HOUSE BILL NO. 142 "An Act relating to the creation of a rebuttable presumption that the project licensed under the Alaska Gasline Inducement Act is uneconomic because of insufficient firm transportation commitments during the first open season." 1:35:30 PM Co-Chair Thomas MOVED to ADOPT proposed committee substitute for HB 142, Work Draft 27-LS0451\E. Co-Chair Stoltze OBJECTED for purpose of discussion. RENA DELBRIDGE, STAFF, REPRESENTATIVE MIKE HAWKER, spoke on behalf of the sponsor, Speaker Mike Chenault. She discussed changes contained in the committee substitute. Dates were changed to update the legislation to 2012: · Page 11, Line 9: July 15, 2011, is changed to May 15,2012 · Page 1, Line 12: Aug. 1,2011 is changed to May 30, 2012 · Page 1, line 13: July 15, 2011 is changed to May 15,2012 · Page 2, line 3: Aug. 15,2011, is changed to June 15,2011 · Page 2, line 7: 2013 is changed to 2014 Ms. Delbridge explained that the dates corresponded to deadlines contained in the legislation. Co-Chair Stoltze asked if there were any substantive issues. Ms. Delbridge observed that a year had passed since the legislation was introduced and that the sponsor felt that it was appropriate to encourage a more timely process. Deadlines were shortened by a couple of months. The first benchmark of July 15, 2012 was changed to May 15, 2012. She pointed out that the open season would have been in effect for two years. Ms. Delbridge noted that throughout the bill, "firm transportation commitments" were changed to "commitments to acquire firm transportation capacity". Firm transportation commitments were not the expected outcome of an open season. Instead the expected outcome was precedent agreements or commitments to iron out conditions that become firm transportation capacity. The changes were made in the title; page 1, line 10; page 1, line 12 - 13; page 1, line 14; and page 2, line 10. Ms. Delbridge observed that the last change was to the standard for commitments to acquire firm transportation commitments, which had been changed to require sufficient commitments to support development of the project licensed by the Alaska Gasline Inducement Act (AGIA). The new standard replaced "construction" with "development" of the project. The change was reflected on page 1, line 10. The committee substitute struck prior language requiring those commitments to be "sufficient to support the construction of the project." The change was also reflected on page 2, line 9. The word "credit" was deleted; the project had to have sufficient "support" and finance "development". 1:41:02 PM Co-Chair Stoltze WITHDREW his OBJECTION. There being NO further OBJECTION, committee substitute for HB 142, Work Draft 27-LS0451\E was adopted. HB 142 was HEARD and HELD in Committee for further consideration.