[Congressional Record Volume 157, Number 19 (Tuesday, February 8, 2011)]
[Senate]
[Page S632]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MURKOWSKI (for herself and Mr. Begich):
  S. 304. A bill to amend the Alaska Natural Gas Pipeline Act to 
improve the Alaska pipeline construction training program, and for 
other purposes; to the Committee on Energy and Natural Resources.
  Ms. MURKOWSKI. Mr. President, I rise today to introduce legislation 
that would make a minor technical change to a provision that this 
Congress approved in 2004 to further construction of an Alaska natural 
gas pipeline system to move Alaska's conventional gas to market.
  In 2004 Congress approved two pieces of legislation to help 
facilitate construction of an Alaska natural gas pipeline. In Public 
Law 108-324 Congress approved a Federal loan guarantee program, 
streamlined regulatory processes and approved a worker training program 
to guarantee a domestic labor supply for construction of the largest 
private-sector capital infrastructure project in the world's history. 
In a separate bill, Public Law 108-357, Congress also approved tax 
changes to provide accelerated depreciation for the pipe and a related 
gas conditioning plant needed for the project. A pipeline to move 
Alaska's 35 trillion cubic feet of known gas reserves, and its likely 
315 trillion cubic feet of additional Arctic gas reserves from lands 
and Arctic waters would have a host of benefits to the Nation.
  Being able to market only the known gas reserves at the Prudhoe Bay 
field will involve construction of a pipeline system estimated to cost 
between $26 and $40 billion. It is expected to produce 38,000 direct 
job-years of labor in Alaska and up to 31,000 direct jobs at the peak 
of construction. According to the National Defense Foundation it will 
produce direct employment of 172,369 jobs nationwide when related 
steel, pipe, valve and equipment jobs are included, not counting many 
more indirect jobs. At current prices it will generate about $100 
billion in Federal tax revenues, not counting $40 billion in Alaska 
State revenues and $30 billion in Canadian tax revenues over its first 
20 years of operation. Recent estimates, however, indicate that 
development of gas from the offshore Arctic that a gas line will permit 
to occur, would add an average of an additional 54,700 new jobs in the 
U.S.--91,500 at peak employment. That would provide $145 billion in 
total payroll--$82 billion to workers in the Lower 48--and provide $167 
billion in tax and royalty revenues to the Federal Government, $15 
billion to the State of Alaska and total revenues of $193 billion at 
forecast gas prices.
  In the intervening 7 years since the gas line loan-permitting package 
became law, it has become clear that changes are needed. While those 
changes include revisions in the loan guarantee program, they also 
involve changes in the construction worker training provisions.
  In the 2004 act, Sect. 113, the bill authorized $20 million for 
worker training programs, with at least 15 percent of those funds going 
to pay for ``design and construction of a training facility to be 
located in Fairbanks, Alaska.'' But language in the bill has prevented 
that training center from moving forward. This proposed bill would 
authorize Federal funding to be released immediately upon the request 
of the Governor of Alaska, to fund construction of the training center, 
and to broaden the center to permit it also to train oil, besides gas 
field workers, and environmental response employees.
  According to the Alaska Department of Labor, the demand for skilled 
workers for gas and oil line projects on Alaska's North Slope grew by 
50 percent from 2005 to 2009 to nearly 12,000 workers. At the same 
time, the average age of Alaska's skilled workforce is now 53, meaning 
that Alaska needs to train 1,000 new construction and pipeline workers 
annually simply to maintain the State's existing skilled workforce. 
Since it takes roughly 5 years to train a skilled construction/
pipefitter, it is imperative that such training begin far in advance of 
estimated pipeline construction. According to State data, there are 
only about 2,130 plumbers, pipefitters and steamfitters working in 
Alaska and another 1,004 welders, solderers, brazers, and machine 
setters. Past estimates by one of the two consortia proposing to build 
an Alaska gas pipeline are that the gas line alone will require 1,650 
welders/helpers, 2,000 equipment operators, 418 inspectors and 90 UT 
technicians, just to build the Alaska sections of the pipeline. That 
means there is an urgent need for the pipeline training center now.
  The Fairbanks Pipeline Training Center's core mission is to provide a 
highly trained workforce that will meet the needs of the entire oil/
gas/pipeline/refining industry; which is a significant component of 
Alaska's economy, providing 80 percent of the State's industrial tax 
base, 74 percent of all resources produced in the State, and 85 percent 
of State revenues) and a crucial component of the Nation's domestic 
energy supply, currently 13 percent of all domestically produced oil, 
while the proposed overland gas line will produce 7 percent of the 
Nation's total estimated gas demand in 2020. The necessity for this 
workforce is further emphasized because it is clear that an aging 
infrastructure will require an accelerated repair, replacement, and 
maintenance regime if production requirements and safety standard are 
to be met.
  The training center is an innovative statewide collaboration between 
labor, industry, and local, State, and Federal Governments. 
Additionally, it is understood that as alternative fuel technologies 
emerge and are commercialize, a highly skilled, highly trained, highly 
motivated workforce will be required. Again, through collaboration with 
others: the University of Alaska, the Cold Climate Housing Research 
Center, United Technologies Corporation, General Electric, and Alaskan 
commercial interests, requisite evolving workforce needs are understood 
and can be met.
  The facility needs to be located in Interior Alaska, because the 
climate will permit workers to be fully trained in the real-world 
conditions they will face on the job. In order to complete the training 
center and thereby meet anticipated labor demand in a timely manner, 
funds must be secured in the upcoming budget cycle. Federal funding 
needed includes: $5.5 million for Central Facility classrooms and 
shops, $1.5 million for a Construction Camp Facility, $1.0 million for 
a Pipeline Coating Training Facility and for corrosion control 
training, $0.5 million for civil work improvements to the Field 
Training Site, and $1.5 million for pipeline and transportation/
logistical equipment.
  The bill's changes will permit the creation of a domestic energy 
workforce that is stable, productive, and encourages safe working 
practices that will help to protect Alaska's environment and wildlife, 
while producing the energy that America needs. The proposal does not 
expand the size of the funding authorization approved in 2004. It 
simply makes it more likely that American workers will benefit from a 
gas line project when it proceeds--an important fact when the national 
unemployment rate remains at 9.4 percent. I hope that this Congress 
will consider this bill for quick consideration and passage.
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