[Congressional Record Volume 141, Number 29 (Tuesday, February 14, 1995)]
[Senate]
[Pages S2665-S2666]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                         ADDITIONAL STATEMENTS

                                 ______


 STATEMENT ON THE INTRODUCTION OF S. 395, ALASKA POWER ADMINISTRATION 
                                SALE ACT

 Mr. STEVENS. Mr. President, yesterday, Senator Murkowski and I 
introduced legislation to authorize and direct the Secretary of Energy 
to sell the Alaska Power Administration's two hydroelectric projects 
and terminate the Alaska Power Administration; and to permit the export 
of Alaskan North Slope crude oil carried on U.S. flag vessels. I urge 
my colleagues to join in support of this legislation.
  For Senators who are less familiar with the Alaska Power 
Administration, it is a unit of the U.S. Department of Energy. The 
Alaska Power Administration has had the responsibility for operation, 
maintenance, transmission, and power marketing for the two Alaskan 
Federal hydroelectric projects, Eklutna and Snettisham, which were 
authorized to encourage economic and industrial development in Alaska. 
Congress never intended that Snettisham and Eklutna would remain under 
Federal control. And, as this is an issue that I have worked on for 
many years, I am glad that the present administration supports the 
Federal divestiture of these two projects and the termination of the 
Alaska Power Administration upon completion of the sales.
  This legislation includes significant improvements over previous 
proposed legislation. The sales of the projects will proceed under the 
terms of two separate purchase agreements that provide and require 
transition plans for the Federal employees of the projects, including 
but not limited to Federal employee benefits for Alaska Power 
Administration employees, delineation of responsibilities of the 
purchasers and the sellers through the transition to new ownership, 
protection for nonpower users of project lands and water, and 
environmental management plans. Additionally, the projects, including 
future modifications, will continue to enjoy their exemption from the 
requirements of the Federal Power Act.
  Our legislation will also amend the Trans-Alaska Pipeline 
Authorization Act to permit the export of Alaskan North Slope crude 
oil. As I have said before, this vital legislation will create jobs 
around the Nation and increase oil production in Alaska and California. 
It will also ensure the continued survival of the independent U.S. 
tanker fleet manned by U.S. crews, and thus enhance our national 
security while eliminating an injustice that for too long discriminated 
exclusively against the citizens of Alaska. With the administration's 
support, we intend to move this bill as quickly as possible to begin 
creating jobs, spurring energy production, and preserving our 
independent tanker fleet.
  Congress enacted the original export ban shortly after the 
commencement of the Arab-Israeli war and the first oil boycott in 1973. 
The original intent of the law was to enhance energy security, but 
today it actually threatens our energy security by discouraging energy 
production and creating unnecessary hardships for the struggling 
domestic oil industry. In 1994, for the first time in history, more 
than half the oil used in the United States was
 imported. Imports in 1994 accounted for 50.4 percent of domestic 
demand, and it is the decline in domestic production that has led to 
higher imports. Most North Slope crude oil is delivered to 
[[Page S2666]] the west coast, especially California, on U.S. flag 
vessels. The export ban drastically reduces the market value of the oil 
and creates an artificial surplus on the west coast. This depresses the 
production and development of both North Slope crude and the heavy 
crude produced by small independent producers in California.
  Our legislation would go a long way toward helping to revive the 
domestic oil industry, create American jobs, and preserve our U.S. 
tanker fleet. In June 1994, the Department of Energy released a 
comprehensive report which concluded that Alaskan oil exports would 
boost production in Alaska and California by at least 100,000 barrels 
per day by the end of the decade. The Department also concluded that 
exports of this oil on U.S. flag ships would help create as many as 
25,000 new jobs and generate hundreds of millions of dollars in new 
State and Federal revenues. Our legislation would require the use of 
U.S. flag ships to carry the exports, meaning that, in general, the 
ships which carry this oil today will continue to do so in the future.
  Mr. President, I emphasize that this legislation will increase jobs 
for Americans. It will help small businesses by permitting the oil 
market to function normally. It will help keep U.S. seamen employed in 
a U.S. tanker fleet. It will slow the decline of production of North 
Slope crude oil and encourage production in California, which will, in 
turn, help to salvage our energy security. Finally, it will help to 
eliminate an injustice which has unfairly discriminated against 
Alaska's citizens for too long. We urge the administration to join with 
us to help move this legislation as quickly as possible.


                          ____________________