SB  58-DEPT OF LAW: ADVOCACY BEFORE FERC                                                                        
                                                                                                                                
1:33:44 PM                                                                                                                    
CHAIR COGHILL announced the consideration  of SB 58 and noted the                                                               
proposed amendment.                                                                                                             
                                                                                                                                
CLYDE  "ED"  SNIFFEN,   Assistant  Attorney  General,  Regulatory                                                               
Affairs  and Public  Advocacy (RAPA),  Department  of Law  (DOL),                                                               
Anchorage,  Alaska, said  he presented  SB  58 on  Monday and  he                                                               
didn't have anything to add.                                                                                                    
                                                                                                                                
1:34:11 PM                                                                                                                    
SENATOR WIELECHOWSKI moved Amendment 1, labeled 30-GS1875\A.1.                                                                  
                                                                                                                                
CHAIR COGHILL objected for an explanation.                                                                                      
                                                                                                                                
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE           BY SENATOR WIELECHOWSKI                                                                     
          TO:  SB 58                                                                                                            
                                                                                                                                
                                                                                                                                
     Page 1, line 2, following "Commission":                                                                                  
          Insert  "; and  relating  to  the regulatory  cost                                                                  
     charge"                                                                                                                  
                                                                                                                                
     Page 1, following line 3:                                                                                                  
          Insert a new bill section to read:                                                                                    
        "* Section 1. AS 42.08.380(a) is amended to read:                                                                   
                    (a)  Each year, a person operating an                                                                       
          in-state natural  gas pipeline under  this chapter                                                                    
          shall  pay to  the  commission  a regulatory  cost                                                                    
          charge  if the  pipeline for  which the  charge is                                                                    
          assessed  is  subject  to  this  chapter  and  the                                                                    
          commission  has taken  action on  the pipeline  or                                                                    
          certificate  under this  chapter during  the prior                                                                    
          fiscal  year. The  amount of  the regulatory  cost                                                                    
          charge  may not  exceed the  sum of  the following                                                                    
          percentages   of   gross  revenue   derived   from                                                                    
          operations in the state:                                                                                              
                    (1)  0.7 percent to fund the operations                                                                     
          of the commission; and                                                                                                
                    (2) 0.23 [0.17] percent to fund                                                                         
          operations of  the public advocacy  function under                                                                    
          AS 42.04.070(c)   and   AS 44.23.020(e)   in   the                                                                    
          Department of Law."                                                                                                   
                                                                                                                                
     Page 1, line 4:                                                                                                            
          Delete "Section 1"                                                                                                  
          Insert "Sec. 2"                                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI  explained that  the amendment  increases to                                                               
.23  percent the  regulatory cost  charge (RCC)  funding for  the                                                               
Department  of  Law   RAPA  Section.  That  is   the  amount  the                                                               
department indicated it would need  to fully fund the RAPA budget                                                               
without relying on the general fund.                                                                                            
                                                                                                                                
CHAIR COGHILL asked Mr. Sniffen if he had seen the amendment.                                                                   
                                                                                                                                
MR. SNIFFEN answered no, but  that is the rough number Department                                                               
of Law has presented. It would  result in another $700,000 in the                                                               
regulatory cost charge  that the Department of Law  would be able                                                               
to look to for funding.                                                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI asked him to  confirm that this would result                                                               
in a savings to the general fund.                                                                                               
                                                                                                                                
MR.  SNIFFEN  said that  is  correct,  but the  amendment  should                                                               
probably be  in AS 42.06,  the pipeline RCC statute,  rather than                                                               
AS 42.08.                                                                                                                       
                                                                                                                                
1:37:08 PM                                                                                                                    
CHAIR COGHILL asked what Title 42 addresses.                                                                                    
                                                                                                                                
1:37:25 PM                                                                                                                    
SENATOR  WIELECHOWSKI   said  he  received  the   amendment  from                                                               
legislative legal late  last night and this is  where the drafter                                                               
said the amendment should be placed.                                                                                            
                                                                                                                                
1:37:35 PM                                                                                                                    
CHAIR COGHILL maintained his objection to Amendment 1.                                                                          
                                                                                                                                
1:38:14 PM                                                                                                                    
SENATOR WIELECHOWSKI said he would  withdraw Amendment 1 and give                                                               
everyone an opportunity to think it over.                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI withdrew Amendment 1.                                                                                      
                                                                                                                                
1:38:26 PM                                                                                                                    
SENATOR  COSTELLO  moved  to  report   SB  58,  version  A,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR COGHILL announced that without  objection SB 58 is reported                                                               
from the Senate Judiciary Standing Committee.