Legislature(2013 - 2014)
2014-04-18 House Journal
Full Journal pdf2014-04-18 House Journal Page 2603 SB 138 The Finance Committee considered: CS FOR SENATE BILL NO. 138(FIN) am "An Act relating to the purposes, powers, and duties of the Alaska Gasline Development Corporation; relating to an in-state natural gas pipeline, an Alaska liquefied natural gas project, and associated funds; requiring state agencies and other entities to expedite reviews and actions related to natural gas pipelines and projects; relating to the authorities and duties of the commissioner of natural resources relating to a North Slope natural gas project, oil and gas and gas only leases, and royalty gas and other gas received by the state including gas received as payment for the production tax on gas; relating to the tax on oil and gas production, on oil production, and on gas production; relating to the duties of the commissioner of revenue relating to a North Slope natural gas project and gas received as payment for tax; relating to confidential information and public record status of information provided to or in the custody of the Department of Natural Resources and the Department of Revenue; relating to apportionment factors of the Alaska Net Income Tax Act; amending the definition of gross value at the 'point of production' for gas for purposes of the oil and gas production tax; clarifying that the exploration incentive credit, the oil or gas producer education credit, and the film production tax credit may not be taken against the gas production tax paid in gas; relating to the oil or gas producer education credit; requesting the governor to establish an interim advisory board to advise the governor on municipal involvement in a North Slope natural gas project; relating to the development of a plan by the Alaska Energy Authority for developing infrastructure to deliver affordable energy to areas of the state that will not have direct access to a North Slope natural gas pipeline and a recommendation of a funding source for energy infrastructure development; establishing the Alaska affordable energy fund; requiring the commissioner of revenue to develop a plan and suggest legislation for municipalities, regional corporations, and residents of the state to acquire ownership interests in a North Slope natural gas pipeline 2014-04-18 House Journal Page 2604 project; making conforming amendments; and providing for an effective date." and recommends it be replaced with: HOUSE CS FOR CS FOR SENATE BILL NO. 138(FIN) "An Act relating to the Alaska Gasline Development Corporation; relating to an in-state natural gas pipeline, an Alaska liquefied natural gas project, and associated funds; requiring state agencies and other entities to expedite reviews and actions related to natural gas pipelines and projects; making certain contracts by the Department of Natural Resources and the Department of Law not subject to the State Procurement Code; relating to the authorities and duties of the commissioner of natural resources relating to a North Slope natural gas project, oil and gas and gas only leases, and royalty gas and other gas received by the state including gas received as payment for the production tax on gas; relating to a report and recommendations by the commissioner of natural resources regarding the delivery and availability of North Slope natural gas in the state, including the identification of risks and recommendations for mitigation; relating to the tax on oil and gas production, on oil production, and on gas production; relating to the duties of the commissioner of revenue relating to a North Slope natural gas project and gas received as payment for tax; relating to confidential information and public record status of information provided to or in the custody of the Department of Natural Resources and the Department of Revenue; relating to apportionment factors of the Alaska Net Income Tax Act; amending the definition of gross value at the 'point of production' for gas for purposes of the oil and gas production tax; clarifying that the exploration incentive credit, the oil or gas producer education credit, and the film production tax credit may not be taken against the gas production tax paid in gas; relating to the oil or gas producer education credit; requiring the commissioner of revenue to provide a report to the legislature on financing options for state ownership and participation in a North Slope natural gas project; requesting the governor to establish an advisory planning group to advise the governor on municipal involvement in a North Slope natural gas project; relating to the development of a plan by the Alaska Energy Authority for developing infrastructure to 2014-04-18 House Journal Page 2605 deliver affordable energy to areas of the state that will not have direct access to a North Slope natural gas pipeline and a recommendation of a funding source for energy infrastructure development; establishing the Alaska affordable energy fund; requiring the Department of Transportation and Public Facilities to evaluate certain bridges and infrastructure related to an Alaska liquefied natural gas project; requiring the commissioner of revenue to develop a plan and suggest legislation for municipalities, regional corporations, and residents of the state to acquire ownership interests in a North Slope natural gas pipeline project; relating to the duties of the Oil and Gas Competitiveness Review Board; making conforming amendments; and providing for an effective date." (HCR 28 - title change resolution) The report was signed by Representatives Stoltze and Austerman, Co- chairs, with the following individual recommendations: Do pass (8): Guttenberg, Holmes, Thompson, Neuman, T. Wilson, Costello, Stoltze, Austerman No recommendation (3): Gara, Munoz, Edgmon A House Finance Committee letter of intent for HCS CSSB 138(FIN), signed by Representatives Austerman and Stoltze, Co-chairs, follows: "It is the intent of the Alaska State Legislature that the Alaska LNG project honor the commitments, as copied below, made in "Article 11: Alaska Hire and Content", agreed to in the Heads of Intent Agreement by and among the Administration of the State of Alaska, Alaska Gas- line Development Corporation, TransCanada Alaska Development Inc., ExxonMobil Alaska Production Inc., ConocoPhillips Alaska, Inc., and BP Exploration (Alaska) Inc. through construction of the project. ARTICLE 11: ALASKA HIRE AND CONTENT 11.1 For the Alaska LNG Project, the Alaska LNG Parties will, within the constraints of law: 2014-04-18 House Journal Page 2606 a. Employ Alaska residents and contract with Alaska businesses to the extent they are qualified, available, ready, and willing and cost competitive; b. Use, as far as practicable, job centers and associated services operated by the State Department of Labor and Workforce Development; c. Participate with the State Department of Labor and Workforce Development to update the training plan for an LNG export project including main operations; d. Advertise for available positions locally and use, as far as practicable, Alaska job service organizations to notify the Alaska public; and e. Work with the State Department of Labor and Workforce Development and other organizations to provide training. 11.2 Prior to construction, the Alaska LNG Parties commit to negotiate in good faith project labor agreements for the Alaska LNG Project." The following fiscal note(s) apply to HCS CSSB 138(FIN): 16. Fiscal, Dept. of Commerce, Community, & Economic Development 21. Fiscal, House Finance Committee/Dept. of Commerce, Community, & Economic Development 22. Fiscal, House Finance Committee/Dept. of Transportation & Public Facilities 23. Fiscal, House Finance Committee/Fund Capitalization 24. Fiscal, House Finance Committee/Dept. of Revenue 25. Fiscal, Dept. of Revenue 26. Fiscal, House Finance Committee/Dept. of Natural Resources CSSB 138(FIN) am was referred to the Rules Committee for placement on the calendar.