Legislature(2011 - 2012)FAHRENKAMP 203

04/13/2012 08:00 AM Senate COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 314 ALASKA RAILROAD LAND LEASES
Moved HB 314 Out of Committee
= HB 264 MUNI PROPERTY TAX DEFERRAL: SUBDIVISIONS
Moved SCS CSHB 264(CRA) Out of Committee
= HB 9 IN-STATE GASLINE DEVELOPMENT CORP
Heard & Held
            HB   9-IN-STATE GASLINE DEVELOPMENT CORP                                                                        
                                                                                                                                
8:57:41 AM                                                                                                                    
CHAIR OLSON announced the consideration of HB 9.                                                                                
                                                                                                                                
8:57:50 AM                                                                                                                    
DAVID SCOTT,  Staff for Senator Olson,  Alaska State Legislature,                                                               
noted that  the new Senate  committee substitute (CS) for  CSHB 9                                                               
was version J.                                                                                                                  
                                                                                                                                
8:58:09 AM                                                                                                                    
SENATOR  ELLIS  moved  Senate  CS for  CSHB  9,  27-LS0075\J,  be                                                               
considered the item before the committee.                                                                                       
                                                                                                                                
8:58:17 AM                                                                                                                    
CHAIR  OLSON  announced that  without  objection,  version J  was                                                               
adopted as a working document.                                                                                                  
                                                                                                                                
8:58:30 AM                                                                                                                    
MR. SCOTT  reviewed the Senate  CS sectional and said  the intent                                                               
was to  pare the bill  down to the  bare minimum that  the Alaska                                                               
Gasline Development  Corporation (AGDC)  required to get  to open                                                               
season   and  allow   funds  to   be  spent   from  last   year's                                                               
appropriation.                                                                                                                  
                                                                                                                                
     SECTION 1                                                                                                                  
               - Adds a new section to AS 18.56, Alaska                                                                       
                 Housing Finance Corporation (AHFC),                                                                            
                 relating to AGDC's duties and                                                                                  
                 abilities.                                                                                                     
                                                                                                                                
                     Empowered to construct, own, operate                                                                    
                      and manage pipelines throughout the                                                                       
                      state, while removing the specific                                                                        
                      reference to the project in the July                                                                      
                      2011 report from AGDC.                                                                                    
                                                                                                                                
             Added legislation authorization prior                                                                           
                      to construction.                                                                                          
                                                                                                                                
                     Authorization to acquire land and                                                                       
                      other interest in property.                                                                               
                                                                                                                                
                     Creates the in-state gas pipeline                                                                       
                      fund, which enables AGDC to use the                                                                       
                      $200 million appropriated by the                                                                          
                      legislature in 2011.                                                                                      
                                                                                                                                
                     Shipping commitments resulting from                                                                     
                      an open season shall be reported to                                                                       
             both presiding officers and published                                                                              
                      online within 10 days.                                                                                    
                                                                                                                                
             Removed authorization to operate as a                                                                           
                      contract carrier.                                                                                         
                                                                                                                                
                     Removed authorization to issue bonds                                                                    
                      and incur debt.                                                                                           
                                                                                                                                
     SECTION 2                                                                                                                  
               - Adds a new section to 36.30 to exempt                                                                        
                 Alaska Natural Gas Development Authority                                                                       
                 (ANGDA) from the state procurement code                                                                        
                 when contracting for professional                                                                              
                 services.                                                                                                      
                                                                                                                                
     SECTION 3                                                                                                                  
          - Amends 38.34.050(a) to provide ADGC access                                                                        
                 to information of state agencies that is                                                                       
                 directly related to designing,                                                                                 
                 constructing and operation an in-state                                                                         
                 gasline and to protect existing                                                                                
                 confidentiality of information held by                                                                         
                 state agencies.                                                                                                
                                                                                                                                
     SECTION 4                                                                                                                  
               - Amends 38.34.050(b), which in current                                                                        
                 statute directs state agencies to                                                                              
                 cooperate with and give priority to                                                                            
                 information requests from the Joint In-                                                                        
                 State Gasline Development Team. The                                                                            
                 section replaces the reference to (JIGDT)                                                                      
                 with a direct reference to AGDC, to                                                                            
                 reflect the reorganization of the agency.                                                                      
                                                                                                                                
     SECTION 5                                                                                                                  
               - Adds a new section to 38.34.050 to allow                                                                     
                 AGDC to disclose information unless the                                                                        
                 info discloses particular business or                                                                          
                 private information.                                                                                           
                                                                                                                                
               - Specifies that an agreement to sell or                                                                       
                 manage a pipeline is public information.                                                                       
                                                                                                                                
     SECTION 6                                                                                                                  
               - Definitions.                                                                                                 
                                                                                                                                
     SECTION 7                                                                                                                  
               - Amends 40.25.120(a) to exempt information                                                                    
                 covered by an AGDC confidentiality                                                                             
                 agreement from the state public records                                                                        
                 act.                                                                                                           
                                                                                                                                
     SECTION 8                                                                                                                  
          - Amends 41.41.010(a) to enable ANGDA to act                                                                        
                 as a gas marketer instead of a                                                                                 
                 transporter. Removes authorization for                                                                         
                 ANGDA to design, construct, or operate                                                                         
                 pipelines.                                                                                                     
                                                                                                                                
     SECTION 9                                                                                                                  
               - Amends 41.41.010(d) to clarify ANGDA as a                                                                    
           gas marketer both in-state and for export.                                                                           
                                                                                                                                
     SECTION 10                                                                                                                 
               - Repeals and reenacts 41.41.020 to state                                                                      
                 that AHFC's board is now the board of                                                                          
                 ANGDA.                                                                                                         
                                                                                                                                
     SECTION 11                                                                                                                 
          - Amends 41.41.060 to conform to section 10,                                                                        
                 relates to per diem and travel expenses.                                                                       
                                                                                                                                
     SECTION 12                                                                                                                 
               - Amends 41.41.070(d) to allow ANGDA to                                                                        
                 contract for legal counsel and exempts                                                                         
                 this from the state procurement code.                                                                          
                                                                                                                                
     SECTION 13                                                                                                                 
               - Amends 41.41.090(b) to remove involvement                                                                    
                 with a 'project' from the circumstances                                                                        
                 requiring disclosure. Conforms with                                                                            
                 section 8.                                                                                                     
                                                                                                                                
     SECTION 14                                                                                                                 
               - Amends 41.41.150(a) to expand ANGDA's                                                                        
           existing confidential records authority to                                                                           
                 include info in a confidential agreement                                                                       
                 between AGDC and ANGDA.                                                                                        
                                                                                                                                
     SECTION 15                                                                                                                 
               - Amends 41.41.200 to remove ANGDA's                                                                           
                 authority to exercise eminent domain.                                                                          
                 Conforms with section 8.                                                                                       
                                                                                                                                
     SECTION 16                                                                                                                 
          - Amends 41.41.990(2) to confirm that AHFC's                                                                        
           board is the board of ANGDA. Conforms with                                                                           
                 section 10.                                                                                                    
                                                                                                                                
     SECTION 17                                                                                                                 
               - Repeals to conform with restructuring the                                                                    
           AGDC governance by removing the JIGDT, and                                                                           
                 removing statutes related to ANGDA board                                                                       
                 elections.                                                                                                     
                                                                                                                                
     SECTION 18                                                                                                                 
               - Repeals section 1 of the 2002 Ballot                                                                         
           Measure 3, which are the findings that are                                                                           
                 no longer necessary with ANGDA's new and                                                                       
                 limited authority.                                                                                             
                                                                                                                                
     SECTION 19                                                                                                                 
               - Immediate effective date.                                                                                    
                                                                                                                                
8:59:46 AM                                                                                                                    
SENATOR KOOKESH arrived.                                                                                                        
                                                                                                                                
9:02:50 AM                                                                                                                    
At ease 9:02:50 a.m. to 9:02:58 a.m.                                                                                            
                                                                                                                                
9:02:58 AM                                                                                                                    
REPRESENTATIVE  MIKE CHENAULT,  Alaska  State Legislature,  prime                                                               
sponsor of HB 9, said the  CS guts AGDC's ability to move forward                                                               
on an  in-state gas pipeline project.  He said the CS  takes away                                                               
AGDC's ability  to move forward  with a pipeline and  replaces it                                                               
by requiring legislative sanctioning. He  said the vision of HB 9                                                               
was to take  politics out of a gasline moving  forward and the CS                                                               
puts politics  right back in the  middle of the project.  He said                                                               
the  definition  of  insanity  was   doing  the  same  thing  and                                                               
expecting a different result. He  said AGDC's ability to work for                                                               
the  citizens of  Alaska  via moving  the  state's only  pipeline                                                               
project forward was neutered by the CS.                                                                                         
                                                                                                                                
REPRESENTATIVE CHENAULT  said a poll had  indicated that Alaskans                                                               
thought  a  lack  of  leadership, vision  and  courage  were  the                                                               
reasons why  the state did  not have a  pipeline. He said  the CS                                                               
takes away AGDC's ability to  get a meaningful open-season in the                                                               
quickest amount of time.                                                                                                        
                                                                                                                                
CHAIR OLSON asked  about the issue to require  sanctioning of the                                                               
legislature  for  project  oversight to  avoid  significant  cost                                                               
overruns.                                                                                                                       
                                                                                                                                
9:06:41 AM                                                                                                                    
REPRESENTATIVE MIKE HAWKER, Alaska  State Legislature, sponsor of                                                               
HB  9,  responded that  the  inherent  in  the structure  of  the                                                               
original bill was to establish AGDC  as a mechanism for Alaska to                                                               
have   a  strong   position  with   all   commercial  and   state                                                               
participatory gasline proposals. He  said the Alaska Constitution                                                               
only allowed  the legislature to  appropriate funds and it  was a                                                               
given  for  a project  that  required  state investment  to  come                                                               
before  the legislature.  He said  a strong  inherent sanctioning                                                               
concept was  built into the  original document and  requiring the                                                               
private  sector   to  come  back   before  the   legislature  for                                                               
sanctioning was inappropriate.                                                                                                  
                                                                                                                                
9:07:55 AM                                                                                                                    
SENATOR WAGONER arrived.                                                                                                        
                                                                                                                                
9:08:09 AM                                                                                                                    
CHAIR OLSON asked for comments on the CS.                                                                                       
                                                                                                                                
REPRESENTATIVE HAWKER responded that  the introduction for the CS                                                               
stated  that the  intent was  to reduce  the bill  and leave  the                                                               
minimum needed  to get an open-season.  He said the CS  had taken                                                               
out critical elements that provided  the state with a strong seat                                                               
and was well below the minimums  needed to get to an open-season.                                                               
He  said any  attempt for  an open-season  would be  considered a                                                               
farce.                                                                                                                          
                                                                                                                                
He said  the original AGDC concept  was that it merged  the voter                                                               
mandated  ANGDA with  AGDC. He  said AGDC  would be  empowered to                                                               
work  the pipeline  project  to allow  ANGDA to  get  the gas  to                                                               
market.  He said  the CS  thwarts the  will of  Alaska voters  by                                                               
taking away any possibility of a project coming to fruition.                                                                    
                                                                                                                                
CHAIR  OLSON asked  to  verify that  the Senate  CS  was done  in                                                               
cooperation   with   Representative  Hawker   or   Representative                                                               
Chenault.                                                                                                                       
                                                                                                                                
REPRESENTATIVE HAWKER answered that was incorrect.                                                                              
                                                                                                                                
REPRESENTATIVE  CHENAULT answered  that  was  incorrect. He  said                                                               
information was supplied to the  Chairman's office and he did not                                                               
sit down with anyone to craft the Senate CS.                                                                                    
                                                                                                                                
CHAIR OLSON said HB 9 would be held.                                                                                            

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