from seal, walrus, whale, whale-hunting, tourism, and environmental organizations) and 11 non-voting "expert" members from state and federal government agencies.
Federal or state agencies and energy companies must reply to the new commission's recommendations within two weeks -- a new regulatory, legal and public relations hurdle.
Arctic energy companies must participate in RCAC meetings, "in good faith." The commission would be immune from lawsuits, and it would persist for the lifetime of Arctic energy development.
The new commission's budget is a minimum of $5 million, to be paid by the very energy companies that must participate "in good faith." This potpourri of special interests would be self-governing, have its own staff, get paid per diem and meet at least quarterly. Since the commission would be self governing, that budget is not very limited.
America has the most demanding oil and gas regulatory and environmental requirements in the world. Special interests now share their loud voices and opinions through multiple review processes. Some groups add further complexity through endless legal action such as that which has current Chukchi and Beaufort sea exploration hog-tied.
Instead of creating another layer of complication, let's consider adopting legislation that expedites the permitting and legal processes, as Congress did in the Alaska Natural Gas Pipeline Act of 2004. There, judicial review is limited and a federal coordinator is named to improve efficiency of the regulatory process.
Sen. Begich's Web page describes an Alaska trip he is organizing for Barbara Boxer (Committee on Environment and Public Works) and colleague senators in August. "Since the day I arrived in the Senate," he notes, "my colleagues have been suggesting a trip to Greenland to witness climate change first-hand. I keep reminding them that Alaska is ground-zero for the impacts of global warming ... ."
I hope our senator is also bringing his colleagues north to give them a balanced view of the ground-zero natural resource wealth Alaska offers the nation.
I'd be honored to join Sen. Begich in an effort to balance environmental concerns, legal challenges and consumer values with a natural resources agenda that supports prosperity of Alaska's economy and America's families. I believe that thousands of other caring Alaskans -- and Americans everywhere -- share that sentiment.
Dave Harbour is a retired member of the Regulatory Commission of Alaska; and a former chairman of the Anchorage Chamber of Commerce. (Find a copy of Sen. Begich's draft RCAC here: http://arcticgaspipeline.com)
By DAVE HARBOUR