00                            HOUSE BILL NO. 264                                                                          
01 "An Act relating to the right-of-way for, and a state property tax exemption concerning,                                
02 a pipeline transporting oil produced on the outer continental shelf to an established                                   
03 pipeline in the state."                                                                                                 
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 38.35.015 is amended to read:                                                                      
06            Sec. 38.35.015. Powers of the commissioner. The commissioner has all                                       
07       powers necessary and proper to implement the policy, purposes, and provisions of this                             
08       chapter, so as to subserve, as the exercise of reasoned discretion determines, the public                         
09       interest, convenience, and necessity, including but not limited to                                            
10                 (1)  granting leases of state land for pipeline right-of-way purposes;                                  
11                 (2)  leasing, purchasing, or otherwise acquiring (including condemning                                  
12       by declaration of taking) easements or other interests in land in this state for the                              
13       purpose of utilizing or granting leases of the land, easements, or interests for pipeline                         
14       right-of-way purposes;                                                                                            

01                 (3)  purchasing interests in pipelines in accordance with options                                       
02       included in right-of-way leases;                                                                                  
03                 (4)  investigating any matters concerning any lessee with a view to                                     
04       assuring compliance by it with its right-of-way lease, this chapter, and any other                                
05       applicable state or federal law;                                                                                  
06                 (5)  developing from time to time and maintaining a comprehensive                                       
07       master plan for pipeline transportation development;                                                              
08                 (6)  developing and promoting programs to foster efficient, economical,                                 
09       and safe pipeline transportation services in the state;                                                           
10                 (7)  coordinating the activities of the commissioner under this chapter                                 
11       with the transportation and other relevant activities of other public agencies and                                
12       authorities;                                                                                                      
13                 (8)  constructing, extending, enlarging, improving, repairing, acquiring,                               
14       operating, or engaging in transportation, service, or sale by any pipeline or providing                           
15       for these by contract, lease, or other arrangement on those terms that the commissioner                           
16       may consider necessary, convenient, or desirable with any agency, corporation, or                                 
17       person, including but not limited to any carrier or any state agency, when the                                    
18       commissioner determines that a lessee carrier is not willing to undertake and complete                            
19       the action within a reasonable time, and to sell, lease, grant, and dispose of any                                
20       property constructed or acquired in the exercise of this power;                                               
21                 (9)  expediting the review of and taking action on a right-of-way                                   
22       application for the construction and operation of an oil pipeline in the state for                            
23       transporting oil produced on the outer continental shelf to an oil pipeline system                            
24       in the state that was in existence on January 1, 2010.                                                        
25    * Sec. 2. AS 43.56.020(b) is amended to read:                                                                      
26            (b)  There is exempt from state taxes levied or authorized under                                             
27       AS 43.56.010(a),                                                                                                  
28                 (1)  before the construction commencement date, property that is                                    
29       committed by contract or other agreement for use in this state primarily for the                                  
30       production or pipeline transportation of gas or unrefined oil, or in the operation or                             
31       maintenance of facilities for the production or pipeline transportation of gas or                                 

01       unrefined oil; and                                                                                            
02                 (2)  for 20 tax years immediately following commencement of                                         
03       commercial operations, the real and personal property used or committed by                                    
04       contract or other agreement for use in the state for the pipeline transportation of                           
05       unrefined oil produced on the outer continental shelf to an oil pipeline system in                            
06       the state that was in existence on January 1, 2010; in this paragraph,                                        
07       "commencement of commercial operations" means the first flow of oil in the oil                                
08       pipeline that generates revenue to the owners.                                                                
09    * Sec. 3. AS 43.56.020 is amended by adding a new subsection to read:                                              
10            (d)  The real and personal property exempt from state taxes under (b)(2) of this                             
11       section is not exempt from local taxes levied or authorized under AS 29.45.080 and                                
12       AS 43.56.010(b). A tax paid to a municipality for the real and personal property                                  
13       exempt from state taxes under (b)(2) of this section may be credited against the tax                              
14       levied under AS 43.56.010(a) in the manner provided for municipal taxes paid on                                   
15       taxable property under AS 43.56.010(d).