Legislature(2001 - 2002)
2001-01-08 House JournalFull Journal pdf
2001-01-08 House Journal Page 0034 HB 38 HOUSE BILL NO. 38 by the House Rules Committee by request of the Governor, entitled: "An Act amending the application deadline, and the standards applicable to determining whether a proposed new investment constitutes a qualified project, for purposes of the Alaska Stranded Gas Development Act; and providing for an effective date." was read the first time and referred to the House Special Committee on Oil & Gas, and the Resources and Finance Committees. The following fiscal note(s) apply: 1. Zero, Dept. of Natural Resources The Governor's transmittal letter dated January 8, 2001, appears below: "Dear Speaker Porter: Alaska must ensure that our fiscal regime is an incentive to the commercialization of our natural gas, not an impediment. To provide the State with the appropriate tools to achieve this goal I am transmitting this bill to amend the Alaska Stranded Gas Development Act to allow any potentially successful natural gas project to take advantage of the provisions of that Act. The Alaska Stranded Gas Development Act (Act) allows the commissioner of the Department of Revenue to negotiate a contract for payments in lieu of taxes for a certain type of project that will develop the enormous natural gas resources of Alaska's North Slope. The potential benefits of the current program are limited to liquefied natural gas (LNG) projects. Developments in the international natural gas marketplace -- particularly the recent energy price increases in 2001-01-08 House Journal Page 0035 North America -- suggest that other projects may be viable in advance of the type of LNG project the Act was initially designed to support. This bill would expand the scope of the Act to cover other forms of gas development, such as a natural gas pipeline through Canada along the Alaska Highway or an in-state gas-to-liquids facility. Although this Act, with the amendments I propose, grants certain authorities to executive agencies, any proposed changes to tax policy would require legislative ratification. The only other change proposed by this bill is to extend the application deadline for this program for a limited time. I urge your prompt and favorable action on this measure. Sincerely, /s/ Tony Knowles Governor"