CS FOR HOUSE BILL NO. 369(FIN) am "An Act relating to an in-state natural gas pipeline, the office of in-state gasline project manager, and the Joint In-State Gasline Development Team; requiring the development of an in-state natural gas pipeline plan, to be delivered to the legislature by July 1, 2011, that provides for a gasline that is operational by December 31, 2015; directing the Joint In-State Gasline Development Team to assume responsibilities under sec. 19, ch. 14, SLA 2009; requiring expedited review and action by state agencies or entities relating to the in-state natural gas pipeline project; and providing for an effective date." 5:34:19 PM Co-Chair Hoffman MOVED to ADOPT proposed committee substitute, work draft #26-LS152\K, Cook, 4/17/10. DARWIN PETERSON, STAFF, BERT STEDMAN referred to Page 5, Line 8. He stated that the previous version allowed the Alaska Railroad chairman of the board to appoint a designee to the joint instate gas development team created in the legislation. The reference to the chair's designee has been deleted specifying that the board chairman is part of the team versus a designee. He continued that Page 7, Line 28 through Page 8, Line 7 includes the instate hire and job training language inserted at the request of Senator Thomas, which instructs the project developer to hire Alaskans and contract with Alaskan businesses and use job centers operated by the Department of Labor and Workforce Development. He described another change on Page 8, Lines 12 and 13 including new language regarding the confidentiality of proprietary information available to the joint instate gasline development team. The previous language was broad and caused concern among the industry that proprietary information not directly related to a gas pipeline would be available to the team. The new language states that the team can access information directly related to the planning design construction or operation of the instate natural gas pipeline. He explained that Page 9, Section 5 allows for the exemption of Enstar's Anchor Point pipeline from the right of way leasing act since it does not provide transportation services as defined in the act and is an expansion of Enstar's existing system and therefore exempt as it existed prior to 1972 when the act was adopted. Next change on page 11 and subsection 1 of the transitional provisions required the team to define the project parameters by February 15, 2011. Subsection 2 states that between November 15, 2010 and March 15, 2011 the team was required to seek letters of interest from private companies willing to develop the project. The dates were removed and the responsibilities of the team remain unchanged. Finally, section 11 in the previous version was deleted and would have provided legislative authority for the Alaska Natural Gas Development Authority to issue up to $250 million in bonds for the project. The deletion of the section required a title change reflected on Page 1, Lines 10 and 11. Co-Chair Stedman WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. Senator Thomas MOVED Amendment 1 26-LS1527\M.3, Chenoweth, 4/15/10. Page 7, line 27: Delete "and" Following "state" Insert", and facilitating the project developer's commitment to negotiate, to the maximum extent permitted by law, before construction of the project begins, a project labor agreement; if, in consideration of complying with the project labor agreement, the development team determines that the project may be constructed by a private pipeline construction company or companies, the development team shall direct that this requirement be incorporated into any construction contract agreement as a binding commitment applicable to the corporation's contractors; for this purpose, "project labor agreement" means a comprehensive collective bargaining agreement between the project developer or, if construction is to be undertaken by one or more private pipeline construction companies, the project developer's contractor or contractors and the appropriate labor representatives to ensure expedited construction with labor stability for the project by qualified residents of the state. 5:40:47 PM Senator Ellis stated appreciation for the amendment and the expertise of Senator Thomas. He explained that local hire and state hire and project labor agreements are Senator Thomas' specialty. He commented that the subject of local hire and Alaska hire is a difficult legal area and the legislature has been disappointed and stymied by the courts in the past. He thought that serious consideration of the amendment would allow for the movement of this project without regret. He considered that the amendment would allow protection for Alaskan workers. He stressed support of the amendment. Senator Olson asked how the amendment changes the bill. He supposed that the changes would necessitate further conference committee. Co-Chair Stedman responded that a conference committee would be necessary if the other body was not supportive of the changes. Senator Thomas stated that he understood that the issue was difficult to understand and he hoped that consideration would be given to the changes. Senator Thomas WITHDREW Amendment 1. Co-Chair Stedman described the two fiscal notes. 5:44:40 PM AT EASE 5:46:54 PM RECONVENE Co-Chair Stedman noted that a new fiscal note matches the $15,640,000 in general funds. Co-Chair Hoffman MOVED to report SCS CS HB 369 out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. SCS CS HB 369 was REPORTED out of Committee with a "do pass" recommendation and with one previously published fiscal impact note: FN 4 (GOV) and one new fiscal impact note from the Department of Revenue. 5:47:29 PM