CSHB 177(O&G): "An Act relating to the Alaska Gasline Inducement Act; providing inducements for the construction of a natural gas pipeline and shippers that commit to use that pipeline; establishing the Alaska Gasline Inducement Act matching contribution fund; providing for an Alaska Gasline Inducement Act coordinator; establishing the gas utility revolving loan fund; making conforming amendments; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 177(O&G) 01 "An Act relating to the Alaska Gasline Inducement Act; providing inducements for the 02 construction of a natural gas pipeline and shippers that commit to use that pipeline; 03 establishing the Alaska Gasline Inducement Act matching contribution fund; providing 04 for an Alaska Gasline Inducement Act coordinator; establishing the gas utility revolving 05 loan fund; making conforming amendments; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 43 is amended by adding a new chapter to read: 08 Chapter 90. Alaska Gasline Inducement Act. 09 Article 1. Inducement to Construction of a Natural Gas Pipeline in this State. 10 Sec. 43.90.010. Purpose. The purpose of this chapter is to encourage 11 expedited construction of a natural gas pipeline that 12 (1) facilitates commercialization of North Slope gas resources of the 13 state;
01 (2) promotes exploration and development of oil and gas resources on 02 the North Slope; 03 (3) maximizes benefits to the people of the state from the development 04 of oil and gas resources in the state; and 05 (4) encourages oil and gas lessees and other persons in the state to 06 commit natural gas from the North Slope to a gas pipeline system for transportation to 07 markets in this state or elsewhere. 08 Article 2. Alaska Gasline Inducement Act License. 09 Sec. 43.90.100. Gas project. The commissioner of revenue and the 10 commissioner of natural resources, acting jointly, may award an Alaska Gasline 11 Inducement Act license as provided in this chapter. The person awarded a license 12 under this chapter is entitled to the inducement set out in AS 43.90.110. 13 Sec. 43.90.110. Natural gas pipeline project construction inducement. (a) 14 Subject to the limitations of this chapter, a license issued under this chapter entitles the 15 licensee or its designated affiliate to receive 16 (1) subject to appropriation, state matching contributions in a total 17 amount not to exceed $500,000,000, paid to the licensee during the five-year period 18 immediately following the date the license is awarded; a payment under this paragraph 19 shall be made according to the following: 20 (A) on or before the close of the first binding open season, the 21 state shall contribute the amount of the licensee's qualified expenditures at a 22 level specified in the license; however, the state's contribution may not exceed 23 50 percent of the qualified expenditures incurred before the end of the first 24 binding open season; 25 (B) after the close of the first binding open season, the state 26 may contribute an amount for the licensee's qualified expenditures at the level 27 specified in the license; however, the state's contribution may not be greater 28 than 80 percent of the qualified expenditures incurred after the close of the first 29 binding open season; 30 (C) a qualified expenditure is a cost that is incurred after the 31 license is issued under this chapter, is incurred by the licensee or the licensee's
01 designated affiliate, and is directly and reasonably related to obtaining a 02 certificate of public convenience and necessity from the Federal Energy 03 Regulatory Commission or the Regulatory Commission of Alaska, as 04 appropriate, for development of the project, but does not include overhead 05 costs, litigation costs, the cost of an asset or work product acquired by the 06 licensee before the license is issued, civil penalties, criminal penalties, or fines; 07 (2) the benefit of an Alaska Gasline Inducement Act coordinator who 08 has the authority prescribed in AS 43.90.250; and 09 (3) the benefits of coordination with qualified training organizations 10 that prepare individuals for employment in gas pipeline project management, 11 construction, operation, maintenance, and other gas pipeline-related positions. 12 (b) The commissioner of revenue in consultation with the commissioner of 13 natural resources shall adopt regulations for determining whether an expenditure is a 14 qualified expenditure for the purposes of (a) of this section. 15 Sec. 43.90.120. Request for applications for the license. (a) The 16 commissioners shall commence a public process to request applications for a license 17 as soon as practicable after the effective date of this chapter. 18 (b) The commissioners may use independent contractors, including technical 19 advisors, to assist them in developing the application and in evaluating the 20 applications received. 21 (c) The provisions of AS 36.30 do not apply to requests for applications under 22 this chapter, but the commissioners shall adopt regulations that provide protest and 23 appeal procedures relating to the solicitation of the applications and award of a license 24 that are substantially similar to the provisions of AS 36.30.550 - 36.30.699. 25 Sec. 43.90.130. Application requirements. In order to be considered for the 26 license, an applicant shall file an application that is consistent with the terms of the 27 request for applications under AS 43.90.120 and shall 28 (1) file the application by the deadline established by the 29 commissioners in the request for applications; 30 (2) provide a detailed description of a proposed natural gas pipeline 31 project for transporting natural gas from the North Slope to market, including
01 (A) the route proposed for the natural gas pipeline, which may 02 not be the route described in AS 38.35.017(b); 03 (B) the location of receipt and delivery points and the size and 04 design capacity of the proposed natural gas pipeline at the proposed receipt and 05 delivery points, except that this information is not required for in-state delivery 06 points; 07 (C) an analysis demonstrating the economic and technical 08 viability of the project; 09 (D) an economically and technically viable work plan, timeline, 10 and associated budget for developing the proposed project and work associated 11 with the project that includes field work, environmental studies, design and 12 engineering, and complying with all applicable state, federal, and international 13 regulatory requirements that affect the proposed project; the applicant shall 14 provide the following: 15 (i) if the proposed project involves a pipeline into or 16 through Canada, a detailed description of the applicant's plan to obtain 17 necessary rights-of-way and authorizations in Canada, a description of 18 the transportation services to be provided and a description of rate- 19 making methodologies the applicant will propose to the regulatory 20 agencies, an estimate of rates and charges for all services, and a 21 detailed description of all access and tariff terms that the applicant 22 would propose to offer; 23 (ii) if the proposed project involves marine 24 transportation of liquefied natural gas, a description of the pipeline 25 route, system, and capacity proposed to bring North Slope gas to 26 tidewater, including a description of transportation services to be 27 provided and a description of proposed rate-making methodologies; an 28 estimate of rates and charges for all services; and a detailed description 29 of all access and tariff terms that the applicant would offer including 30 any services by third parties; a detailed description of all proposed 31 access and tariff terms for liquefaction services or, if a third party
01 would perform liquefaction services, the identification of that third 02 party and the terms applicable to the liquefaction services; a complete 03 description of the marine segment of the project, including the 04 proposed ownership, control, and cost of liquefied natural gas tankers, 05 the management of shipping services, liquefied natural gas export 06 destination, regasification facilities and pipeline facilities needed for 07 transport to market destinations; the entity or entities that would be 08 required to obtain necessary export permits and licenses or a certificate 09 of public convenience and necessity from the Federal Energy 10 Regulatory Commission; and all rights-of-way or authorizations 11 required from a foreign country; 12 (3) if the proposed project is within the jurisdiction of the Federal 13 Energy Regulatory Commission, commit to 14 (A) conclude, by a date certain that is not later than 36 months 15 after the date the license is issued, a binding open season that is consistent with 16 the requirements of Subpart B of 18 C.F.R. Part 157 (Open Seasons for Alaska 17 Natural Gas Transportation Projects) and 18 C.F.R. 157.30 - 157.39; 18 (B) apply for Federal Energy Regulatory Commission approval 19 to use the pre-filing procedures set out in 18 C.F.R. 157.21 by a date certain, 20 and use those procedures before filing an application for a certificate of public 21 convenience and necessity; and 22 (C) apply for a Federal Energy Regulatory Commission 23 certificate of public convenience and necessity to authorize the construction 24 and operation of the proposed project described in this section by a date 25 certain; 26 (4) if the proposed project is within the jurisdiction of the Regulatory 27 Commission of Alaska, commit to 28 (A) conclude, by a date certain that is not later than 36 months 29 after the date the license is issued, a binding open season that is consistent with 30 the requirements of AS 42.06; and 31 (B) apply for a certificate of public convenience and necessity
01 to authorize the construction and operation of the proposed project by a date 02 certain; 03 (5) after the first binding open season, commit to assess the market 04 demand for additional pipeline capacity at least every two years through public non- 05 binding solicitations or similar means; 06 (6) commit to expand the proposed project in reasonable engineering 07 increments and on commercially reasonable terms that encourage exploration and 08 development of gas resources in this state; in this paragraph, 09 (A) "commercially reasonable terms" means that, subject to the 10 provisions of (7)(A) of this section, revenue from transportation contracts 11 covers the cost of the expansion, including increased fuel costs, and a 12 reasonable return on capital as authorized by the Federal Energy Regulatory 13 Commission or the Regulatory Commission of Alaska, as applicable, and there 14 is no impairment of the proposed project's ability to recover the costs of 15 existing facilities; 16 (B) "reasonable engineering increments" means the amount of 17 additional capacity that could be added by compression or a pipe addition 18 using a compressor size or pipe size, as applicable, that is substantially similar 19 to the original compressor size and the original pipe size; 20 (7) commit to 21 (A) propose and support recovery of mainline capacity 22 expansion costs from all mainline system users through rolled-in rates if the 23 recovery of all expansion costs through rolled-in rates would increase existing 24 shippers' rates by not more than 15 percent above the initial maximum recourse 25 rates from the North Slope to the proposed project's downstream terminus; if 26 rolled-in expansion costs would increase existing shippers' rates from the 27 North Slope to the project's downstream terminus by more than 15 percent, 28 propose and support the partial roll-in of mainline expansion costs from all 29 mainline system users to the extent that existing shippers' rates would not be 30 increased by more than 15 percent above the initial maximum recourse rates 31 from the North Slope to the proposed project's downstream terminus; in this
01 subparagraph, "initial maximum recourse rates" means the highest cost-based 02 rates for any specific transportation service set by the Federal Energy 03 Regulatory Commission, the Regulatory Commission of Alaska, or the 04 National Energy Board of Canada, as appropriate, at the time of the initial 05 regulatory approval of the proposed project; 06 (B) consider proposing any combination of incremental or 07 rolled-in rates for recovery of costs of mainline capacity expansion that 08 exceeds the 15 percent level described in (A) of this paragraph; 09 (C) agree not to enter into a negotiated rate agreement that 10 would preclude collecting from any shipper, including a shipper with 11 negotiated rate agreements, the rolled-in rates that are required to be proposed 12 and supported under (A) of this paragraph; in this subparagraph, "negotiated 13 rate agreement" means a transportation service agreement that is subject to 14 rates that vary from the otherwise applicable cost-based rates, or recourse rates, 15 set out in a gas pipeline's tariff approved by the Federal Energy Regulatory 16 Commission, the Regulatory Commission of Alaska, or the National Energy 17 Board of Canada, as appropriate; 18 (8) state how the applicant proposes to deal with a North Slope gas 19 treatment plant regardless of whether such a plant is part of the applicant's proposal, 20 and, to the extent that such a plant will be owned entirely or in part by the applicant, 21 commit to seek certificate authority from the Federal Energy Regulatory Commission 22 if the proposed project is engaged in interstate commerce or from the Regulatory 23 Commission of Alaska if the project is not engaged in interstate commerce, for a 24 North Slope gas treatment plant that will be owned entirely or in part by the applicant 25 and, for rate-making purposes, commit to value previously owned assets that are part 26 of the gas treatment plant at net book value; describe the gas treatment plant, including 27 its design, engineering, construction, ownership, and plan of operation, the identity of 28 any third party that will participate in the ownership or operation of the gas treatment 29 plant, and the means by which the applicant will work to minimize the effect of the 30 costs of the facility on the tariff; 31 (9) propose a percentage and total dollar amount, to be specified in the
01 license, that will define the level of the state's contribution under 02 AS 43.90.110(a)(1)(A) and (B); 03 (10) commit to propose and support rates for the proposed project and 04 for any North Slope gas treatment plant that the applicant may own, in whole or in 05 part, that are based on a capital structure for rate-making that consists of not less than 06 70 percent debt; 07 (11) describe the means for preventing or managing cost overruns for 08 the proposed project, and the measures for minimizing the effect from any overruns; 09 (12) commit to provide a minimum of five delivery points of natural 10 gas in this state; 11 (13) commit to offer firm transportation service to delivery points in 12 this state as part of the tariff regardless of whether any shippers bid successfully in a 13 binding open season for firm transportation service to delivery points in this state, and 14 commit to offer distance-sensitive rates to delivery points in this state consistent with 15 18 C.F.R. 157.34(c)(8); 16 (14) commit to establish a local headquarters in this state for the 17 proposed project; 18 (15) commit to hire qualified state residents for management, 19 engineering, construction, operation, maintenance, and other positions on the proposed 20 project and to contract with businesses located in the state to the extent permitted by 21 law; 22 (16) waive the right to appeal the award to another applicant or the 23 determination under AS 43.90.180(b) that no application merits the issuance of a 24 license; 25 (17) commit to negotiate, prior to construction, a project labor 26 agreement, to assure expedited construction and labor stability for the project by 27 qualified residents of the state; 28 (18) commit that the state contribution received by the licensee may 29 not be included in the applicant's rate base and shall be used as a credit against the 30 licensee's cost of service; 31 (19) provide a detailed description of the applicant; the affiliates of the
01 applicant; all partners, members of a joint venture, and other entities participating with 02 the applicant in the application and the project proposed by the applicant; and persons 03 the applicant intends to involve in the construction and operation of the proposed 04 project; the description must include the nature of the affiliation for each person, the 05 commitments by the person to the applicant, and other information relevant to the 06 commissioners' evaluation of the readiness and ability of the applicant to complete the 07 project presented in the application; and 08 (20) otherwise demonstrate the readiness and ability to perform the 09 activities specified in the application, including following the detailed work plan, 10 timeline, and operation within the associated budget. 11 Sec. 43.90.140. Initial application review; additional information requests; 12 complete applications. (a) The commissioners shall review each application to 13 determine whether it meets the requirements in the request for applications and the 14 requirements in AS 43.90.130. The commissioners shall reject an application that does 15 not meet the requirements. 16 (b) The commissioners may request additional information relating to the 17 application from an applicant for the purpose of evaluating an application that is not 18 rejected under (a) of this section. 19 (c) An application shall be rejected if the applicant fails to timely provide the 20 information requested under (b) of this section, or submits additional information in 21 answer to a request under (b) of this section that is not responsive. 22 (d) The commissioners shall make a determination that an application not 23 rejected under this section, including any requested additional information, is 24 complete. 25 Sec. 43.90.150. Proprietary information and trade secrets. (a) At the 26 request of the applicant, information submitted under this chapter that the applicant 27 identifies and demonstrates is proprietary or is a trade secret is confidential and not 28 subject to public disclosure under AS 40.25 unless the applicant is granted a license 29 under this chapter; after a license is awarded, all information submitted by the licensee 30 under this chapter shall be made public. 31 (b) If the commissioners determine that the information submitted by the
01 applicant is not proprietary or is not a trade secret, the commissioners shall notify the 02 applicant and return the information at the request of the applicant. 03 (c) An applicant that protests or appeals the award of a license or the process 04 by which the award of a license is made shall be considered to have consented to the 05 disclosure of all of the information submitted under this chapter by the applicant 06 making the protest or appeal, including information that is confidential under (a) of 07 this section. 08 (d) In this section, "proprietary" means that the information is treated by the 09 applicant as confidential and the public disclosure of that information would adversely 10 affect the competitive position of the applicant, or materially diminish the commercial 11 value of the information to the applicant. 12 Sec. 43.90.160. Notice, review, and comment. (a) The commissioners shall 13 publish notice and provide a 60-day period for public review and comment on all 14 applications determined complete under AS 43.90.140. 15 (b) Applications received under this chapter are not public records and are not 16 subject to public disclosure under AS 40.25 until the commissioners publish notice 17 under this section. However, information that the commissioners have determined is 18 confidential under AS 43.90.150 may not be made public even after the notice is 19 published under (a) of this section, except as provided in AS 43.90.150. If information 20 is held confidential under this subsection, the applicant shall provide a summary of the 21 information satisfactory to the commissioners and the commissioners shall make the 22 summary available to the public. 23 (c) Information provided by an applicant to the commissioners under this 24 chapter, including information determined by the commissioners to be confidential 25 under AS 43.90.150, shall be disclosed to the legislative auditor, the fiscal analyst who 26 serves as head of the legislative finance division, agents and contractors of the 27 legislative auditor and the fiscal analyst, and members of the legislature, upon request 28 and after the individual making the request signs a confidentiality agreement prepared 29 by the commissioners. 30 Sec. 43.90.170. Application evaluation and ranking. (a) The commissioners 31 shall evaluate all applications determined to be complete under AS 43.90.150 and rank
01 each application according to the net present value of the anticipated cash flow to the 02 state from the applicant's project proposal using the factors in (b) of this section and 03 weighted by the project's likelihood of success based on the commissioners' 04 assessment of the factors listed in (c) of this section. 05 (b) When evaluating the net present value of anticipated cash flow to the state 06 from the applicant's project proposal, the commissioners shall use an undiscounted 07 value and, at a minimum, discount rates of two, five, and eight percent, and consider 08 (1) how quickly the applicant proposes to begin construction of the 09 proposed project and how quickly the project will commence commercial operation; 10 (2) the wellhead value of the gas determined by the destination market 11 value of the gas and estimated transportation costs; 12 (3) the ability of the applicant to prevent or reduce project cost 13 overruns that would increase the tariff; 14 (4) the initial design capacity of the applicant's project and the extent 15 to which the design can accommodate low-cost expansion; 16 (5) the amount of the contribution by the state under 17 AS 43.90.110(a)(1)(A) and (B) proposed by the applicant under AS 43.90.130(9); and 18 (6) other factors found by the commissioners to be relevant to the 19 evaluation of the net present value of the anticipated cash flow to the state. 20 (c) When evaluating the project's likelihood of success, the commissioners 21 shall consider 22 (1) the reasonableness, specificity, and feasibility of the applicant's 23 work plan, timeline, and budget required to be submitted under AS 43.90.130, 24 including the applicant's plan to manage cost overruns, the degree to which the 25 applicant intends to insulate shippers from the effect of cost overruns, and the plan for 26 encouraging shippers to participate in the first binding open season; 27 (2) the financial resources of the applicant; 28 (3) the ability of the applicant to comply with the proposed 29 performance schedule; 30 (4) the applicant's organization, experience, accounting and operational 31 controls, technical skills or the ability to obtain them, necessary equipment or the
01 ability to obtain the necessary equipment; 02 (5) the applicant's record of 03 (A) performance on projects not licensed under this chapter; 04 (B) integrity and good business ethics; and 05 (6) other evidence and factors found by the commissioners to be 06 relevant to the evaluation of the project's likelihood of success. 07 (d) In this section, "net present value" means the discounted value of a future 08 stream of cash flow. 09 Sec. 43.90.180. Notice to the legislature of intent to issue license; denial of 10 license. (a) If, after evaluation of complete applications under AS 43.90.170 and 11 consideration of public comments received under AS 43.90.160, the commissioners 12 determine that an application proposes a project that will sufficiently maximize the 13 benefits to the people of this state and merits issuance of a license, the commissioners 14 shall 15 (1) issue a determination, with written findings addressing the basis for 16 the determination; the determination becomes a final agency action in accordance with 17 AS 43.90.190; 18 (2) publish a notice of intent to issue a license that includes findings 19 addressing the basis for the determination; and 20 (3) submit the determination along with the findings, supporting 21 documentation, and a copy of the notice published under (2) of this subsection to the 22 presiding officer of each house of the legislature for action as provided in 23 AS 43.90.190. 24 (b) If the commissioners determine that no application proposes a project that 25 sufficiently maximizes the benefits to the people of this state and merits issuance of a 26 license, the commissioners shall issue a written notice of that determination and the 27 findings on which the determination is based. 28 (c) The commissioners' determination under this (b) of this section is a final 29 agency action for purposes of appeal to the superior court. 30 (d) Within 90 days after a determination under (b) of this section, the 31 commissioners may issue a new request for applications for a license under
01 AS 43.90.120. 02 Sec. 43.90.190. Legislative approval; issuance of license. (a) After the 03 presiding officer of each house of the legislature receives a determination from the 04 commissioners under AS 43.90.180, the rules committee of each house of the 05 legislature shall introduce a bill in the committee's respective chamber that provides 06 for the approval of the license proposed to be issued by the commissioners. 07 (b) If a bill approving the issuance of the license becomes law, the 08 commissioners shall issue the license as soon as practicable after the effective date of 09 the Act approving the issuance of the license. The issuance of the license approved by 10 the legislature is a final administrative action on the date the license is issued for 11 purposes of appeal to the superior court. 12 (c) If the legislature fails to approve the issuance of the license, the 13 commissioners may request new applications for a license under AS 43.90.120. 14 Sec. 43.90.200. Certification by regulatory authority and project sanction. 15 (a) A licensee that is awarded a certificate of public convenience and necessity from a 16 regulatory agency with jurisdiction over the project shall accept the certificate after all 17 rights of appeal relating to the certificate have expired. 18 (b) If the licensee has the ability at the time the certificate is awarded to 19 finance construction of the project through ownership of rights to produce and market 20 gas resources, firm transportation commitments, or government financing, the licensee 21 shall sanction the project within one year after the effective date of the certificate of 22 public convenience and necessity issued by the regulatory agency with jurisdiction 23 over the project. 24 (c) If the licensee does not have the ability at the time the certificate is 25 awarded to finance construction of the project through ownership of rights to produce 26 and market gas resources, firm transportation commitments, or government financing, 27 the licensee shall sanction the project within five years after the effective date of the 28 certificate of public convenience and necessity issued by the regulatory agency with 29 jurisdiction over the project. 30 (d) If the licensee fails to sanction the project timely as required under this 31 section, the licensee shall, upon request by the state,
01 (1) seek approval to abandon the project and transfer the certificate of 02 public convenience and necessity to the state or the state's designee; and 03 (2) assign to the state or the state's designee all project data, 04 engineering designs, contracts, and permits owned or acquired by the licensee during 05 the term of the license as of the date of the abandonment or transfer. 06 (e) The transfer of any certificate of public convenience and necessity or 07 transfer under (d) of this section as a result of failure to comply with (a), (b), or (c) of 08 this section is at no cost to the state or the state's designee. 09 (f) In this section, "time the certificate is awarded" means the date after which 10 all rights of appeal relating to the certificate have expired. 11 Sec. 43.90.210. Amendment of or modification to the project plan. Subject 12 to the approval of the commissioners, a licensee may amend or modify its project plan 13 if the amendments or modifications are necessary as a result of changed circumstances 14 outside the licensee's control and not reasonably foreseeable before the license was 15 issued. An amendment or modification approved under this section must be consistent 16 with the requirements in AS 43.90.130 and may not diminish the net present value to 17 the state of the project or the likelihood of success for the project. 18 Sec. 43.90.220. Records, reports, conditions, and audit requirements. (a) A 19 licensee shall maintain complete and accurate records of all expenditures and 20 commitments of state contributions received under this chapter, including receipts and 21 records showing the payment or cost of purchased items and services, the names and 22 addresses of the sellers and service providers, and the dates of service or delivery. 23 (b) Upon reasonable notice, the commissioners may audit the records of the 24 entity receiving a contribution from the state under this chapter relating to 25 expenditures, commitments, or contributions under this chapter and may 26 (1) examine all books, records, and files of the entity; 27 (2) conduct hearings or other investigative inquiries, and compel the 28 attendance of witnesses and production of documents; and 29 (3) require the entity to furnish information and documents relating to 30 the project in hard copy or electronic format. 31 (c) After a license has been issued and so long as the terms of the license
01 continue to apply, the licensee shall allow the commissioners to 02 (1) have a representative present at all meetings of the licensee's 03 governing body and meetings of equity holders that relate to the project; 04 (2) receive all relevant notices and information sent to the governing 05 body and equity holders; 06 (3) enjoy the same access to information about the licensee as the 07 governing body members and equity owners receive; and 08 (4) receive relevant reports or information from the licensee that the 09 commissioners reasonably request. 10 (d) A licensee shall maintain the records and reports required under this 11 section for seven years from the date the licensee receives a contribution from the state 12 under this chapter. 13 Sec. 43.90.230. License violations; damages. (a) A licensee is in violation of 14 the license if the commissioners determine that the licensee has 15 (1) committed a contribution received from the state under this chapter 16 for an expenditure that is not a qualified expenditure under AS 43.90.110; 17 (2) substantially departed from the specifications in the application 18 without state approval of an amendment or modification as required under 19 AS 43.90.210; 20 (3) violated any provision of this chapter or any other provision of 21 state or federal law material to the license; or 22 (4) otherwise violated a material term of the license. 23 (b) The commissioners shall provide a written notice to the licensee that 24 identifies a license violation. The commissioners and the licensee shall have 90 days 25 after the date the notice is issued to informally resolve the violation. 26 (c) The commissioners may suspend disbursement of state contributions on 27 the date the notice in (b) of this section is sent to the licensee. The commissioners may 28 resume disbursement on the date that the commissioners determine that the license 29 violation is cured. 30 (d) If the commissioners and the licensee are unable under (b) of this section 31 to resolve the issue of whether a violation has occurred, the commissioners shall
01 provide the licensee with notice that the violation has not been cured and provide the 02 opportunity for the licensee to be heard. If after notice and hearing the commissioners 03 determine that the violation has not been cured, the commissioners shall issue a 04 written decision that is a final administrative action for purposes of appeal to the 05 superior court. 06 (e) If the determination issued under (d) of this section finds that a violation 07 has not been cured, the commissioners may impose one or more of the following 08 remedies: 09 (1) discontinuation of state contributions under this chapter; 10 (2) recoupment of state money that the licensee has received under this 11 chapter to date, with interest, regardless of whether the licensee has expended or 12 committed that money; 13 (3) license revocation; 14 (4) assignment to the state or the state's designee of all project data, 15 engineering designs, contracts, and permits related to the project that are acquired by 16 the licensee during the term of the license; 17 (5) any other remedies provided by law or in equity. 18 (f) If the license is revoked under (e) of this section, the licensee 19 (1) may not submit an application for the license in the event a request 20 for applications is issued under AS 43.90.120 after the date of revocation; and 21 (2) shall deliver to the state all project data, engineering designs, 22 contracts, rights-of-way, and other work product of the licensee that is related to the 23 licensed project. 24 Sec. 43.90.240. Abandonment of project. (a) If the commissioners and the 25 licensee agree that the project is uneconomic, the project shall be abandoned, the 26 entitlement provided for in AS 43.90.110 terminated and the state and the licensee no 27 longer have an obligation under this chapter with respect to the license, except for 28 requirements imposed on the licensee under (d) of this section and AS 43.90.220. 29 (b) If the commissioners and the licensee do not agree that the project is 30 uneconomic, the disagreement shall be settled by arbitration administered by the 31 American Arbitration Association under its Commercial Arbitration Rules, and
01 judgment on the award rendered by the arbitrators may be entered in any court of 02 competent jurisdiction. In the event of arbitration, each party shall select an arbitrator 03 and the two arbitrators shall appoint a third arbitrator from the American Arbitration 04 Association's National Roster who shall serve as the chair of the three member 05 arbitration panel. If the arbitration panel determines that the project is 06 (1) uneconomic, the project shall be abandoned and the state and the 07 licensee no longer have an obligation under this chapter with respect to the license, 08 except for requirements imposed on the licensee under (d) of this section and 09 AS 43.90.220; or 10 (2) not uneconomic, the obligations of the licensee and the state 11 continue under this chapter and the terms of the license. 12 (c) If the state makes a payment to the licensee under AS 43.90.440, the 13 license is considered abandoned, and the state and the licensee no longer have any 14 obligations under this chapter with respect to the license, except that the licensee must 15 comply with the 16 (1) requirements imposed on the licensee under AS 43.90.220 17 regarding state money received by the licensee before the license was considered 18 abandoned; and 19 (2) requirements of AS 43.90.440. 20 (d) If the commissioners and the licensee agree that the project is uneconomic 21 or an arbitration panel makes a final determination that the project is uneconomic, the 22 licensee shall deliver to the state or the state's designee all project data, engineering 23 designs, contracts, and permits related to the licensed project on reimbursement by the 24 state of the net amount of expenditures incurred and paid by the licensee that are 25 qualified expenditures for the purposes of AS 43.90.110. 26 Sec. 43.90.250. Alaska Gasline Inducement Act coordinator. (a) There is 27 created in the office of the governor the position of Alaska Gasline Inducement Act 28 coordinator. Administrative support for the position shall be provided by the office of 29 the governor. The position shall continue until one year after commencement of 30 commercial operations of the project. 31 (b) The governor shall appoint a person to the position of Alaska Gasline
01 Inducement Act coordinator. The initial appointment is subject to confirmation by the 02 legislature and an appointment is subject to reconfirmation by the legislature during 03 the first regular legislative session after a general election at which a governor is 04 elected. The person may be removed from the position at the discretion of the 05 governor. 06 (c) The Alaska Gasline Inducement Act coordinator is entitled to receive an 07 annual salary equal to Step A, Range 28, of the salary schedule set out in 08 AS 39.27.011(a) for Juneau. 09 (d) The Alaska Gasline Inducement Act coordinator shall, in conjunction with 10 the commissioners, 11 (1) coordinate expeditious performance of all activities by state 12 agencies for the project; 13 (2) ensure compliance by state agencies with the provisions of this 14 chapter; and 15 (3) coordinate with the Office of the Federal Coordinator for Alaska 16 Natural Gas Transportation Projects (29 U.S.C. 720d) for natural gas transportation 17 projects in the state. 18 Sec. 43.90.260. Expedited review and action by state agencies. (a) A review 19 conducted and action taken by a state agency relating to the project shall be expedited 20 in a manner consistent with the completion of the necessary approvals in accordance 21 with this chapter. 22 (b) Notwithstanding any contrary provision of law, a state agency may not 23 include in any project certificate, right-of-way, permit, or other authorization issued to 24 the licensee a term or condition that is not required by law if the coordinator 25 determines that the term or condition would prevent or impair in any significant 26 respect the expeditious construction and operation or expansion of the project. 27 (c) Unless required by law, a state agency may not add to, amend, or abrogate 28 a certificate, right-of-way, permit, or other authorization issued to a licensee if the 29 coordinator determines that the action would prevent or impair in any significant 30 respect the expeditious construction, operation, or expansion of the project. 31 Article 3. Resource Inducement.
01 Sec. 43.90.300. Qualification for resource inducement. Notwithstanding any 02 contrary provision of law, a lessee or other person that demonstrates to the satisfaction 03 of the commissioners that the person has committed to acquire firm transportation 04 capacity in the first binding open season of the project is qualified to receive the 05 resource inducement set out in AS 43.90.310 and 43.90.320 for gas produced on the 06 North Slope and shipped in firm transportation capacity acquired in the first binding 07 open season of the project. The inducement in AS 43.90.310 and 43.90.320 are 08 contractual. 09 Sec. 43.90.310. Royalty inducement. (a) Before the start of the first binding 10 open season to be conducted by the licensee, the commissioner of natural resources 11 shall adopt regulations that provide a method to determine the monthly value of the 12 state's royalty share of gas production and provide terms under which the state will 13 exercise its right to switch between taking its royalty in value or in kind for gas 14 committed for firm transportation in the first binding open season of the project. 15 (b) The regulations must 16 (1) minimize retroactive adjustments to the monthly value of the state's 17 royalty share of gas production; 18 (2) provide a method for establishing a fair market value for each 19 component of the state's royalty gas that is based on pricing data from reliable and 20 widely available industry trade publications and that uses appropriate adjustments to 21 reflect 22 (A) deductions for actual and reasonable transportation costs 23 for the state's royalty gas, including a reasonable share of the costs associated 24 with unused capacity commitments on gas pipelines from the North Slope to 25 the first destination market with reasonable market liquidity; 26 (B) location differentials between the destination markets 27 where North Slope gas could be sold; 28 (C) reasonable and actual costs for gas processing; and 29 (D) deductions permitted under the 1980 Royalty Settlement 30 Agreement for Prudhoe Bay gas; 31 (3) establish terms under which the state will exercise its authority to
01 switch between taking its royalty gas in value and in kind to ensure that the state's 02 actions do not unreasonably 03 (A) cause the lessee or other qualified person to bear 04 disproportionate transportation costs with respect to the state's royalty gas; 05 (B) interfere with the long-term marketing by a lessee or 06 another person of its production. 07 (c) If a lessee or other person qualified for resource inducement under 08 AS 43.90.300 agrees under (d) of this section, the lessee or other person is entitled to 09 elect whether 10 (1) to calculate its gas royalty obligation under the regulations adopted 11 under (a) of this section for natural gas transported on a firm contract negotiated 12 during the project's first binding open season or under the methodology set out in the 13 existing leases from which the gas is produced; with the consent of the lessee, the 14 commissioner of natural resources shall contractually amend the existing lease to 15 reflect the election under this paragraph and incorporate into the lease, the terms of the 16 relevant regulations as fixed contract terms; the election under this paragraph remains 17 in effect until new regulations are adopted as a result of the review under (e) of this 18 section, when a lessee or other person qualified under AS 43.90.300 may change its 19 election under this paragraph; on the request of the lessee, the commissioner of natural 20 resources shall contractually amend the lease to incorporate as fixed contract terms, 21 the relevant revised regulatory provisions; or 22 (2) to enter into a contract with the state that amends the existing lease 23 terms by extending the required period of notice that the state must provide before 24 exercising the state's right to switch between taking its royalty in value or in kind for 25 gas committed for firm transportation in the first binding open season of the project. 26 (d) To claim the inducement under (c) of this section, a lessee or other 27 qualified person shall agree, on an application form provided by the Department of 28 Natural Resources, that the lessee or qualified person, and the affiliates, successors, 29 assigns, and agents of the lessee or qualified person, will not protest or appeal a filing 30 by the licensee to roll in expansion costs of the mainline up to a level that is required 31 in AS 43.90.130(7) if the Federal Energy Regulatory Commission does not have a
01 policy in effect that presumes that rolled-in rates apply to the recovery of expansion 02 costs for the project; the agreement not to protest may not preclude the lessee or other 03 qualified person, or the affiliates, successors, assigns, and agents of the lessee or other 04 qualified person, from protesting a filing to roll in mainline expansion costs that 05 licensee is not required to propose and support under AS 43.90.130(7). 06 (e) The commissioner of natural resources shall provide for review of the 07 regulations adopted under (a) of this section at least every two years after the 08 commencement of commercial operations to determine whether the regulations 09 continue to minimize retroactive adjustments to the monthly value of the state's 10 royalty share of gas production under current conditions; the commissioner shall 11 amend the regulations when the requirement is not being met. 12 (f) No provision of this chapter precludes the election set out in (c) of this 13 section, nor may the commissioner of natural resources assert any provision of any 14 existing lease or unit agreement as precluding the elections set out in (c) of this 15 section. 16 Sec. 43.90.320. Gas production tax exemption. (a) If a person qualified for 17 resource inducement under AS 43.90.300 agrees under (c) of this section, the person is 18 entitled to an annual exemption from the state's gas production tax in an amount equal 19 to the difference between the amount of the person's gas production tax obligation 20 calculated under the gas production tax in effect during that tax year and the amount of 21 the person's gas production tax obligation calculated under the gas production tax in 22 effect at the start of the first binding open season held under this chapter. If the 23 difference is less than zero, the gas production tax exemption is zero. 24 (b) The exemption under this section shall be issued by the commissioner of 25 revenue in a certificate signed by the person and the commissioner, and the certificate 26 shall constitute a contract between the person and the state; the certificated exemption 27 may be applied within 10 years immediately following commencement of commercial 28 operations of the project only to production taxes that are levied on North Slope gas 29 shipped through firm transportation capacity the person acquired during the first 30 binding open season. 31 (c) The exemption issued under (b) of this section must contain a contractual
01 commitment that the person and the person's affiliates, successors, assigns, or agents 02 will not protest or appeal a filing by the licensee to roll in mainline expansion costs up 03 to the level that the licensee is required to propose and support under AS 43.90.130(7) 04 if the Federal Energy Regulatory Commission does not have a policy in effect that 05 presumes that rolled-in rates apply to the recovery of expansion costs for the project; 06 the contractual commitment required under this subsection may not preclude the 07 person or the person's affiliates, successors, assigns, and agents, from protesting a 08 filing to roll in mainline expansion costs that the licensee is not required to propose 09 and support under AS 43.90.130(7). 10 Article 4. Miscellaneous Provisions. 11 Sec. 43.90.400. Alaska Gasline Inducement Act matching contribution 12 fund; disbursements; audits. (a) There is established in the general fund an Alaska 13 Gasline Inducement Act matching contribution fund. The fund consists of money 14 appropriated to it by the legislature for disbursement to pay the state's contributions 15 under AS 43.90.110. Money appropriated to the fund may be spent for the purposes of 16 the fund without further appropriation. Appropriations to the fund do not lapse under 17 AS 37.25.010, but remain in the fund for future disbursements. Nothing in this 18 subsection creates a dedicated fund. 19 (b) The Department of Revenue shall manage the fund, and may invest money 20 in the fund so as to yield competitive market rates as provided in AS 37.10.071. 21 Income earned on the fund shall be accounted for separately and may be appropriated 22 to the fund. 23 (c) The commissioners shall adopt regulations that provide for application to 24 receive contributions for qualified expenditures as provided under AS 43.90.110, and 25 that provide for periodic audits of the use of money disbursed as contributions under 26 this chapter. 27 (d) Within 10 days after the convening of each regular session of the 28 legislature, the commissioners shall submit to the legislature a report that lists the 29 disbursements from the fund during the preceding fiscal year with a written 30 justification for each disbursement and the projected amount of money that will be 31 required for contributions in each of the next three fiscal years.
01 Sec. 43.90.410. Regulations. The commissioner of revenue may adopt 02 regulations on behalf of the commissioners for the purpose of implementing the 03 provisions of this chapter. The commissioner of revenue and the commissioner of 04 natural resources may change regulations adopted under authority outside of this 05 chapter as necessary to implement the provisions of this chapter. 06 Sec. 43.90.420. Statute of limitations. A person may not bring a judicial 07 action challenging the constitutionality of this chapter or a license issued under this 08 chapter unless the action is commenced in a court of competent jurisdiction in this 09 state within 90 days after the date that a license is issued. 10 Sec. 43.90.430. Interest. When a payment due to the state under this chapter 11 becomes delinquent, the payment bears interest at the rate applicable to a delinquent 12 tax under AS 43.05.225. 13 Sec. 43.90.440. Licensed project assurances. (a) Except as otherwise 14 provided in this chapter, the state grants a licensee assurances that the licensee has 15 exclusive enjoyment of the inducement provided under this chapter before the 16 commencement of commercial operations. If, before the commencement of 17 commercial operations, the state extends to another person preferential royalty, tax, or 18 monetary treatment for the purpose of facilitating the construction of a competing 19 natural gas pipeline project in this state and if the licensee is in compliance with the 20 requirements of the license and with the requirements of state and federal statutes and 21 regulations relevant to the project, the licensee is entitled to payment from the state of 22 an amount equal to three times the total amount of the expenditures incurred and paid 23 by the licensee that are qualified expenditures for the purposes of AS 43.90.110 that 24 the licensee incurred in developing the licensee's project before the date that the state 25 first extended preferential treatment to another person. Upon payment by the state of 26 the amount owed under this section, the licensee shall, at no additional cost to the 27 state, assign to the state or the state's designee all project data, engineering designs, 28 contracts, and permits related to the project that are owned or were acquired by the 29 licensee during the term of the license. 30 (b) In this section, "competing natural gas project" means a project designed 31 to accommodate throughput of more than 500,000,000 cubic feet of North Slope gas a
01 day. 02 Sec. 43.90.450. Assignments. (a) A licensee may transfer all or part of the 03 license, including the rights and obligations arising under the license, if 04 (1) the transfer is approved in writing in advance by the 05 commissioners; and 06 (2) the transfer does not increase or diminish the obligations created by 07 the license or diminish the likelihood of success of the project or the net present value 08 of the license to the state. 09 (b) Notwithstanding the commissioners' approval of a transfer of all or part of 10 a license under (a) of this section, the transferor of the license remains subject to the 11 requirements of AS 43.90.220 for all state money received by the licensee before the 12 effective date of the transfer. 13 (c) A person may transfer that person's rights to the royalty inducement under 14 AS 43.90.310 and the gas production tax exemptions under AS 43.90.320 only in 15 connection with a sale or merger that results in transfer of all the person's assets in the 16 North Slope of this state, along with the person's firm transportation capacity contracts 17 in the project. 18 Sec. 43.90.460. Conflicting laws. Nothing in this chapter shall be construed to 19 repeal or abrogate the administrative, regulatory, or statutory procedures and functions 20 of state and federal law governing the development and oversight of a project. 21 Sec. 43.90.470. State pipeline employment development. The commissioner 22 of labor and workforce development shall develop a job training program that will 23 provide training for Alaskans in gas pipeline project management, construction, 24 operations, maintenance, and other gas pipeline-related positions. 25 Article 5. General Provisions. 26 Sec. 43.90.900. Definitions. In this chapter, unless the context otherwise 27 requires, 28 (1) "affiliate" means another person that controls, is controlled by, or is 29 under common control with a person and includes a division that operates as a 30 functional unit; 31 (2) "Alaska Gasline Inducement Act coordinator" and "coordinator"
01 means the person appointed under AS 43.90.250; 02 (3) "commencement of commercial operations" means the first flow of 03 gas in the project that generates revenue to the owners; 04 (4) "commissioners" means the commissioner of revenue and the 05 commissioner of natural resources; 06 (5) "control" means the possession of ownership interest or authority 07 sufficient to, directly or indirectly, and whether acting alone or in conjunction with 08 others, direct or cause the direction of the management or policies of a company, and 09 is rebuttably presumed if the voting interest held is 10 percent or more; 10 (6) "equity holder" means the 11 (A) stockholders of a corporation; 12 (B) members of a limited liability company; 13 (C) partners of a partnership; 14 (D) joint venturers of a joint venture; 15 (E) members of a governmental authority and similar persons; 16 or 17 (F) holders of any other entity or person; 18 (7) "gas processing" means the treatment of gas downstream of the 19 point of production to extract natural gas liquids; 20 (8) "governing body" means a corporation's board of directors, a 21 limited liability company's managing members, a partnership's general partners, a joint 22 venturer's joint venturers, a governmental authority's board or council members, and 23 similar entities; 24 (9) "lease" means an oil and gas, or gas only, lease issued by this state; 25 (10) "lessee" means a person that holds a working interest in an oil and 26 gas, or gas only, lease issued by this state; 27 (11) "license" means a license issued under this chapter; 28 (12) "licensee" means the holder of a license issued under this chapter 29 and all affiliates, successors, assigns, and agents of the holder; 30 (13) "North Slope" means that part of the state that lies North of 68 31 degrees North latitude;
01 (14) "North Slope gas" means natural gas produced on the North 02 Slope; 03 (15) "open season" means the period during which a shipper may 04 commit to use a portion of the capacity of the project for the transportation of natural 05 gas; 06 (16) "project" means a natural gas pipeline project authorized under a 07 license issued under this chapter; 08 (17) "recourse rates" means cost-based rates with a minimum and 09 maximum range that are approved by the Federal Energy Regulatory Commission, the 10 Regulatory Commission of Alaska, or the National Energy Board of Canada, as 11 appropriate, and set out in the pipeline's tariff; "recourse rates" includes only those 12 rates that the pipeline must make available to all shippers; 13 (18) "sanction" means financial commitments to go forward with the 14 project as evidenced by entering into financial commitments of at least 15 $1,000,000,000 with third parties; 16 (19) "under common control with" has the meaning given "control" in 17 this section; 18 (20) "unit agreement" means an agreement executed by the working 19 interest owners and royalty owners creating the unit. 20 Sec. 43.90.990. Short title. This chapter may be cited as the Alaska Gasline 21 Inducement Act. 22 * Sec. 2. AS 36.30.850(b) is amended by adding a new paragraph to read: 23 (45) contracts for an arbitration panel to determine abandonment of a 24 project under AS 43.90.240, and contracts for the development of application 25 provisions for licensure and for the evaluation of those applications under AS 43.90. 26 * Sec. 3. AS 39.25.110 is amended by adding a new paragraph to read: 27 (41) the Alaska Gasline Inducement Act coordinator appointed under 28 AS 43.90.250. 29 * Sec. 4. AS 40.25.120(a) is amended to read: 30 (a) Every person has a right to inspect a public record in the state, including 31 public records in recorders' offices, except
01 (1) records of vital statistics and adoption proceedings, which shall be 02 treated in the manner required by AS 18.50; 03 (2) records pertaining to juveniles unless disclosure is authorized by 04 law; 05 (3) medical and related public health records; 06 (4) records required to be kept confidential by a federal law or 07 regulation or by state law; 08 (5) to the extent the records are required to be kept confidential under 09 20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure 10 or retain federal assistance; 11 (6) records or information compiled for law enforcement purposes, but 12 only to the extent that the production of the law enforcement records or information 13 (A) could reasonably be expected to interfere with enforcement 14 proceedings; 15 (B) would deprive a person of a right to a fair trial or an 16 impartial adjudication; 17 (C) could reasonably be expected to constitute an unwarranted 18 invasion of the personal privacy of a suspect, defendant, victim, or witness; 19 (D) could reasonably be expected to disclose the identity of a 20 confidential source; 21 (E) would disclose confidential techniques and procedures for 22 law enforcement investigations or prosecutions; 23 (F) would disclose guidelines for law enforcement 24 investigations or prosecutions if the disclosure could reasonably be expected to 25 risk circumvention of the law; or 26 (G) could reasonably be expected to endanger the life or 27 physical safety of an individual; 28 (7) names, addresses, and other information identifying a person as a 29 participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the 30 advance college tuition savings program under AS 14.40.803 - 14.40.817; 31 (8) public records containing information that would disclose or might
01 lead to the disclosure of a component in the process used to execute or adopt an 02 electronic signature if the disclosure would or might cause the electronic signature to 03 cease being under the sole control of the person using it; 04 (9) reports submitted under AS 05.25.030 concerning certain 05 collisions, accidents, or other casualties involving boats; 06 (10) records or information pertaining to a plan, program, or 07 procedures for establishing, maintaining, or restoring security in the state, or to a 08 detailed description or evaluation of systems, facilities, or infrastructure in the state, 09 but only to the extent that the production of the records or information 10 (A) could reasonably be expected to interfere with the 11 implementation or enforcement of the security plan, program, or procedures; 12 (B) would disclose confidential guidelines for investigations or 13 enforcement and the disclosure could reasonably be expected to risk 14 circumvention of the law; or 15 (C) could reasonably be expected to endanger the life or 16 physical safety of an individual or to present a real and substantial risk to the 17 public health and welfare; 18 (11) the written notification regarding a proposed regulation provided 19 under AS 24.20.105 to the Department of Law and the affected state agency and 20 communications between the Legislative Affairs Agency, the Department of Law, and 21 the affected state agency under AS 24.20.105; 22 (12) records that are 23 (A) proprietary or a trade secret in accordance with 24 AS 43.90.150; 25 (B) applications that are received under AS 43.90.120 - 26 43.90.140 until notice is published under AS 43.90.160. 27 * Sec. 5. AS 42.45 is amended by adding a new section to read: 28 Sec. 42.45.025. Gas utility revolving loan fund. (a) The gas utility revolving 29 loan fund is established in the authority. The fund consists of 30 (1) appropriations made to the fund; and 31 (2) repayments of principal and interest on loans made under this
01 section. 02 (b) The authority may make loans from the gas utility revolving loan fund to 03 gas utilities certificated under AS 42.05. A loan from the fund may be made only for 04 the purpose of constructing or extending new gas service into an area of the state that a 05 gas utility may serve under a certificate of public convenience and necessity issued 06 under AS 42.05. A loan may be made from the fund to a gas utility if the utility invests 07 the money necessary to provide service for each consumer for whom service would be 08 provided by the construction or extension of gas service. 09 (c) A loan from the gas utility revolving loan fund shall bear an annual rate of 10 interest of two percent of the unpaid balance of the loan. 11 (d) When the authority makes a loan under this section, the gas utility 12 receiving the loan shall 13 (1) in addition to the rates that it is authorized to charge, charge the 14 consumers served by the gas service constructed or extended with the loan proceeds an 15 amount sufficient to pay the interest costs of the loan; 16 (2) pay to the authority annually an amount equal to 17 (A) interest of two percent on the unpaid balance of the loan; 18 and 19 (B) payments on the unpaid balance of the principal of the loan 20 for each new consumer served by the gas service constructed or extended with 21 the loan proceeds; payments on the unpaid balance of the principal of the loan 22 shall be made at a rate equal to the difference between the actual cost of 23 making the service connection to the consumers and the minimum investment 24 for each consumer required of the utility before a loan is made under (b) of this 25 section. 26 (e) The authority shall 27 (1) adopt regulations necessary to carry out the provisions of this 28 section; and 29 (2) administer the gas utility revolving loan fund. 30 (f) Money in the gas utility revolving loan fund may be used by the legislature 31 to make appropriations for costs of administering the fund.
01 (g) On June 30 of each fiscal year, the unexpended and unobligated cash 02 balance of the fund that is attributable to loans owned by the fund lapses into the 03 general fund. 04 (h) In this section, 05 (1) "consumer" means a person or a governmental agency, if the 06 person or governmental agency requests and offers to pay for gas service to a facility 07 or part of a facility; 08 (2) "facility" means a structure capable of receiving and using natural 09 gas energy; and 10 (3) "governmental agency" includes, with respect to the state or federal 11 government or a municipal government, a legislative body, board of regents, 12 administrative body, board, commission, committee, subcommittee, authority, council, 13 agency, public corporation, school board, department, division, bureau, or other 14 subordinate unit, whether advisory or otherwise, of the state, federal, or municipal 15 government. 16 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 FIRST REQUEST FOR APPLICATIONS FOR THE LICENSE. It is the intent of the 19 legislature that the first request for applications for the license by the commissioners under 20 AS 43.90.120 as enacted in sec. 1 of this Act be issued within 90 days after the effective date 21 of this Act. 22 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the application 25 of it to any person or circumstance, is held invalid, the remainder of this Act and the 26 application to other persons or circumstances are not affected. 27 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 CONDITIONAL EFFECT. AS 42.45.025, enacted by sec. 5 of this Act, takes effect 30 only if a natural gas pipeline project that provides for delivery points in the state receives a 31 license under AS 43.90.
01 * Sec. 9. If sec. 5 of this Act takes effect, it takes effect on the date a natural gas pipeline 02 project that provides for delivery points in the state receives a license under AS 43.90, as 03 enacted by sec. 1 of this Act. 04 * Sec. 10. Except as provided in sec. 9 of this Act, this Act takes effect immediately under 05 AS 01.10.070(c).