Legislature(2015 - 2016)
2015-10-24 Senate Journal
Full Journal pdf2015-10-24 Senate Journal Page 1465 SB 3001 SENATE BILL NO. 3001 BY THE SENATE 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." was read the first time and referred to the Finance Committee. Governor's transmittal letter dated October 23: Dear President Meyer: 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. 2015-10-24 Senate Journal Page 1466 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 apply to the supplemental appropriations provided for in this bill. Thank you for your consideration of this bill. Sincerely, /s/ Bill Walker Governor