00 CS FOR HOUSE BILL NO. 177(RES) 01 "An Act relating to the Alaska Gasline Inducement Act; providing inducements for the 02 construction of a natural gas pipeline and shippers that commit to use that pipeline; 03 establishing the Alaska Gasline Inducement Act matching contribution fund; providing 04 for an Alaska Gasline Inducement Act coordinator; making conforming amendments; 05 and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 43 is amended by adding a new chapter to read: 08 Chapter 90. Alaska Gasline Inducement Act. 09 Article 1. Inducement to Construction of a Natural Gas Pipeline in this State. 10 Sec. 43.90.010. Purpose. The purpose of this chapter is to encourage 11 expedited construction of a natural gas pipeline that 12 (1) facilitates commercialization of North Slope gas resources in the 13 state; 01 (2) promotes exploration and development of oil and gas resources on 02 the North Slope; 03 (3) maximizes benefits to the people of the state from the development 04 of oil and gas resources in the state; and 05 (4) encourages oil and gas lessees and other persons in the state to 06 commit natural gas from the North Slope to a gas pipeline system for transportation to 07 markets in this state or elsewhere. 08 Article 2. Alaska Gasline Inducement Act License. 09 Sec. 43.90.100. Gas project. (a) The commissioner of revenue and the 10 commissioner of natural resources, acting jointly, may award an Alaska Gasline 11 Inducement Act license as provided in this chapter. The person awarded a license 12 under this chapter is entitled to the inducement set out in AS 43.90.110. 13 (b) Nothing in this chapter precludes a person from pursuing a gas pipeline 14 project independently from this chapter. 15 Sec. 43.90.110. Natural gas pipeline project construction inducement. (a) 16 Subject to the limitations of this chapter, a license issued under this chapter entitles the 17 licensee or its designated affiliate to receive 18 (1) subject to appropriation, state matching contributions in a total 19 amount not to exceed $500,000,000, paid to the licensee during the five-year period 20 immediately following the date the license is awarded; the payment period may be 21 extended under an amendment or modification under AS 43.90.210; a payment under 22 this paragraph shall be made according to the following: 23 (A) on or before the close of the first binding open season, the 24 state shall match the licensee's qualified expenditures at the level specified in 25 the license; however, the state's matching contribution may not exceed 50 26 percent of the qualified expenditures incurred before the end of the first 27 binding open season; 28 (B) after the close of the first binding open season, the state 29 shall match the licensee's qualified expenditures at the level specified in the 30 license; however, the state's matching contribution may not be greater than 80 31 percent of the qualified expenditures incurred after the close of the first 01 binding open season; 02 (C) a qualified expenditure is a cost that is incurred after the 03 license is issued under this chapter, is incurred by the licensee or the licensee's 04 designated affiliate, and is directly and reasonably related to obtaining a 05 certificate or amended certificate of public convenience and necessity from the 06 Federal Energy Regulatory Commission or the Regulatory Commission of 07 Alaska, as appropriate, for development of the project; "qualified expenditure" 08 does not include overhead costs, litigation costs, the cost of an asset or work 09 product acquired by the licensee before the license is issued, civil penalties, 10 criminal penalties, or fines; and 11 (2) the benefit of an Alaska Gasline Inducement Act coordinator who 12 has the authority prescribed in AS 43.90.250. 13 (b) The commissioner of revenue in consultation with the commissioner of 14 natural resources shall adopt regulations for determining whether an expenditure is a 15 qualified expenditure for the purposes of (a) of this section. 16 Sec. 43.90.120. Request for applications for the license. (a) The 17 commissioners shall commence a public process to request applications for a license 18 under this chapter as soon as practicable after the effective date of this chapter. 19 (b) The commissioners may use independent contractors to assist them in 20 developing the application and in evaluating the applications received. 21 (c) The provisions of AS 36.30 do not apply to requests for applications under 22 this chapter. 23 Sec. 43.90.130. Application requirements. In order to be considered for the 24 license, an applicant shall file an application that is consistent with the terms of the 25 request for applications under AS 43.90.120 and shall 26 (1) file the application by the deadline established by the 27 commissioners in the request for applications; 28 (2) provide a detailed description of a proposed natural gas pipeline 29 project for transporting natural gas from the North Slope to market, which may 30 include multiple design proposals, including different proposals for pipe diameter, 31 wall thickness, and transportation capacity, and which shall include 01 (A) the route proposed for the natural gas pipeline, which may 02 not be the route described in AS 38.35.017(b); 03 (B) the location of receipt and delivery points and the size and 04 design capacity of the proposed natural gas pipeline at the proposed receipt and 05 delivery points, except that this information is not required for in-state delivery 06 points unless the application proposes specific in-state delivery points; 07 (C) an analysis demonstrating the economic and technical 08 viability of the project, including a detailed description of all pipeline access 09 and tariff terms the applicant plans to offer; 10 (D) an economically and technically viable work plan, timeline, 11 and associated budget for developing the proposed project and work associated 12 with the project that includes field work, environmental studies, design and 13 engineering, implementing practices for controlling carbon emissions from 14 natural gas systems as established by the United States Environmental 15 Protection Agency, and complying with all applicable state, federal, and 16 international regulatory requirements that affect the proposed project; the 17 applicant shall address the following: 18 (i) if the proposed project involves a pipeline into or 19 through Canada, a detailed description of the applicant's plan to obtain 20 necessary rights-of-way and authorizations in Canada, a description of 21 the transportation services to be provided and a description of rate- 22 making methodologies the applicant will propose to the regulatory 23 agencies, an estimate of rates and charges for all services; 24 (ii) if the proposed project involves marine 25 transportation of liquefied natural gas, a description of the marine 26 transportation services to be provided and a description of proposed 27 rate-making methodologies; an estimate of rates and charges for all 28 services by third parties; a detailed description of all proposed access 29 and tariff terms for liquefaction services or, if a third party would 30 perform liquefaction services, the identification of that third party and 31 the terms applicable to the liquefaction services; a complete description 01 of the marine segment of the project, including the proposed 02 ownership, control, and cost of liquefied natural gas tankers, the 03 management of shipping services, liquefied natural gas export 04 destination, regasification facilities and pipeline facilities needed for 05 transport to market destinations; the entity or entities that would be 06 required to obtain necessary export permits and licenses or a certificate 07 or amended certificate of public convenience and necessity from the 08 Federal Energy Regulatory Commission for the transportation of 09 liquefied natural gas in interstate commerce if United States markets 10 are proposed; and all rights-of-way or authorizations required from a 11 foreign country; 12 (3) if the proposed project is within the jurisdiction of the Federal 13 Energy Regulatory Commission, commit to 14 (A) conclude, by a date certain that is not later than 36 months 15 after the date the license is issued, a binding open season that is consistent with 16 the requirements of 18 C.F.R. Part 157, Subpart B (Open Seasons for Alaska 17 Natural Gas Transportation Projects) and 18 C.F.R. 157.30 - 157.39; 18 (B) apply for Federal Energy Regulatory Commission approval 19 to use the pre-filing procedures set out in 18 C.F.R. 157.21 by a date certain, 20 and use those procedures before filing an application for a certificate or 21 amended certificate of public convenience and necessity; and 22 (C) apply for a Federal Energy Regulatory Commission 23 certificate or amended certificate of public convenience and necessity to 24 authorize the construction and operation of the proposed project described in 25 this section by a date certain; 26 (4) if the proposed project is within the jurisdiction of the Regulatory 27 Commission of Alaska, commit to 28 (A) conclude, by a date certain that is not later than 36 months 29 after the date the license is issued, a binding open season that is consistent with 30 the requirements of AS 42.06; and 31 (B) apply for a certificate or amended certificate of public 01 convenience and necessity to authorize the construction and operation of the 02 proposed project by a date certain; 03 (5) after the first binding open season, commit to assess the market 04 demand for additional pipeline capacity at least every two years through public 05 nonbinding solicitations or similar means; 06 (6) commit to expand the proposed project in reasonable engineering 07 increments and on commercially reasonable terms that encourage exploration and 08 development of gas resources in this state; in this paragraph, 09 (A) "commercially reasonable terms" means that, subject to the 10 provisions of (7) of this section, revenue from transportation contracts covers 11 the cost of the expansion, including increased fuel costs, and a reasonable 12 return on capital as authorized by the Federal Energy Regulatory Commission 13 or the Regulatory Commission of Alaska, as applicable, and there is no 14 impairment of the proposed project's ability to recover the costs of existing 15 facilities; 16 (B) "reasonable engineering increments" means the amount of 17 additional capacity that could be added by compression or a pipe addition 18 using a compressor size or pipe size, as applicable, that is substantially similar 19 to the original compressor size and the original pipe size; 20 (7) make a commitment that the applicant 21 (A) will propose and support the recovery of mainline capacity 22 expansion costs, including fuel costs, from all mainline system users through 23 rolled-in rates as provided in (B) and (C) of this paragraph or through a 24 combination of incremental and rolled-in rates as provided in (D) of this 25 paragraph; 26 (B) will propose and support the recovery of mainline capacity 27 expansion costs, including fuel costs, from all mainline system users through 28 rolled-in rates; an applicant is obligated under this subparagraph only if the 29 rolled-in rates would increase the rates 30 (i) not described in (ii) of this subparagraph by not more 31 than 15 percent above the initial maximum recourse rates for capacity 01 acquired before commercial operations commence; in this sub- 02 subparagraph, "initial maximum recourse rates" means the highest cost- 03 based rates for any specific transportation service set by the Federal 04 Energy Regulatory Commission, the Regulatory Commission of 05 Alaska, or the National Energy Board of Canada, as appropriate, when 06 the pipeline commences commercial operations; 07 (ii) by not more than 15 percent above the negotiated 08 rate for pipeline capacity on the date of commencement of commercial 09 operations where the holder of the capacity is not an affiliate of the 10 owner of the pipeline project; for the purposes of this sub- 11 subparagraph, "negotiated rate" means the rate in a transportation 12 service agreement that provides for a rate that varies from the otherwise 13 applicable cost-based rate, or recourse rate, set out in a gas pipeline's 14 tariff approved by the Federal Energy Regulatory Commission, the 15 Regulatory Commission of Alaska, or the National Energy Board of 16 Canada, as appropriate; or 17 (iii) for capacity acquired in an expansion after 18 commercial operations commence, to a level that is not more than 115 19 percent of the volume-weighted average of all rates collected by the 20 project owner for pipeline capacity on the date commercial operations 21 commence; 22 (C) will, if recovery of mainline capacity expansion costs, 23 including fuel costs, through rolled-in rate treatment would increase the rates 24 for capacity described in (B) of this paragraph, propose and support the partial 25 roll-in of mainline expansion costs, including fuel costs, to the extent that rates 26 acquired before commercial operations commence do not exceed the levels 27 described in (B) of this paragraph; 28 (D) may, for the recovery of mainline capacity expansion costs, 29 including fuel costs, that, under rolled-in rate treatment, would result in rates 30 that exceed the level in (B) of this paragraph, propose and support the recovery 31 of those costs through any combination of incremental and rolled-in rates; 01 (E) will not enter into a negotiated rate agreement that would 02 preclude the applicant from collecting from any shipper, including a shipper 03 with a negotiated rate agreement, the rolled-in rates that are required to be 04 proposed and supported by the applicant under (B) of this paragraph or the 05 partial rolled-in rates that are required to be proposed and supported by the 06 applicant under (C) of this paragraph; 07 (8) state how the applicant proposes to deal with a North Slope gas 08 treatment plant regardless of whether that plant is part of the applicant's proposal, and, 09 to the extent that the plant will be owned entirely or in part by the applicant, commit to 10 seek certificate authority from the Federal Energy Regulatory Commission if the 11 proposed project is engaged in interstate commerce or from the Regulatory 12 Commission of Alaska if the project is not engaged in interstate commerce; for a 13 North Slope gas treatment plant that will be owned entirely or in part by the applicant, 14 for rate-making purposes, commit to value previously owned assets that are part of the 15 gas treatment plant at net book value; describe the gas treatment plant, including its 16 design, engineering, construction, ownership, and plan of operation, the identity of any 17 third party that will participate in the ownership or operation of the gas treatment 18 plant, and the means by which the applicant will work to minimize the effect of the 19 costs of the facility on the tariff; 20 (9) propose a percentage and total dollar amount for the state's 21 matching contribution under AS 43.90.110(1)(A) and (B), to be specified in the 22 license; 23 (10) commit to propose and support rates for the proposed project and 24 for any North Slope gas treatment plant that the applicant may own, in whole or in 25 part, that are based on a capital structure for rate-making that consists of not less than 26 70 percent debt; 27 (11) describe the means for preventing or managing cost overruns for 28 the proposed project, and the measures for minimizing the effect from any overruns; 29 (12) commit to provide a minimum of five delivery points of natural 30 gas in this state; 31 (13) commit to offer firm transportation service to delivery points in 01 this state as part of the tariff regardless of whether any shippers bid successfully in a 02 binding open season for firm transportation service to delivery points in this state, and 03 commit to offer distance-sensitive rates to delivery points in this state consistent with 04 18 C.F.R. 157.34(c)(8); 05 (14) commit to establish a local headquarters in this state for the 06 proposed project; 07 (15) to the extent permitted by law, commit to 08 (A) hire qualified residents from throughout the state for 09 management, engineering, construction, operations, maintenance, and other 10 positions on the proposed project; 11 (B) contract with businesses located in the state; 12 (C) establish hiring facilities or use existing hiring facilities in 13 the state; and 14 (D) use, as far as is practicable, the job centers and associated 15 services operated by the Department of Labor and Workforce Development 16 and an Internet-based labor exchange system operated by the state; 17 (16) waive the right to appeal the issuance of a license to another 18 applicant or to appeal the determination under AS 43.90.180(b) that no application 19 merits the issuance of a license; 20 (17) commit to negotiate, before construction, a project labor 21 agreement; in this paragraph, "project labor agreement" means a comprehensive 22 collective bargaining agreement between the licensee or its agent and the appropriate 23 labor representatives to ensure expedited construction with labor stability for the 24 project by qualified residents of the state; 25 (18) commit that the state matching contribution received by the 26 licensee may not be included in the applicant's rate base and shall be used as a credit 27 against the licensee's cost of service; 28 (19) provide a detailed description of the applicant and other entities 29 participating with the applicant in the application and the project proposed by the 30 applicant; and persons the applicant intends to involve in the construction and 31 operation of the proposed project; the description must include the nature of the 01 affiliation for each person, the commitments by the person to the applicant, and other 02 information relevant to the commissioners' evaluation of the readiness and ability of 03 the applicant to complete the project presented in the application; and 04 (20) otherwise demonstrate the readiness and ability to perform the 05 activities specified in the application, including following the detailed work plan, 06 timeline, and operation within the associated budget. 07 Sec. 43.90.140. Initial application review; additional information requests; 08 complete applications. (a) The commissioners shall review each application filed 09 under AS 43.90.130 to determine whether it is consistent with the terms of the request 10 for applications and meets the requirements in AS 43.90.130. The commissioners shall 11 reject an application that does not meet the terms of the request for applications or the 12 requirements in AS 43.90.130. 13 (b) The commissioners may request additional information relating to the 14 application. 15 (c) If, within the time specified by the commissioners, the applicant fails to 16 provide the additional information requested under (b) of this section, or submits 17 additional information that is not responsive, the application shall be rejected. 18 (d) For an application not rejected under this section, the commissioners shall 19 make a determination that the application, including any requested additional 20 information, is complete. 21 Sec. 43.90.150. Proprietary information and trade secrets. (a) At the 22 request of the applicant, information submitted under this chapter that the applicant 23 identifies and demonstrates is proprietary or is a trade secret is confidential and not 24 subject to public disclosure under AS 40.25, unless the applicant is granted a license 25 under this chapter. After a license is awarded, all information submitted by the 26 licensee under this chapter, and retained for the purposes of this chapter, shall be made 27 public. 28 (b) If the commissioners determine that the information submitted by the 29 applicant is not proprietary or is not a trade secret, the commissioners shall notify the 30 applicant and return the information at the request of the applicant. 31 (c) In this section, "proprietary" means that the information is treated by the 01 applicant as confidential and the public disclosure of that information would adversely 02 affect the competitive position of the applicant, or materially diminish the commercial 03 value of the information to the applicant. 04 Sec. 43.90.160. Notice, review, and comment. (a) The commissioners shall 05 publish notice and provide a 60-day period for public review and comment on all 06 applications determined complete under AS 43.90.140. 07 (b) Applications received under this chapter are not subject to public 08 disclosure under AS 40.25 until the commissioners publish notice under this section. 09 However, information that the commissioners have determined is confidential under 10 AS 43.90.150 may not be made public even after the notice is published under (a) of 11 this section, except as provided in AS 43.90.150. If information is held confidential 12 under AS 43.90.150, the applicant shall provide a summary of the confidential 13 information that is satisfactory to the commissioners, and the commissioners shall 14 make the summary of the confidential information available to the public. 15 (c) Information provided by an applicant to the commissioners under this 16 chapter, including information determined by the commissioners to be confidential 17 under AS 43.90.150, shall be disclosed to the legislative auditor, the fiscal analyst who 18 serves as head of the legislative finance division, agents and contractors of the 19 legislative auditor and the fiscal analyst, and members of the legislature, on request 20 and after the individual making the request signs a confidentiality agreement prepared 21 by the commissioners. 22 Sec. 43.90.170. Application evaluation and ranking. (a) The commissioners 23 shall evaluate all applications determined to be complete under AS 43.90.140, 24 consider public comments received under AS 43.90.160(a), and rank each application 25 according to the net present value of the anticipated cash flow to the state from the 26 applicant's project proposal using the factors in (b) of this section and weighted by the 27 project's likelihood of success based on the commissioners' assessment of the factors 28 listed in (c) of this section. 29 (b) When evaluating the net present value of anticipated cash flow to the state 30 from the applicant's project proposal, the commissioners shall use an undiscounted 31 value and, at a minimum, discount rates of two, five, and eight percent, and consider 01 (1) how quickly the applicant proposes to begin construction of the 02 proposed project and how quickly the project will commence commercial operation; 03 (2) the net back value of the gas determined by the destination market 04 value of the gas and estimated transportation and treatment costs; 05 (3) the ability of the applicant to prevent or reduce project cost 06 overruns that would increase the tariff; 07 (4) the initial design capacity of the applicant's project and the extent 08 to which the design can accommodate low-cost expansion; 09 (5) the amount of the matching contribution by the state under 10 AS 43.90.110(a)(1)(A) and (B) proposed by the applicant under AS 43.90.130(9); and 11 (6) other factors found by the commissioners to be relevant to the 12 evaluation of the net present value of the anticipated cash flow to the state, including 13 the value of state income tax or equivalent payment in lieu of tax and supplemental 14 profit-sharing to the state if contractually stipulated. 15 (c) When evaluating the project's likelihood of success, the commissioners 16 shall consider 17 (1) the reasonableness, specificity, and feasibility of the applicant's 18 work plan, timeline, and budget required to be submitted under AS 43.90.130, 19 including the applicant's plan to manage cost overruns, insulate shippers from the 20 effect of cost overruns, and encourage shippers to participate in the first binding open 21 season; 22 (2) the financial resources of the applicant; 23 (3) the ability of the applicant to comply with the proposed 24 performance schedule; 25 (4) the applicant's organization, experience, accounting and operational 26 controls, technical skills or the ability to obtain them, necessary equipment or the 27 ability to obtain the necessary equipment; 28 (5) the applicant's record of 29 (A) performance on projects not licensed under this chapter; 30 (B) integrity and good business ethics; and 31 (6) other evidence and factors found by the commissioners to be 01 relevant to the evaluation of the project's likelihood of success. 02 (d) In this section, "net present value" means the discounted value of a future 03 stream of cash flow. 04 Sec. 43.90.180. Notice to the legislature of intent to issue license; denial of 05 license. (a) If, after consideration of public comments received under AS 43.90.160(a) 06 and evaluation of complete applications under AS 43.90.170, the commissioners 07 determine that an application proposes a project that will sufficiently maximize the 08 benefits to the people of this state and merits issuance of a license under this chapter, 09 the commissioners shall 10 (1) issue a determination, with written findings addressing the basis for 11 the determination; the determination becomes a final agency action in accordance with 12 AS 43.90.190; 13 (2) publish notice of intent to issue a license under this chapter with 14 written findings addressing the basis for the determination; and 15 (3) submit the determination along with the findings, supporting 16 documentation, and a copy of the notice published under (2) of this subsection to the 17 presiding officer of each house of the legislature for action as provided in 18 AS 43.90.190. 19 (b) If, after the evaluation of complete applications under AS 43.90.170, the 20 commissioners determine that no application sufficiently maximizes the benefits to the 21 people of this state and merits issuance of a license under this chapter, the 22 commissioners shall issue a written finding that addresses the basis for that 23 determination. 24 (c) The commissioners' determination under this (b) of this section is a final 25 agency action. 26 Sec. 43.90.190. Legislative approval; issuance of license. (a) After the 27 presiding officer of each house of the legislature receives a determination from the 28 commissioners under AS 43.90.180, the rules committee of each house of the 29 legislature shall introduce a bill in the committee's respective chamber that provides 30 for the approval of the license proposed to be issued by the commissioners. 31 (b) If a bill approving the issuance of the license passes the legislature within 01 90 days after the last date a presiding officer receives a determination by the 02 commissioners under AS 43.90.180, the commissioners shall issue the license as soon 03 as practicable after the effective date of the Act approving the issuance of the license. 04 (c) Notwithstanding a legislative rule that prohibits the carryover of a bill after 05 the end of a special session or after the end of a regular session of a legislature, a bill 06 introduced under (a) of this section that is not passed or not withdrawn, defeated, 07 vetoed, or indefinitely postponed shall be carried over to any subsequent regular or 08 special legislative session convened during the 90-day period described in (b) of this 09 section in the same reading or status it was in at the time of adjournment. However, a 10 bill introduced under (a) of this section may not be carried over to the first regular 11 session of a legislature. 12 (d) If the legislature fails to approve the issuance of the license, the 13 commissioners 14 (1) may not issue the license that the legislature failed to approve; and 15 (2) may request new applications for a license under AS 43.90.120. 16 Sec. 43.90.200. Certification by regulatory authority and project sanction. 17 (a) A licensee that is awarded a certificate or amended certificate of public 18 convenience and necessity from a regulatory agency with jurisdiction over the project 19 shall accept the certificate or amended certificate when all rights of administrative 20 appeal relating to the certificate or amended certificate have expired. 21 (b) If the licensee has credit support sufficient to finance construction of the 22 project through ownership of rights to produce and market gas resources, firm 23 transportation commitments, or government financing, the licensee shall sanction the 24 project within one year after the effective date of the certificate or amended certificate 25 of public convenience and necessity issued by the regulatory agency with jurisdiction 26 over the project. 27 (c) If the licensee does not have credit support sufficient to finance 28 construction of the project through ownership of rights to produce and market gas 29 resources, firm transportation commitments, or government financing, the licensee 30 shall sanction the project within five years after the effective date of the certificate or 31 amended certificate of public convenience and necessity issued by the regulatory 01 agency with jurisdiction over the project. 02 (d) If the licensee fails to sanction the project timely as required under this 03 section, the licensee shall, upon request by the state, 04 (1) seek approval from the Federal Energy Regulatory Commission or 05 the Regulatory Commission of Alaska, as applicable, to abandon and transfer the 06 certificate or amended certificate to the state or the state's designee; and 07 (2) assign to the state or the state's designee all project data, 08 engineering designs, contracts, permits, and other data related to the project that are 09 acquired by the licensee during the term of the license before the date of the 10 abandonment or transfer. 11 (e) The transfer of any certificate or amended certificate of public convenience 12 and necessity or transfer under (d) of this section as a result of failure to comply with 13 (a) or (b) of this section is at no cost to the state or the state's designee. A transfer 14 under (c) of this section is at 50 percent of the licensee's net cost. 15 (f) In this section, "effective date of the certificate or amended certificate" 16 means the date after which all rights of administrative appeal relating to the certificate 17 or amended certificate have expired. 18 Sec. 43.90.210. Amendment of or modification to the project plan. Subject 19 to the approval of the commissioners, a licensee may amend or modify its project plan 20 if the amendments or modifications improve the net present value of the project to the 21 state, are necessary because of an order issued by the Alaska Oil and Gas 22 Conservation Commission, or are necessary as a result of changed circumstances 23 outside the licensee's control and not reasonably foreseeable before the license was 24 issued. An amendment or modification approved under this section must be consistent 25 with the requirements in AS 43.90.130 and, except for an amendment or modification 26 required because of an order by the Alaska Oil and Gas Conservation Commission, 27 may not diminish the net present value to the state of the project or the likelihood of 28 success for the project. 29 Sec. 43.90.220. Records, reports, conditions, and audit requirements. (a) A 30 licensee shall maintain complete and accurate records of all expenditures and 31 commitments of state contributions received under this chapter, including receipts and 01 records showing the payment or cost of purchased items and services, the names and 02 addresses of the sellers and service providers, and the dates of service or delivery. 03 (b) Upon reasonable notice, the commissioners may audit the records, books, 04 and files of the entity receiving the state money or making the expenditures and 05 commitments under this chapter. 06 (c) With respect to information relating to the project, the commissioners may 07 conduct hearings or other investigative inquiries, compel the attendance of witnesses 08 and production of documents, and require the licensee to furnish information and 09 documents relating to the project in hard copy or electronic format. 10 (d) After a license has been issued and until commencement of commercial 11 operations, the licensee shall allow the commissioners to 12 (1) have a representative present at all meetings of the licensee's 13 governing body and meetings of equity holders that relate to the project; 14 (2) receive all relevant notices and information sent to the governing 15 body and equity holders; 16 (3) enjoy the same access to information about the licensee as the 17 governing body members and equity owners receive; and 18 (4) receive relevant reports or information from the licensee that the 19 commissioners reasonably request. 20 (e) A licensee shall maintain the records and reports required under this 21 section for seven years from the date the licensee receives state money under this 22 chapter. 23 Sec. 43.90.230. License violations; damages. (a) A licensee is in violation of 24 the license if the commissioners determine that the licensee has 25 (1) committed money received from the state under this chapter for an 26 expenditure that is not a qualified expenditure under AS 43.90.110; 27 (2) substantially departed from the specifications set out in the 28 application without state approval of a project plan amendment or modification under 29 AS 43.90.210; 30 (3) violated any provision of this chapter or any other provision of 31 state or federal law material to the license; or 01 (4) otherwise violated a material term of the license. 02 (b) The commissioners shall provide written notice to the licensee identifying 03 a license violation. The commissioners and the licensee have 90 days after the date the 04 notice is issued to resolve the violation informally. 05 (c) The commissioners may suspend disbursement of state matching 06 contributions to the licensee beginning on the date that the notice of violation issued 07 under (b) of this section is sent to the licensee. The commissioners may resume 08 disbursement on the date that the commissioners determine that the violation is cured. 09 (d) If the commissioners and the licensee are unable to resolve the violation 10 within the time specified in (b) of this section, the commissioners shall provide the 11 licensee with notice that the violation has not been cured and provide the opportunity 12 for the licensee to be heard. If after notice and hearing the commissioners determine 13 that the violation has not been cured, the commissioners shall issue a written decision 14 that is a final administrative action for purposes of appeal to the superior court in the 15 state. 16 (e) If the determination issued under (d) of this section finds an unresolved 17 violation, the commissioners may impose one or more of the following remedies: 18 (1) discontinuation of state matching contributions under this chapter; 19 (2) recoupment of state money that the licensee has received under this 20 chapter to date, with interest, regardless of whether the licensee has expended or 21 committed that money; 22 (3) license revocation; 23 (4) assignment to the state or the state's designee of all project data, 24 engineering designs, contracts, permits, and other data relating to the project that are 25 acquired by the licensee during the term of the license; and 26 (5) any other remedies provided by law or in equity. 27 Sec. 43.90.240. Abandonment of project. (a) If the commissioners and the 28 licensee agree that the project is uneconomic, the project shall be abandoned, the 29 inducement provided for in AS 43.90.110 terminated, and the state and the licensee no 30 longer have an obligation under this chapter with respect to the license except for 31 requirements imposed on the licensee under (e) of this section and AS 43.90.220. 01 (b) If the commissioners or the licensee determine the project is uneconomic 02 and the other party disagrees, the disagreement shall be settled by arbitration 03 administered by the American Arbitration Association under the substantive and 04 procedural laws of this state, and judgment on the award rendered by the arbitrators 05 may be entered in a superior court in the state. In the event of arbitration, each party 06 shall select an arbitrator from the American Arbitration Association's National Roster 07 and the two arbitrators shall appoint a third arbitrator from the American Arbitration 08 Association's National Roster who shall serve as the chair of the three-member 09 arbitration panel. If the arbitration panel determines that the project is 10 (1) uneconomic, the state and the licensee no longer have any 11 obligation under this chapter with respect to the license, except for requirements 12 imposed on the licensee under (e) of this section and AS 43.90.220; or 13 (2) not uneconomic, the obligations of the licensee and the state 14 continue as provided under this chapter and the license. 15 (c) The arbitration panel in (b) of this section shall make a determination that 16 the project is uneconomic only if the panel finds that the party claiming the project is 17 uneconomic has proven by a preponderance of the evidence that the 18 (1) project does not have credit support sufficient to finance 19 construction of the project through firm transportation commitments, government 20 assistance, or other sources of financing; and 21 (2) predicted costs of transportation at a 100 percent load factor, when 22 deducted from predicted gas sales revenue using publicly available predictions of 23 future gas prices, would result in a producer rate of return that is below the rate 24 accepted by a prudent oil and gas exploration and production company for incremental 25 upstream investment that is required to produce and deliver gas to the project. 26 (d) If the state makes a payment to the licensee under AS 43.90.440, the 27 license is considered abandoned, and the state and the licensee no longer have any 28 obligations under this chapter with respect to the license, except that the licensee must 29 comply with the 30 (1) requirements imposed on the licensee under AS 43.90.220 31 regarding state money received by the licensee before the license was considered 01 abandoned; and 02 (2) requirements of AS 43.90.440. 03 (e) If the commissioners and the licensee agree that the project is uneconomic 04 or an arbitration panel makes a final determination that the project is uneconomic, the 05 licensee shall deliver to the state or the state's designee all engineering designs, 06 contracts, permits, and other data relating to the project that are acquired by the 07 licensee during the term of the license upon reimbursement by the state of 50 percent 08 of the net amount of expenditures incurred and paid by the licensee that are qualified 09 expenditures for the purposes of AS 43.90.110. 10 Sec. 43.90.250. Alaska Gasline Inducement Act coordinator. (a) There is 11 created in the office of the governor the position of Alaska Gasline Inducement Act 12 coordinator. Administrative support for the position shall be provided by the office of 13 the governor. The position shall continue until one year after commencement of 14 commercial operations of the project. 15 (b) The governor shall appoint a person to the position of Alaska Gasline 16 Inducement Act coordinator. The individual serving as the Alaska Gasline Inducement 17 Act coordinator may be removed from the position at the discretion of the governor. 18 (c) The Alaska Gasline Inducement Act coordinator is entitled to receive an 19 annual salary equal to Step A, Range 28, of the salary schedule set out in 20 AS 39.27.011(a) for Juneau. 21 (d) The Alaska Gasline Inducement Act coordinator shall, in conjunction with 22 the commissioners, 23 (1) coordinate expeditious performance of all activities by state 24 agencies for the project; 25 (2) ensure compliance by state agencies with the provisions of this 26 chapter; and 27 (3) coordinate with the Office of the Federal Coordinator for Alaska 28 Natural Gas Transportation Projects (29 U.S.C. 720d) for natural gas transportation 29 projects in the state. 30 Sec. 43.90.260. Expedited review and action by state agencies. (a) A review 31 conducted and action taken by a state agency relating to the project shall be expedited 01 in a manner consistent with the completion of the necessary approvals in accordance 02 with this chapter. 03 (b) Notwithstanding any contrary provision of law, a state agency may not 04 include in any project certificate, right-of-way, permit, or other authorization issued to 05 the licensee a term or condition that is not required by law if the coordinator 06 determines that the term or condition would prevent or impair in any significant 07 respect the expeditious construction and operation or expansion of the project. 08 (c) Unless required by law, a state agency may not add to, amend, or abrogate 09 a certificate, right-of-way, permit, or other authorization issued to a licensee if the 10 coordinator determines that the action would prevent or impair in any significant 11 respect the expeditious construction, operation, or expansion of the project. 12 Article 3. Resource Inducement. 13 Sec. 43.90.300. Qualification for resource inducement. (a) Notwithstanding 14 any contrary provision of law, a lessee or other person that demonstrates to the 15 satisfaction of the commissioners that the person has committed to acquire firm 16 transportation capacity in the first binding open season of the project is qualified to 17 receive the resource inducement set out in AS 43.90.310 and 43.90.320 for gas 18 produced on the North Slope and shipped in firm transportation capacity acquired in 19 the first binding open season of the project. The inducement in AS 43.90.310 is 20 contractual. 21 (b) A gas producer receiving a voucher under AS 43.90.330 is qualified to 22 receive the resource inducement in AS 43.90.310 and 43.90.320 for the gas shipped in 23 the firm transportation capacity described in the voucher for the period described in 24 AS 43.90.330. 25 Sec. 43.90.310. Royalty inducement. (a) Before the start of the first binding 26 open season to be conducted by the licensee, the commissioner of natural resources 27 shall adopt regulations that provide a method to determine the monthly value of the 28 state's royalty share of gas production and provide terms under which the state will 29 exercise its right to switch between taking its royalty in value or in kind for gas 30 committed for firm transportation in the first binding open season of the project or 31 shipped in the firm transportation capacity described in a voucher received by the gas 01 producer under AS 43.90.330. The regulations must 02 (1) minimize retroactive adjustments to the monthly value of the state's 03 royalty share of gas production; 04 (2) provide a method for establishing a fair market value for each 05 component of the state's royalty gas that is based on pricing data from reliable and 06 widely available industry trade publications and that uses appropriate adjustments to 07 reflect 08 (A) deductions for actual and reasonable transportation costs 09 for the state's royalty gas, including a reasonable share of the costs associated 10 with unused capacity commitments on gas pipelines from the North Slope to 11 the first destination market with reasonable market liquidity; 12 (B) location differentials between the destination markets 13 where North Slope gas could be sold; 14 (C) reasonable and actual costs for gas processing; and 15 (D) deductions permitted under the 1980 Royalty Settlement 16 Agreement for Prudhoe Bay gas; and 17 (3) establish terms under which the state will exercise its authority to 18 switch between taking its royalty gas in value and in kind to ensure that the state's 19 actions do not unreasonably 20 (A) cause the lessee or other person to bear disproportionate 21 transportation costs with respect to the state's royalty gas; 22 (B) interfere with the lessee's or other person's long-term 23 marketing of its production. 24 (b) If a lessee or other person qualified for resource inducement under 25 AS 43.90.300 agrees under (c) of this section, the lessee or other person is entitled to 26 elect whether 27 (1) to calculate its gas royalty obligation under the regulations adopted 28 under (a) of this section for natural gas transported on a firm contract negotiated 29 during the project's first binding open season or under the methodology set out in the 30 existing leases from which the gas is produced, and 31 (A) upon the request of the lessee, the commissioner of natural 01 resources shall contractually amend the existing lease to effect the election 02 under this paragraph and incorporate as fixed contract terms the relevant 03 revised regulatory provisions; and 04 (B) the election under this subsection remains in effect until 05 new regulations are adopted as a result of a review under (d) of this section, at 06 which time, a lessee or other person qualified under AS 43.90.300 may change 07 its election under this paragraph; upon the request of the lessee, the 08 commissioner of natural resources shall contractually amend the lease to 09 incorporate as fixed contract terms the relevant revised regulatory provisions; 10 or 11 (2) to enter into a contract with the state that amends the existing lease 12 terms by 13 (A) extending the required period of notice that the state must 14 provide before exercising the state's right to switch between taking its royalty 15 in value or in kind for gas committed for firm transportation in the first binding 16 open season of the project; or 17 (B) eliminating the ability of the state to take its royalty in kind 18 for gas in the quantity and volume committed to the firm transportation 19 capacity acquired during the first binding open season of the project, if the 20 person entitled to this election agrees to provide gas for in-state residential and 21 commercial uses at the delivery points described in the license at the same 22 value as would be received by the state if the state receives its royalty in value 23 with the corresponding distance-sensitive transportation charges; if the lessee 24 or other person exercising this election fails to adequately supply the in-state 25 gas requirements, after reasonable notice, or if the contract effectively prevents 26 the state from exercising its rights with other lessees to switch between taking 27 its royalty in value or in kind because of various unit agreements among 28 lessees, the election is considered to terminate, and the provisions of the 29 original lease relating to the state's taking its royalty gas in kind or in value 30 apply. 31 (c) To claim the inducement under (b) of this section, a lessee or other 01 qualified person shall agree, on an application form provided by the Department of 02 Natural Resources, that the lessee or person, and the lessee's or person's affiliates, 03 successors, assigns, and agents will not protest or appeal a filing by the licensee to roll 04 in expansion costs of the mainline up to a level that is required in AS 43.90.130(7). 05 The agreement not to protest may not preclude the lessee or other qualified person, or 06 the affiliates, successors, assigns, and agents of the lessee or other qualified person, 07 from protesting a filing to roll in mainline expansion costs that licensee is not required 08 to propose and support under AS 43.90.130(7). 09 (d) The commissioner of natural resources shall provide for review of the 10 regulations adopted under (a) of this section at least every two years after the 11 commencement of commercial operations to determine whether the regulations 12 continue to minimize retroactive adjustments to the monthly value of the state's 13 royalty share of gas production under current conditions; the commissioner shall 14 amend the regulations when the requirement is not being met. 15 (e) No provision of this chapter precludes the election set out in (b) of this 16 section, nor may the commissioner of natural resources assert any provision of any 17 existing lease or unit agreement as precluding the elections set out in (b) of this 18 section. 19 Sec. 43.90.320. Gas production tax exemption. (a) If a person qualified for 20 resource inducement under AS 43.90.300 agrees under (c) of this section, the person is 21 entitled to an annual exemption from the state's gas production tax in an amount equal 22 to the difference between the amount of the person's gas production tax obligation 23 calculated under the gas production tax in effect during that tax year and the amount of 24 the person's gas production tax obligation calculated under the gas production tax in 25 effect at the start of the first binding open season held under this chapter. If the 26 difference is less than zero, the gas production tax exemption is zero. 27 (b) The exemption under this section may be applied within the 10 years 28 immediately following commencement of commercial operations and only applied to 29 production taxes that are levied on North Slope gas shipped through firm 30 transportation capacity the person acquired during the first binding open season or 31 shipped in the firm transportation capacity described in a voucher received by the gas 01 producer under AS 43.90.330. 02 (c) The person claiming the exemption under this section shall agree that the 03 person and the person's affiliates, successors, assigns, and agents will not protest or 04 appeal a filing by the licensee to roll in mainline expansion costs up to the level that 05 the licensee is required to propose and support under AS 43.90.130(7); the agreement 06 required under this subsection may not preclude the person or the person's affiliates, 07 successors, assigns, and agents, from protesting a filing to roll in mainline expansion 08 costs that the licensee is not required to propose and support under AS 43.90.130(7). 09 Sec. 43.90.330. Inducement vouchers. (a) A person that acquires firm 10 transportation capacity in the first binding open season of the project, that does not 11 hold an oil and gas lease on the North Slope, and that is not an affiliate of a person that 12 holds an oil and gas lease on the North Slope, may apply to the commissioners for a 13 voucher under this section. A voucher issued by the commissioners must describe the 14 firm transportation capacity in the project to which the voucher is applicable. 15 (b) A voucher issued by the commissioners under this section entitles the 16 holder of the voucher to the resource inducements in AS 43.90.310 and 43.90.320 for 17 gas shipped in the firm transportation capacity acquired by the person applying for the 18 voucher during the first binding open season of the project and described in the 19 voucher. The voucher may be transferred to a gas producer that has a binding 20 obligation to sell gas to the person transferring the voucher under a gas purchase 21 agreement. 22 (c) A gas producer holding a voucher may claim the resource inducements for 23 gas shipped through the firm transportation capacity described in the voucher and only 24 on gas that is produced and delivered to the purchaser on the North Slope. A gas 25 producer may claim the resource inducements under this subsection until the earlier of 26 the termination of the binding gas purchase agreement or the expiration of the 27 inducements by operation of law. 28 Article 4. Miscellaneous Provisions. 29 Sec. 43.90.400. Alaska Gasline Inducement Act matching contribution 30 fund; disbursements; audits. (a) There is established in the general fund an Alaska 31 Gasline Inducement Act matching contribution fund. The fund consists of money 01 appropriated to it by the legislature for disbursement to pay the state's matching 02 contributions under AS 43.90.110. Money appropriated to the fund may be spent for 03 the purposes of the fund without further appropriation. Appropriations to the fund do 04 not lapse under AS 37.25.010, but remain in the fund for future disbursements. 05 Nothing in this subsection creates a dedicated fund. 06 (b) The Department of Revenue shall manage the fund, and may invest money 07 in the fund so as to yield competitive market rates as provided in AS 37.10.071. 08 Income earned on the fund shall be accounted for separately and may be appropriated 09 annually to the fund. 10 (c) The commissioners shall adopt regulations that provide for application to 11 receive matching contributions for qualified expenditures as provided under 12 AS 43.90.110, and that provide for periodic audits of the use of money disbursed as 13 matching contributions under this chapter. 14 (d) Within 10 days after the convening of each regular session of the 15 legislature, the commissioners shall submit to the legislature a report that lists the 16 disbursements from the fund during the preceding fiscal year with a written 17 justification for each disbursement and the projected amount of money that will be 18 required for contributions in each of the next three fiscal years. 19 Sec. 43.90.410. Regulations. The commissioner of revenue may adopt 20 regulations on behalf of the commissioners for the purpose of implementing the 21 provisions of this chapter. The commissioner of revenue and the commissioner of 22 natural resources may change regulations adopted under authority outside of this 23 chapter as necessary to implement the provisions of this chapter. 24 Sec. 43.90.420. Statute of limitations. A person may not bring a judicial 25 action challenging the constitutionality of this chapter or a license issued under this 26 chapter unless the action is commenced in a court of the state of competent 27 jurisdiction within 90 days after the date that a license is issued. 28 Sec. 43.90.430. Interest. When a payment due to the state under this chapter 29 becomes delinquent, the payment bears interest at the rate applicable to a delinquent 30 tax under AS 43.05.225. 31 Sec. 43.90.440. Licensed project assurances. (a) Except as otherwise 01 provided in this chapter, the state grants a licensee assurances that the licensee has 02 exclusive enjoyment of the inducement provided under this chapter before the 03 commencement of commercial operations. If, before the commencement of 04 commercial operations, the state extends to another person preferential royalty or tax 05 treatment or grant of state money for the purpose of facilitating the construction of a 06 competing natural gas pipeline project in this state, and if the licensee is in compliance 07 with the requirements of the license and with the requirements of state and federal 08 statutes and regulations relevant to the project, the licensee is entitled to payment from 09 the state of an amount equal to three times the total amount of the expenditures 10 incurred and paid by the licensee that are qualified expenditures for the purposes of 11 AS 43.90.110 that the licensee incurred in developing the licensee's project before the 12 date that the state first extended preferential treatment to another person. The payment 13 under this subsection is subject to appropriation. Upon payment by the state of the 14 amount owed under this section, the licensee shall, at no additional cost to the state, 15 assign to the state or the state's designee all engineering designs, contracts, permits, 16 and other data related to the project that were acquired by the licensee during the term 17 of the license. 18 (b) In this section, 19 (1) "competing natural gas pipeline project" means a project designed 20 to accommodate throughput of more than 500,000,000 cubic feet a day of North Slope 21 gas to market; 22 (2) "preferential royalty or tax treatment" does not include 23 (A) the state's exercise of its right to resolve disputes involving 24 royalties and taxes; 25 (B) the state's exercise of its right to modify royalties as 26 authorized by law in effect on the effective date of this section; or 27 (C) the benefits of a large project permit coordinator authorized 28 by a law in effect on the effective date of this section. 29 Sec. 43.90.450. Assignments. (a) A licensee may transfer all or part of the 30 license, including the rights and obligations arising under the license, if, after 31 publishing notice of the proposed transfer, providing notice to the presiding officer of 01 each house of the legislature, and providing a period not less than 30 days for public 02 review and comment, 03 (1) the transfer is approved in writing in advance by the 04 commissioners; and 05 (2) the transfer does not increase or diminish the obligations created by 06 the license or diminish the likelihood of success of the project or the net present value 07 of the license to the state. 08 (b) Notwithstanding the commissioners' approval of a transfer of all or part of 09 a license under (a) of this section, the transferor of the license remains subject to the 10 requirements of AS 43.90.220 regarding all state money received by the licensee 11 before the effective date of the transfer. 12 (c) A person may transfer that person's rights to the royalty inducement under 13 AS 43.90.310 and the gas production tax exemptions under AS 43.90.320 only in 14 connection with a sale or merger that results in transfer of all the person's assets in the 15 North Slope of this state, along with the person's firm transportation capacity contracts 16 in the project. 17 (d) Except for the transfer of a voucher to a producer under AS 43.90.330(b), 18 a person receiving a voucher under AS 43.90.330 based on the person's acquisition of 19 firm transportation capacity in the first binding open season of the project may transfer 20 the voucher only if the transfer is in connection with the permanent assignment by the 21 person of 100 percent of the firm transportation capacity acquired in the first binding 22 open season of the project. 23 Sec. 43.90.460. Conflicting laws. Nothing in this chapter shall be construed to 24 repeal or abrogate the administrative, regulatory, or statutory procedures and functions 25 of state and federal law governing the development and oversight of a project. 26 Sec. 43.90.470. State pipeline employment development. The commissioner 27 of labor and workforce development shall develop a job training program that will 28 provide training for Alaskans in gas pipeline project management, construction, 29 operations, maintenance, and other gas pipeline-related positions. 30 Article 5. General Provisions. 31 Sec. 43.90.900. Definitions. In this chapter, unless the context otherwise 01 requires, 02 (1) "affiliate" means another person that controls, is controlled by, or is 03 under common control with a person and includes a division that operates as a 04 functional unit; 05 (2) "Alaska Gasline Inducement Act coordinator" and "coordinator" 06 means the person appointed under AS 43.90.250; 07 (3) "commencement of commercial operations" means the first flow of 08 gas in the project that generates revenue to the owners; 09 (4) "commissioners" means the commissioner of revenue and the 10 commissioner of natural resources; 11 (5) "control" means the possession of ownership interest or authority 12 sufficient to, directly or indirectly, and whether acting alone or in conjunction with 13 others, direct or cause the direction of the management or policies of a company, and 14 is rebuttably presumed if the voting interest held is 10 percent or more; 15 (6) "equity holder" means the 16 (A) stockholders of a corporation; 17 (B) members of a limited liability company; 18 (C) partners of a partnership; 19 (D) joint venturers of a joint venture; 20 (E) members of a governmental authority and similar persons; 21 or 22 (F) holders of any other entity or person; 23 (7) "gas processing" means the treatment of gas downstream of the 24 point of production to extract natural gas liquids; 25 (8) "governing body" means a corporation's board of directors, a 26 limited liability company's managing members, a partnership's general partners, a joint 27 venturer's joint venturers, a governmental authority's board or council members, and 28 similar entities; 29 (9) "lease" means an oil and gas or gas lease issued by this state; 30 (10) "lessee" means a person that holds a working interest in an oil and 31 gas or gas lease issued by this state; 01 (11) "license" means a license issued under this chapter; 02 (12) "licensee" means the holder of a license issued under this chapter 03 and all affiliates, successors, assigns, and agents of the holder; 04 (13) "North Slope" means that part of the state that lies North of 68 05 degrees North latitude; 06 (14) "North Slope gas" means natural gas produced on the North 07 Slope; 08 (15) "open season" means the process that complies with 18 C.F.R. 09 Part 157, Subpart B (Open Seasons for Alaska Natural Gas Transportation Projects); 10 (16) "project" means a natural gas pipeline project authorized under a 11 license issued under this chapter; 12 (17) "recourse rates" means cost-based rates with a minimum and 13 maximum range that are approved by the Federal Energy Regulatory Commission, the 14 Regulatory Commission of Alaska, or the National Energy Board of Canada, as 15 appropriate, and set out in the pipeline's tariff; "recourse rates" includes only those 16 rates that the pipeline must make available to all shippers; 17 (18) "sanction" means financial commitments to go forward with the 18 project as evidenced by entering into financial commitments of at least 19 $1,000,000,000 with third parties; 20 (19) "under common control with" has the meaning given "control" in 21 this section; 22 (20) "unit agreement" means an agreement executed by the working 23 interest owners and royalty owners creating the unit. 24 Sec. 43.90.990. Short title. This chapter may be cited as the Alaska Gasline 25 Inducement Act. 26 * Sec. 2. AS 36.30.850(b) is amended by adding a new paragraph to read: 27 (45) contracts for an arbitration panel to determine whether a project is 28 uneconomic under AS 43.90.240, and contracts for the development of application 29 provisions for licensure and for the evaluation of those applications under AS 43.90. 30 * Sec. 3. AS 39.25.110 is amended by adding a new paragraph to read: 31 (41) the Alaska Gasline Inducement Act coordinator appointed under 01 AS 43.90.250. 02 * Sec. 4. AS 40.25.120(a) is amended to read: 03 (a) Every person has a right to inspect a public record in the state, including 04 public records in recorders' offices, except 05 (1) records of vital statistics and adoption proceedings, which shall be 06 treated in the manner required by AS 18.50; 07 (2) records pertaining to juveniles unless disclosure is authorized by 08 law; 09 (3) medical and related public health records; 10 (4) records required to be kept confidential by a federal law or 11 regulation or by state law; 12 (5) to the extent the records are required to be kept confidential under 13 20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure 14 or retain federal assistance; 15 (6) records or information compiled for law enforcement purposes, but 16 only to the extent that the production of the law enforcement records or information 17 (A) could reasonably be expected to interfere with enforcement 18 proceedings; 19 (B) would deprive a person of a right to a fair trial or an 20 impartial adjudication; 21 (C) could reasonably be expected to constitute an unwarranted 22 invasion of the personal privacy of a suspect, defendant, victim, or witness; 23 (D) could reasonably be expected to disclose the identity of a 24 confidential source; 25 (E) would disclose confidential techniques and procedures for 26 law enforcement investigations or prosecutions; 27 (F) would disclose guidelines for law enforcement 28 investigations or prosecutions if the disclosure could reasonably be expected to 29 risk circumvention of the law; or 30 (G) could reasonably be expected to endanger the life or 31 physical safety of an individual; 01 (7) names, addresses, and other information identifying a person as a 02 participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the 03 advance college tuition savings program under AS 14.40.803 - 14.40.817; 04 (8) public records containing information that would disclose or might 05 lead to the disclosure of a component in the process used to execute or adopt an 06 electronic signature if the disclosure would or might cause the electronic signature to 07 cease being under the sole control of the person using it; 08 (9) reports submitted under AS 05.25.030 concerning certain 09 collisions, accidents, or other casualties involving boats; 10 (10) records or information pertaining to a plan, program, or 11 procedures for establishing, maintaining, or restoring security in the state, or to a 12 detailed description or evaluation of systems, facilities, or infrastructure in the state, 13 but only to the extent that the production of the records or information 14 (A) could reasonably be expected to interfere with the 15 implementation or enforcement of the security plan, program, or procedures; 16 (B) would disclose confidential guidelines for investigations or 17 enforcement and the disclosure could reasonably be expected to risk 18 circumvention of the law; or 19 (C) could reasonably be expected to endanger the life or 20 physical safety of an individual or to present a real and substantial risk to the 21 public health and welfare; 22 (11) the written notification regarding a proposed regulation provided 23 under AS 24.20.105 to the Department of Law and the affected state agency and 24 communications between the Legislative Affairs Agency, the Department of Law, and 25 the affected state agency under AS 24.20.105; 26 (12) records that are 27 (A) proprietary or a trade secret in accordance with 28 AS 43.90.150; 29 (B) applications that are received under AS 43.90.120 - 30 43.90.140 until notice is published under AS 43.90.160. 31 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 01 read: 02 FIRST REQUEST FOR APPLICATIONS FOR THE LICENSE. It is the intent of the 03 legislature that the first request for applications for the license by the commissioners under 04 AS 43.90.120, enacted by sec. 1 of this Act, be issued within 90 days after the effective date 05 of this Act. 06 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 EXPEDITED CONSIDERATION OF COURT CASES. It is the intent of the 09 legislature that the courts of the state, when considering a case related to the development and 10 construction of a natural gas pipeline under this Act or to the commitment of a shipper to 11 acquire firm transportation capacity during the first binding open season for a project 12 developed under this Act, expedite the resolution of the case by giving the case priority over 13 all other civil cases to the extent permitted under the Alaska Rules of Court. 14 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the application 17 of it to any person or circumstance, is held invalid, the remainder of this Act and the 18 application to other persons or circumstances are not affected. 19 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).