Unveiled in 2010 by Governor Sean Parnell, the Alaska Energy Pathway intended to provide direction and focus to the goal that all Alaskans should have access to affordable power. Specific actions identified in the plan include: 20% energy efficiency and conservation improvements by 2020; 50% renewable energy for electric power by 20205; Addressing climate change; Incentives for oil and gas exploration to increase throughput and extend the life of the Trans-Alaska pipeline; Priority given to infrastructure projects that will support economic development, particularly related to industries that can supply high-paying jobs to residents and encourage public/private partnerships. With respect to oil and natural gas specifically, the plan outlines the following recommendations: Continue to work with Southcentral producers and utilities to implement a strategy to increase natural gas supply for Southcentral Alaska; Continue to follow state law regarding advancement of a large diameter natural gas pipeline effort; Continue the Governor’s effort to design and permit a small diameter natural gas pipeline that could assure access to natural gas resources; Encourage development of heavy oil and other technologies that will maintain the Trans Alaska Pipeline System throughput and extend its operating lifetime.

On February 5, 2015, the board of the Alaska Industrial Development and Export Authority approved a loan to Interior Alaska Natural Gas Utility for $29.7 million targeted to advance natural gas distribution system development in Fairbanks and North Pole. The Sustainable Energy Transmission and Supply Development Fund loan, part of the Interior Energy Project, allows the Interior Alaska Natural Gas Utility, or IGU, to move forward with phases 1, 2, 3, of its six-year plan to build out its certificated service area. IGU expects to put approximately 73 miles of pipe in the ground to more than 140 multi-family/commercial structures and more than 2,100 residential services. Avista, which owns the Alaska Electric Light and Power Company, is seeking approval to move forward with a $130 million project to bring natural gas to Juneau. The company has requested low-interest financing in the form of a $58 million loan from the Alaska Industrial and Export Authority (AIDEA). AIDEA is a state-owned public corporation that provides various means of financing to promote economic growth and diversity. In order for AIDEA to grant a loan, an aspiring loanee must prove that its plan is economically viable and AIDEA must have legislative approval to make the loan. Should the loan be granted, the remaining $72 million in project costs would come from an equity investment from Avista.