Legislature(2003 - 2004)
2003-04-22 Senate Journal
Full Journal pdf2003-04-22 Senate Journal Page 0917 SB 193 SENATE BILL NO. 193 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act expanding the purpose of the Alaska Natural Gas Development Authority to include planning, developing, constructing, managing, or operating an economically viable gas pipeline project from the 2003-04-22 Senate Journal Page 0918 North Slope of Alaska by a route that parallels the Trans Alaska Pipeline System or the Alaska Highway; relating to the development plan, requiring a work plan, and relating to acquiring permits or other property by the authority for a proposed gas pipeline project; and providing for an effective date." was read the first time and referred to the Resources Committee. The following fiscal information was published today: Fiscal Note No. 1, Department of Revenue Governor's transmittal letter dated April 17: Dear President Therriault: Under authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill that would amend the Alaska Natural Gas Development Authority Act (Act) (AS 41.41). This bill would amend the Act to expand the scope of projects that the Alaska Natural Gas Development Authority (authority) may consider. Under current law, the authority is required to develop a project plan within one year for a gas transmission pipeline running from the North Slope to tidewater at a point on Prince William Sound. There may, however, be other projects that are economically viable to bring Alaska gas to market, including a gas transmission line from the North Slope to the Canadian border along the route of the Alaska Highway. The State of Alaska's approach to considering these potential projects should be consistent. The authority is, therefore, an appropriate vehicle to consider and plan for all economically viable projects that run from the North Slope by a route that parallels the Trans Alaska Pipeline System or the Alaska Highway. Section 1 of the bill includes legislative findings and intent that it is in the best interests of the State of Alaska to expand the purpose of the authority to include in its planning and operation any economically viable gas pipeline project from the North Slope by a route that parallels the Trans Alaska Pipeline System or the Alaska Highway. 2003-04-22 Senate Journal Page 0919 Section 2 of the bill would broaden the concept of what an essential government function is under the Act to beyond the acquisition and delivery of North Slope gas to tidewater. Sections 3 and 4 of the bill clarify that the authority may acquire federal, state, or local permits as property of the authority under standards set out in AS 41.41.450, but the authority is not required to make any acquisition of property. Section 5 of the bill would expand the definition of "project" to include any project that follows a route that parallels the Trans Alaska Pipeline System or the Alaska Highway. Section 6 of the bill would replace the timeframe for production of a development plan for a gas pipeline project with a specific date for production of a work plan, which must include detailed budgeting and scheduling information. Requiring the authority to produce a detailed work plan by January 1, 2004 will facilitate delivery of a comprehensive development plan. I believe that these amendments will enhance the State of Alaska's ability to promote the most viable project or projects to successfully bring Alaska's vast gas reserves to market. I urge your prompt and favorable action on this measure. Sincerely, /s/ Frank H. Murkowski Governor