txt

SCS CSSSHB 86(JUD): "An Act relating to state permitted projects; and providing for an effective date."

00 SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 86(JUD) 01 "An Act relating to state permitted projects; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 04 to read: 05 PURPOSE AND FINDINGS. (a) The purpose of secs. 3 and 4 of this Act is to 06 legislatively authorize and approve all oil and gas projects located within the Cook Inlet Basin 07 that have, as of the effective date of this Act, a final authorization, permit, or other form of 08 approval from the Department of Environmental Conservation, the Department of Fish and 09 Game, the Department of Natural Resources, or the division of governmental coordination, 10 formerly part of the office of management and budget. AS 46.40.096(i), added by sec. 3 of 11 this Act and sec. 4 of this Act supersede and replace any other form of approval previously 12 required by law. A project authorized and approved by AS 46.40.096(i), added by sec. 3 of 13 this Act and sec. 4 of this Act shall remain subject to regulation by any agency having 14 jurisdiction over the project, consistent with the terms and requirements of the authorization, 15 permit, or other approval issued by the agency.

01 (b) The legislature finds that 02 (1) it is in the best interests of the state to legislatively approve and authorize 03 the oil and gas projects covered by secs. 3 and 4 of this Act; 04 (2) secs. 3 and 4 of this Act coincide with an executive branch reorganization 05 directly affecting the Department of Environmental Conservation, the Department of Fish and 06 Game, the Department of Natural Resources, and the division of governmental coordination, 07 formerly part of the office of management and budget; secs. 3 and 4 of this Act are intended 08 to help facilitate the reorganization and the transition to a new administrative structure by 09 removing from these agencies the burden of possible or on-going litigation over past 10 administrative decisions; 11 (3) secs. 3 and 4 of this Act avoid costly litigation over projects overseen by 12 these agencies that uniquely benefit all Alaskans, especially the larger population centers and 13 communities encompassed by the Cook Inlet Basin; among other benefits, those projects 14 provide jobs, generate local tax revenue, and fuel local economies by their tertiary economic 15 effects; the legislature finds that it is in the public interest to promote those projects, without 16 litigation; 17 (4) the public interest is protected by secs. 3 and 4 of this Act; all oil and gas 18 projects authorized and approved by this Act remain subject to the regulation and oversight of 19 all state agencies with jurisdiction over those projects; the appropriate state agencies shall 20 regulate each project consistent with the terms and requirements of any permit or approval 21 previously granted for the project; those permits and approvals are granted only after 22 extensive administrative review, including public notice and comment with respect to the 23 project; compliance with those requirements, coupled with the continued oversight by the 24 appropriate state agencies, will ensure the protection of human health and safety and the 25 environment. 26 * Sec. 2. AS 09.68 is amended by adding a new section to read: 27 Sec. 09.68.050. Civil liability for malicious claim against state permitted 28 project. (a) A person who initiates or maintains a malicious claim for injunctive relief 29 against a state permitted project is, in addition to any other penalty or sanction 30 provided by law, liable in a civil action to the permittee or owner of the project for all 31 of the following:

01 (1) actual damages suffered by the permittee or owner of the project as 02 a result of the malicious claim, including 03 (A) wages and salaries paid to employees or contractors idled 04 or put to nonproductive labor as a result of prosecution of the malicious claim; 05 and 06 (B) increased material costs caused by prosecution of the 07 malicious claim; and 08 (2) incidental or consequential damages arising under contracts 09 associated with the project that were caused by prosecution of the malicious claim. 10 (b) The liability of a person for damages under this section is in addition to 11 liability for an award of reasonable attorney fees and costs that may be made to a 12 prevailing party under the Alaska Rules of Civil Procedure. 13 (c) For purposes of this section, a person "initiates or maintains a malicious 14 claim for injunctive relief against a state permitted project" if 15 (1) the person initiates or maintains a baseless legal or administrative 16 claim, including an original claim, a counterclaim, or a cross-claim, against a project 17 or activity in the state requiring one or more permits, authorizations, or approvals from 18 a state agency; 19 (2) the claim is rejected by a court or administrative tribunal of 20 competent jurisdiction or otherwise terminated adverse to the person; 21 (3) the claim is initiated or maintained in bad faith for an end other 22 than the end it was designed to accomplish; 23 (4) the person acts with malice in initiating or maintaining the claim; 24 and 25 (5) the permittee or owner of the project is damaged by the initiation or 26 maintenance of the claim. 27 * Sec. 3. AS 46.40.096 is amended by adding a new subsection to read: 28 (i) Notwithstanding any other provision of law, and except with respect to an 29 appeal filed by the applicant or an affected coastal resource district, or a claim based 30 on the United States Constitution or the Constitution of the State of Alaska, a 31 consistency determination made under this section is

01 (1) not subject to review, stay, or injunction by any court; and 02 (2) effective immediately. 03 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 AUTHORIZATION AND APPROVAL OF PROJECTS IN THE COOK INLET 06 BASIN. Notwithstanding any other provision of law, any oil and gas project located within 07 the Cook Inlet Basin that, as of the effective date of this Act, is the subject of a final 08 authorization, permit, or approval of the Department of Environmental Conservation, the 09 Department of Fish and Game, the Department of Natural Resources, and the division of 10 governmental coordination, formerly part of the office of management and budget, is hereby 11 authorized and approved by the legislature. AS 46.40.096(i), added by sec. 3 of this Act, and 12 this section, the authorization and approval provided by sec. 3 of this Act and this section, and 13 the final agency action previously required by law are not subject to judicial review or, if 14 pending, continued judicial review, unless it is a claim based on the United States 15 Constitution or the Constitution of the State of Alaska. A project under this section shall 16 continue to be subject to the jurisdiction of the appropriate state agencies, as otherwise 17 provided by law, and shall be regulated under the terms and requirements of any permit or 18 approval previously granted for that project, which are incorporated by reference in the 19 authorization provided by this section. 20 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).