AIDEA claims state law allows it to invest in almost anything
The Alaska Industrial Development and Export Authority takes an expansive view of how it can spend state money.
The authority will seek to defend its $50 million gas pipeline backstop deal before the Legislative Budget & Audit Committee today at 5:30 p.m.
AIDEA has promised to pay Glenfarne up to $50 million if Glenfarne decides to abandon the Alaska LNG gas pipeline proposal later this year or next.
It’s not clear to me exactly how or why this qualifies as an AIDEA project. I have thought all along that the governor and the two state corporations involved, AIDEA and the gas pipeline corporation, chose this route to bypass the Alaska Legislature and avoid the budget review process.
In any case, there are specific provisions delineated in law that AIDEA boss Randy Ruaro says allow AIDEA to make the $50 million backstop pledge.
These five parts of the law are all found in the section of state statutes that describe what AIDEA is allowed to do. Ruaro claims these five of its 19 powers allow the $50 million deal.
AIDEA is allowed:
to acquire an interest in a project as necessary or appropriate to provide financing for the project, whether by purchase, gift, or leas;
to accept gifts, grants, or loans from, and enter into contracts or other transactions regarding them with, a federal agency, an agency or instrumentality of the state, a municipality, a private organization, or other source;
to enter into contracts or agreements with respect to the exercise of any of its powers, and do all things necessary or convenient to carry out its corporate purposes and exercise the powers granted in this chapter;
to enter into loan agreements with respect to one or more projects upon the terms and conditions the authority considers advisable;
to enter into contracts or other transactions with a federal agency, with an agency or instrumentality of the state or of a municipality, or with a private organization or other entity consistent with the exercise of any power under this chapter;
