SCS CSSSHB 4(FIN): "An Act relating to the Alaska Gasline Development Corporation; establishing the Alaska Gasline Development Corporation as an independent public corporation of the state; establishing and relating to the in-state natural gas pipeline fund; making certain information provided to or by the Alaska Gasline Development Corporation and its subsidiaries exempt from inspection as a public record; relating to the Joint In-State Gasline Development Team; relating to the Alaska Housing Finance Corporation; relating to judicial review of a right-of-way lease or an action or decision related to the development or construction of an oil or gas pipeline on state land; relating to the lease of a right-of-way for a gas pipeline transportation corridor, including a corridor for a natural gas pipeline that is a contract carrier; relating to the cost of natural resources, permits, and leases provided to the Alaska Gasline Development Corporation; relating to procurement by the Alaska Gasline Development Corporation; relating to the review by the Regulatory Commission of Alaska of natural gas transportation contracts; relating to the regulation by the Regulatory Commission of Alaska of an in-state natural gas pipeline project developed by the Alaska Gasline Development Corporation; relating to the regulation by the Regulatory Commission of Alaska of an in-state natural gas pipeline that provides transportation by contract carriage; repealing the statutes relating to the Alaska Natural Gas Development Authority and making conforming changes; exempting property of a project developed by the Alaska Gasline Development Corporation from property taxes before the commencement of commercial operations; and providing for an effective date."
00 SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 4(FIN) 01 "An Act relating to the Alaska Gasline Development Corporation; establishing the 02 Alaska Gasline Development Corporation as an independent public corporation of the 03 state; establishing and relating to the in-state natural gas pipeline fund; making certain 04 information provided to or by the Alaska Gasline Development Corporation and its 05 subsidiaries exempt from inspection as a public record; relating to the Joint In-State 06 Gasline Development Team; relating to the Alaska Housing Finance Corporation; 07 relating to judicial review of a right-of-way lease or an action or decision related to the 08 development or construction of an oil or gas pipeline on state land; relating to the lease 09 of a right-of-way for a gas pipeline transportation corridor, including a corridor for a 10 natural gas pipeline that is a contract carrier; relating to the cost of natural resources, 11 permits, and leases provided to the Alaska Gasline Development Corporation; relating 12 to procurement by the Alaska Gasline Development Corporation; relating to the review 13 by the Regulatory Commission of Alaska of natural gas transportation contracts;
01 relating to the regulation by the Regulatory Commission of Alaska of an in-state natural 02 gas pipeline project developed by the Alaska Gasline Development Corporation; relating 03 to the regulation by the Regulatory Commission of Alaska of an in-state natural gas 04 pipeline that provides transportation by contract carriage; repealing the statutes 05 relating to the Alaska Natural Gas Development Authority and making conforming 06 changes; exempting property of a project developed by the Alaska Gasline Development 07 Corporation from property taxes before the commencement of commercial operations; 08 and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 11 to read: 12 LEGISLATIVE FINDINGS AND INTENT. (a) The legislature finds that 13 (1) an in-state natural gas pipeline developed by the Alaska Gasline 14 Development Corporation is required for public convenience and necessity; 15 (2) the development of a natural gas pipeline by the Alaska Gasline 16 Development Corporation is in the best interest of the state; 17 (3) making the Alaska Gasline Development Corporation an independent 18 public corporation of the State of Alaska located for administrative purposes under the 19 Department of Commerce, Community, and Economic Development will enhance the ability 20 of the Alaska Gasline Development Corporation to accomplish its purposes. 21 (b) It is the intent of the legislature that 22 (1) the Alaska Gasline Development Corporation, in its new placement as an 23 independent public corporation of the state, shall be treated for all purposes as the transfer of a 24 corporation within the state and not as the creation of a new entity by the State of Alaska; 25 (2) the Board of Directors of the Alaska Gasline Development Corporation 26 commit to governing the Alaska Gasline Development Corporation so as to affect positively 27 as many Alaskans as possible, including those in rural and coastal communities, and to extend 28 opportunities for all Alaskans to benefit from the natural gas resources of the state, including
01 propane and associated gas-related hydrocarbons other than oil; 02 (3) to the maximum extent permitted by law, in developing a natural gas 03 pipeline, the Alaska Gasline Development Corporation shall procure services, labor, products, 04 and natural resources from qualified businesses located in the state, including organizations 05 owned by Alaska Natives and municipal organizations directly affected by the project, if 06 those persons are competitive; 07 (4) the Alaska Gasline Development Corporation shall, to the maximum 08 extent permitted by law, 09 (A) hire qualified residents from throughout the state for management, 10 engineering, construction, operations, maintenance, and other positions for a natural 11 gas pipeline project; 12 (B) establish hiring facilities in the state or use existing hiring facilities 13 in the state; and 14 (C) use, as far as practicable, the job centers and associated services 15 operated by the Department of Labor and Workforce Development and an Internet- 16 based labor exchange system operated by the state; and 17 (5) the Alaska Gasline Development Corporation and its subsidiaries shall 18 wind up and dissolve when no bonds, notes, or other obligations are outstanding and the 19 Alaska Gasline Development Corporation or a subsidiary of the Alaska Gasline Development 20 Corporation is no longer engaged in the development, financing, construction, or operation of 21 an in-state natural gas pipeline. 22 * Sec. 2. AS 18.56.086 is amended to read: 23 Sec. 18.56.086. Creation of subsidiaries. The corporation may create 24 subsidiary corporations for the purpose of financing or facilitating the financing of 25 school construction, facilities for the University of Alaska, facilities for ports and 26 harbors, the acquisition, development, management, or operation of affordable 27 housing, prepayment of all or a portion of a governmental employer's share of 28 unfunded accrued actuarial liability of retirement systems, or other capital projects. [A 29 SUBSIDIARY CORPORATION MAY ALSO BE CREATED FOR THE PURPOSE 30 OF PLANNING, CONSTRUCTING, AND FINANCING IN-STATE NATURAL 31 GAS PIPELINE PROJECTS OR FOR THE PURPOSE OF AIDING IN THE
01 PLANNING, CONSTRUCTION, AND FINANCING OF IN-STATE NATURAL 02 GAS PIPELINE PROJECTS.] A subsidiary corporation created under this section 03 may be incorporated under AS 10.20.146 - 10.20.166. The corporation may transfer 04 assets of the corporation to a subsidiary created under this section. A subsidiary 05 created under this section may borrow money and issue bonds as evidence of that 06 borrowing, and has all the powers of the corporation that the corporation grants to it. 07 However, a subsidiary created for the purpose of financing or facilitating the financing 08 of prepayment of a governmental employer's share of unfunded accrued actuarial 09 liability of retirement systems may borrow money and issue bonds only if the state 10 bond rating is the equivalent of AA- or better and subject to AS 37.15.903. [A 11 SUBSIDIARY CORPORATION CREATED FOR THE PURPOSE OF PLANNING, 12 CONSTRUCTING, AND FINANCING IN-STATE NATURAL GAS PIPELINE 13 PROJECTS OR FOR THE PURPOSE OF AIDING IN THE PLANNING, 14 CONSTRUCTION, OR FINANCING OF IN-STATE NATURAL GAS PIPELINE 15 PROJECTS IS EXEMPT FROM AS 36.30, INCLUDING AS 36.30.015(d) AND (f).] 16 Unless otherwise provided by the corporation, the debts, liabilities, and obligations of 17 a subsidiary corporation created under this section are not the debts, liabilities, or 18 obligations of the corporation. 19 * Sec. 3. AS 31 is amended by adding a new chapter to read: 20 Chapter 25. Alaska Gasline Development Corporation. 21 Article 1. Organization, Administration, and Powers. 22 Sec. 31.25.010. Structure. The Alaska Gasline Development Corporation is a 23 public corporation and government instrumentality located for administrative purposes 24 in the Department of Commerce, Community, and Economic Development, but 25 having a legal existence independent of and separate from the state. The corporation 26 may not be terminated as long as it has bonds, notes, or other obligations outstanding. 27 The corporation may dissolve when no bonds, notes, or other obligations of the 28 corporation or a subsidiary of the corporation are outstanding and the corporation or a 29 subsidiary of the corporation is no longer engaged in the development, financing, 30 construction, or operation of an in-state natural gas pipeline. Upon termination of the 31 corporation, its rights and property pass to the state.
01 Sec. 31.25.020. Governing body. (a) The corporation shall be governed by a 02 board of directors consisting of 03 (1) five public members; and 04 (2) two individuals designated by the governor that are each the head 05 of a principal department of the state, except that the commissioner of natural 06 resources and the commissioner of revenue may not be designated to serve on the 07 board unless the project for which a license is issued under AS 43.90 has been 08 abandoned or is no longer receiving the inducements in AS 43.90.110(a) or the 09 commissioner of natural resources and the commissioner of revenue are no longer 10 signatories on a valid contract under AS 43.90. 11 (b) Public members of the board shall be appointed by the governor and are 12 subject to confirmation by the legislature. When appointing a public member to the 13 board, the governor shall consider an individual's expertise and experience in natural 14 gas pipeline construction, operation and marketing; finance; large project 15 management; and other expertise and experience that is relevant to the purpose, 16 powers, and duties of the corporation. Public members of the board serve staggered 17 five-year terms. A public member serves at the pleasure of the governor. A vacancy 18 shall be filled in the same manner as the original appointment. 19 (c) Notwithstanding AS 39.05.055, the terms of the initially appointed public 20 members of the board shall be set by the governor to be two years for two members, 21 three years for two members, and five years for one member. 22 (d) The public members of the board receive $400 compensation for each day 23 spent on official business of the corporation and may be reimbursed by the corporation 24 for actual and necessary expenses at the same rate paid to members of state boards 25 under AS 39.20.180. 26 Sec. 31.25.030. Meetings of board. (a) The board shall elect a chair, secretary, 27 and treasurer from among its membership at each annual meeting. A majority of the 28 members constitutes a quorum for organizing the board, conducting its business, and 29 exercising the powers of the corporation. The board shall meet at the call of the chair. 30 The board shall meet at least once every three months. 31 (b) The board may meet and transact business by electronic media if
01 (1) public notice of the time and locations where the meeting will be 02 held by electronic media has been given in the same manner as if the meeting were 03 held in a single location; 04 (2) participants and members of the public in attendance can hear and 05 have the same right to participate in the meeting as if the meeting were conducted in 06 person; and 07 (3) copies of pertinent reference materials, statutes, regulations, and 08 audio-visual materials are reasonably available to participants and to the public. 09 (c) A meeting by electronic media as provided in this section has the same 10 legal effect as a meeting in person. 11 (d) For the purposes of this chapter, public notice of 24 hours or more is 12 adequate notice of a meeting of the board at which the issuance of corporation bonds 13 is authorized. 14 (e) An affirmative vote of at least four members of the board is required to 15 approve 16 (1) the sale and issuance of bonds; 17 (2) the sale or other disposition of a substantial asset or substantial 18 amount of the assets of the corporation; the corporation shall adopt a regulation that 19 defines a substantial asset and a substantial amount of assets for the purposes of this 20 paragraph; 21 (3) the ownership structure for a pipeline project of which the 22 corporation is a participant; 23 (4) an action committing the corporation to an additional natural gas 24 pipeline project; and 25 (5) action on other matters identified in a regulation adopted by the 26 corporation as being subject to this subsection. 27 Sec. 31.25.035. Minutes of meetings. The board shall keep minutes of each 28 meeting and send certified copies to the governor and to the Legislative Budget and 29 Audit Committee. 30 Sec. 31.25.040. Administration of affairs. (a) The board shall manage the 31 assets and business of the corporation and may adopt, amend, and repeal bylaws and
01 regulations governing the manner in which the business of the corporation is 02 conducted and the manner in which its powers are exercised. The board shall delegate 03 supervision of the administration of the corporation to the executive director, 04 appointed in accordance with AS 31.25.045. 05 (b) The board shall adopt and publish procedures to govern the procurement 06 by the corporation of supplies, services, professional services, and construction. The 07 procurement procedures must provide for an Alaska veterans' preference that is 08 consistent with the Alaska veterans' preference in AS 36.30.175. 09 Sec. 31.25.045. Executive director. The corporation shall employ an 10 executive director who may not be a member of the board. The executive director shall 11 be appointed by the board and serves at the pleasure of the board. 12 Sec. 31.25.050. Legal counsel. The corporation shall retain legal counsel to 13 advise the corporation in legal matters and represent it in litigation. 14 Sec. 31.25.060. Employment of personnel. The board may appoint other 15 officers and engage professional and technical advisors as independent contractors. 16 The executive director may hire employees of the corporation and engage professional 17 and technical advisors under contract with the corporation. The board shall prescribe 18 the duties and compensation of corporation personnel, including the executive 19 director. 20 Sec. 31.25.065. Personnel exempt from State Personnel Act. The personnel 21 of the corporation are exempt from AS 39.25. 22 Sec. 31.25.070. Purpose. The corporation shall, for the benefit of the state, to 23 the fullest extent possible, 24 (1) advance an in-state natural gas pipeline as described in the July 1, 25 2011, project plan prepared under former AS 38.34.040 by the corporation while a 26 subsidiary of the Alaska Housing Finance Corporation, with modifications determined 27 by the corporation to be appropriate to develop, finance, construct, and operate an in- 28 state natural gas pipeline in a safe, prudent, economical, and efficient manner, for the 29 purpose of making natural gas, including propane and other hydrocarbons associated 30 with natural gas other than oil, available to Fairbanks, the Southcentral region of the 31 state, and other communities in the state at the lowest rates possible;
01 (2) endeavor to develop natural gas pipelines and other transportation 02 mechanisms to deliver natural gas, including propane and other hydrocarbons 03 associated with natural gas other than oil, to public utility and industrial customers in 04 areas of the state to which the natural gas, including propane and other hydrocarbons 05 associated with natural gas other than oil, may be delivered at commercially 06 reasonable rates; and 07 (3) endeavor to develop natural gas pipelines and other transportation 08 mechanisms that offer commercially reasonable rates for shippers and access for 09 shippers who produce natural gas, including propane and other hydrocarbons 10 associated with natural gas other than oil, in the state. 11 Sec. 31.25.080. Powers and duties. (a) In addition to other powers granted in 12 this chapter, the corporation may 13 (1) determine the form of ownership and the operating structure of an 14 in-state natural gas pipeline developed by the corporation and may enter into 15 agreements with other persons for joint ownership, joint operation, or both of an in- 16 state natural gas pipeline; 17 (2) plan, finance, construct, develop, acquire, maintain, and operate a 18 pipeline system and other transportation mechanism, including pipelines, compressors, 19 storage facilities, and other related facilities, equipment, and works of public 20 improvement, in the state to facilitate production, transportation, and delivery of 21 natural gas or other related natural resources to the point of consumption or to the 22 point of distribution for consumption; 23 (3) lease or rent facilities, structures, and properties; 24 (4) exercise the power of eminent domain and file a declaration of 25 taking under AS 09.55.240 - 09.55.460 to acquire land or an interest in land that is 26 necessary for an in-state natural gas pipeline; the exercise of powers by the 27 corporation under this paragraph may not exceed the permissible exercise of the 28 powers by the state; 29 (5) acquire, by purchase, lease, or gift, land, structures, real or personal 30 property, an interest in property, a right-of-way, a franchise, an easement, or other 31 interest in land, or an interest in or right to capacity in a pipeline system determined to
01 be necessary or convenient for the development, financing, construction, or operation 02 of an in-state natural gas pipeline project or part of an in-state natural gas pipeline 03 project; 04 (6) transfer or otherwise dispose of all or part of an in-state natural gas 05 pipeline project developed by the corporation or transfer or otherwise dispose of an 06 interest in an asset of the corporation; 07 (7) elect to provide transportation of natural gas as a contract carrier, 08 common carrier, or otherwise; 09 (8) provide light, water, security, and other services for property of the 10 corporation; 11 (9) conduct hearings to gather and develop data consistent with the 12 purpose and powers of the corporation; 13 (10) advocate for new pipeline capacity before the Federal Energy 14 Regulatory Commission; 15 (11) make and execute agreements, contracts, and other instruments 16 necessary or convenient in the exercise of the powers and functions of the corporation 17 under this chapter, including a contract with a person, firm, corporation, governmental 18 agency, or other entity; 19 (12) sue and be sued in its own name; 20 (13) adopt an official seal; 21 (14) adopt bylaws for the regulation of its affairs and the conduct of its 22 business and adopt regulations and policies in connection with the performance of its 23 functions and duties; 24 (15) employ fiscal consultants, engineers, attorneys, appraisers, and 25 other consultants and employees that may, in the judgment of the corporation, be 26 required and fix and pay their compensation from funds available to the corporation; 27 (16) procure insurance against a loss in connection with its operation; 28 (17) borrow money as provided in this chapter to carry out its 29 corporate purposes and issue its obligations as evidence of borrowing; 30 (18) include in a borrowing the amounts necessary to pay financing 31 charges, to pay interest on the obligations, and to pay the interest, consultant, advisory,
01 and legal fees, and other expenses that are necessary or incident to the borrowing; 02 (19) receive, administer, and comply with the conditions and 03 requirements of an appropriation, gift, grant, or donation of property or money; 04 (20) do all acts and things necessary, convenient, or desirable to carry 05 out the powers expressly granted or necessarily implied in this chapter; 06 (21) invest or reinvest, subject to its contracts with noteholders and 07 bondholders, money or funds held by the corporation, including funds in the in-state 08 natural gas pipeline fund (AS 31.25.100), in obligations or other securities or 09 investments in which banks or trust companies in the state may legally invest funds 10 held in reserves or sinking funds or funds not required for immediate disbursement, 11 and in certificates of deposit or time deposits secured by obligations of, or guaranteed 12 by, the state or the United States; 13 (22) enter into, as it determines to be necessary or appropriate, any 14 swap or hedge, cap, or other contract providing for payments based on levels of or 15 changes in interest rates or indices or in the cost or price of any commodity, supply, or 16 expense expected to be used or incurred in connection with the acquisition, 17 construction, or operation of any facility or property owned, leased, or operated by the 18 corporation, or an option with respect to any of the foregoing. 19 (b) Upon commencement of construction of an in-state natural gas pipeline, 20 the corporation shall analyze potential natural gas pipelines and other transportation 21 mechanisms connecting to industrial, residential, or utility customers in other regions 22 of the state. If the corporation finds that a natural gas pipeline or other transportation 23 mechanism analyzed under this subsection is in the best interest of the state and can 24 meet the needs of industrial, residential, or utility customers at commercially 25 reasonable rates, the corporation may finance, construct, or operate the natural gas 26 pipeline or other transportation mechanism as necessary. When developing or 27 constructing a connecting line or other transportation mechanism, the corporation 28 shall, to the maximum extent feasible, use existing land, structures, real or personal 29 property, rights-of-way, easements, or other interests in land acquired by the 30 corporation. 31 (c) The corporation may not develop or construct a natural gas pipeline that is
01 a competing natural gas pipeline project for purposes of AS 43.90.440. 02 (d) The corporation shall establish a schedule of reasonable fees, rental rates, 03 and other charges, and collect fees, rentals, and other charges for use of the facilities 04 of the corporation. 05 (e) If commitments to acquire firm transportation capacity are received in an 06 open season conducted by the corporation, the corporation shall, within 10 days after 07 accepting and executing the written commitments received during the open season, 08 report the results of the open season to the president of the senate and the speaker of 09 the house of representatives and inform the public of the results of the open season 10 through publication on the Internet website of the corporation and in a press release or 11 other announcement to the media. The results made public must include the name of 12 each prospective shipper, the amount of capacity allocated, and the period of the 13 commitment. If the corporation determines that the commitments received during the 14 open season are not sufficient to permit the corporation to continue the development or 15 construction of the natural gas pipeline, the corporation shall report that to the 16 legislature within 30 days. 17 (f) The corporation shall, to the maximum extent practicable without delaying 18 the progress of developing an in-state natural gas pipeline project and without causing 19 the in-state natural gas pipeline project to become a competing natural gas pipeline 20 project for purposes of AS 43.90.440, coordinate with and accommodate the 21 developers of a large-diameter in-state natural gas pipeline by planning for the 22 development and use of common pipeline facilities from the North Slope to the 23 Livengood area or to another point from which a large-diameter in-state natural gas 24 pipeline may be constructed south to tidewater in either the Prince William Sound or 25 Cook Inlet area. In this subsection, "large-diameter in-state natural gas pipeline" 26 means a pipeline in the state with a diameter of 42 inches or more. 27 Sec. 31.25.090. Confidentiality; interagency cooperation. (a) The 28 corporation shall have access to information of departments, agencies, and public 29 corporations of the state that is directly related to the planning, financing, 30 development, acquisition, maintenance, construction, or operation of an in-state 31 natural gas pipeline. The corporation shall avoid duplicating studies, plans, and
01 designs that have already been provided or obtained by other state entities. All 02 departments, agencies, and public corporations of the state shall cooperate with and 03 shall provide information, services, and facilities to the corporation upon its request 04 and, except for requests from the Alaska Gasline Inducement Act coordinator 05 (AS 43.90.250), give priority to processing authorization applications and other 06 requests of the corporation. 07 (b) Upon request by the corporation, a state entity shall provide water, sand 08 and gravel, other nonhydrocarbon natural resources, and a permit or a lease to the 09 corporation at the usual and customary rates, except as provided in (d) of this section. 10 Review of and action on a request shall be conducted and taken as provided in 11 AS 38.34.020. In this subsection, "state entity" means a state department, authority, or 12 other administrative unit of the executive branch of state government, a public 13 university, or a public corporation of the state. 14 (c) That part of the cost of providing, under (b) of this section, water, sand and 15 gravel, or other nonhydrocarbon natural resources, or of entering into a lease or 16 issuing a permit, that is borne by the corporation for an in-state natural gas pipeline 17 project that is owned in whole or in part by the corporation may not be included in the 18 rate base in a proceeding under AS 42 or before the Federal Energy Regulatory 19 Commission. 20 (d) Notwithstanding any contrary provision of law, the Department of Natural 21 Resources shall grant the corporation a right-of-way lease under AS 38.35 for the gas 22 pipeline transportation corridor at no appraisal or rental cost if 23 (1) a complete right-of-way lease application under AS 38.35.050 is 24 submitted; 25 (2) the lease application is made the subject of notice and other 26 reasonable and appropriate publication requirements under AS 38.35.070; and 27 (3) the corporation submits the application for the right-of-way lease 28 and agrees to be bound by those right-of-way lease covenants set out in 29 (A) AS 38.35.120 for an in-state natural gas pipeline that the 30 corporation intends to be a common carrier; or 31 (B) AS 38.35.121 for an in-state natural gas pipeline that the
01 corporation intends to be a contract carrier. 02 (e) After approval by the commissioner of natural resources, a right-of-way 03 lease received by the corporation under (d) of this section may be transferred to a 04 successor in interest under the same terms and conditions applicable to the right-of- 05 way lease granted to the corporation. 06 (f) The corporation may enter into confidentiality agreements necessary to 07 acquire or provide information to carry out its functions. If a state agency determines 08 that a law or provision of a contract to which the state agency is a party requires the 09 state agency to preserve the confidentiality of the information and that delivering the 10 information to the corporation would violate the confidentiality provision of that law 11 or contract, the state agency shall 12 (1) identify the applicable law or contract provision to the corporation; 13 and 14 (2) obtain the consent of the person who has the right to waive the 15 confidentiality of the information under the applicable law or contract provision before 16 the state agency transfers the information to the corporation. 17 (g) The portions of records containing information acquired or provided by the 18 corporation under a confidentiality agreement are not subject to AS 40.25. The 19 corporation may enter into confidentiality agreements with a public agency, as defined 20 in AS 40.25.220, to allow release of confidential information. The portions of the 21 records and files of a public agency bound by a confidentiality agreement that reflect, 22 incorporate, or analyze information subject to a confidentiality agreement under this 23 subsection are not public records. Confidentiality agreements entered into under this 24 subsection are valid and binding against all parties in accordance with the terms of the 25 confidentiality agreement. 26 (h) Information and trade secrets of the corporation are confidential and not 27 subject to AS 40.25 if the corporation determines that disclosure would cause 28 commercial or competitive harm or damage to the corporation. Information that 29 discloses the particulars of a business or the affairs of a private enterprise, investor, 30 advisor, consultant, counsel, or manager that is developed or obtained by the 31 corporation and related to the development, financing, construction, or operation of an
01 in-state natural gas pipeline project by the corporation is confidential and not subject 02 to AS 40.25. The corporation may waive the confidentiality described in this 03 subsection, except for information that is confidential under another provision of state 04 law or under a federal law or regulation and except for information acquired from 05 another person that is subject to a confidentiality agreement, if the waiver is consistent 06 with the interests of the state and will facilitate the development, financing, or 07 construction of an in-state natural gas pipeline. On the date that the in-state natural gas 08 pipeline project becomes operational, the corporation shall make available, upon 09 request under AS 40.25, records that were exempt from AS 40.25 under this 10 subsection or (g) of this section, unless the corporation determines that 11 (1) maintaining the confidentiality of the information is necessary to 12 protect the economic interests of the corporation or the state; or 13 (2) disclosure of the information will violate another provision of state 14 law, a federal law or regulation, or the terms of a confidentiality agreement or other 15 agreement to which the corporation is a party or that is binding on the corporation. 16 Sec. 31.25.100. In-state natural gas pipeline fund. The in-state natural gas 17 pipeline fund is established in the corporation and consists of money appropriated to 18 it. The corporation shall determine fund management and may contract with the 19 Department of Revenue for fund management. Unless otherwise provided by law, 20 money appropriated to the fund lapses into the general fund on the day this section is 21 repealed. Interest and other income received on money in the fund shall be separately 22 accounted for and may be appropriated to the fund. The corporation may use money 23 appropriated to the fund without further appropriation for the cost of managing the 24 fund and for the planning, financing, development, acquisition, maintenance, 25 construction, and operation of an in-state natural gas pipeline. 26 Sec. 31.25.120. Creation of subsidiaries. The corporation may create 27 subsidiary corporations for the purpose of developing, constructing, operating, and 28 financing in-state natural gas pipeline projects or other transportation mechanisms; for 29 the purpose of aiding in the development, construction, operation, and financing of in- 30 state natural gas pipeline projects; or for the purpose of acquiring the state's royalty 31 share of natural gas, natural gas from the North Slope, and natural gas from other
01 regions of the state, including the state's outer continental shelf, and making that 02 natural gas available to markets in the state, including the delivery of natural gas, 03 including propane and other hydrocarbons associated with natural gas other than oil, to 04 coastal communities in the state, or for export. A subsidiary corporation created under 05 this section may be incorporated under AS 10.20.146 - 10.20.166. The corporation 06 may transfer assets of the corporation to a subsidiary created under this section. A 07 subsidiary created under this section may borrow money and issue bonds as evidence 08 of that borrowing and has all the powers of the corporation that the corporation grants 09 to it. Unless otherwise provided by the corporation, the debts, liabilities, and 10 obligations of a subsidiary corporation created under this section are not the debts, 11 liabilities, or obligations of the corporation. 12 Sec. 31.25.130. Administrative procedure; regulations. (a) Except for 13 AS 44.62.310 - 44.62.319 (Open Meetings Act), AS 44.62 (Administrative Procedure 14 Act) does not apply to this chapter. The corporation shall make available to members 15 of the public copies of the regulations adopted under (b) - (e) of this section. Within 45 16 days after adoption, the chair of the board shall submit a regulation adopted under (b) - 17 (e) of this section to the chair of the Administrative Regulation Review Committee 18 under AS 24.20.400 - 24.20.460. 19 (b) The board may adopt regulations by motion or by resolution or in another 20 manner permitted by its bylaws. 21 (c) The board may adopt regulations to carry out the purposes of this chapter. 22 (d) Except as provided in (e) of this section, at least 15 days before the 23 adoption, amendment, or repeal of a regulation, the board shall give public notice of 24 the proposed action by posting notice on the corporation's Internet website and on the 25 Alaska Online Public Notice System and by mailing a copy of the notice to every 26 person who has filed a request for notice of proposed regulations with the board or the 27 corporation. The public notice must include a statement of the time, place, and nature 28 of the proceedings for the adoption, amendment, or repeal of the regulation and must 29 include an informative summary of the proposed subject of the regulation. On the date 30 and at the time and place designated in the notice, the board shall give each interested 31 person or an authorized representative, or both, the opportunity to present statements,
01 arguments, or contentions in writing and shall give members of the public an 02 opportunity to present oral statements, arguments, or contentions for a total period of 03 at least one hour. The board shall consider all relevant matter presented to it before 04 adopting, amending, or repealing a regulation. At a hearing under this subsection, the 05 board may continue or postpone the hearing to a time and place that it determines. A 06 regulation that is adopted, or its amendment or repeal, may vary in content from the 07 informative summary specified in this subsection if the subject matter of the 08 regulation, or its amendment or repeal, remains the same and the original notice was 09 written to ensure that members of the public are reasonably notified of the proposed 10 subject of the board's action in order for them to determine whether their interests 11 could be affected by the board's action on that subject. 12 (e) A regulation or order of repeal may be adopted as an emergency regulation 13 or order of repeal if the board makes a finding in its order of adoption or repeal, 14 including a statement of the facts that constitute the emergency, that the adoption of 15 the regulation or order of repeal is necessary for the immediate preservation of the 16 orderly operation of the corporation's bonding programs. Upon adoption of an 17 emergency regulation, the board shall, within 10 days after adoption, give notice of the 18 adoption in accordance with (d) of this section. An emergency regulation adopted 19 under this subsection does not remain in effect more than 120 days unless the board 20 complies with (d) of this section during the 120-day period. 21 (f) A regulation adopted under (b) - (e) of this section becomes effective 22 immediately upon its adoption by the board, unless otherwise specifically provided by 23 the order of adoption. 24 Sec. 31.25.140. Exemption from the State Procurement Code; application 25 of the Executive Budget Act; corporation finances. (a) The corporation and its 26 subsidiaries are exempt from the provisions of AS 36.30 (State Procurement Code). 27 (b) The operating budget of the corporation and a subsidiary of the corporation 28 are subject to AS 37.07 (Executive Budget Act). 29 (c) To further ensure effective budgetary decision making by the legislature, 30 the board shall 31 (1) annually review the corporation's assets, including the assets of the
01 in-state natural gas pipeline fund under AS 31.25.100, to determine whether assets of 02 the corporation exceed an amount required to fulfill the purposes of the corporation as 03 defined in this chapter; in making its review, the board shall determine whether, and to 04 what extent, assets in excess of the amount required to fulfill the purposes of the 05 corporation during the next fiscal year are available without 06 (A) breaching an agreement entered into by the corporation; 07 (B) materially impairing the operations or financial integrity of 08 the corporation; or 09 (C) materially affecting the ability of the corporation to fulfill 10 the purposes of the corporation as defined in this chapter; 11 (2) specifically identify in the corporation's assets the amounts that the 12 board believes are necessary to meet the requirements of (1)(C) of this subsection; and 13 (3) present to the legislature by January 10 of each year a complete 14 accounting of all assets of the corporation, including assets of the in-state natural gas 15 pipeline fund under AS 31.25.100, and a report of the review and determination made 16 under (1) and (2) of this subsection; the accounting shall be audited by an independent 17 outside auditor. 18 Article 2. Bonds and Notes. 19 Sec. 31.25.160. Bonds and notes. (a) The corporation may, by resolution, 20 issue bonds and bond anticipation notes to provide funds to carry out its purposes. 21 (b) The principal of and interest on the bonds or notes are payable from 22 corporation funds. Bond anticipation notes may be payable from the proceeds of the 23 sale of bonds or from the proceeds of sale of other bond anticipation notes or, in the 24 event bond or bond anticipation note proceeds are not available, from other funds or 25 assets of the corporation. Bonds or notes may be additionally secured by a pledge of a 26 grant or contribution from the federal government, or a corporation, association, 27 institution, or person, or a pledge of money, income, or revenue of the corporation 28 from any source. 29 (c) Bonds or bond anticipation notes may be issued in one or more series and 30 shall be dated, bear interest at the rate or rates a year or within the maximum rate, be 31 in the denomination, be in the form, either coupon or registered, carry the conversion
01 or registration provisions, have the rank or priority, be executed in the manner and 02 form, be payable from the sources in the medium of payment and place or places 03 within or outside the state, be subject to authentication by a trustee or fiscal agent, and 04 be subject to the terms of redemption with or without premium, as the resolution of the 05 corporation may provide. Bond anticipation notes shall mature at the time or times that 06 are determined by the corporation. Bonds shall mature at a time, not exceeding 50 07 years from their date, that is determined by the corporation. Before the preparation of 08 definitive bonds or bond anticipation notes, the corporation may issue interim receipts 09 or temporary bonds or bond anticipation notes, with or without coupons, exchangeable 10 for bonds or bond anticipation notes when the definitive bonds or bond anticipation 11 notes have been executed and are available for delivery. 12 (d) Bonds or bond anticipation notes may be sold in the manner and on the 13 terms the corporation determines. 14 (e) If an officer whose signature or a facsimile of whose signature appears on 15 bonds or notes or coupons attached to them ceases to be an officer before the delivery 16 of the bond, note, or coupon, the signature or facsimile is valid the same as if the 17 officer had remained in office until delivery. 18 (f) In a resolution of the corporation authorizing or relating to the issuance of 19 bonds or bond anticipation notes, the corporation has power by provisions in the 20 resolution that will constitute covenants of the corporation and contracts with the 21 holders of the bonds or bond anticipation notes 22 (1) to pledge to a payment or purpose all or a part of its revenue to 23 which its right then exists or may thereafter come into existence, the money derived 24 from the revenue, and the proceeds of the bonds or notes; 25 (2) to covenant against pledging all or a part of its revenue or against 26 permitting or suffering a lien on the revenue of its property; 27 (3) to covenant as to the use and disposition of payments of principal 28 or interest received by the corporation on investments held by the corporation; 29 (4) to covenant as to establishment of reserves or sinking funds and the 30 making of provision for and the regulation and disposition of the reserves or sinking 31 funds;
01 (5) to covenant with respect to or against limitations on a right to sell 02 or otherwise dispose of property of any kind; 03 (6) to covenant as to bonds and notes to be issued, and their 04 limitations, terms, and condition, and as to the custody, application, and disposition of 05 the proceeds of the bonds and notes; 06 (7) to covenant as to the issuance of additional bonds or notes or as to 07 limitations on the issuance of additional bonds or notes and the incurring of other 08 debts; 09 (8) to covenant as to the payment of the principal of or interest on the 10 bonds or notes, as to the sources and methods of the payment, as to the rank or priority 11 of the bonds or notes with respect to a lien or security, or as to the acceleration of the 12 maturity of the bonds or notes; 13 (9) to provide for the replacement of lost, stolen, destroyed, or 14 mutilated bonds or notes; 15 (10) to covenant against extending the time for the payment of bonds 16 or notes or interest on the bonds or notes; 17 (11) to covenant as to the redemption of bonds or notes and privileges 18 of their exchange for other bonds or notes of the corporation; 19 (12) to covenant to create or authorize the creation of special funds of 20 money to be held in pledge or otherwise for operating expenses, payment or 21 redemption of bonds or notes, reserves, or other purposes, and as to the use and 22 disposition of the money held in the funds; 23 (13) to establish the procedure, if any, by which the terms of a contract 24 or covenant with or for the benefit of the holders of bonds or notes may be amended or 25 abrogated, the amount of bonds or notes the holders of which must consent to 26 amendment or abrogation, and the manner in which the consent may be given; 27 (14) to covenant as to the custody of any of its properties or 28 investments, the safekeeping and insurance of its properties or investments, and the 29 use and disposition of insurance money; 30 (15) to covenant as to the time or manner of enforcement or restraint 31 from enforcement of any rights of the corporation arising by reason of or with respect
01 to nonpayment or violation of the terms of an agreement to which the corporation is a 02 party or with respect to which the corporation has enforcement rights; 03 (16) to provide for the rights, liabilities, powers, and duties arising 04 upon the breach of a covenant, condition, or obligation, and to prescribe the events of 05 default and the terms and conditions on which any or all of the bonds, notes, or other 06 obligations of the corporation become or may be declared due and payable before 07 maturity and the terms and conditions on which a declaration and its consequences 08 may be waived; 09 (17) to vest in a trustee or trustees within or outside the state the 10 property, rights, powers, and duties in trust as the corporation may determine, which 11 may include any or all of the rights, powers, and duties of a trustee appointed by the 12 holders of the bonds or notes, and to limit or abrogate the right of the holders of the 13 bonds or notes of the corporation to appoint a trustee under this chapter or limit the 14 rights, powers, and duties of the trustee; 15 (18) to pay the costs or expenses incident to the enforcement of the 16 bonds or notes or of the provisions of the resolution or of a covenant or agreement of 17 the corporation with the holders of its bonds or notes; 18 (19) to agree with a corporate trustee, which may be a trust company 19 or bank having the powers of a trust company within or outside the state, as to the 20 pledging or assigning of revenue or funds to which or in which the corporation has any 21 rights or interest; the agreement may further provide for other rights and remedies 22 exercisable by the trustee as may be proper for the protection of the holders of the 23 bonds or notes of the corporation and not otherwise in violation of law and may 24 provide for the restriction of the rights of an individual holder of bonds or notes of the 25 corporation; 26 (20) to appoint and provide for the duties and obligations of any 27 paying agent or paying agents, or other fiduciaries as the resolution may provide 28 within or outside the state; 29 (21) to limit the rights of the holders of the bonds or notes to enforce a 30 pledge or covenant securing bonds or notes; 31 (22) to make covenants other than and in addition to the covenants
01 expressly authorized in this section, of like or different character, and to make 02 covenants to do or refrain from doing acts and things as may be necessary, or as may 03 be convenient and desirable, to better secure bonds or notes or that, in the absolute 04 discretion of the corporation, would tend to make bonds or notes more marketable, 05 notwithstanding that the covenants, acts, or things may not be enumerated in this 06 section. 07 Sec. 31.25.170. Independent financial advisor. In negotiating the sale of 08 bonds or bond anticipation notes to an underwriter, the corporation may retain a 09 financial advisor. A financial advisor retained under this section must be independent 10 from the underwriter. 11 Sec. 31.25.180. Validity of pledge. The pledge of assets or revenue of the 12 corporation to the payment of the principal of or interest on an obligation of the 13 corporation is valid and binding from the time the pledge is made, and the assets or 14 revenue are immediately subject to the lien of the pledge without physical delivery or 15 further act. The lien of the pledge is valid and binding against all parties having claims 16 of any kind in tort, contract, or otherwise against the corporation, regardless of 17 whether those parties have notice of the lien of the pledge. This section does not 18 prohibit the corporation from selling assets subject to a pledge, except that the sale 19 may be restricted by the trust agreement or resolution providing for the issuance of the 20 obligations. 21 Sec. 31.25.190. Capital reserve funds. (a) The corporation may not establish 22 a capital reserve fund as described in this section except as expressly authorized by 23 law. The enactment of this section does not express that authorization. Upon 24 enactment of a law expressly authorizing the establishment of a capital reserve fund 25 described in this section and for the purpose of securing one or more issues of its 26 obligations, the corporation may establish one or more special funds, called "capital 27 reserve funds," and shall pay into those capital reserve funds 28 (1) money appropriated and made available by the state for the purpose 29 of any of those funds; 30 (2) proceeds of the sale of its obligations, to the extent provided in the 31 resolution or resolutions of the corporation authorizing their issuance; and
01 (3) other money that may be made available to the corporation for the 02 purposes of those funds from another source. 03 (b) All money held in a capital reserve fund, except as provided in this section, 04 shall be used as required, solely for the payment of the principal of obligations or of 05 the sinking fund payments with respect to those obligations; the purchase or 06 redemption of obligations; the payment of interest on obligations; or the payment of a 07 redemption premium required to be paid when those obligations are redeemed before 08 maturity. However, money in a fund may not, at any time, be withdrawn from the fund 09 in an amount that would reduce the amount of that fund to less than the capital reserve 10 requirement set out in (c) of this section, except for the purpose of making, with 11 respect to those obligations, payment, when due, of principal, interest, redemption 12 premiums, and the sinking fund payments for the payment of which other money of 13 the corporation is not available. Income or interest earned by, or increment to, a capital 14 reserve fund, because of the investment of the fund or other amounts in it, may be 15 transferred by the corporation to other funds or accounts of the corporation to the 16 extent that the transfer does not reduce the amount of the capital reserve fund below 17 the capital reserve fund requirement. 18 (c) If the corporation decides to issue obligations secured by a capital reserve 19 fund, the obligations may not be issued if the amount in the capital reserve fund is less 20 than a percentage, not exceeding 10 percent of the principal amount of all of those 21 obligations secured by that capital reserve fund then to be issued and then outstanding 22 in accordance with their terms, as may be established by resolution of the corporation 23 (called the "capital reserve fund requirement"), unless the corporation, at the time of 24 issuance of the obligations, deposits in the capital reserve fund from the proceeds of 25 the obligations to be issued or from other sources, an amount that, together with the 26 amount then in the fund, would not be less than the capital reserve fund requirement. 27 (d) In computing the amount of a capital reserve fund for the purpose of this 28 section, securities in which all or a portion of the funds are invested shall be valued at 29 par or, if purchased at less than par, at amortized costs as the term is defined by 30 resolution of the corporation authorizing the issue of the obligations, or by some other 31 reasonable method established by the corporation by resolution. Valuation on a
01 particular date shall include the amount of interest earned or accrued to that date. 02 (e) The chair of the corporation shall annually, not later than January 2, make 03 and deliver to the governor and chairs of the house and senate finance committees a 04 certificate stating the sum, if any, required to restore a capital reserve fund to the 05 capital reserve fund requirement. The legislature may appropriate that sum, and the 06 corporation shall deposit all sums appropriated by the legislature during the then 07 current fiscal year for the restoration in the proper capital reserve fund. Nothing in this 08 section creates a debt or liability of the state. 09 Sec. 31.25.200. Remedies. A holder of obligations or coupons attached to 10 them issued under this chapter, and a trustee under a trust agreement or resolution 11 authorizing the issuance of the obligations, except as restricted by a trust agreement or 12 resolution, either at law or in equity, 13 (1) may enforce all rights granted under this chapter, under the trust 14 agreement or resolution, or under another contract executed by the corporation under 15 this chapter; and 16 (2) may enforce and compel the performance of all duties required by 17 this chapter or by the trust agreement or resolution to be performed by the corporation 18 or by an officer of the corporation. 19 Sec. 31.25.210. Negotiable instruments. All obligations and interest coupons 20 attached to them are negotiable instruments under the laws of this state, subject only to 21 applicable provisions for registration. 22 Sec. 31.25.220. Obligations eligible for investment. Obligations issued under 23 this chapter are securities in which all public officers and public bodies of the state and 24 its political subdivisions and all insurance companies, trust companies, banking 25 associations, investment companies, executors, administrators, trustees, and other 26 fiduciaries may properly and legally invest funds, including capital in their control or 27 belonging to them. Those obligations may be deposited with a state or municipal 28 officer of an agency or political subdivision of the state for any purpose for which the 29 deposit of bonds, notes, or obligations of the state is authorized by law. 30 Sec. 31.25.230. Refunding obligations. (a) The corporation may provide for 31 the issuance of refunding obligations for the purpose of refunding obligations then
01 outstanding that have been issued under this chapter, including the payment of the 02 redemption premium on them and interest accrued or to accrue to the date of 03 redemption of the obligations. The issuance of the obligations, the maturities and other 04 details of them, the rights of the holders of them, and the rights, duties, and obligations 05 of the corporation with respect to them are governed by the provisions of this chapter 06 that relate to the issuance of obligations, insofar as those provisions may be 07 appropriate. 08 (b) Refunding obligations may be sold or exchanged for outstanding 09 obligations issued under this chapter and, if sold, the proceeds may be applied, in 10 addition to other authorized purposes, to the purchase, redemption, or payment of the 11 outstanding obligations. 12 Sec. 31.25.240. Credit of state not pledged. (a) Obligations issued under this 13 chapter do not constitute a debt, liability, or obligation of the state or of a political 14 subdivision of the state or a pledge of the faith and credit of the state or of a political 15 subdivision of the state but are payable solely from the revenue or assets of the 16 corporation. Each obligation issued under this chapter shall contain on its face a 17 statement that the corporation is not obligated to pay the obligation or the interest on 18 the obligation except from the revenue or assets of the corporation and that neither the 19 faith and credit nor the taxing power of the state or of any political subdivision of the 20 state is pledged to the payment of the principal of or the interest on the obligation. 21 This subsection applies to all debt, obligations, and liabilities of the corporation 22 regardless of how the debt, obligations, or liabilities are created, including by contract, 23 tort, or bond or note issuance. Except as provided in this subsection, a person may not 24 bring suit against the state or a political subdivision of the state other than the 25 corporation in the courts of the state to enforce or seek a remedy with respect to a 26 debt, obligation, or liability of the corporation. 27 (b) Expenses incurred by the corporation in carrying out the provisions of this 28 chapter are payable from funds provided under this chapter and liability may not be 29 incurred by the corporation in excess of those funds. 30 Article 3. General Provisions. 31 Sec. 31.25.250. Limitation on personal liability. A member of the board or
01 other officer of the corporation or a subsidiary of the corporation is not subject to 02 personal liability or accountability because the member or officer executed or issued 03 an obligation. 04 Sec. 31.25.260. Tax exemption. (a) The exercise of the powers granted by this 05 chapter is, in all respects, for the benefit of the people of the state, for their well-being 06 and prosperity, and for the improvement of their social and economic conditions, and 07 the corporation is not required to pay a tax or assessment on any property owned by 08 the corporation under the provisions of this chapter or on the income from it, including 09 state taxes levied or authorized under AS 43.56.010(a) and local taxes under 10 AS 43.56.010(b) as provided in AS 43.56.020. 11 (b) All obligations issued under this chapter are declared to be issued by a 12 body corporate and public of the state and for an essential public and governmental 13 purpose, and the obligations, and the interest and income on and from the obligations, 14 and all fees, charges, funds, revenue, income, and other money pledged or available to 15 pay or secure the payment of the obligations, or interest on the obligations, are exempt 16 from taxation except for transfer, inheritance, and estate taxes. 17 Sec. 31.25.270. Annual report; final report. (a) The corporation shall prepare 18 and transmit annually a report to the governor accounting for the efficient discharge of 19 all responsibility assigned by law or by directive to the corporation. The corporation 20 shall notify the legislature that the report is available. 21 (b) By January 10 of each year, the board shall prepare a report of the 22 corporation. The board shall notify the governor and the legislature that the report is 23 available, and publish notice to the public on the Alaska Online Public Notice System 24 under AS 44.62.175 that the report is available on the corporation's Internet website. 25 The report shall be written in easily understandable language. The report must include 26 a financial statement audited by an independent outside auditor and any other 27 information the board believes would be of interest to the governor, the legislature, 28 and the public. The annual income statement and balance sheet of the corporation shall 29 be published on the Internet. The board may also publish electronically or in print, at 30 the corporation's discretion, other reports it considers desirable to carry out its 31 purpose.
01 (c) After a decision of the corporation to dissolve under AS 31.25.010, the 02 corporation shall provide a final report to the governor, the legislature, and the public 03 that summarizes the reasons for the dissolution of the corporation and a statement by 04 an independent outside auditor that the corporation and the subsidiaries of the 05 corporation, if any, have no bonds, notes, or other obligations outstanding. 06 Sec. 31.25.390. Definitions for AS 31.25.010 - 31.25.390. In AS 31.25.010 - 07 31.25.390, unless the context clearly indicates a different meaning, 08 (1) "board" means the board of directors of the corporation; 09 (2) "bond" or "obligation" means a bond, bond anticipation note, or 10 other note of the corporation authorized to be issued by the corporation under this 11 chapter; 12 (3) "corporation" means the Alaska Gasline Development Corporation; 13 (4) "governmental agency" means a department, division, public 14 agency, political subdivision, or other public instrumentality of the state or the federal 15 government; 16 (5) "in-state natural gas pipeline" means a natural gas pipeline for 17 transporting natural gas in the state; 18 (6) "natural gas pipeline" means a total system of pipe and connected 19 facilities for the transportation, treatment or conditioning, delivery, storage, or further 20 transportation of natural gas, including all pipe, compressor stations, station 21 equipment, and all other facilities used or necessary for an integral line of pipe to carry 22 out the transportation of the natural gas. 23 * Sec. 4. AS 36.30.850(b) is amended by adding a new paragraph to read: 24 (46) the Alaska Gasline Development Corporation (AS 31.25) and 25 subsidiaries of the Alaska Gasline Development Corporation. 26 * Sec. 5. AS 37.05.146(c)(22) is amended to read: 27 (22) Regulatory Commission of Alaska under AS 42.05, [AND] 28 AS 42.06, and AS 42.08; 29 * Sec. 6. AS 38.05.180(bb)(1) is amended to read: 30 (1) "gas or electric utility" includes an electric cooperative organized 31 under AS 10.25, a municipal utility, and a gas or electric utility regulated under
01 AS 42.05; [PROVIDED THAT,] if the contract gas is transmitted to consumers 02 through a pipeline and the gas utility either owns the pipeline or is related in 03 ownership to the owner of the pipeline, then the gas utility qualifies as a "gas or 04 electric utility" within the meaning of this paragraph only if it is bound or agrees to be 05 bound by the covenants set out in AS 38.35.120 or 38.35.121, as applicable; 06 * Sec. 7. AS 38.34.099 is repealed and reenacted to read: 07 Sec. 38.34.099. Definitions. In this chapter, 08 (1) "Alaska Gasline Development Corporation" means the corporation 09 created under AS 31.25.010; 10 (2) "in-state natural gas pipeline" and "natural gas pipeline" have the 11 meanings given in AS 31.25.390. 12 * Sec. 8. AS 38.35.100(d) is amended to read: 13 (d) The commissioner shall include in a conditional lease each requirement 14 and condition of the covenants established under AS 38.35.120 or 38.35.121, as 15 applicable. The commissioner may also require that the lessee agree to additional 16 conditions that the commissioner finds to be in the public interest. In place of the 17 covenant established under AS 38.35.120(a)(9), the commissioner shall require the 18 lessee to agree that it will not transfer, assign, pledge, or dispose of in any manner, 19 directly or indirectly, its interest in a conditional right-of-way lease or a pipeline 20 subject to the conditional lease, unless the commissioner, after considering the public 21 interest and issuing written findings to substantiate a decision to allow the transfer, 22 authorizes the transfer. The commissioner shall also require the lessee to agree not to 23 allow the transfer of control of the lessee without the approval of the commissioner; as 24 used in this subsection, "transfer of control of the lessee" means the transfer of 30 25 percent or more, in the aggregate, of ownership interest in the lessee in one or more 26 transactions to one or more persons by one or more persons. 27 * Sec. 9. AS 38.35.120(a) is amended to read: 28 (a) Except as provided for a natural gas pipeline subject to AS 38.35.121, 29 a [A] noncompetitive lease of state land for a right-of-way for an oil or natural gas 30 pipeline valued at $1,000,000 or more may be granted only upon the condition that the 31 lessee expressly covenants in the lease, in consideration of the rights acquired by it
01 under the lease, that 02 (1) it assumes the status of and will perform all of its functions 03 undertaken under the lease as a common carrier and will accept, convey, and transport 04 without discrimination crude oil or natural gas, depending on the kind of pipeline 05 involved, delivered to it for transportation from fields in the vicinity of the pipeline 06 subject to the lease throughout its route both on state land obtained under the lease and 07 on the other land; it will accept, convey, and transport crude oil or natural gas without 08 unjust or unreasonable discrimination in favor of one producer or person, including 09 itself, as against another but will take the crude oil or natural gas, depending on the 10 kind of pipeline involved, delivered or offered, without unreasonable discrimination, 11 that the Regulatory Commission of Alaska shall, after a full hearing with due notice to 12 the interested parties and a proper finding of facts, determine to be reasonable in the 13 performance of its duties as a common carrier; however, a lessee that owns or operates 14 a natural gas pipeline 15 (A) subject to regulation either under 15 U.S.C. 717 et seq. 16 (Natural Gas Act) [THE NATURAL GAS ACT (15 U.S.C. 717 ET SEQ.) OF 17 THE UNITED STATES] or by the state or a political subdivision 18 [SUBDIVISIONS] with respect to rates and charges for the sale of natural gas, 19 is, to the extent of that regulation, exempt from the common carrier 20 requirement in this paragraph; 21 (B) that is a North Slope natural gas pipeline (i) is required to 22 operate as a common carrier only with respect to the intrastate transportation of 23 North Slope natural gas, as that term is defined in AS 42.06.630, and (ii) is not 24 required to operate as a common carrier as to a liquefied natural gas facility or 25 a marine terminal facility associated with the pipeline, and is not otherwise 26 required to perform its functions under the lease as a common carrier; for 27 purposes of this subparagraph, "North Slope natural gas pipeline" means all the 28 facilities of a total system of pipe, whether owned or operated under a contract, 29 agreement, or lease, used by a carrier for transportation of North Slope natural 30 gas, as defined by AS 42.06.630, for delivery, for storage, or for further 31 transportation, and including all pipe, [PUMP, OR] compressor stations,
01 station equipment, tanks, valves, access roads, bridges, airfields, terminals and 02 terminal facilities, including docks and tanker loading facilities, operations 03 control centers for both the upstream part of the pipeline and the terminal, 04 tanker ballast treatment facilities, fire protection system, communication 05 system, and all other facilities used or necessary for an integral line of pipe, 06 taken as a whole, to carry out transportation, including an extension or 07 enlargement of the line; 08 (2) it will interchange crude oil or natural gas, depending on the kind 09 of pipeline involved, with each like common carrier and provide connections and 10 facilities for the interchange of crude oil or natural gas at every locality reached by 11 both pipelines when the necessity exists, subject to rates and regulations made by the 12 appropriate state or federal regulatory agency; 13 (3) it will maintain and preserve books, accounts, and records and will 14 make those reports that the state may prescribe by regulation or law as necessary and 15 appropriate for purposes of administration of this chapter; 16 (4) it will accord at all reasonable times to the state and its authorized 17 agents and auditors the right of access to its property and records, of inspection of its 18 property, and of examination and copying of records; 19 (5) it will provide connections, as determined by the Regulatory 20 Commission of Alaska under AS 42.06.340, to facilities on the pipeline subject to the 21 lease, both on state land and other land in the state, for the purpose of delivering crude 22 oil or natural gas, depending on the kind of pipeline involved, to persons (including 23 the state and its political subdivisions) contracting for the purchase at wholesale of 24 crude oil or natural gas transported by the pipeline when required by the public 25 interest; 26 (6) it shall, notwithstanding any other provision, provide connections 27 and interchange facilities at state expense at [SUCH] places the state considers 28 necessary if the state determines to take a portion of its royalty or taxes in oil or 29 natural gas; 30 (7) it will construct and operate the pipeline in accordance with 31 applicable state laws and lawful regulations and orders of the Regulatory Commission
01 of Alaska; 02 (8) it will, at its own expense, during the term of the lease, 03 (A) maintain the leasehold and pipeline in good repair; 04 (B) promptly repair or remedy [ANY] damage to the leasehold; 05 (C) promptly compensate for [ANY] damage to or destruction 06 of property for which the lessee is liable resulting from damage to or 07 destruction of the leasehold or pipeline; 08 (9) it will not transfer, assign, or dispose of, in any manner, directly or 09 indirectly, or by transfer of control of the carrier corporation, its interest in a right-of- 10 way lease, or [ANY] rights under the lease or a [ANY] pipeline subject to the lease to 11 a [ANY] person other than another owner of the pipeline (including subsidiaries, 12 parents, and affiliates of the owners), except to the extent that the commissioner, after 13 consideration of the protection of the public interest (including whether the proposed 14 transferee is fit, willing, and able to perform the transportation or other acts proposed 15 in a manner that will reasonably protect the lives, property, and general welfare of the 16 people of Alaska), authorizes; the commissioner shall not unreasonably withhold 17 consent to the transfer, assignment, or disposal; 18 (10) it will file with the commissioner a written appointment of a 19 named permanent resident of the state to be its registered agent in the state and to 20 receive service of notices, regulations, decisions, and orders of the commissioner; if it 21 fails to appoint an agent for service, service may be made by posting a copy in the 22 office of the commissioner, filing a copy in the office of the lieutenant governor, and 23 mailing a copy to the lessee's last known address; 24 (11) the applicable law of this state will be used in resolving questions 25 of interpretation of the lease; 26 (12) the granting of the right-of-way lease is subject to the express 27 condition that the exercise of the rights and privileges granted under the lease will not 28 unduly interfere with the management, administration, or disposal by the state of the 29 land affected by the lease, and that the lessee agrees and consents to the occupancy 30 and use by the state, its grantees, permittees, or other lessees of any part of the right- 31 of-way not actually occupied or required by the pipeline for the full and safe
01 utilization of the pipeline, for necessary operations incident to land management, 02 administration, or disposal; 03 (13) it will be liable to the state for damages or injury incurred by the 04 state caused by the construction, operation, or maintenance of the pipeline and it will 05 indemnify the state for the liabilities or damages; 06 (14) it will procure and furnish liability and property damage insurance 07 from a company licensed to do business in the state or furnish other security or 08 undertaking upon the terms and conditions the commissioner considers necessary if 09 the commissioner finds that the net assets of the lessee are insufficient to protect the 10 public from damage for which the lessee may be liable arising out of the construction 11 or operation of the pipeline. 12 * Sec. 10. AS 38.35.120(b) is amended to read: 13 (b) Except as provided for a natural gas pipeline subject to AS 38.35.121, 14 for [FOR] a right-of-way lease granted under this chapter for an oil or natural gas 15 pipeline valued at $1,000,000 or more to be valid and of legal effect, it must contain 16 the terms required to be inserted under the provisions of AS 38.35.110 - 38.35.140. An 17 oil or natural gas pipeline right-of-way lease granted under this chapter and subject to 18 this section that does not contain the required terms is null and void and without legal 19 effect and does not vest any interest in state land or any authority in the carrier granted 20 the lease. 21 * Sec. 11. AS 38.35 is amended by adding a new section to read: 22 Sec. 38.35.121. Covenants required to be in a lease to a natural gas 23 pipeline that is a contract carrier. (a) For a lease of state land for a right-of-way for 24 which an applicant has applied as a contract carrier under AS 42.08, a noncompetitive 25 lease of state land for a right-of-way for a natural gas pipeline valued at $1,000,000 or 26 more may be granted only on the condition that the lessee expressly covenant in the 27 lease, in consideration of the rights acquired by it under the lease, that 28 (1) except for the covenants in AS 38.35.120(a)(1), (2), and (5), it will 29 meet the requirements of AS 38.35.120; 30 (2) it will interchange natural gas and provide connections with each 31 public utility pipeline, common carrier pipeline, or contract carrier pipeline, and
01 facilities for the interchange of natural gas at every locality reached by both pipelines 02 when the necessity exists, as provided in contracts on file with the Regulatory 03 Commission of Alaska; 04 (3) it assumes the status of and will perform all of its functions 05 undertaken under the lease as a contract carrier and, subject to contracts with shippers, 06 will accept, convey, and transport, without discrimination, natural gas delivered to it 07 for transportation from fields in the vicinity of the pipeline subject to the right-of-way 08 lease throughout the pipeline route, both on state land obtained under the lease and on 09 other land, and that, subject to contracts with shippers, it will accept, convey, and 10 transport natural gas without unjust or unreasonable discrimination in favor of itself or 11 one producer or person against another, but will take the natural gas delivered or 12 offered without unreasonable discrimination; 13 (4) it will expand the natural gas pipeline on commercially reasonable 14 terms that, when possible, encourage exploration and development of gas resources in 15 this state without increasing transportation costs for a shipper except as provided for in 16 the contract with the shipper; in this paragraph, "commercially reasonable terms" 17 means terms that produce sufficient revenue from transportation contracts to cover the 18 cost of the expansion, including increased fuel costs and a reasonable return on capital, 19 without impairing the ability of the pipeline to recover the costs of existing facilities; 20 (5) it will not require a shipper to pay a rate in excess of the rates 21 provided for in the contract with that shipper. 22 (b) A contract carrier may offer to a shipper firm transportation service, 23 interruptible transportation service, or both. In this subsection, "firm transportation 24 service" has the meaning given in AS 42.08.900. 25 (c) The lessee may not construct or expand or allow the construction or 26 expansion of a natural gas pipeline under (a) of this section to be a competing natural 27 gas pipeline project for purposes of AS 43.90. In this subsection, "competing natural 28 gas pipeline project" has the meaning given in AS 43.90.440. 29 * Sec. 12. AS 38.35.140 is amended by adding a new subsection to read: 30 (c) Notwithstanding (a) of this section, a right-of-way lease shall be granted 31 without appraisal or rental costs to the Alaska Gasline Development Corporation
01 created under AS 31.25.010. 02 * Sec. 13. AS 38.35.200 is amended by adding new subsections to read: 03 (c) Except as provided for an applicant in (a) of this section and 04 notwithstanding any contrary provision of law, an action or decision of the 05 commissioner or other state officer or agency concerning the issuance or approval of a 06 necessary right-of-way, permit, lease, certificate, license, or other authorization for the 07 planning, financing, acquisition, maintenance, development, construction, or initial 08 operation of a natural gas pipeline by the Alaska Gasline Development Corporation 09 under AS 31.25 that uses a right-of-way subject to this chapter may not be subject to 10 judicial review, except that a claim alleging the invalidity of this subsection must be 11 brought within 60 days after the effective date of this Act, and a claim alleging that an 12 action will deny rights under the Constitution of the State of Alaska must be brought 13 within 60 days following the date of that action. A claim that is not filed within the 14 limitations established in this subsection is barred. A complaint under this subsection 15 must be filed in superior court, and the superior court has exclusive jurisdiction. 16 Notwithstanding AS 22.10.020(c), except in conjunction with a final judgment on a 17 claim filed under this subsection, the superior court may not grant injunctive relief, 18 including a temporary restraining order, preliminary injunction, permanent injunction, 19 or stay, against the issuance of a necessary right-of-way, permit, lease, certificate, 20 license, or other authorization for the planning, financing, acquisition, maintenance, 21 development, construction, or initial operation of a natural gas pipeline by the Alaska 22 Gasline Development Corporation. In this subsection, "natural gas pipeline" has the 23 meaning given in AS 38.34.099. 24 (d) An appeal of a permitting decision or authorization by the Department of 25 Environmental Conservation under AS 46.03 or AS 46.14 that is made under a 26 program approved or delegated by the United States Environmental Protection Agency 27 is not 28 (1) subject to the limitation in (a) of this section; 29 (2) included in the actions or decisions described in (c) of this section. 30 * Sec. 14. AS 39.25.110(11) is amended by adding a new subparagraph to read: 31 (H) Alaska Gasline Development Corporation and subsidiaries
01 of the Alaska Gasline Development Corporation; 02 * Sec. 15. AS 39.50.200(b) is amended by adding a new paragraph to read: 03 (64) the board of directors of the Alaska Gasline Development 04 Corporation or the board of directors of a subsidiary of the Alaska Gasline 05 Development Corporation. 06 * Sec. 16. AS 40.25.120(a) is amended to read: 07 (a) Every person has a right to inspect a public record in the state, including 08 public records in recorders' offices, except 09 (1) records of vital statistics and adoption proceedings, which shall be 10 treated in the manner required by AS 18.50; 11 (2) records pertaining to juveniles unless disclosure is authorized by 12 law; 13 (3) medical and related public health records; 14 (4) records required to be kept confidential by a federal law or 15 regulation or by state law; 16 (5) to the extent the records are required to be kept confidential under 17 20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure 18 or retain federal assistance; 19 (6) records or information compiled for law enforcement purposes, but 20 only to the extent that the production of the law enforcement records or information 21 (A) could reasonably be expected to interfere with enforcement 22 proceedings; 23 (B) would deprive a person of a right to a fair trial or an 24 impartial adjudication; 25 (C) could reasonably be expected to constitute an unwarranted 26 invasion of the personal privacy of a suspect, defendant, victim, or witness; 27 (D) could reasonably be expected to disclose the identity of a 28 confidential source; 29 (E) would disclose confidential techniques and procedures for 30 law enforcement investigations or prosecutions; 31 (F) would disclose guidelines for law enforcement
01 investigations or prosecutions if the disclosure could reasonably be expected to 02 risk circumvention of the law; or 03 (G) could reasonably be expected to endanger the life or 04 physical safety of an individual; 05 (7) names, addresses, and other information identifying a person as a 06 participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the 07 advance college tuition savings program under AS 14.40.803 - 14.40.817; 08 (8) public records containing information that would disclose or might 09 lead to the disclosure of a component in the process used to execute or adopt an 10 electronic signature if the disclosure would or might cause the electronic signature to 11 cease being under the sole control of the person using it; 12 (9) reports submitted under AS 05.25.030 concerning certain 13 collisions, accidents, or other casualties involving boats; 14 (10) records or information pertaining to a plan, program, or 15 procedures for establishing, maintaining, or restoring security in the state, or to a 16 detailed description or evaluation of systems, facilities, or infrastructure in the state, 17 but only to the extent that the production of the records or information 18 (A) could reasonably be expected to interfere with the 19 implementation or enforcement of the security plan, program, or procedures; 20 (B) would disclose confidential guidelines for investigations or 21 enforcement and the disclosure could reasonably be expected to risk 22 circumvention of the law; or 23 (C) could reasonably be expected to endanger the life or 24 physical safety of an individual or to present a real and substantial risk to the 25 public health and welfare; 26 (11) the written notification regarding a proposed regulation provided 27 under AS 24.20.105 to the Department of Law and the affected state agency and 28 communications between the Legislative Affairs Agency, the Department of Law, and 29 the affected state agency under AS 24.20.105; 30 (12) records that are 31 (A) proprietary, privileged, or a trade secret in accordance with
01 AS 43.90.150 or 43.90.220(e); 02 (B) applications that are received under AS 43.90 until notice is 03 published under AS 43.90.160; 04 (13) information of the Alaska Gasline Development Corporation 05 created under AS 31.25.010 or a subsidiary of the Alaska Gasline Development 06 Corporation that is confidential by law or under a valid confidentiality 07 agreement. 08 * Sec. 17. AS 42.04.080(a) is amended to read: 09 (a) Except as provided in AS 42.05.171 or AS 42.06.140, when a matter 10 comes for decision before the commission under AS 42.05, [OR] AS 42.06, or 11 AS 42.08, the chair shall appoint a hearing panel composed of three or more members 12 to hear, or if a hearing is not required, to otherwise consider, and decide the case. The 13 panel shall exercise the powers of the commission with respect to the matter. 14 * Sec. 18. AS 42.05 is amended by adding a new section to read: 15 Sec. 42.05.433. Review of certain contracts by the commission. (a) A 16 precedent agreement or contract entered into by a public utility with the Alaska 17 Gasline Development Corporation or its successors or assigns may contain a covenant 18 for the public utility to establish, charge, and collect rates sufficient to meet its 19 obligations under the contract. If the precedent agreement associated with the contract 20 is approved by the commission under AS 42.08, the rate covenant in the associated 21 contract is valid and enforceable. 22 (b) A public utility negotiating to purchase natural gas to be shipped through 23 an in-state natural gas pipeline regulated under AS 42.08 shall submit the contract to 24 the commission before the contract takes effect. 25 (c) A public utility negotiating to contract for the storage of natural gas 26 shipped in an in-state natural gas pipeline regulated under AS 42.08 shall submit the 27 contract to the commission before the contract takes effect. 28 (d) The commission shall review and may conduct an investigation and 29 hearing to determine whether a contract submitted under (b) or (c) of this section is 30 just and reasonable. The review and determination shall be conducted as provided in 31 AS 42.08.320(b) - (d). The commission shall either approve the contract as presented
01 or, if the commission finds that a contract is not just and reasonable, disapprove the 02 contract. Notwithstanding AS 42.05.175, if the commission has not acted within 180 03 days after the contract is submitted, the contract shall be considered approved and 04 shall take effect immediately. The commission may, by order, extend the 180-day 05 review period by the duration of a delay caused by a failure of the public utility to 06 submit supplemental information that is available to the public utility. A contract that 07 is approved or considered approved under this section is not subject to further review 08 by the commission. 09 * Sec. 19. AS 42.05.711 is amended by adding a new subsection to read: 10 (t) An in-state natural gas pipeline subject to AS 42.08 and an in-state natural 11 gas pipeline carrier subject to AS 42.08 are exempt from this chapter. 12 * Sec. 20. AS 42.06 is amended by adding a new section to article 7 to read: 13 Sec. 42.06.601. Exemption. An in-state natural gas pipeline subject to 14 AS 42.08 and an in-state natural gas pipeline carrier subject to AS 42.08 are exempt 15 from this chapter. 16 * Sec. 21. AS 42 is amended by adding a new chapter to read: 17 Chapter 08. In-State Pipeline Contract Carrier. 18 Article 1. Application of Chapter; Purpose. 19 Sec. 42.08.010. Application of chapter; exemption. (a) This chapter applies 20 to the regulation of in-state natural gas pipelines that provide transportation by 21 contract carriage. 22 (b) An in-state natural gas pipeline subject exclusively to federal jurisdiction 23 is exempt from this chapter. 24 Sec. 42.08.020. Qualification of the Alaska Gasline Development 25 Corporation; findings. (a) The Alaska Gasline Development Corporation is 26 financially fit, willing, and able to take the actions, perform the service, and conform 27 to the requirements of this chapter. 28 (b) The board of directors and the officers of the Alaska Gasline Development 29 Corporation are managerially fit, willing, and able to manage the Alaska Gasline 30 Development Corporation and to take the actions, perform the service, and conform to 31 the requirements of this chapter.
01 (c) The proposed service, construction, and operation of an in-state natural gas 02 pipeline for which the Alaska Gasline Development Corporation applies for a 03 certificate under this chapter is required by present and future public convenience and 04 necessity. 05 (d) The findings that the Alaska Gasline Development Corporation is 06 financially fit in (a) of this section and managerially fit in (b) of this section and that 07 an in-state natural gas pipeline is required by present or future public convenience and 08 necessity in (c) of this section are conclusive and binding on the commission. 09 (e) The commission shall determine whether a person making application 10 under this chapter is technically fit, willing, and able to take the actions, perform the 11 service, and conform to the requirements in this chapter. 12 Article 2. Powers and Duties of Regulatory Commission of Alaska. 13 Sec. 42.08.220. General powers and duties. (a) The commission shall 14 (1) regulate, under the provisions of this chapter, an in-state natural gas 15 pipeline that provides transportation by way of contract carriage; 16 (2) require permits for the construction, enlargement in size or 17 operating capacity, extension, connection and interconnection, operation, or 18 abandonment of an in-state natural gas pipeline facility under the provisions of this 19 chapter and subject to the same standards as certification in AS 42.08.330; 20 (3) to the extent necessary to perform the duties of the commission 21 under this chapter, have access to, and may designate its employees, agents, or 22 consultants to inspect and examine, the accounts, financial and property records, 23 books, maps, inventories, appraisals, valuations, and related reports kept by an in-state 24 natural gas pipeline carrier, or kept for an in-state natural gas pipeline carrier by 25 others, that directly affect the interests of the state and directly relate to in-state natural 26 gas pipelines located in the state during normal business hours; 27 (4) provide all reasonable assistance to the Department of Law in 28 intervening in, offering evidence in, and participating in proceedings before an officer, 29 department, board, commission, or court of another state or the United States 30 involving an in-state natural gas pipeline carrier or an affiliated interest and affecting 31 the interests of the state.
01 (b) The commission may 02 (1) review and approve recourse tariffs filed by an in-state natural gas 03 pipeline carrier under this chapter; 04 (2) review and approve contracts; 05 (3) investigate on its own motion or after receiving a formal complaint, 06 a dispute 07 (A) related to rules, regulations, services, practices, and 08 facilities that are not subject to the dispute resolution provisions in an in-state 09 natural gas pipeline carrier's contracts or recourse tariff; 10 (B) presented by a complainant that does not have a contract 11 with the in-state natural gas pipeline carrier; 12 (C) related to the conduct of an in-state natural gas pipeline 13 carrier's open season under AS 42.08.300; to resolve the dispute, the 14 commission may order an expansion of an in-state natural gas pipeline or order 15 an open season under the terms provided for an expansion or open season in 16 this chapter or AS 38.35.121(a)(4) and (c); or 17 (D) related to an unreasonable diminution in quantity or quality 18 in the provision of service to a public utility that 19 (i) is a violation of the in-state natural gas pipeline 20 carrier's tariff or contract with the public utility; 21 (ii) has not been resolved by the in-state natural gas 22 pipeline carrier; and 23 (iii) will result in immediate injury, loss, or damage to 24 the peace, health, safety, or general welfare of the public as clearly 25 demonstrated by specific facts shown by affidavit or verified 26 complaint; 27 (4) adopt regulations that are necessary and proper to the performance 28 of the duties of the commission under this chapter, including regulations governing 29 practices and procedures of the commission; regulations adopted by the commission 30 may not be inconsistent with state law; 31 (5) initiate, intervene in, and appear personally or by counsel and offer
01 evidence in and participate in, proceedings before an officer, department, board, 02 commission, or court of this state involving an in-state natural gas pipeline carrier and 03 affecting the interests of the state; and 04 (6) appoint a qualified, unbiased, and impartial administrative law 05 judge with experience in the general practice of law to conduct hearings under this 06 chapter; the administrative law judge may perform other duties in connection with the 07 administration of this chapter and other laws; an administrative law judge hired to 08 conduct hearings under this chapter shall have been admitted to practice law for at 09 least five years immediately before appointment under this paragraph. 10 (c) Except with regard to a precedent agreement under AS 42.08.320(a) that is 11 filed before the issuance of a certificate, consideration of an application for a contract 12 carriage certificate under AS 42.08.330, and an initial recourse tariff under 13 AS 42.08.350(a), the commission may extend a timeline required under this chapter if 14 all parties of record consent to the extension or if, for one time only, before the 15 timeline expires, the 16 (1) commission reasonably finds that good cause exists to extend the 17 timeline; 18 (2) commission issues a written order extending the timeline and 19 setting out its findings regarding good cause; and 20 (3) extension of time is 30 days or less. 21 (d) Except as provided in this chapter, the commission may not 22 (1) require rates, rate design, or tariff rates or regulations; 23 (2) require an in-state natural gas pipeline carrier to make a recourse 24 tariff filing; 25 (3) order a modification of a contract that is approved, considered 26 approved, or filed under this chapter; 27 (4) conduct further review or investigation of a contract that is 28 approved, considered approved, or filed under this chapter; or 29 (5) investigate a dispute under (b)(3) of this section if a complete 30 formal complaint has not been filed with the commission within 60 days after the 31 event giving rise to the complaint.
01 Sec. 42.08.230. Commission decision-making procedures. The commission 02 shall comply with AS 42.04.080(a) and expeditiously adjudicate all matters that come 03 before the commission. 04 Sec. 42.08.240. Publication of reports, orders, decisions, and regulations. 05 All reports, orders, decisions, and regulations of the commission shall be in writing. 06 The commission shall notify all affected operators of in-state natural gas pipeline 07 facilities and interested parties of reports, orders, decisions, and regulations as they are 08 issued and adopted and, when appropriate, publish them in a manner that will 09 reasonably inform the public or the affected consumers of the services of an in-state 10 natural gas pipeline facility. The commission may set charges for costs of printing or 11 reproducing and furnishing copies of reports, orders, decisions, and regulations. The 12 publication requirement, as it pertains to regulations, does not supersede the 13 requirements of AS 44.62 (Administrative Procedure Act). 14 Sec. 42.08.250. Application of Administrative Procedure Act. (a) The 15 administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) 16 do not apply to adjudicatory proceedings of the commission under this chapter, except 17 that final administrative determinations by the commission are subject to judicial 18 review under AS 44.62 (Administrative Procedure Act) as provided in AS 42.08.530. 19 (b) AS 44.62 (Administrative Procedure Act) applies to regulations adopted 20 by the commission. 21 Sec. 42.08.260. Annual report. The commission shall include in its annual 22 reports under AS 42.05.211 and AS 42.06.220 a review of its activities under this 23 chapter during the previous fiscal year. The report must address the regulation of in- 24 state natural gas pipeline facilities in the state as of June 30 of each year and must 25 contain details about the commission's compliance with the performance measures in 26 this chapter. 27 Article 3. Contract Review; Contract Carriage Certificate; Open Seasons. 28 Sec. 42.08.300. Open seasons. (a) An in-state natural gas pipeline carrier shall 29 include in its approved recourse tariff the procedures for conducting open seasons for 30 uncommitted firm transportation service and for expansion. At a minimum, the in-state 31 natural gas pipeline carrier shall publish reasonable public notice in advance of an
01 open season. The notice shall contain the approved recourse tariff, the proposed form 02 of the precedent agreement, the proposed form of the firm transportation service 03 agreement, and other information sufficient to show the proposed route, capacity, 04 operating pressures, in-service date, quality specifications, and other operating 05 conditions that the pipeline carrier determines are relevant to an evaluation of the 06 proposed service. The notice shall also state the methods for awarding capacity set out 07 in the carrier's recourse tariff and whether presubscription agreements have been 08 executed. An in-state natural gas pipeline carrier shall provide a mechanism for 09 providing additional relevant information requested by potential shippers. 10 (b) An open season shall be conducted and firm transportation service shall be 11 awarded without undue discrimination or preference. Presubscription agreements are 12 subject to the methods for awarding capacity set out in the open season notice. 13 (c) An in-state natural gas pipeline carrier shall conduct an open season for 14 firm transportation service when it has existing uncommitted firm transportation 15 capacity and has received a request for firm transportation capacity from one or more 16 potential shippers that meet the pipeline's creditworthiness requirements or after it has 17 executed presubscription agreements for firm transportation. 18 (d) An in-state natural gas pipeline carrier shall conduct an open season for an 19 expansion of its pipeline system when it has received one or more requests for firm 20 transportation service from potential shippers that meet the pipeline's creditworthiness 21 requirements and that, in the aggregate, would enable the expansion of the pipeline's 22 system on a commercially reasonable basis. An expansion of the pipeline system is not 23 commercially reasonable if the expansion would cause the pipeline to be a competing 24 natural gas pipeline project for purposes of AS 43.90. 25 (e) A natural gas pipeline carrier may enter into presubscription agreements 26 before the start of an open season, but not before an initial recourse tariff is approved. 27 (f) An in-state natural gas pipeline carrier shall file revised recourse rates 28 before conducting an open season under (c) and (d) of this section unless the in-state 29 natural gas pipeline carrier filed revised recourse rates during the immediately 30 preceding two-year period. 31 (g) If executed precedent agreements are received by an in-state natural gas
01 pipeline carrier, the carrier shall, within 10 days after accepting and executing the 02 agreements, inform the public of the results through publication on the carrier's 03 Internet website and in a press release or other announcement to the media. The results 04 made public must include the name of each prospective shipper, the amount of 05 capacity allocated, and the period of commitment. If the carrier determines that the 06 commitments received during the open season are not sufficient to permit the carrier to 07 continue the development or construction of the in-state natural gas pipeline, the 08 corporation shall report that to the commission within 30 days. 09 Sec. 42.08.310. Transportation service. (a) Firm transportation service shall 10 be made available only through a presubscription agreement, a recourse tariff, or an 11 open season conducted in accordance with AS 42.08.300. 12 (b) The pipeline carrier shall offer a recourse tariff for firm transportation 13 service. The rates included in the recourse tariff shall be determined on a cost-of- 14 service basis and may be levelized over the depreciable life of the pipeline. The 15 recourse tariff may not preclude the pipeline carrier from collecting rolled-in rates so 16 long as the resulting rate for prior shippers does not exceed the initial maximum rate 17 allowable under agreements for capacity. 18 (c) An in-state natural gas pipeline carrier may contract to provide firm 19 transportation service for rates and containing provisions different than those in the 20 recourse tariff. For purposes of this subsection, "provisions" are limited to those terms 21 and conditions that directly relate to the rate and do not include the general operating 22 terms and conditions of the recourse tariff. 23 (d) An in-state natural gas pipeline carrier shall provide interruptible 24 transportation service through capacity not used for firm transportation service. An in- 25 state natural gas pipeline carrier shall establish means for routinely advising potential 26 shippers of the availability of interruptible transportation service and of uncommitted 27 firm transportation capacity. 28 Sec. 42.08.320. Review of certain contracts by the commission. (a) An in- 29 state natural gas pipeline carrier shall submit each of its precedent agreements for firm 30 transportation service and any substantial amendments to the commission. A precedent 31 agreement negotiated with an entity that is not a public utility regulated by the
01 commission may be filed under seal. Under AS 42.08.400, the commission shall keep 02 confidential a precedent agreement filed under seal. Submission of precedent 03 agreements to the commission is permissible before construction of an in-state natural 04 gas pipeline and before a request for certification under this chapter. In this subsection, 05 "substantial amendment" means an amendment that materially changes a rate or term 06 and condition of service. 07 (b) In the review of a precedent agreement submitted under (a) of this section 08 or a related contract submitted under AS 42.05.433(b) or (c), the commission shall 09 (1) conclude that a precedent agreement or related contract negotiated 10 at arm's length between the parties is just and reasonable unless the commission finds 11 that unlawful market activity affected the rate or unfair dealing, such as fraud or 12 duress, affected the formation of the contract; 13 (2) review and may conduct an investigation and hearing to determine 14 whether a contract submitted under (a) of this section is just and reasonable; the 15 commission shall either approve the contract as presented or, if the commission finds 16 that a contract is not just and reasonable, disapprove the contract; if the commission 17 has not acted within 180 days after the submission of a contract, the contract shall be 18 considered approved and shall take effect immediately; a contract that is approved or 19 considered approved under this paragraph and the associated firm transportation 20 service agreement are not subject to further review by the commission. 21 (c) For purposes of (b)(1) of this section, and except as provided in (d) of this 22 section, a precedent agreement or related contract is arm's length 23 (1) if it incorporates the approved recourse tariff; or 24 (2) if it does not incorporate the approved recourse tariff, 25 (A) the precedent agreement or related contract is between two 26 state-owned parties; 27 (B) the parties are not affiliated; or 28 (C) if the parties are affiliated, the precedent agreement or 29 related contract is substantially similar to a precedent agreement or related 30 contract between unaffiliated parties, and the formation of the precedent 31 agreement or related contract was not affected by unlawful market activity or
01 unfair dealing as described in (b)(1) of this section. 02 (d) Notwithstanding (c) of this section, a precedent agreement or related 03 contract with a public utility is not arm's length if the rate paid for transportation on an 04 in-state natural gas pipeline is greater than the recourse tariff rate. 05 (e) If a precedent agreement or related contract is not arm's length, the 06 commission shall determine whether the precedent agreement or related contract is 07 just and reasonable using the standards normally applied under AS 42.06.140. If the 08 commission is reviewing a precedent agreement under (c)(2) of this section, the 09 commission may consider the in-state natural gas pipeline carrier's approved recourse 10 tariff, including the cost data underlying the tariff. When considering whether to 11 approve a contract as just and reasonable under this subsection, the commission shall 12 consider the consequences of failing to approve the contract. 13 Sec. 42.08.330. Contract carriage certificate. (a) The owner of an in-state 14 natural gas pipeline subject to this chapter may not engage in the transportation of 15 natural gas or undertake the construction of a natural gas pipeline facility for that 16 purpose, or acquire or operate an in-state natural gas pipeline facility, unless a 17 certificate of public convenience and necessity by the commission authorizing contract 18 carriage is in force with respect to that owner. A certificate shall describe the nature 19 and extent of the authority granted, including, as appropriate for the services involved, 20 a description of the authorized area and scope of operation for the in-state natural gas 21 pipeline facility. 22 (b) Application for a certificate shall be made in writing to the commission 23 and verified under oath. The commission by regulation shall establish the 24 requirements for the form of the application and the information to be contained in the 25 application. Notice of the application shall be provided to interested parties in the 26 manner provided by regulation. 27 (c) Within 180 days after receiving an application under this chapter, the 28 commission shall issue a contract carriage certificate authorizing, in whole or in part, 29 the operation, service, construction, or acquisition covered by the application to a 30 qualified applicant if the commission finds that the applicant is fit, willing, and able to 31 do the acts, perform the proposed service, and conform to the provisions of this
01 chapter and the requirements of the commission, and that the proposed service, 02 operation, construction, extension, or acquisition, to the extent authorized by the 03 certificate, is or will be required by the present or future public convenience and 04 necessity. The commission may, by order, extend the 180-day period for considering 05 an application by the duration of a delay caused by the failure of the applicant to 06 provide additional information reasonably required by the commission. If, within the 07 180-day period and any extension of the period for considering the application, the 08 commission fails to issue a contract carriage certificate and does not make a finding 09 that the applicant is not fit, willing, and able under this subsection or that the proposed 10 service is not required by public convenience and necessity, the application shall be 11 considered approved and the contract carriage certificate shall take effect immediately. 12 (d) The commission may attach to a contract carriage certificate reasonable 13 terms and conditions that are consistent with the terms of this chapter and are for the 14 mutual benefit of the in-state natural gas pipeline facility and the public. 15 (e) Operating authority may not be transferred by sale or lease of the contract 16 carriage certificate or by the sale of substantially all of the stock or assets of a pipeline 17 carrier holding a certificate without prior approval and a finding by the commission 18 that the safe and efficient operation of the natural gas pipeline is not impaired by the 19 transfer. The commission shall summarily approve a transfer not involving a 20 substantial change in ownership. 21 (f) After receiving a complaint or on its own motion, the commission, after 22 notice and hearing and for good cause shown, may amend, modify, suspend, or 23 revoke, in whole or in part, a certificate. Good cause for amendment, modification, 24 suspension, or revocation of a certificate is shown by 25 (1) misrepresentation of a material fact in obtaining the certificate; 26 (2) unauthorized discontinuance or abandonment of all or part of a 27 service that is the subject of the certificate; 28 (3) wilful failure to comply with the provisions of this chapter or a 29 regulation or order of the commission; or 30 (4) wilful failure to comply with a term, condition, or limitation of the 31 certificate.
01 (g) A person holding a certificate issued under this chapter may not abandon 02 or permanently discontinue the use of all or a portion of an in-state natural gas pipeline 03 without permission and approval by the commission, after due notice and hearing and 04 a finding by the commission that continued service is not required by public 05 convenience and necessity. An interested person may file a protest or memorandum of 06 opposition to or in support of discontinuance or abandonment with the commission. 07 The commission may order the temporary suspension of a service or part of a service. 08 Sec. 42.08.340. Filing requirements; recourse tariffs. (a) An in-state natural 09 gas pipeline carrier shall file with the commission a complete recourse tariff 10 containing rates, rules, regulations, terms, and conditions pertaining to service 11 provided under the certificate and copies of all contracts with shippers that in any way 12 affect or relate to the carrier's rates, tariffs, charges, classifications, rules, regulations, 13 terms, and conditions to service provided under the certificate. 14 (b) The terms and conditions under which an in-state natural gas pipeline 15 carrier offers its services and facilities to the public shall be governed strictly by the 16 provisions of its currently effective recourse tariff as supplemented and modified by 17 contracts that have been approved by the commission. A legally filed and effective 18 recourse tariff rate, charge, rule, regulation, or condition of service may not be 19 changed except as provided in this chapter. The in-state natural gas pipeline carrier 20 shall maintain copies of its recourse tariff on file at its principal business office and at 21 places designated by the commission and make the copies available to and subject to 22 inspection by the general public on demand. 23 (c) A change in a recourse tariff rate, charge, rule, regulation, or condition of 24 service is not effective until filed under (a) of this section. If more than one recourse 25 tariff rate or charge may reasonably be applied for billing purposes, the recourse tariff 26 rate or charge most advantageous to the shipper shall be used. 27 (d) The commission may reject the filing of all or part of a recourse tariff that 28 is not consistent with this chapter. A recourse tariff rate or provision so rejected is 29 void. 30 (e) Initial and revised recourse tariffs shall be filed in the manner provided in 31 AS 42.08.350.
01 Sec. 42.08.350. Initial or revised rates. (a) An in-state natural gas pipeline 02 carrier may not establish or place in effect an initial recourse tariff containing rates, 03 charges, rules, regulations, conditions of service, or practices without providing notice 04 to the commission and to the public at least 90 days before establishing or placing in 05 effect the initial recourse tariff. Notice shall be filed with the commission before an 06 open season and by making the recourse tariff provisions available for public 07 inspection. The notice shall plainly indicate the time when the recourse tariff will go 08 into effect and include a supporting cost study. The commission may prescribe 09 additional requirements for the notice and the form in which the notice must be 10 provided. The commission, for good cause shown, may allow initial recourse tariffs to 11 take effect on less than 90 days' notice under conditions the commission prescribes by 12 order. Submission of a precedent agreement or an associated contract is not subject to 13 this section. 14 (b) The commission shall review the proposed initial recourse tariff and verify 15 that the proposed terms and conditions of service are not unduly discriminatory. The 16 commission also shall review the supporting cost study provided with an initial 17 recourse tariff filing and verify, taking into consideration the expected risks, that the 18 proposed rate of return on equity is within the range of permissible rates of return as 19 determined by the Federal Energy Regulatory Commission in recent decisions related 20 to the construction of natural gas pipelines, that the cost study incorporates a 21 reasonable depreciation methodology and depreciable life, and that the cost study uses 22 a reasonable capital structure. A proposed depreciation methodology, depreciable life, 23 or capital structure is reasonable if it is commonly accepted or used by the commission 24 or the Federal Energy Regulatory Commission. 25 (c) Upon written complaint or in its own motion, and after reasonable notice, 26 the commission may conduct a hearing to determine whether the initial recourse tariff 27 filed with the commission complies with the requirements in (b) of this section. 28 Pending a hearing the commission may, by order stating the reasons for its action, 29 suspend the operation of the initial recourse tariff for a period not longer than 30 days 30 beyond the time when the initial recourse tariff would otherwise go into effect. An 31 order suspending an initial recourse tariff filing may be vacated if, after investigation,
01 the commission finds that it is in all respects proper. Otherwise the commission shall 02 hold a hearing on the suspended filing and issue its order, before the end of the 03 suspension period, approving or denying the suspended initial recourse tariff. 04 (d) Unless a recourse tariff is denied because it includes a proposed term or 05 condition of service that is unduly discriminatory, includes a proposed rate element 06 that does not comply with (b) of this section, or violates a provision of this chapter, the 07 commission shall approve the initial recourse tariff. If the commission does not issue 08 its ruling within the 90-day period, and the period of suspension, if any, the initial 09 recourse tariff filing shall be considered approved. 10 (e) An in-state natural gas pipeline carrier may not establish or place in effect 11 a revised rate, charge, rule, regulation, condition of service, or practice contained in a 12 recourse tariff before providing notice to the commission and to the public at least 90 13 days before taking the action. After construction or an expansion of the pipeline, and 14 at any time that a carrier files for a revised recourse rate, the carrier shall file a 15 supporting cost study. Notice shall be given by filing with the commission and 16 keeping open for public inspection the revised recourse tariff provisions, which shall 17 plainly indicate the changes to be made in the schedules then in force and the time 18 when the changes will go into effect. The commission may prescribe additional means 19 of giving notice. The commission, for good cause shown, may allow changes to take 20 effect on shorter notice under conditions the commission prescribes by order. 21 Submission of a precedent agreement or an associated contract is not subject to this 22 subsection. 23 (f) The commission shall review a proposed revised recourse tariff in the same 24 manner as the review of a proposed initial recourse tariff under (b) of this section, 25 except that the depreciable life may be adjusted in accordance with the time period 26 between the approval of the recourse tariff and the approval of the revised recourse 27 tariff. The commission shall verify that the carrier is using the same elements that 28 were last approved by the commission. A proposed recourse tariff with a new or 29 revised term or condition of service that is unduly discriminatory shall be denied. The 30 commission also shall deny a revised tariff rate that does not use the previously 31 approved value of the specified rate element, unless the carrier proves that the new
01 value is just and reasonable. If the commission does not issue its ruling within 90 02 days, the revised recourse tariff filing shall be considered approved. 03 (g) A person initiating a change in an existing recourse tariff bears the burden 04 of proving the reasonableness of the change. The in-state natural gas pipeline carrier 05 bears the burden of proving the recourse tariff terms and conditions are not unduly 06 discriminatory. 07 (h) An in-state natural gas pipeline carrier shall provide for separate rates for 08 one or more classes of firm transportation service and for interruptible transportation 09 service in a recourse tariff filed with the commission under (a) of this section. An in- 10 state natural gas pipeline carrier may impose a reservation fee or similar charge for 11 reservation of capacity in an in-state natural gas pipeline as a condition of providing 12 firm transportation service, but may not impose a reservation fee or similar charge for 13 reservation of capacity in an in-state natural gas pipeline for interruptible 14 transportation service. 15 Sec. 42.08.360. Uniform system of accounts. An in-state natural gas pipeline 16 carrier operating under this chapter shall maintain its records and accounts in 17 accordance with the uniform system of accounts for class A natural gas pipelines in 18 18 C.F.R. 201 (Federal Energy Regulatory Commission), as amended. 19 Sec. 42.08.370. Expansion; dispute resolution. (a) A contract entered into by 20 an in-state natural gas pipeline carrier may provide for expansion unless the expansion 21 would cause the pipeline to be a competing natural gas pipeline project for purposes of 22 AS 43.90. 23 (b) The recourse tariff or a contract filed by an in-state natural gas pipeline 24 carrier may include a dispute resolution procedure. A dispute resolution procedure 25 shall 26 (1) provide that notice of a dispute be given to all shippers; 27 (2) culminate in a process that is determined by an independent third 28 party or panel; and 29 (3) permit the participation of existing shippers and creditworthy 30 potential shippers that have previously made good faith requests for firm 31 transportation service; a participant must satisfy the commission's standard for
01 intervention in an adjudicatory proceeding and demonstrate that the participant has a 02 property, financial, or other significant interest in the dispute. 03 Sec. 42.08.380. Regulatory cost charge. (a) Each year, a person operating an 04 in-state natural gas pipeline under this chapter shall pay to the commission a 05 regulatory cost charge if the pipeline for which the charge is assessed is subject to this 06 chapter and the commission has taken action on the pipeline or certificate under this 07 chapter during the prior fiscal year. The amount of the regulatory cost charge may not 08 exceed the sum of the following percentages of gross revenue derived from operations 09 in the state: 10 (1) 0.7 percent to fund the operations of the commission; and 11 (2) 0.17 percent to fund operations of the public advocacy function 12 under AS 42.04.070(c) and AS 44.23.020(e) in the Department of Law. 13 (b) The commission shall by regulation establish a method to determine 14 annually the amount of the regulatory cost charge that will apply to a pipeline 15 regulated under this chapter. If the amount the commission expects to collect under (a) 16 of this section, AS 42.05.254(a), and AS 42.06.286(a) exceeds the authorized budgets 17 of the commission and the Department of Law public advocacy function under 18 AS 42.04.070(c) and AS 44.23.020(e), the commission shall, by order, reduce the 19 percentage determined under a regulation adopted under this subsection so that the 20 total amount of the fees collected approximately equals the authorized budgets of the 21 commission and the Department of Law public advocacy function under 22 AS 42.04.070(c) and AS 44.23.020(e) for the fiscal year. 23 (c) The commission shall administer the charge imposed under this section. 24 The Department of Revenue shall collect and enforce the charge imposed under this 25 section. The Department of Administration shall identify the amount of the operating 26 budgets of the commission and the Department of Law public advocacy function 27 under AS 42.04.070(c) and AS 44.23.020(e) that lapse into the general fund each year. 28 The legislature may appropriate an amount equal to the lapsed amount to the 29 commission and to the Department of Law public advocacy function under 30 AS 42.04.070(c) and AS 44.23.020(e) for operating costs for the next fiscal year. If the 31 legislature does so, the commission shall reduce the total regulatory cost charge
01 collected for that fiscal year by a comparable amount. 02 (d) The commission may adopt regulations under AS 44.62 (Administrative 03 Procedure Act) necessary to administer this section, including procedures and 04 requirements for reporting information and a requirement for paying the regulatory 05 cost charge in quarterly payments. The Department of Revenue may adopt regulations 06 under AS 44.62 (Administrative Procedure Act) for investigating the accuracy of filed 07 information and for collecting required payments. 08 Sec. 42.08.390. Effect of chapter on taxes and royalties. Nothing in this 09 chapter shall alter the calculation of a production tax under AS 43.55.011 - 43.55.180 10 or the calculation of a royalty due for a lease issued under AS 38.05.180. 11 Article 4. Public Records; Investigations. 12 Sec. 42.08.400. Public records. (a) Except as provided in (b) and (c) of this 13 section or prohibited from disclosure under state or federal law, records in the 14 possession of the commission are open to public inspection at reasonable times. 15 (b) The commission may by regulation classify records received from an in- 16 state natural gas pipeline carrier or in-state natural gas pipeline as privileged records 17 that are not open to the public for inspection. 18 (c) A record filed with the commission that is a precedent agreement between 19 an in-state natural gas pipeline carrier and an unregulated entity is a privileged record 20 that is not open to the public for inspection. For a record that relates to a precedent 21 agreement, or is or relates to a contract other than a precedent agreement between an 22 in-state natural gas pipeline carrier and an unregulated entity, if an in-state natural gas 23 pipeline carrier identifies the provisions of the record that contain information that, if 24 disclosed, could adversely affect the competitive position of the shipper or could cause 25 commercial or competitive harm or damage if disclosed and the commission agrees, 26 the information shall be treated by the commission as confidential. 27 (d) A person may make written objection to the public disclosure of 28 information contained in a record filed under this chapter or of information obtained 29 by the commission or by the attorney general under this chapter, stating the grounds 30 for the objection. When an objection is made, the commission shall order the 31 information withheld from public disclosure if the information adversely affects the
01 interest of the person making written objection and disclosure is not required in the 02 interest of the public. 03 (e) A commissioner may certify as to all official records of the commission 04 under this section and may certify as to all official acts of the commission under this 05 chapter. 06 Sec. 42.08.410. Investigations. The commission may investigate any matter 07 for which an investigation is authorized under this chapter. An investigation may be 08 public, nonpublic, or both. In conducting an investigation, the commission may 09 compel the attendance and testimony of witnesses and the production of records and 10 testimony before the commission or its designee. In the course of an investigation, the 11 commission may, subject to AS 44.23.020(e), exclude from attendance at the taking of 12 investigative testimony all persons except a person compelled to attend, that person's 13 attorney, members of the commission or the commission's staff, and a person 14 authorized to transcribe the proceedings. In conducting an investigation related to a 15 timely filed dispute, the commission shall issue a final order within 150 days after the 16 date the formal complaint was filed with the commission, except for disputes related 17 to open seasons, in which case, a final order must be issued within 60 days. If the 18 commission has not acted within the applicable time period in this section, the dispute 19 shall be considered to have been dismissed with prejudice. 20 Article 5. Accounts, Records, and Reports. 21 Sec. 42.08.450. Accounts; records; triennial reports. (a) To the extent 22 necessary for the commission to perform the duties of the commission under this 23 chapter, 24 (1) the commission may by regulation require an in-state natural gas 25 pipeline carrier or affiliated interest engaged in activities relating to pipelines to 26 establish and maintain as part of its system of accounts continuing property records 27 showing, as to property that is actually being used in pipeline activity in this state, the 28 year of placement in service, original cost, and current location, and, as to a pipeline 29 system, accounts and records in a manner showing, on a current basis, the original cost 30 of the system in the state and related reserves for depreciation; 31 (2) the in-state natural gas pipeline carrier shall
01 (A) keep its accounts for its pipeline facilities located in this 02 state separate from any accounts relating to any other business, including 03 another pipeline facilities business or a subsidiary business, in which it 04 engages, directly or indirectly; except as the commission provides, property, 05 expense, or revenue used in or derived from the other business may not be 06 considered in establishing the rates and charges of the facility; 07 (B) keep books, accounts, papers, and records required by this 08 chapter or by regulations adopted by the commission under this chapter in an 09 office in this state and may not remove them from the state except upon written 10 authority by the commission; and 11 (C) file a report with the commission that contains an updated 12 cost study and a calculation of the three-year average actual return on equity; 13 the report shall be filed every three years after the pipeline begins operations, 14 within 90 days after the close of the annual accounting period for the in-state 15 natural gas pipeline carrier, or within additional time granted by the 16 commission upon a showing of good cause. 17 (b) The commission shall review the cost study described in (a)(2)(C) of this 18 section and verify that, for the rate elements specified in AS 42.08.350(b), the carrier 19 is using the same elements that were last approved by the commission. If the carrier 20 does not use the correct rate elements in its triennial report, the commission may 21 require the carrier to recalculate and file a corrected report. If, on the date the report 22 described in (a)(2)(C) of this section is delivered, the report reflects that the three-year 23 average actual return on equity exceeds the approved rate of return, the carrier shall, 24 not later than 90 days after the date the report is delivered, deposit an amount equal to 25 the excess in a segregated operating reserve fund. The carrier shall continue to deposit 26 the excess described in this subsection at the times described in this subsection until 27 the amount in the operating reserve fund is equal to 20 percent of the most recent 28 three-year average of the carrier's annual operating costs. The carrier may use money 29 in the operating reserve fund to offset any shortage in the recovery of operating costs 30 set out in another triennial report. If a deposit will cause the operating reserve fund to 31 exceed 20 percent of the most recent three-year average of the carrier's annual
01 operating costs, the amount exceeding 20 percent must be used to reduce, on a 02 volumetric basis, the firm transportation service rates for all shippers for the next 03 three-year period. 04 Article 6. General Provisions. 05 Sec. 42.08.510. Designation of service agents. An in-state natural gas pipeline 06 carrier shall file with the commission a written appointment of a named permanent 07 resident, which may be a corporation, of this state as its registered agent in this state 08 on whom service of all notices, regulations, and requests of the commission may be 09 made. The appointment shall specify the address in this state of the appointed agent. 10 The address may be changed from time to time by filing a new address in the state 11 with the commission. If an in-state natural gas pipeline carrier fails to appoint a 12 registered agent, service of notices, regulations, and requests may be made by posting 13 a copy in the main office of the commission and filing a copy in the office of the 14 lieutenant governor. 15 Sec. 42.08.520. Effect of regulations. Regulations adopted by the commission 16 under this chapter have the effect of law. 17 Sec. 42.08.530. Judicial review and enforcement. (a) Except as provided in 18 AS 38.35.200(c), a final order of the commission under this chapter is subject to 19 judicial review under AS 44.62.560 and 44.62.570. 20 (b) If an appeal is not taken from a final order of the commission within 10 21 calendar days after an investigation under AS 42.08.220(b)(3), the commission may 22 apply to the superior court for enforcement of the order of the commission. The court 23 shall enforce the order by injunction or other process. 24 Sec. 42.08.540. Joinder of actions. Under the applicable court rules, appeals 25 from orders of the commission and applications for enforcement of orders of the 26 commission may be joined. The court may, in the interests of justice, separate the 27 actions. 28 Sec. 42.08.900. Definitions. In this chapter, 29 (1) "affiliated" or "affiliated interest," with respect to an in-state 30 natural gas pipeline carrier, means any person that 31 (A) is controlled or owned, in whole or in part, by the in-state
01 natural gas pipeline carrier; 02 (B) is controlled or owned, in whole or in part, by an entity that 03 controls or owns, in whole or in part, the in-state natural gas pipeline carrier; or 04 (C) controls or owns, in whole or in part, the in-state natural 05 gas pipeline carrier; 06 (2) "commission" means the Regulatory Commission of Alaska 07 (AS 42.04.010); 08 (3) "commissioner" means a member of the commission; 09 (4) "firm transportation service" means service by a natural gas 10 pipeline carrier that is not subject to a prior claim by another shipper or another class 11 of service; service constitutes "firm transportation service" if the service receives the 12 same priority as any other class of firm transportation service; 13 (5) "in-state natural gas pipeline" or "in-state natural gas pipeline 14 facility" means a natural gas pipeline that transports or will transport natural gas in the 15 state by way of contract carriage; 16 (6) "in-state natural gas pipeline carrier" means the owner, including a 17 corporation, company, or other entity organized under the laws of the United States or 18 of any state, of an in-state natural gas pipeline or an interest in it, or a person, 19 including a corporation, company, or other entity organized under the laws of the 20 United States or of any state, that transports or will transport natural gas as a contract 21 carrier; 22 (7) "natural gas pipeline" has the meaning given in AS 31.25.390; 23 (8) "precedent agreement" means a contractual commitment, including 24 a presubscription agreement, to acquire firm transportation capacity, executed between 25 an in-state natural gas pipeline carrier and another person, that establishes the rates, 26 terms, and conditions for service; 27 (9) "record" means a report, file, book, account, paper, or application 28 and the facts and information contained in it. 29 * Sec. 22. AS 43.56.020 is amended by adding a new subsection to read: 30 (d) Taxable property of a natural gas pipeline project owned or financed by 31 the Alaska Gasline Development Corporation or a joint venture, partnership, or other
01 entity that includes the Alaska Gasline Development Corporation is exempt from state 02 taxes levied or authorized under AS 43.56.010(a) and local taxes levied or authorized 03 under AS 43.56.010(b) before the commencement of commercial operations of that 04 natural gas pipeline project. In this subsection, "commencement of commercial 05 operations" means the first flow of natural gas in the project that generates revenue to 06 the owners of the natural gas pipeline project. 07 * Sec. 23. AS 36.30.850(b)(45); AS 38.34.030, 38.34.040, 38.34.050, 38.34.060; 08 AS 39.25.110(11)(G); AS 39.50.200(b)(57); AS 41.41.010, 41.41.020, 41.41.030, 41.41.040, 09 41.41.050, 41.41.060, 41.41.070, 41.41.080, 41.41.090, 41.41.100, 41.41.110, 41.41.120, 10 41.41.130, 41.41.140, 41.41.150, 41.41.200, 41.41.300, 41.41.310, 41.41.320, 41.41.330, 11 41.41.340, 41.41.350, 41.41.360, 41.41.370, 41.41.380, 41.41.390, 41.41.400, 41.41.410, 12 41.41.450, 41.41.500, 41.41.900, and 41.41.990 are repealed. 13 * Sec. 24. Sections 1 and 5, 2002 Ballot Measure No. 3, are repealed. 14 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 TRANSITION AND LEGISLATIVE INTENT. (a) It is the intent of the legislature 17 that a right-of-way lease subject to AS 31.25.090(d), enacted by sec. 3 of this Act, 18 AS 38.35.100(d), as amended by sec. 8 of this Act, AS 38.35.120(a), as amended by sec. 9 of 19 this Act, AS 38.35.120(b), as amended by sec. 10 of this Act, and AS 38.35.121, enacted by 20 sec. 11 of this Act, that is entered into between the commissioner of natural resources and the 21 Alaska Gasline Development Corporation before the effective dates of secs. 3 and 8 - 11 of 22 this Act be amended as soon as practicable after the effective dates of secs. 3 and 8 - 11 of this 23 Act to conform to the requirements of AS 31.25.090(d), enacted by sec. 3 of this Act, 24 AS 38.35.100(d), as amended by sec. 8 of this Act, AS 38.35.120(a), as amended by sec. 9 of 25 this Act, AS 38.35.120(b), as amended by sec. 10 of this Act, and AS 38.35.121, enacted by 26 sec. 11 of this Act. 27 (b) The transition of the Alaska Gasline Development Corporation from a subsidiary 28 of the Alaska Housing Finance Corporation to an independent public corporation of the state 29 may not disrupt, interfere, or alter the work of the Alaska Gasline Development Corporation. 30 The governor shall appoint the board of the Alaska Gasline Development Corporation as soon 31 as practicable after the effective date of this Act. It is the intent of the legislature that the
01 governor appoint the new board of the Alaska Gasline Development Corporation within 90 02 days after the effective date of this Act. The board of the Alaska Housing Finance 03 Corporation shall serve as the board of the Alaska Gasline Development Corporation until the 04 governor appoints the board of the Alaska Gasline Development Corporation under this 05 subsection. The board of directors of the Alaska Gasline Development Corporation shall work 06 with the board of directors of the Alaska Housing Finance Corporation and the commissioner 07 of commerce, community, and economic development to ensure the smooth transition of the 08 Alaska Gasline Development Corporation to being an independent public corporation, 09 including modifying the articles of incorporation of the Alaska Gasline Development 10 Corporation. 11 (c) It is the intent of the legislature that the transition of the Alaska Gasline 12 Development Corporation to being an independent public corporation of the state located for 13 administrative purposes in the Department of Commerce, Community, and Economic 14 Development be treated for all purposes only as a change of placement within the state and 15 not as the creation of a new public corporation of the state. 16 (d) It is the intent of the legislature that the Alaska Housing Finance Corporation, the 17 board of directors of the Alaska Gasline Development Corporation as a subsidiary created 18 under AS 18.56.086 by the Alaska Housing Finance Corporation, and the commissioner of 19 commerce, community, and economic development expeditiously amend the articles of 20 incorporation, the bylaws, and other documents of the Alaska Gasline Development 21 Corporation to reflect the change in the placement of the Alaska Gasline Development 22 Corporation from being a subsidiary of the Alaska Housing Finance Corporation to being an 23 independent public corporation of the state as provided in AS 31.25, enacted by sec. 3 of this 24 Act. 25 (e) It is the intent of the legislature that the Alaska Housing Finance Corporation and 26 the commissioner of commerce, community, and economic development coordinate the 27 transition of the Alaska Gasline Development Corporation to its new placement within the 28 state as an independent public corporation of the state and assist the newly appointed board of 29 directors of the Alaska Gasline Development Corporation to ensure that the development of 30 an in-state natural gas pipeline is not unreasonably delayed because of the change in 31 placement within the state of the corporation.
01 * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 REVISOR'S INSTRUCTIONS. The revisor of statutes shall change the catch lines of 04 (1) AS 38.35.120 from "Covenants required to be included in lease" to 05 "Covenants required to be included in lease to a pipeline that is not a natural gas pipeline 06 contract carrier"; and 07 (2) AS 38.35.200 from "Judicial review of decisions of commissioner on 08 application" to "Judicial review." 09 * Sec. 27. This Act takes effect immediately under AS 01.10.070(c).