2015-10-24                     House Journal                      Page 1349
HB 3001                                                                                                                       
HOUSE BILL NO. 3001 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act making supplemental appropriations; making                                                                         
     appropriations to capitalize funds; making appropriations to the                                                           
     general fund from the budget reserve fund (art. IX, sec. 17,                                                               
     Constitution of the State of Alaska) in accordance with sec. 12(c),                                                        
     ch. 1, SSSLA 2015; and providing for an effective date."                                                                   
                                                                                                                                

2015-10-24                     House Journal                      Page 1350
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
                                                                                                                                
The Governor's transmittal letter dated October 23, 2015, follows:                                                              
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article II, Section 9, and Article III, Section 18,                                                      
of the Alaska Constitution, I am transmitting a bill for supplemental                                                           
appropriations for the fiscal year 2016. The bill will move us toward                                                           
monetization of our vast natural gas resources by engaging the State                                                            
fully in the process as an equal participant in our future development.                                                         
                                                                                                                                
First, the bill requests an appropriation to the Alaska liquefied natural                                                       
gas (AKLNG) project fund in order to acquire the interests of                                                                   
TransCanada. While TransCanada has been a valuable ally, it is time                                                             
for the State to step in and participate as a full partner in the                                                               
development of a gas pipeline and liquefaction facilities.                                                                      
                                                                                                                                
In the last several days, the producers have reviewed an overall                                                                
Preliminary Front-End Engineering and Design (Pre-FEED) phase                                                                   
increase from $511,000,000 to $693,000,000 that will impact costs in                                                            
calendar year 2016. The State's 25 percent share of this Pre-FEED                                                               
increase is included in the supplemental request.                                                                               
                                                                                                                                
Additionally, the bill requests necessary appropriations to the                                                                 
Departments of Natural Resources, Law, and Revenue related to the                                                               
State's continued and vital participation in the AKLNG project.                                                                 
Further appropriations recognize the need for Alaska Gasline                                                                    
Development Corporation to have statutory program receipt authority                                                             
to be reimbursed from producers for specific work on the AKLNG                                                                  
project.                                                                                                                        
                                                                                                                                
Finally, the Legislature recognized earlier this year when it passed                                                            
HB 2001 that there may be a need for supplemental appropriations for                                                            
fiscal year 2016, and authorized the withdrawal from the budget                                                                 
reserve fund for fiscal year 2016 to include an amount, not to exceed                                                           
$500,000,000, for future fiscal year 2016 appropriations. Accordingly,                                                          
this bill provides that if there are insufficient general funds available                                                       
for appropriation, Section 12(c), Chapter No. 1, SSSLA 2015, will                                                               

2015-10-24                     House Journal                      Page 1351
apply to the supplemental appropriations provided for in this bill.                                                             
Thank you for your consideration of this bill.                                                                                  
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"