Legislature(2011 - 2012)
2012-03-27 House Journal
Full Journal pdf2012-03-27 House Journal Page 2031 HB 9 The following, which was advanced to third reading from the March 26, 2012, calendar (page 2013), was read the third time: CS FOR HOUSE BILL NO. 9(FIN) "An Act relating to the Alaska Gasline Development Corporation, a subsidiary created by the Alaska Housing Finance Corporation; establishing and relating to the in-state natural gas pipeline fund; making certain information provided to or by the Alaska Gasline Development Corporation exempt from inspection as a public record; relating to the Joint In-State Gasline Development Team; relating to the 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 by the Alaska Gasline Development Corporation or a successor in interest for a gas pipeline transportation corridor; relating to the cost of natural resources, permits, and leases provided to the Alaska Gasline Development Corporation; relating to the review of natural gas transportation contracts by the Regulatory Commission of Alaska; relating to the regulation by the Regulatory Commission of Alaska of an in-state 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 is expressly authorized to provide transportation as a contract carrier; relating to the Alaska Natural Gas Development Authority; relating to the procurement of certain services by the Alaska Natural Gas Development Authority; exempting property of a project developed by the Alaska Gasline Development 2012-03-27 House Journal Page 2032 Corporation from property taxes before the commencement of commercial operations; and providing for an effective date." Representative Hawker moved and asked unanimous consent that CSHB 9(FIN) be returned to second reading for the specific purpose of considering Amendment No. 1. There being no objection, it was so ordered. The Speaker stated that, without objection, CSHB 9(FIN) would be returned to second reading for all amendments. Amendment No. 1 was offered by Representatives Hawker and Chenault: Page 3, line 5: Delete "and" Page 3, line 8, following "Corporation": Insert "; (8) to the maximum extent permitted by law, in developing a natural gas pipeline, the Alaska Gasline Development Corporation shall procure services, labor, products, and natural resources from qualified businesses located in the state, including organizations owned by Alaska Natives and municipal organizations directly affected by the project, if those persons are competitive; and (9) the Alaska Gasline Development Corporation shall, to the maximum extent permitted by law, (A) hire qualified residents from throughout the state for management, engineering, construction, operations, maintenance, and other positions for a natural gas pipeline project; (B) establish hiring facilities in the state or use existing hiring facilities in the state; and (C) use, as far as practicable, the job centers and associated services operated by the Department of Labor and Workforce Development and an Internet-based labor exchange system operated by the state" Representative Hawker moved and asked unanimous consent that Amendment No. 1 be adopted. 2012-03-27 House Journal Page 2033 Objection was heard and withdrawn. There being no further objection, Amendment No. 1 was adopted. Amendment No. 2 was offered by Representatives Holmes, Chenault, Hawker, Kawasaki, and Miller: Page 2, lines 13 - 28: Delete all material. Renumber the following paragraphs accordingly. Page 3, line 13, following "possible,": Insert " (1)" Page 3, line 18, following "manner": Delete "." Insert "; (2) construct, own, operate, manage, or participate in natural gas pipelines and associated facilities and operations for the purpose of making natural gas available to Fairbanks, the Southcentral region of the state, and other communities in the state at the lowest rate possible for a natural gas pipeline that operates in a manner consistent with safe and prudent standards; (3) endeavor to develop natural gas pipelines to deliver natural gas to public utility and industrial customers in areas of the state to which the natural gas may be delivered at commercially reasonable rates; and (4) endeavor to develop natural gas pipelines to provide shippers access to natural gas produced in the state for transport at commercially reasonable rates. (b)" Reletter the following subsections accordingly. Page 5, line 19: Delete "(c) and (d)" Insert "(d) and (e)" 2012-03-27 House Journal Page 2034 Page 6, following line 5: Insert a new subsection to read: "(h) An executed pipeline operating agreement between the Alaska Gasline Development Corporation and the operator of the pipeline developed by the Alaska Gasline Development Corporation shall be disclosed to the public to the extent the disclosure would not divulge trade secrets or other proprietary business information of the Alaska Gasline Development Corporation or the operator." Reletter the following subsections accordingly. Representative Holmes moved and asked unanimous consent that Amendment No. 2 be adopted. Objection was heard and withdrawn. There being no further objection, Amendment No. 2 was adopted. Amendment No. 3 was offered by Representatives Gara, Kerttula, Kawasaki, Gardner, Miller, and Petersen: Page 4, following line 8: Insert new subsections to read: "(b) Notwithstanding the powers granted to the Alaska Gasline Development Corporation by (a) of this section and granted by the Alaska Housing Finance Corporation, the Alaska Gasline Development Corporation may not spend more than $200,000,000 after May 31, 2012, without further legislative authorization if the Alaska Gasline Development Corporation determines, after a full and objective study, that one or more of the following options provide a greater benefit to the state than an in- state natural gas pipeline constructed by the Alaska Gasline Development Corporation: (1) continuing to develop a natural gas pipeline capable of transporting not less than 3,000,000,000 cubic feet of natural gas a day, but only if the Alaska Gasline Development Corporation finds there are adequate natural gas resources in the Cook Inlet sedimentary basin that may be economically produced to meet in-state demand; (2) delivering natural gas and propane produced in the state by a means other than the development and construction of 2012-03-27 House Journal Page 2035 an in-state natural gas pipeline by the Alaska Gasline Development Corporation, but only if the Alaska Gasline Development Corporation finds that the alternative means for delivering natural gas and propane are less expensive than the construction of an in-state natural gas pipeline; (3) continuing to develop a natural gas pipeline capable of transporting not less than 3,000,000,000 cubic feet of gas a day if the Alaska Gasline Development Corporation finds that the development of the larger capacity pipeline would deliver cheaper natural gas to markets in the state and provide the state with greater revenue when compared to an in-state natural gas pipeline developed and constructed by the Alaska Gasline Development Corporation; (4) delivering natural gas by truck to the Fairbanks North Star Borough with state subsidies and subsidizing facilities for delivering propane to rural communities in the state that are not connected to the state's contiguous road system if those alternatives are more cost-effective than the development and construction of an in-state natural gas pipeline by the Alaska Gasline Development Corporation. (c) During development of the in-state natural gas pipeline and before the start of construction of an in-state natural gas pipeline, the Alaska Gasline Development Corporation shall determine whether a natural gas pipeline capable of delivering 3,000,000,000 cubic feet of natural gas a day or more from the North Slope to market is a viable project. If the Alaska Gasline Development Corporation determines that a natural gas pipeline capable of delivering 3,000,000,000 cubic feet of natural gas a day or more from the North Slope to market remains a viable project and there is an adequate supply of marketable natural gas in Cook Inlet to meet natural gas demand in the Railbelt, the Alaska Gasline Development Corporation shall research and consider whether a small-diameter natural gas pipeline from Cook Inlet to the Fairbanks area could be built to deliver natural gas at a reasonably economic cost. If the Alaska Gasline Development Corporation finds that a small-diameter natural gas pipeline from Cook Inlet to the Fairbanks area could be built to deliver natural gas at a reasonably economic cost under the circumstances described in this subsection, the Alaska Gasline Development Corporation shall begin development of a small-diameter natural 2012-03-27 House Journal Page 2036 gas pipeline from Cook Inlet to the Fairbanks area and stop further development of a small-diameter natural gas pipeline capable of transporting not more than 500,000 cubic feet of natural gas a day from the North Slope to delivery points south of 68 degrees North latitude." Reletter the following subsections accordingly. Page 5, line 19: Delete "(c) and (d)" Insert "(e) and (f)" Representative Gara moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 3 YEAS: 11 NAYS: 28 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Holmes, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 3 was not adopted. Amendment No. 4 was offered by Representatives Gara, Kerttula, Kawasaki, Gardner, and Miller: Page 1, line 1, through page 2, line 8 (title amendment): Delete all material and insert: 2012-03-27 House Journal Page 2037 ""An Act providing a credit against the corporation income tax or the oil and gas production tax for losses incurred in the sale of natural gas shipped through a natural gas pipeline; and relating to the delivery of natural gas to communities not directly served by a natural gas pipeline; and providing for an effective date."" Page 2, line 10, through page 32, line 14: Delete all material and insert: "* Section 1. The uncodified law of the State of Alaska is amended by adding a new section to read: SHORT TITLE. This Act may be known as the Alaska Low-Cost Natural Gas Incentive Act. * Sec. 2. AS 43.20 is amended by adding a new section to article 1 to read: Sec. 43.20.047. Tax credit for certain losses on the sale of natural gas. (a) A taxpayer that produces natural gas in the state north of 68 degrees North latitude and delivers that natural gas to a pipeline described in (b) of this section may apply to the department for a credit against the tax due under this chapter for a loss on the sale of natural gas as provided in this section, except that a taxpayer applying for a credit under AS 43.55.026 may not apply for the credit in this section. (b) The natural gas pipeline to which a producer delivers natural gas eligible for the credit in this section must transport natural gas from the North Slope to market and have an average throughput of 3,000,000,000 cubic feet or more of natural gas a day during the year for which the loss is claimed. The natural gas pipeline must terminate at the Port of Valdez consistent with the provisions of AS 43.90 (Alaska Gasline Inducement Act) unless the commissioner of natural resources finds that a natural gas pipeline from the North Slope to the Port of Valdez is not economically viable, in which case the natural gas pipeline must be the natural gas pipeline project licensed under AS 43.90 (Alaska Gasline Inducement Act). (c) The loss eligible for the credit under this section is equal to the amount by which the total production tax value of natural gas produced by the taxpayer during the calendar year is less than zero. (d) The department may not authorize a total of more than $400,000,000 in credits under this section and AS 43.55.026 in a 2012-03-27 House Journal Page 2038 calendar year. If the total amount of credits for all persons under this section and AS 43.55.026 is more than $400,000,000 for a calendar year, the department shall prorate the amount of the credit authorized for each applicant based on the production tax value of the natural gas delivered to the pipeline. (e) An unused credit received under this section may be used for a later calendar year. (f) The department shall adopt regulations necessary to implement and administer the credit authorized by this section. (g) In this section, "production tax value" means the value, as determined under AS 43.55.160, of the natural gas delivered to a pipeline described in (b) of this section. * Sec. 3. AS 43.20 is amended by adding a new section to read: Sec. 43.55.026. Tax credit for certain losses on the sale of natural gas. (a) A producer that produces natural gas in the state north of 68 degrees North latitude and delivers that natural gas to a pipeline described in (b) of this section may apply to the department for a credit against the tax due under AS 43.55.011(e) for a loss on the sale of natural gas as provided in this section, except that a taxpayer that applies for a credit under AS 43.20.047 may not apply for the credit in this section. (b) The natural gas pipeline to which a producer delivers natural gas eligible for the credit in this section must transport natural gas from the North Slope to market and have an average throughput of 3,000,000,000 cubic feet or more of natural gas a day during the year for which the loss is claimed. The natural gas pipeline must terminate at the Port of Valdez consistent with the provisions of AS 43.90 (Alaska Gasline Inducement Act) unless the commissioner of natural resources finds that a natural gas pipeline from the North Slope to the Port of Valdez is not economically viable, in which case the natural gas pipeline must be the natural gas pipeline project licensed under AS 43.90 (Alaska Gasline Inducement Act). (c) The loss eligible for the credit under this section is equal to the amount by which the total production tax value of natural gas produced by the taxpayer during the calendar year is less than zero. (d) The department may not authorize a total of more than $400,000,000 in credits under this section and AS 43.20.047 in a calendar year. If the total amount of credits for all persons under 2012-03-27 House Journal Page 2039 this section and AS 43.20.047 is more than $400,000,000 for a calendar year, the department shall prorate the amount of the credit authorized for each applicant based on the production tax value of the natural gas delivered to the pipeline. (e) An unused credit received under this section may be used for a later calendar year. (f) The department shall adopt regulations necessary to implement and administer the credit authorized by this section. (g) In this section, "production tax value" means the value, as determined under AS 43.55.160, of the natural gas delivered to a pipeline described in (b) of this section. * Sec. 4. AS 44.37.020 is amended by adding a new subsection to read: (c) The Department of Natural Resources shall work with communities not directly served by a natural gas pipeline to deliver natural gas to those communities to the extent that delivery of the gas is economically feasible. * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to read: CONTINGENT EFFECT; NOTIFICATION. (a) Sections 1 - 3 of this Act take effect only if the commissioner of natural resources makes a written finding that (1) a natural gas pipeline described in AS 43.20.047(b), enacted by sec. 2 of this Act, and AS 43.55.026(b), enacted by sec. 3 of this Act, is capable of delivering natural gas to consumers in Fairbanks and Anchorage at a savings of 40 percent or more compared to the cost of natural gas without the construction of the natural gas pipeline; and (2) without the credits authorized by AS 43.20.047, enacted by sec. 2 of this Act, and AS 43.55.026, enacted by sec. 3 of this Act, a natural gas pipeline with a throughput of 3,000,000,000 cubic feet or more will not be built. (b) If the commissioner of natural resources makes the written determination described in (a) of this section, the commissioner of natural resources shall notify the revisor of statutes, the commissioner of revenue, and the lieutenant governor of the date the written determination was issued. * Sec. 6. If secs. 1 - 3 of this Act take effect, they take effect the day after the commissioner of natural resources makes the written determination described in sec. 5(a) of this Act." 2012-03-27 House Journal Page 2040 Representative Gara moved and asked unanimous consent that Amendment No. 4 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 4 YEAS: 11 NAYS: 27 EXCUSED: 1 ABSENT: 1 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Holmes, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto Absent: Stoltze Johansen changed from "Yea" to "Nay". And so, Amendment No. 4 was not adopted. Amendment No. 5 was offered by Representatives Kerttula, Gara, Kawasaki, Gardner, Miller, and Petersen: Page 1, line 2, following "Corporation;" (title amendment): Insert "requiring legislative approval before construction of an in-state natural gas pipeline developed by the Alaska Gasline Development Corporation;" Page 4, following line 8: Insert a new subsection to read: "(b) The Alaska Gasline Development Corporation may not begin to construct an in-state natural gas pipeline before project sanction and before receiving authorization by law to proceed with 2012-03-27 House Journal Page 2041 the construction. In this subsection, (1) "authorization by law" means a law passed by the legislature and enacted into law or an appropriation for the construction of the pipeline that is not entirely vetoed; (2) "sanction" means having financial commitments that are adequate to proceed with the construction of the in-state natural gas pipeline." Reletter the following subsections accordingly. Page 5, line 19: Delete "(c) and (d)" Insert "(d) and (e)" Representative Kerttula moved and asked unanimous consent that Amendment No. 5 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 5 YEAS: 12 NAYS: 27 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 5 was not adopted. Amendment No. 6 was offered by Representatives Gardner, Gara, Guttenberg, Kerttula, and Kawasaki: 2012-03-27 House Journal Page 2042 Page 2, line 28, following "rates;": Insert "and" Page 3, lines 1 - 5: Delete all material. Renumber the following paragraph accordingly. Page 21, lines 8 - 26: Delete all material and insert: "Sec. 42.08.020. Qualification determination. The commission shall determine whether a person making application under this chapter is technically fit, willing, and able to take the actions, properly to perform the service, and to conform to the requirements in this chapter." Representative Gardner moved and asked unanimous consent that Amendment No. 6 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 6 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 6 YEAS: 11 NAYS: 28 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Holmes, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 6 was not adopted. 2012-03-27 House Journal Page 2043 Amendment No. 7 was offered by Representatives Guttenberg, Kerttula, Kawasaki, Gardner, and Miller: Page 23, line 12: Delete "and" Page 23, line 14, following "chapter": Insert "; or (3) find that a contract that fails to provide a separate rate for the transportation of gas liquids to be paid by the shippers of gas liquids is just and reasonable" Representative Guttenberg moved and asked unanimous consent that Amendment No. 7 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 7 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 7 YEAS: 12 NAYS: 27 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 7 was not adopted. Amendment No. 8 was offered by Representatives Miller, Guttenberg, Kerttula, Kawasaki, Gardner, and Petersen: Page 1, line 10, following "Corporation;" (title amendment): Insert "requiring the Alaska Gasline Development Corporation 2012-03-27 House Journal Page 2044 to construct a natural gas pipeline to deliver Cook Inlet natural gas to Fairbanks and other communities between Cook Inlet and Fairbanks that do not have access to a natural gas pipeline before constructing a natural gas pipeline that serves other areas of the state" Page 2, following line 22: Insert a new paragraph to read: "(3) before constructing a natural gas pipeline to serve the Southcentral region of the state and other communities of the state, the Alaska Gasline Development Corporation shall construct a natural gas pipeline to deliver Cook Inlet natural gas to Fairbanks and other communities between Cook Inlet and Fairbanks that do not have access to a natural gas pipeline." Renumber the following paragraphs accordingly. Page 4, following line 8: Insert a new subsection to read: (b) Before constructing a natural gas pipeline to serve the Southcentral region of the state and other communities of the state, the Alaska Gasline Development Corporation shall plan, construct, and finance a natural gas pipeline to deliver natural gas from Cook Inlet to Fairbanks and to communities between Cook Inlet and Fairbanks that do not have access to a natural gas pipeline." Reletter the following subsections accordingly. Page 5, line 19: Delete "(c) and (d)" Insert "(d) and (e)" Representative Miller moved and asked unanimous consent that Amendment No. 8 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 8 be adopted?" The roll was taken with the following result: 2012-03-27 House Journal Page 2045 CSHB 9(FIN) am Second Reading Amendment No. 8 YEAS: 11 NAYS: 27 EXCUSED: 1 ABSENT: 1 Yeas: Cissna, Doogan, Gardner, Gruenberg, Guttenberg, Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto Absent: Gara And so, Amendment No. 8 was not adopted. Amendment No. 9 was offered by Representatives Guttenberg, Kerttula, Kawasaki, and Miller: Page 1, line 2, following "Corporation;" (title amendment): Insert "relating to the rate for transporting natural gas in an in-state natural gas pipeline developed by the Alaska Gasline Development Corporation that does not include the costs to make deliveries downstream from each delivery point for which a separate rate is set;" Page 6, following line 14: Insert a new subsection to read: "(h) The Alaska Gasline Development Corporation shall propose and support rates and contract transportation costs for the transportation of gas to delivery points along the in-state natural gas pipeline that are based on the costs to deliver natural gas to each delivery point and that do not include the costs to make deliveries downstream from each delivery point for which a separate rate is set." Reletter the following subsection accordingly. 2012-03-27 House Journal Page 2046 Representative Guttenberg moved and asked unanimous consent that Amendment No. 9 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 9 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 9 YEAS: 11 NAYS: 28 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Holmes, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 9 was not adopted. Amendment No. 10 was offered by Representatives Guttenberg, Kerttula, Kawasaki, Miller, and Gardner: Page 4, line 9: Delete "Upon commencement of construction of" Insert "When designing" Representative Guttenberg moved and asked unanimous consent that Amendment No. 10 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 10 be adopted?" The roll was taken with the following result: 2012-03-27 House Journal Page 2047 CSHB 9(FIN) am Second Reading Amendment No. 10 YEAS: 12 NAYS: 27 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 10 was not adopted. Amendment No. 11 was offered by Representatives Tuck, Kerttula, Kawasaki, Gardner, and Petersen: Page 2, lines 4 - 5 (title amendment): Delete "relating to the procurement of certain services by the Alaska Natural Gas Development Authority;" Page 6, lines 17 - 19: Delete all material. Renumber the following bill sections accordingly. Page 18, lines 11 - 12: Delete "The procurement of services under this subsection is exempt from AS 36.30, including AS 36.30.015(d) and (f)." Page 31, line 28: Delete "sec. 6" Insert "sec. 5" Page 31, line 29: Delete "sec. 9" Insert "sec. 8" Delete "sec. 10" Insert "sec. 9" 2012-03-27 House Journal Page 2048 Page 31, line 30: Delete "sec. 11" Insert "sec. 10" Page 32, line 2: Delete "secs. 6 and 9 - 11" Insert "secs. 5 and 8 - 10" Page 32, line 3: Delete "secs. 6 and 9 - 11" Insert "secs. 5 and 8 - 10" Page 32, line 4: Delete "sec. 6" Insert "sec. 5" Delete "sec. 9" Insert "sec. 8" Page 32, line 5: Delete "sec. 10" Insert "sec. 9" Page 32, line 6: Delete "sec. 11" Insert "sec. 10" Representative Tuck moved and asked unanimous consent that Amendment No. 11 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 11 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 11 YEAS: 11 NAYS: 28 EXCUSED: 1 ABSENT: 0 2012-03-27 House Journal Page 2049 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Holmes, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 11 was not adopted. Amendment No. 12 was offered by Representatives Guttenberg, Kawasaki, Gara, Kerttula, Gardner, Miller, and Petersen: Page 7, line 23: Delete "and" Insert "[AND]" Page 7, line 28, following "effect": Insert "; and (4) the person that submits the application for the right-of-way lease commits to hire residents of the state and to contract with businesses in the state to the maximum extent allowed by law for the construction and operation of a natural gas pipeline" Representative Guttenberg moved and asked unanimous consent that Amendment No. 12 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 12 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 12 YEAS: 12 NAYS: 26 EXCUSED: 1 ABSENT: 1 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck 2012-03-27 House Journal Page 2050 Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto Absent: Herron And so, Amendment No. 12 was not adopted. Amendment No. 13 was offered by Representatives Gardner, Kerttula, Kawasaki, and Petersen: Page 25, line 29, following "commission": Insert "(1) shall attach to a contract carriage certificate a requirement that a public utility in the state have priority over other shippers if the transportation capacity of an in-state natural gas pipeline is reduced; and (2)" Page 25, line 30, following "certificate": Insert "other" Representative Gardner moved and asked unanimous consent that Amendment No. 13 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 13 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 13 YEAS: 12 NAYS: 27 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck 2012-03-27 House Journal Page 2051 Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 13 was not adopted. Amendment No. 14 was offered by Representatives Petersen, Gara, Kerttula, Kawasaki, and Miller: Page 23, line 12: Delete "and" Page 23, line 14, following "chapter": Insert "; and (3) approve a precedent agreement under AS 42.08.300 if the precedent agreement would result in an increase in a rate for furnishing natural gas to a consumer or to an electric utility" Representative Petersen moved and asked unanimous consent that Amendment No. 14 be adopted. Representative Pruitt objected. The question being: "Shall Amendment No. 14 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 14 YEAS: 10 NAYS: 29 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Guttenberg, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Gruenberg, Hawker, Herron, Holmes, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson 2012-03-27 House Journal Page 2052 Excused: Gatto And so, Amendment No. 14 was not adopted. Amendment No. 15 was offered by Representatives Kawasaki, Gara, Kerttula, Gardner, and Miller: Page 2, lines 3 - 5 (title amendment): Delete "relating to the Alaska Natural Gas Development Authority;" Page 16, line 29, through page 19, line 25: Delete all material. Renumber the following bill sections accordingly. Page 31, lines 22 - 23: Delete "38.34.060; AS 41.41.030, 41.41.040, AS 41.41.050, and 41.41.080" Insert "and 38.34.060" Representative Kawasaki moved and asked unanimous consent that Amendment No. 15 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 15 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 15 YEAS: 12 NAYS: 27 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson 2012-03-27 House Journal Page 2053 Excused: Gatto And so, Amendment No. 15 was not adopted. Amendment No. 16 was offered by Representatives Guttenberg, Gardner, Gara, Kerttula, Kawasaki, Miller, and Petersen: Page 8, line 20, following "pipeline.": Insert "If the Alaska Gasline Development Corporation fails to develop an in-state natural gas pipeline capable of transporting natural gas before January 1, 2019, information described in this subsection, except for information acquired from another person that is subject to a confidentiality agreement, is subject to disclosure under AS 40.25.110." Representative Guttenberg moved and asked unanimous consent that Amendment No. 16 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 16 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 16 YEAS: 12 NAYS: 27 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 16 was not adopted. Amendment No. 17 was offered by Representatives Gardner, Gara, Guttenberg, Kerttula, Kawasaki, and Miller: 2012-03-27 House Journal Page 2054 Page 6, line 27: Delete "under (e) of this section" Page 7, line 30, through page 8, line 10: Delete all material and insert: "(e) Information in the possession of the Alaska Gasline Development Corporation may be disclosed to the public, except that information that discloses the particulars of the business or affairs of a private enterprise, an investor, or a person entering into a contract with the Alaska Gasline Development Corporation or information subject to a confidentiality agreement with a state agency under (a) of this section is confidential and is not a public record for purposes of AS 40.25.110 - 40.25.140. A contract to sell all or a portion of an in-state natural gas pipeline or a contract to operate or manage an in-state natural gas pipeline is public information and may be disclosed to the public." Page 16, lines 26 - 28: Delete all material and insert: "(13) information in the possession of the Alaska Gasline Development Corporation that may not be disclosed to the public under AS 38.34.050(e)." Representative Gardner moved and asked unanimous consent that Amendment No. 17 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 17 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 17 YEAS: 12 NAYS: 27 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Johansen, Johnson, Joule, Keller, 2012-03-27 House Journal Page 2055 Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 17 was not adopted. Amendment No. 18 was offered by Representatives Gara, Guttenberg, Kerttula, Kawasaki, Gardner, Miller, and Petersen: Page 24, lines 21 - 25: Delete "(1) conclude that any transaction negotiated at arm's length between the parties is just and reasonable unless the commission finds that there was unlawful market activity connected to the contract rate or there was unfair dealing, such as fraud or duress, at the contract formation stage; (2)" Page 24, line 26: Delete "contract submitted under (a) of this section is just and reasonable; the" Insert "precedent agreement submitted under (a) of this section and a related contract submitted under AS 42.05.433 are just and reasonable under the standards adopted by the commission under AS 42.05.291(c). The" Page 24, line 28: Delete "; if" Insert ". If" Page 24, line 30: Delete "; a" Insert ". A" Page 24, line 31: Delete "paragraph" Insert "subsection" Page 25, lines 2 - 5: Delete all material. 2012-03-27 House Journal Page 2056 Representative Gara moved and asked unanimous consent that Amendment No. 18 be adopted. Representative Hawker objected. The question being: "Shall Amendment No. 18 be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 18 YEAS: 12 NAYS: 27 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Holmes, Kawasaki, Kerttula, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Hawker, Herron, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 18 was not adopted. Amendment No. 19 was offered by Representative Tuck: Page 4, following line 8: Insert a new subsection to read: "(b) To the maximum extent permitted by law and before the commencement of construction, the Alaska Gasline Development Corporation or its agent shall negotiate a project labor agreement for the construction of the natural gas pipeline. In this subsection, "project labor agreement" means a comprehensive collective bargaining agreement between the Alaska Gasline Development Corporation or its agent and the appropriate labor representatives to ensure expedited construction with labor stability by employing qualified residents of the state." Reletter the following subsections accordingly. 2012-03-27 House Journal Page 2057 Page 5, line 19: Delete "(c) and (d)" Insert "(d) and (e)" Representative Tuck moved and asked unanimous consent that Amendment No. 19 be adopted. Representative Thompson objected. Amendment to Amendment No. 19 was offered by Representative Gara: Under Page 4, following line 8: Delete "a project labor agreement" Insert "one or more project labor agreements" Representative Gara moved and asked unanimous consent that Amendment to Amendment No. 19 be adopted. There being no objection, it was so ordered. The question being: "Shall Amendment No. 19 as amended be adopted?" The roll was taken with the following result: CSHB 9(FIN) am Second Reading Amendment No. 19 as amended YEAS: 15 NAYS: 24 EXCUSED: 1 ABSENT: 0 Yeas: Cissna, Doogan, Gara, Gardner, Gruenberg, Guttenberg, Hawker, Herron, Holmes, Kawasaki, Kerttula, Lynn, Miller, Petersen, Tuck Nays: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Feige, Foster, Johansen, Johnson, Joule, Keller, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Excused: Gatto And so, Amendment No. 19 as amended was not adopted. CSHB 9(FIN) am was automatically in third reading. 2012-03-27 House Journal Page 2058 Pursuant to Uniform Rule 4, the Speaker temporarily relinquished the Chair to Representative Austerman, Majority Leader. The Speaker resumed the Chair. The question being: "Shall CSHB 9(FIN) am pass the House?" The roll was taken with the following result: CSHB 9(FIN) am Third Reading Final Passage YEAS: 27 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Austerman, Chenault, Costello, Dick, Edgmon, Fairclough, Foster, Hawker, Herron, Holmes, Johansen, Johnson, Joule, Keller, Lynn, Millett, Munoz, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Thomas, Thompson, P.Wilson, T.Wilson Nays: Cissna, Doogan, Feige, Gara, Gardner, Gruenberg, Guttenberg, Kawasaki, Kerttula, Miller, Petersen, Tuck Excused: Gatto And so, CSHB 9(FIN) am passed the House. Representative Austerman moved and asked unanimous consent that the roll call on the passage of the bill be considered the roll call on the effective date clause. There being no objection, it was so ordered. CSHB 9(FIN) am was referred to the Chief Clerk for engrossment.