Work on in-state gas pipeline may become railroad's job

The Senate Resources Committee, co-chaired by the measure's author, Sen. Lesil McGuire, R-Anchorage, passed the railroad bill 4-1 after amending it to make clear the railroad wasn't being told to build and operate the line -- yet.

The measure directs the railroad to plan the design, construction, financing and overseas gas marketing for the line. What happens next would be determined later, though the bill speaks both of a private company doing the construction and operation, and of the railroad having the authority to do that itself.

After meeting with Gov. Sean Parnell and getting his conditional support, McGuire also softened language from the original bill about removing authority for in-state gas line development from the governor's office and the Department of Natural Resources. That authority still goes to the railroad, but the new version politely refrains from saying where it's coming from.

In sending the bill on to the Senate Finance Committee, the Resources Committee rejected amendments by Sen. Hollis French, D-Anchorage, that would have required project labor agreements on any gas line built by the railroad, and by Sen. Tom Wagoner, R-Kenai, that would have placed the railroad under the purview of the Executive Budget Act.

French and several union officials said it's common for huge projects to have project labor agreements to ensure labor peace and a stable, Alaska-hire workforce. Only Sen. Bill Wielechowski, D-Anchorage, supported the amendment, but French thought it would come up again before the bill's travels were done.

Wagoner was the only vote for his amendment. Railroad board chairman John Binkley said it was precisely the independence from the politics and wearying process of state budgeting that gave the state-owned railroad flexibility to run as a business.

McGuire said she wasn't fazed by whatever turmoil might occur among the top echelons of the railroad with the departure of its chief executive, Pat Gamble. He was named last week to head the statewide University of Alaska system.

Earlier Monday, House Speaker Mike Chenault, R-Kenai, expressed just such a concern at a news conference.

"I think the railroad is a good idea," Chenault said, but quickly added: "With Gamble leaving, it causes some concern on my part, because I look at without a head of the railroad now, we're going to be looking at six months of job hunting, and six months of getting 'em on board and figuring out what the railroad does, and so when do they get to the point where they have time for in-state gas?"

In his testimony to the senators on the Resources Committee, Binkley sought to allay those fears.

"I want to assure committee members that as we go forward, we will have a president and a CEO, just as we did with Pat Gamble, that brings new life, new energy, new vision to the Alaska Railroad," Binkley said.

The railroad board will meet Thursday for the first time since Gamble's announcement and McGuire's introduction of the bill. Binkley said that based on conversations he has had with board members, he thinks they will approve taking oversight of an in-state gas pipeline, but can't be sure.