Secretary Wright to Senator Murkowski: AKLNG is “Number One” Energy Infrastructure Priority

Secretary Wright to Senator Murkowski: AKLNG is "Number One" Energy Infrastructure Priority

Washington, DC-U.S. Senator Lisa Murkowski (R-AK) today engaged with the U.S. Secretary of Energy, Chris Wright, on a number of Alaska's energy priorities during a Senate Energy and Natural Resources Hearing on the Department of Energy's Fiscal Year 2027 budget request.

Murkowski and Wright discussed the importance of bolstering hydropower, including the imminent release of stalled funding for projects in Southeast Alaska, and the importance of hydropower as a baseload energy source in the Department's budget priorities. Murkowski also asked Wright about the Alaska Liquid Natural Gas (AKLNG) Project, and he responded that it remains a top priority for the administration.

Click here to watch the exchange between the Senator and the Secretary.

Please find a full transcript of the exchange below.

Full Transcript

Murkowski: Thank you, Mr. Chairman. Good to see you, Mr. Secretary. So many good things to talk about on the energy front in Alaska. Thank you for your leadership and really leaning into so much of this.

I wanted to start my questions, first, with an area that oftentimes doesn't get talked about enough. And yet, in Alaska, when it comes to meeting our energy needs, hydropower is there. It is the "Steady Eddie," man-it just keeps plugging away. We have potential to do more with it, but looking at the budget, hydropower funding is reduced by 78%. I want to talk to you a little bit about where hydropower fits into DOE's proposals.

I'm going to give you some specifics about some 247 hydropower incentives that were in place back in September of 2024. They have all the materials, 18 months have passed, and we're still waiting for funds to be released for the Salmon Creek project, Cooper Lake, Green Lake, and SEAPA Grid Resiliency. As you know, these are core infrastructure projects in communities that rely significantly on hydropower. So, can you talk to me more broadly about hydropower and then, more specifically, what may be causing DOE-or maybe it's OMB-to hold up some of these already awarded hydropower funds?

Wright: On the budget, Senator, there isn't the dramatic cut it looks like. It is just a matter of different categorizations. We have a new category now called "baseload power," and that is a big line item. That includes gas, coal, hydro, and nuclear. There are hundreds of millions of dollars of hydro funding in there.

Murkowski: So, do we need to make sure that it goes to hydro, and hydro doesn't get eclipsed by oil, gas, or coal? That is my concern. I just want to make sure hydro is not pushed down to the bottom here.

Wright: Oh, I totally agree. We do almost no funding for oil. Oil doesn't need funding, there is some research, but it's not there. Gas is mostly commercially developed. Our baseload funding is really focused on hydro, coal, and nuclear because those are areas where we can move the needle with the funding budgets we have.

Not just me, but our department is passionate about hydro. Audrey Robertson, who I'm sure you've met, is constantly engaging with hydro developers everywhere. [They ask,] "Why are these dams going to come down? We're afraid to re-permit them; it's too expensive and takes too long. How can we help you?"

Murkowski: We have some good legislation on that, by the way.

Wright: Exactly, and we need to work together on that. I think hydro has lost champions. You talk about hydropower, but very few people do. I agree with you that hydropower is a critical resource, particularly in remote areas. Think of all the water flowing in Alaska; there is massive upside to that. We're looking at repowering. How can you take a little 40-megawatt hydro thing and make it a 50-megawatt thing just by fixing or upgrading the turbines?

Part of the dialogues we had in Venezuela involved their huge hydro assets, but the machines are broken. The existing infrastructure is there, and we can get more power out of it. So, I agree with you, hydro is important. Let's follow up on those specific projects you mentioned because if there is anything we can do to help hydro, we're all-in on it.

Murkowski: What we really need is just a clear timeline on when these funds can be released so they don't miss the upcoming construction season. As you mentioned, costs are going up and up. If we can work with you on that, we will follow up after this hearing.

Wright: Absolutely. My much smarter and more competent team is sitting behind me, so we got to get right on that.

Murkowski: In my remaining time, let's talk about Alaska LNG. Obviously, with all that's going on in Iran, everyone is looking for further opportunities for U.S.-based LNG. We have extraordinary potential up north, as you know you've spent much time there. Where do you place the Alaska LNG project right now in terms of domestic priorities for advancement?

Wright: For energy infrastructure, I would say number one. Number one. This is a gigantic project that transforms the state of Alaska. Because of where people live in Southcentral Alaska, we have an energy problem, even though we have abundant resources nearby. It's awesome for U.S. allies in Asia. It's a short run to all the major LNG consumers in East Asia.

Murkowski: No choke point.

Wright: No choke point. This is really a multi-generational, massive project that improves American and ally infrastructure. Not a week goes by that I don't have multiple meetings or dialogues about it. It has proven tricky. I wish we were up there right now breaking ground.

The problem is the pipeline is hard to finance, and you have to build the pipeline first. The LNG export terminal is not hard to finance, but we can't finance that without financing the pipeline. So, we are just working every avenue we can, and a growing amount of our team is on it. It's important for our country and critical for Alaska.

We will not rest until we have that project completed.

Murkowski: Thank you for that commitment. Thank you, Mr. Chairman.