00 CS FOR SENATE BILL NO. 104(JUD) 01 "An Act relating to the Alaska Gasline Inducement Act; establishing the Alaska Gasline 02 Inducement Act matching contribution fund; providing for an Alaska Gasline 03 Inducement Act coordinator; making conforming amendments; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 43 is amended by adding a new chapter to read: 07 Chapter 90. Alaska Gasline Inducement Act. 08 Article 1. Inducement to Construction of a Natural Gas Pipeline in this State. 09 Sec. 43.90.010. Purpose. The purpose of this chapter is to encourage 10 expedited construction of a natural gas pipeline that 11 (1) facilitates commercialization of North Slope gas resources in the 12 state; 13 (2) promotes exploration and development of oil and gas resources on 14 the North Slope in the state; 01 (3) maximizes benefits to the people of this state of development of oil 02 and gas resources in this state; and 03 (4) encourages state oil and gas lessees and other persons to commit 04 natural gas from the North Slope of this state to a gas pipeline system for 05 transportation to markets in this state or elsewhere. 06 Article 2. Alaska Gasline Inducement Act License. 07 Sec. 43.90.100. Gas project. (a) The commissioners may award an Alaska 08 Gasline Inducement Act license as provided in this chapter. The person awarded a 09 license under this chapter is entitled to the inducement set out in AS 43.90.110. 10 (b) Nothing in this section precludes a person's pursuing a gas pipeline 11 independently from this chapter. 12 Sec. 43.90.110. Natural gas pipeline project construction inducement. 13 Subject to the limitations of this chapter, a license issued under this chapter entitles the 14 licensee or its designated affiliate to receive 15 (1) subject to appropriation, state matching contributions in an amount 16 not to exceed $500,000,000, paid in total to the licensee over a five-year period; the 17 payment period may be extended by the commissioners under an amendment or 18 modification of the project plan under AS 43.90.210; the payment period commences 19 on the date of the issuance of the license; payments under this paragraph shall be made 20 according to the following: 21 (A) on or before the close of the first binding open season, the 22 state shall match the licensee's qualified expenditures at the level specified in 23 the license; however, the state's matching contribution may not be more than 24 50 percent of the qualified expenditures incurred before the close of the first 25 binding open season; 26 (B) after the close of the first binding open season, the state 27 shall match the licensee's qualified expenditures at a level specified in the 28 license; however, the state's matching contribution may not be greater than 80 29 percent of the qualified expenditures incurred after the close of the first 30 binding open season; 31 (C) qualified expenditures are costs that are incurred after the 01 license is issued under this chapter by the licensee or the licensee's designated 02 affiliate, and are directly and reasonably related to obtaining a certificate or 03 amended certificate of public convenience and necessity from the Federal 04 Energy Regulatory Commission or the Regulatory Commission of Alaska, as 05 appropriate, for development of the project; in this subparagraph, "qualified 06 expenditures" does not include overhead costs, litigation costs, assets or work 07 product predating the issuance of the license, or civil or criminal penalties or 08 fines; and 09 (2) the benefit of an Alaska Gasline Inducement Act coordinator who 10 has the authority prescribed in AS 43.90.250. 11 Sec. 43.90.120. Request for applications for the license. (a) The 12 commissioners shall commence a public process to request applications for a license 13 under this chapter as soon as practicable after the effective date of this chapter. 14 (b) The commissioners may use independent contractors to assist in 15 developing the provisions for the application for a license and in evaluating 16 applications received under this chapter. 17 (c) The provisions of AS 36.30 do not apply to requests for applications under 18 this chapter. 19 Sec. 43.90.130. Application requirements. An application for a license must 20 be consistent with the terms of the request for applications under AS 43.90.120 and 21 must 22 (1) be filed by the deadline established by the commissioners in the 23 request for applications; 24 (2) provide a detailed description of a proposed natural gas pipeline 25 project for transporting natural gas from the North Slope of this state to market, 26 including 27 (A) the route proposed for the natural gas pipeline; 28 (B) receipt and delivery points and the size and design capacity 29 of the proposed natural gas pipeline at the proposed receipt and delivery points, 30 except that this information is not required for in-state delivery points unless 31 the application proposes specific in-state delivery points; 01 (C) an analysis demonstrating the project's economic and 02 technical viability as required in the request for applications; 03 (D) an economically and technically viable work plan, timeline, 04 and associated budget for developing the proposed project, including how the 05 applicant will perform field work, environmental studies, design, and 06 engineering, how the applicant will implement practices for controlling carbon 07 emissions from natural gas systems as established by the United States 08 Environmental Protection Agency, and how the applicant will comply with all 09 applicable state, federal, and international regulatory requirements that affect 10 the proposed project; the work plan must address the following: 11 (i) if the proposed project involves a pipeline into or 12 through Canada, a description in detail of the applicant's plan to obtain 13 necessary rights-of-way and authorizations in Canada; a description of 14 the transportation services to be provided and a description of rate- 15 making methodologies the applicant will propose to the regulatory 16 agencies; and an estimate of rates and charges for all services; 17 (ii) if the proposed project involves marine 18 transportation of liquefied natural gas, a description of the marine 19 transportation services to be provided and a description of proposed 20 rate-making methodologies; an estimate of rates and charges for all 21 services by third parties; a detailed description of all access and tariff 22 terms the applicant would propose for liquefaction services or, if third 23 parties would perform liquefaction services, identify the third parties 24 and the terms they would offer; a complete description of the proposed 25 ownership, control, and cost of liquefied natural gas tankers, the 26 management of shipping services, liquefied natural gas export, 27 destination, re-gasification facilities, and pipeline facilities needed for 28 transport to market destinations, and the entity or entities that would be 29 required to obtain necessary export permits or a certificate of public 30 convenience and necessity from the Federal Energy Regulatory 31 Commission for the transportation of liquefied natural gas in interstate 01 commerce if United States markets are proposed; and all rights-of-way 02 or authorizations required from a foreign country; 03 (3) commit that if the proposed project is within the jurisdiction of the 04 Federal Energy Regulatory Commission, the applicant will 05 (A) conclude, by a date certain that is not later than 36 months 06 after the date the license is issued, a binding open season that is consistent with 07 the requirements of Subpart B of 18 C.F.R. Part 157 (Open Seasons for Alaska 08 Natural Gas Transportation Projects) and 18 C.F.R. 157.30 - 157.39; 09 (B) apply for Federal Energy Regulatory Commission approval 10 to use the pre-filing procedures set out in 18 C.F.R. 157.21 by a date certain, 11 and use those procedures before filing an application for a certificate or 12 amended certificate of public convenience and necessity; and 13 (C) apply for a Federal Energy Regulatory Commission 14 certificate or amended certificate of public convenience and necessity to 15 authorize the construction and operation of the proposed project described in 16 this section by a date certain; 17 (4) commit that if the proposed project is within the jurisdiction of the 18 Regulatory Commission of Alaska, the applicant will 19 (A) conclude, by a date certain that is not later than 36 months 20 after the date the license is issued, a binding open season that is consistent with 21 the requirements of AS 42.06; and 22 (B) apply for a certificate of public convenience and necessity 23 to authorize the construction and operation of the proposed project by a date 24 certain; 25 (5) commit that after the first binding open season, the applicant will 26 assess the market demand for additional pipeline capacity at least every two years 27 through public nonbinding solicitations or similar means; 28 (6) commit to expand the proposed project in reasonable engineering 29 increments and on commercially reasonable terms that encourage exploration and 30 development of gas resources in this state; in this paragraph, 31 (A) "commercially reasonable terms" means that, subject to the 01 provisions of (7) of this section, revenue from transportation contracts covers 02 the cost of the expansion, including increased fuel costs and a reasonable 03 return on capital as authorized by the Federal Energy Regulatory Commission 04 or the Regulatory Commission of Alaska, as applicable, and there is no 05 impairment of the proposed project's ability to recover the costs of existing 06 facilities; 07 (B) "reasonable engineering increments" means the amount of 08 additional capacity that could be added by compression or a pipe addition 09 using a compressor size or pipe size, as applicable, that is substantially similar 10 to the original compressor size and pipe size; 11 (7) commit that the applicant 12 (A) will propose and support the recovery of mainline capacity 13 expansion costs, including fuel costs, from all mainline system users through 14 rolled-in rates as provided in (B) and (C) of this paragraph or through a 15 combination of incremental and rolled-in rates as provided in (D) of this 16 paragraph; 17 (B) will propose and support the recovery of mainline capacity 18 expansion costs, including fuel costs, from all mainline system users through 19 rolled-in rates; an applicant is obligated under this subparagraph only if the 20 rolled-in rates would increase the rates 21 (i) not described in (ii) of this subparagraph by not more 22 than 15 percent above the initial maximum recourse rates for capacity 23 acquired before commercial operations commence; in this sub- 24 subparagraph, "initial maximum recourse rates" means the highest cost- 25 based rates for any specific transportation service set by the Federal 26 Energy Regulatory Commission, the Regulatory Commission of 27 Alaska, or the National Energy Board of Canada, as appropriate, when 28 the pipeline commences commercial operations; 29 (ii) by not more than 15 percent above the negotiated 30 rate for pipeline capacity on the date of commencement of commercial 31 operations where the holder of the capacity is not an affiliate of the 01 owner of the pipeline project; for the purposes of this sub- 02 subparagraph, "negotiated rate" means the rate in a transportation 03 service agreement that provides for a rate that varies from the otherwise 04 applicable cost-based rate, or recourse rate, set out in a gas pipeline's 05 tariff approved by the Federal Energy Regulatory Commission, the 06 Regulatory Commission of Alaska, or the National Energy Board of 07 Canada, as appropriate; or 08 (iii) for capacity acquired in an expansion after 09 commercial operations commence, to a level that is not more than 115 10 percent of the volume-weighted average of all rates collected by the 11 project owner for pipeline capacity on the date commercial operations 12 commence; 13 (C) will, if recovery of mainline capacity expansion costs, 14 including fuel costs, through rolled-in rate treatment would increase the rates 15 for capacity described in (B) of this paragraph, propose and support the partial 16 roll-in of mainline expansion costs, including fuel costs, to the extent that rates 17 acquired before commercial operations commence do not exceed the levels 18 described in (B) of this paragraph; 19 (D) may, for the recovery of mainline capacity expansion costs, 20 including fuel costs, that, under rolled-in rate treatment, would result in rates 21 that exceed the level in (B) of this paragraph, propose and support the recovery 22 of those costs through any combination of incremental and rolled-in rates; 23 (E) agrees not to enter into a negotiated rate agreement that 24 would preclude the applicant from collecting from any shipper, including a 25 shipper with a negotiated rate agreement, the rolled-in rates that are required to 26 be proposed and supported by the applicant under (B) of this paragraph or the 27 partial rolled-in rates that are required to be proposed and supported by the 28 applicant under (C) of this paragraph; 29 (8) state how the applicant proposes to deal with a North Slope gas 30 treatment plant, regardless of whether that plant is part of the applicant's proposal, and, 31 to the extent that that plant will be owned entirely or in part by the applicant, commit 01 to seek certificate authority from the Federal Energy Regulatory Commission if the 02 proposed project is engaged in interstate commerce, or from the Regulatory 03 Commission of Alaska if the project is not engaged in interstate commerce, for a 04 North Slope gas treatment plant that will be owned entirely or in part by the applicant 05 and, for rate-making purposes, commit to value previously used assets that are part of 06 the gas treatment plant at net book value; describe the gas treatment plant, including 07 its design, engineering, construction, ownership, and plan of operation; the identity of 08 any third party that will participate in the ownership or operation of the gas treatment 09 plant; and the means by which the applicant will work to minimize the effect of the 10 costs of the facility on the tariff; 11 (9) propose a percentage and total dollar amount for the state's 12 matching contribution under AS 43.90.110(1)(A) and (B) to be specified in the 13 license; 14 (10) commit that the applicant will propose and support rates for the 15 proposed project and for any North Slope gas treatment plant that the applicant may 16 own, in whole or in part, that are based on a capital structure for rate-making that 17 consists of not less than 70 percent debt; 18 (11) describe the means by which the applicant plans to manage 19 overruns in costs of the proposed project, if any, and the measures that the applicant 20 proposes to mitigate the effects of any overruns; 21 (12) commit to provide for a minimum of five delivery points of 22 natural gas in this state; 23 (13) commit to offer firm transportation service to delivery points in 24 this state as part of the tariff regardless of whether any shippers bid successfully in a 25 binding open season for firm transportation service to delivery points in this state, and 26 commit to offer distance-sensitive rates to delivery points in this state consistent with 27 18 C.F.R. 157.34(c)(8); 28 (14) commit to establish a local headquarters in this state for the 29 proposed project; 30 (15) to the extent permitted by law, commit to 31 (A) hire qualified residents from throughout the state for 01 management, engineering, construction, operations, maintenance, and other 02 positions on the proposed project; 03 (B) contract with businesses located in the state; 04 (C) establish hiring facilities or use existing hiring facilities in 05 the state; and 06 (D) use, as far as is practicable, the job centers and associated 07 services operated by the Department of Labor and Workforce Development 08 and an Internet-based labor exchange system operated by the state; 09 (16) waive the right to appeal the issuance of a license to another 10 applicant or to appeal the determination under AS 43.90.180(b) that no application 11 merits the issuance of a license; 12 (17) commit to negotiate, before construction, a project labor 13 agreement; in this paragraph, "project labor agreement" means a comprehensive 14 collective bargaining agreement between the licensee or its agent and the appropriate 15 labor representatives to ensure expedited construction with labor stability for the 16 project by qualified residents of the state; 17 (18) commit that the state matching contribution received by a licensee 18 may not be included in the applicant's rate base, and shall be used as a credit against 19 licensee's cost of service; 20 (19) provide a detailed description of the applicant, the affiliates of the 21 applicant, all partners, members of a joint venture, and other entities participating with 22 the applicant in the application and the project proposed by the applicant, and persons 23 the applicant intends to involve in the construction and operation of the proposed 24 project; the description must include the nature of the affiliation for each person, the 25 commitments by the person to the applicant, and other information relevant to the 26 commissioners' evaluation of the readiness and ability of the applicant to complete the 27 project presented in the application; 28 (20) otherwise demonstrate that the applicant is ready and able to 29 perform the activities specified in the application, including the detailed work plan, 30 timeline, and associated budget. 31 Sec. 43.90.140. Initial application review; additional information requests; 01 complete applications. (a) The commissioners shall review each application 02 submitted under AS 43.90.120 to determine whether it is consistent with the terms of 03 the request for applications and meets the requirements of AS 43.90.130. The 04 commissioners shall reject any application that does not meet those terms and 05 requirements. 06 (b) To evaluate an application not rejected under (a) of this section, the 07 commissioners may request from an applicant additional information relating to the 08 application. 09 (c) If, within the time specified by the commissioners, an applicant fails to 10 provide the additional information requested under (b) of this section, or submits 11 additional information that is not responsive, the application will be rejected. 12 (d) For an application not rejected under (a) or (c) of this section, the 13 commissioners shall make a determination that the application, including any 14 requested additional information, is complete. 15 Sec. 43.90.150. Proprietary information and trade secrets. (a) At the 16 request of the applicant, information submitted by the licensee that the applicant 17 identifies and demonstrates is proprietary or is a trade secret is confidential and not 18 subject to public disclosure under AS 40.25, unless the applicant is granted a license 19 under this chapter. After a license is awarded, all information submitted by the 20 licensee and retained under this chapter shall be made public. 21 (b) If the commissioners determine that the information submitted by the 22 applicant is not proprietary or a trade secret, the commissioners shall notify the 23 applicant and return the information on request of the applicant. 24 (c) An applicant that challenges the award of a license or the process for 25 making the award shall be considered to have consented to the disclosure of all the 26 information submitted under this chapter by the applicant making the challenge, 27 including information held confidential under (a) of this section. 28 (d) In this section, "proprietary" means that the information is treated by the 29 applicant as confidential and the public disclosure of that information would adversely 30 affect the competitive position of the applicant or materially diminish the commercial 31 value of the information to the applicant. 01 Sec. 43.90.160. Notice, review, and comment. (a) The commissioners shall 02 publish notice and provide a 60-day period for public review and comment on all 03 applications determined complete under AS 43.90.140. 04 (b) Applications received under this chapter are not subject to public 05 disclosure under AS 40.25 until the commissioners publish notice under this section. 06 However, information that the commissioners have determined is confidential under 07 AS 43.90.150 may not be made public even after the notice is published under (a) of 08 this section, except as otherwise provided by AS 43.90.150. If information is held 09 confidential under AS 43.90.150, the applicant shall provide a summary of the 10 confidential information that is satisfactory to the commissioners, and the 11 commissioners shall make the summary of the information available to the public. 12 (c) Information provided by an applicant to the commissioners under this 13 chapter, including information determined by the commissioners to be confidential 14 under AS 43.90.150, shall be disclosed to the legislative auditor, the fiscal analyst who 15 serves as head of the legislative finance division, agents and contractors of the 16 legislative auditor and the fiscal analyst, and members of the legislature, on request 17 and after the individual making the request signs a confidentiality agreement prepared 18 by the commissioners. 19 Sec. 43.90.170. Application evaluation and ranking. (a) The commissioners 20 shall evaluate all applications determined to be complete under AS 43.90.140, 21 consider public comments received under AS 43.90.160(a), and rank each application 22 according to the net present value of the anticipated cash flow to the state from the 23 applicant's project proposal using the factors in (b) of this section and weighted by the 24 project's likelihood of success based on the commissioners' assessment of the factors 25 listed in (c) of this section. 26 (b) When evaluating the net present value of anticipated cash flow to the state 27 from the applicant's project proposal, the commissioners shall use an undiscounted 28 value and, at a minimum, discount rates of two, six, and eight percent, and consider 29 (1) how quickly the applicant proposes to begin construction of the 30 proposed project and how quickly the project will commence commercial operation; 31 (2) the net back value of the gas determined by the destination market 01 value of the gas and estimated transportation and treatment costs; 02 (3) the ability of the applicant to prevent or reduce project cost 03 overruns that would increase the tariff; 04 (4) the initial design capacity of the applicant's project and the extent 05 to which the design can accommodate low-cost expansion; and 06 (5) other factors found by the commissioners to be relevant to the 07 evaluation of the net present value of the anticipated cash flow to the state. 08 (c) When evaluating the project's likelihood of success, the commissioners 09 shall consider 10 (1) the reasonableness, specificity, and feasibility of the applicant's 11 work plan, timeline, and budget required to be submitted under AS 43.90.130, 12 including the applicant's plan to manage cost overruns, insulate shippers from the 13 effect of cost overruns, and encourage shippers to participate in the first binding open 14 season; 15 (2) the financial resources of the applicant; 16 (3) the ability of the applicant to comply with the proposed 17 performance schedule; 18 (4) the applicant's organization, experience, accounting and operational 19 controls, technical skills or the ability to obtain them, necessary equipment or the 20 ability to obtain the necessary equipment; 21 (5) the applicant's record of 22 (A) performance on projects not licensed under this chapter; 23 (B) integrity and good business ethics; and 24 (6) other evidence and factors found by the commissioners to be 25 relevant to the evaluation of the project's likelihood of success. 26 (d) In this section, "net present value" means the discounted value of a future 27 stream of cash flow. 28 Sec. 43.90.180. Notice to the legislature of intent to issue license; denial of 29 license. (a) If, after consideration of public comments received under AS 43.90.160 30 and evaluation of complete applications under AS 43.90.170, the commissioners 31 determine that an application proposes a project that would sufficiently maximize the 01 benefits to the people of this state and merits issuance of a license under this chapter, 02 the commissioners shall 03 (1) issue a determination, with written findings addressing the basis for 04 the determination; the determination becomes a final agency action in accordance with 05 AS 43.90.190; 06 (2) publish notice of intent to issue a license under this chapter with 07 written findings addressing the basis for the determination; and 08 (3) forward the notice under (2) of this subsection, along with the 09 findings, supporting documentation, and determination under (1) of this subsection, to 10 the presiding officer of each house of the legislature for action as provided in 11 AS 43.90.190. 12 (b) If, after evaluation of complete applications under AS 43.90.170, the 13 commissioners determine that no application sufficiently maximizes the benefits to the 14 people of this state and merits issuance of a license under this chapter, the 15 commissioners shall issue a written finding that addresses the basis for that 16 determination. 17 (c) The commissioners' determination under (b) of this section is a final 18 agency action. 19 Sec. 43.90.190. Legislative approval; issuance of license. (a) After the 20 presiding officer of each house of the legislature receives a determination from the 21 commissioners under AS 43.90.180, the rules committee of each house of the 22 legislature shall introduce a bill in the committee's respective chamber that provides 23 for the approval of the license proposed to be issued by the commissioners. 24 (b) If a bill approving the issuance of the license passes the legislature within 25 60 days after the last date a presiding officer receives a determination by the 26 commissioners under AS 43.90.180, the commissioners shall issue the license as soon 27 as practicable after the effective date of the Act approving the issuance of the license. 28 (c) Notwithstanding a legislative rule that prohibits the carryover of a bill after 29 the end of a special session or after the end of a regular session of a legislature, a bill 30 introduced under (a) of this section that is not passed or not withdrawn, defeated, 31 vetoed, or indefinitely postponed shall be carried over to any subsequent regular or 01 special legislative session convened during the 60-day period described in (b) of this 02 section in the same reading or status it was in at the time of adjournment. However, a 03 bill introduced under (a) of this section may not be carried over to the first regular 04 session of a legislature. 05 (d) If the legislature fails to approve the issuance of the license, the 06 commissioners 07 (1) may not issue the license that the legislature failed to approve; and 08 (2) may request new applications for a license under AS 43.90.120. 09 Sec. 43.90.200. Certification by regulatory authority and project sanction. 10 (a) A licensee that is awarded a certificate of public convenience and necessity for the 11 project by the Federal Energy Regulatory Commission if the project is engaged in 12 interstate commerce, or the Regulatory Commission of Alaska if the project is not 13 engaged in interstate commerce, shall accept the certificate when all rights of 14 administrative appeal relating to the certificate have expired. 15 (b) If the licensee has credit support sufficient to finance construction of the 16 project through ownership of rights to produce and market gas resources, firm 17 transportation commitments, or government financing, the licensee shall sanction the 18 project within one year after the effective date of the certificate of public convenience 19 and necessity issued by the Federal Energy Regulatory Commission or the Regulatory 20 Commission of Alaska, as applicable. 21 (c) If the licensee does not have credit support sufficient to finance 22 construction of the project through ownership of rights to produce and market gas 23 resources, firm transportation commitments, or government financing, the licensee 24 shall sanction the project within five years after the effective date of the certificate of 25 public convenience and necessity issued by the Federal Energy Regulatory 26 Commission or the Regulatory Commission of Alaska, as applicable. 27 (d) If the licensee fails to sanction the project timely as required under this 28 section, the licensee shall, upon request by the state, 29 (1) seek approval from the Federal Energy Regulatory Commission or 30 Regulatory Commission of Alaska, as appropriate, to abandon and transfer the 31 certificate to the state or the state's designee; and 01 (2) assign to the state's designee all engineering designs, contracts, 02 permits, and other data related to the project that are acquired by the licensee as of the 03 date of the abandonment or transfer. 04 (e) The transfer of any certificate or material as a result of failure to comply 05 with (a) or (b) of this section is at no cost to the state or the state's designee. A transfer 06 under (c) of this section is at the licensee's net cost. 07 (f) For purposes of this section, the effective date of the certificate of public 08 convenience and necessity issued by the Federal Energy Regulatory Commission or 09 the Regulatory Commission of Alaska is the date when all rights of administrative 10 appeal relating to the certificate have expired. 11 Sec. 43.90.210. Amendment of or modification to the project plan. Subject 12 to the approval of the commissioners, a licensee may amend or modify its project plan 13 if the amendments or modifications improve the net present value of the project to the 14 state, are necessary because of an order issued by the Alaska Oil and Gas 15 Conservation Commission, or are necessary as a result of changed circumstances 16 outside the licensee's control and not reasonably foreseeable before the license was 17 issued. An amendment or modification approved under this section must be consistent 18 with the requirements of AS 43.90.130 and, except for an amendment or modification 19 required because of an order issued by the Alaska Oil and Gas Conservation 20 Commission, may not diminish the net present value of the project to the state or the 21 project's likelihood of success. 22 Sec. 43.90.220. Records, reports, conditions, and audit requirements. (a) A 23 licensee shall maintain complete and accurate records of all expenditures and 24 commitments of state money received under this chapter, including receipts and 25 records showing the payment or cost of purchased items and services, the names and 26 addresses of the sellers and service providers, and the dates of service or delivery. 27 (b) Upon reasonable notice, the commissioners may audit the records, books, 28 and files of the entity receiving the state money or making the expenditures and 29 commitments of money received from the state under this chapter. 30 (c) The commissioners may do the following with respect to information 31 relating to the project: conduct hearings or other investigative inquiries; compel the 01 attendance of witnesses and production of documents; and require the licensee to 02 furnish information in paper copy or electronic format. 03 (d) After a license has been issued and until commencement of commercial 04 operations of a natural gas pipeline, the licensee shall allow the commissioners to have 05 a representative present at all meetings of the licensee's governing body and equity 06 holders that relate to the project, to receive all relevant notices and information sent to 07 the governing body and equity holders, to receive the same access to information 08 about the licensee as the governing body members and equity owners receive, and to 09 receive additional relevant reports or information from the licensee that the 10 commissioners reasonably request. 11 (e) A licensee shall maintain the records and reports required under this 12 section for seven years from the date the licensee receives state money under this 13 chapter. 14 Sec. 43.90.230. License violations; damages. (a) A licensee is in violation of 15 the license if the commissioners determine that the licensee has 16 (1) committed state money received under this chapter for purposes 17 other than those set out in AS 43.90.110(1); 18 (2) substantially departed from the specifications set out in the 19 application without state approval of a project plan amendment or modification under 20 AS 43.90.210; 21 (3) violated any provision of this chapter or any other provision of 22 state or federal law material to the license; or 23 (4) otherwise violated a material term of the license. 24 (b) The commissioners shall provide written notice to the licensee identifying 25 a license violation. The commissioners and the licensee have 90 days after the date the 26 notice is issued to resolve the violation informally. 27 (c) The commissioners may suspend disbursement of state matching 28 contributions to the licensee beginning on the date that the notice of violation issued 29 under (b) of this section is sent to the licensee. The commissioners may resume 30 disbursement on the date that the commissioners determine that the violation is cured. 31 (d) If the commissioners and the licensee are unable to resolve the violation 01 within the time specified in (b) of this section, the commissioners shall, after providing 02 the licensee with notice and opportunity to be heard, make a written determination 03 regarding the violation. The written determination made under this subsection is the 04 final agency action for purposes of appeal to the court under the Alaska Rules of 05 Appellate Procedure. 06 (e) If the determination issued under (d) of this section finds an unresolved 07 violation, the commissioners may impose one or more of the following remedies: 08 (1) discontinuation of state matching contributions under this chapter; 09 (2) recoupment of state money that the licensee has received under this 10 chapter to date, with interest, regardless of whether the licensee has expended or 11 committed that money; 12 (3) license revocation; 13 (4) assignment to the state or the state's designee of all engineering 14 designs, contracts, permits, and other data related to the project that are acquired by 15 the licensee during the term of the license; and 16 (5) any other remedies provided by law or in equity. 17 Sec. 43.90.240. Abandonment of project. (a) If the commissioners and the 18 licensee agree that the project is uneconomic and should be abandoned, inducement 19 provided for in AS 43.90.110 terminates, and, except for requirements imposed on the 20 licensee under (f) of this section and AS 43.90.220, the state and the licensee no 21 longer have any obligations under this chapter with respect to the license. 22 (b) If the commissioners and the licensee do not agree that the project is 23 uneconomic, the disagreement shall be settled by arbitration administered by the 24 American Arbitration Association under the substantive and procedural laws of this 25 state, and judgment on the award rendered by the arbitrators may be entered in 26 superior court in the state. In the event of arbitration, each party shall select an 27 arbitrator from the American Arbitration Association's National Roster, and the two 28 arbitrators shall appoint a third arbitrator from the American Arbitration Association's 29 National Roster who shall serve as the chair of the three-member arbitration panel. If 30 the arbitration panel determines that the project is 31 (1) uneconomic, the state and the licensee no longer have any 01 obligations under this chapter with respect to the license, except for requirements 02 imposed on the licensee under (f) of this section and AS 43.90.220; 03 (2) not uneconomic, the obligations of the licensee and the state 04 continue as provided under this chapter and the license. 05 (c) The arbitration panel in (b) of this section shall make a determination that 06 the project is uneconomic only if the panel finds that the party claiming the project is 07 uneconomic has proven by a preponderance of the evidence that the 08 (1) project does not have credit support sufficient to finance 09 construction of the project through firm transportation commitments, government 10 assistance, or other sources of financing; and 11 (2) predicted costs of transportation at a 100 percent load factor, when 12 deducted from predicted gas sales revenue using publicly available predictions of 13 future gas prices, would result in a producer rate of return that is below the rate 14 typically accepted by a prudent oil and gas exploration and production company for 15 incremental upstream investment that is required to produce and deliver gas to the 16 project. 17 (d) In an appeal of a final determination rendered by the arbitrators under (b) 18 of this section, the person making the appeal has the burden of proof. 19 (e) If the state makes a payment to the licensee under AS 43.90.440, the 20 license is considered abandoned, and the state and the licensee no longer have any 21 obligations under this chapter with respect to the license, except that the licensee must 22 comply with the 23 (1) requirements imposed on the licensee under AS 43.90.220 24 regarding state money received by the licensee before the license was considered 25 abandoned; and 26 (2) requirements of AS 43.90.440. 27 (f) If the licensee and the state agree or an arbitration panel makes a final 28 determination that the project is uneconomic, the licensee shall assign to the state or 29 the state's designee all engineering designs, contracts, permits, and other data related 30 to the project that are acquired by the licensee during the term of the license upon 31 reimbursement by the state of the net amount of expenditures incurred and paid by the 01 licensee that are qualified expenditures for the purposes of AS 43.90.110. 02 Sec. 43.90.250. Alaska Gasline Inducement Act coordinator. (a) There is 03 created in the Office of the Governor the position of Alaska Gasline Inducement Act 04 coordinator. Administrative support for the position shall be provided by the Office of 05 the Governor. The position shall continue until one year after commencement of 06 commercial operations of the project. 07 (b) The governor shall appoint a person to the position of Alaska Gasline 08 Inducement Act coordinator. The individual serving as the Alaska Gasline Inducement 09 Act coordinator may be removed from the position at the discretion of the governor. 10 Sec. 43.90.260. Expedited review and action by state agencies. (a) All 11 reviews conducted and actions taken by a state agency relating to a project shall be 12 expedited in a manner consistent with the completion of the necessary approvals in 13 accordance with this chapter. 14 (b) Notwithstanding any contrary provision of law, a state agency may not 15 include in any project certificate, right-of-way, permit, or other authorization issued to 16 the licensee any term or condition that is not required by law if the Alaska Gasline 17 Inducement Act coordinator determines that the term or condition would prevent or 18 impair in any significant respect the expeditious construction and operation or 19 expansion of the project. 20 (c) Unless required by law, a state agency may not add to, amend, or abrogate 21 any certificate, right-of-way, permit, or other authorization issued to a licensee if the 22 Alaska Gasline Inducement Act coordinator determines that the action would prevent 23 or impair in any significant respect the expeditious construction, operation, or 24 expansion of the project. 25 Article 3. Resource Inducement. 26 Sec. 43.90.300. Qualification for resource inducement. (a) Notwithstanding 27 any contrary provision of law, a lessee or other person that demonstrates to the 28 commissioners' satisfaction that the person has committed to acquire firm 29 transportation capacity in the first binding open season of the project is qualified to 30 receive the resource inducement set out in AS 43.90.310 and 43.90.320 for the gas 31 shipped in firm transportation capacity acquired in the first binding open season of the 01 project. The inducement in AS 43.90.310 is contractual. 02 (b) A gas producer receiving a voucher under AS 43.90.330 is qualified to 03 receive the resource inducement in AS 43.90.310 and 43.90.320 for the gas shipped in 04 the firm transportation capacity described in the voucher for the period described in 05 AS 43.90.330. 06 Sec. 43.90.310. Royalty inducement. (a) Before the beginning of the first 07 binding open season to be conducted by the licensee, the commissioner of natural 08 resources shall adopt regulations to establish a method to determine the monthly value 09 of the state's royalty share of gas production and establish terms under which the state 10 will exercise its right to switch between taking its royalty in value or in kind for gas 11 committed for firm transportation in the first binding open season of the project or 12 shipped in the firm transportation capacity described in a voucher received by the gas 13 producer under AS 43.90.330. The regulations must 14 (1) minimize retroactive adjustments to the monthly value of the state's 15 royalty share of gas production; 16 (2) contain provisions to establish a fair market value for each 17 component of the state's royalty gas that are based on pricing data from reliable and 18 widely available industry trade publications and use appropriate adjustments to reflect 19 (A) deductions for actual and reasonable transportation costs 20 for the state's royalty gas, including a fair share of the costs associated with 21 unused capacity commitments on pipelines from the North Slope of this state 22 to the first destination market with reasonable market liquidity; 23 (B) location differentials between the destination markets 24 where North Slope gas could be sold; 25 (C) reasonable and actual costs for gas processing; and 26 (D) deductions permitted under the 1980 Royalty Settlement 27 Agreement for Prudhoe Bay gas; and 28 (3) establish terms under which the state will exercise its authority to 29 switch between taking its royalty gas in value and in kind to ensure that the state's 30 actions do not unreasonably 31 (A) cause the lessee or other person to bear disproportionate 01 transportation costs with respect to the state's royalty gas; 02 (B) interfere with the lessee's or other person's long-term 03 marketing of its production. 04 (b) If a lessee or other person qualified for resource inducement under 05 AS 43.90.300 agrees under (c) of this section, the lessee or other person is entitled to 06 elect 07 (1) to calculate its gas royalty obligation under the regulations adopted 08 under (a) of this section for natural gas transported on a firm contract negotiated 09 during the project's first binding open season or under the methodology set out in the 10 existing leases from which the gas is produced, and 11 (A) upon the request of the lessee, the commissioner of natural 12 resources shall contractually amend the existing lease to reflect the election 13 under this paragraph and incorporate into the lease, the terms of the relevant 14 regulations as fixed contract terms; and 15 (B) the election under this subsection remains in effect until 16 new regulations are adopted as a result of a review under (d) of this section, at 17 which time, a lessee or other person qualified under AS 43.90.300 may change 18 its election under this paragraph; upon the request of the lessee, the 19 commissioner of natural resources shall contractually amend the lease to 20 incorporate as fixed contract terms the relevant revised regulatory provisions; 21 (2) to enter a contract with the state that amends the existing lease 22 terms by extending the required period of notice that the state must provide before 23 exercising the state's right to switch between taking its royalty in value or in kind for 24 gas committed for firm transportation in the first binding open season of the project. 25 (c) To claim the inducement under (b) of this section, a lessee or other 26 qualified person shall agree, on an application form provided by the Department of 27 Natural Resources, that the lessee or person, and the lessee's or person's affiliates, 28 successors, assigns, and agents, will not protest or appeal a filing by the licensee to 29 roll in expansion costs of the mainline up to a level that is required in 30 AS 43.90.130(7). The agreement not to protest may not preclude the lessee or other 31 qualified person, or the lessee's or other person's affiliates, successors, assigns, and 01 agents from protesting a filing to roll in mainline expansion costs that licensee is not 02 required to propose and support under AS 43.90.130(7). 03 (d) The commissioner of natural resources shall provide for review of the 04 regulations adopted under (a) of this section at least every two years after the 05 commencement of commercial operations of the project to determine whether the 06 regulations continue to meet the requirements of (a)(1) of this section under current 07 conditions, and shall amend the regulations when the requirements are not being met. 08 (e) No provision of this chapter precludes the election set out in (b) of this 09 section, nor may the commissioner of natural resources assert any provision of any 10 existing lease or unit agreement as precluding the elections set out in (b) of this 11 section. 12 Sec. 43.90.320. Gas production tax exemption. (a) If a person qualified for 13 resource inducement under AS 43.90.300 agrees under (c) of this section, the person is 14 entitled to an annual exemption from the state's gas production tax in an amount equal 15 to the difference between the amount of the person's gas production tax obligation 16 calculated under the gas production tax in effect during that tax year and the amount of 17 the person's gas production tax obligation calculated under the gas production tax in 18 effect at the start of the first binding open season held under this chapter. If the 19 difference is less than zero, the gas production tax exemption is zero. 20 (b) The exemption under this section may be applied only within 10 years 21 immediately following commencement of commercial operations of the project and 22 only applied to production taxes that are levied on North Slope gas shipped through 23 firm transportation capacity the person acquired during the first binding open season 24 or shipped in the firm transportation capacity described in a voucher received by the 25 gas producer under AS 43.90.330. 26 (c) The person claiming the exemption under this section shall agree that the 27 person, and the person's affiliates, successors, assigns, and agents, will not protest or 28 appeal a filing by the licensee to roll in mainline expansion costs up to the level that 29 the licensee is required to propose and support under AS 43.90.130(7). The agreement 30 required under this subsection may not preclude the person, or the person's affiliates, 31 successors, assigns, and agents, from protesting a filing to roll in mainline expansion 01 costs that the licensee is not required to propose and support under AS 43.90.130(7). 02 Sec. 43.90.330. Inducement vouchers. (a) A person that acquires firm 03 transportation capacity in the first binding open season of the project, that does not 04 hold an oil and gas lease on the North Slope, and that is not an affiliate of a person that 05 holds an oil and gas lease on the North Slope, may apply to the commissioners for a 06 voucher under this section. A voucher issued by the commissioners must describe the 07 firm transportation capacity in the project to which the voucher is applicable. 08 (b) A voucher issued by the commissioners under this section entitles the 09 holder of the voucher to the resource inducements in AS 43.90.310 and 43.90.320 for 10 gas shipped in the firm transportation capacity acquired by the person applying for the 11 voucher during the first binding open season of the project and described in the 12 voucher. The voucher may be transferred to a gas producer that has a binding 13 obligation to sell gas to the person transferring the voucher under a gas purchase 14 agreement. 15 (c) A gas producer holding a voucher may claim the resource inducements for 16 gas shipped through the firm transportation capacity described in the voucher and only 17 on gas that is produced and delivered to the purchaser on the North Slope. A gas 18 producer may claim the resource inducements under this subsection until the earlier of 19 the termination of the binding gas purchase agreement or the expiration of the 20 inducements by operation of law. 21 Article 4. Miscellaneous Provisions. 22 Sec. 43.90.400. Alaska Gasline Inducement Act matching contribution 23 fund; disbursements; audits. (a) There is established in the general fund an Alaska 24 Gasline Inducement Act matching contribution fund. The fund consists of money 25 appropriated to it by the legislature for disbursement to pay the state's matching 26 contributions under AS 43.90.110. Appropriations to the fund do not lapse under 27 AS 37.25.010, but remain in the fund for future disbursements. 28 (b) The Department of Revenue shall manage the fund, and may invest money 29 in the fund so as to yield competitive market rates as provided in AS 37.10.071. 30 Interest received on money in the fund shall be accounted for separately and may be 31 appropriated to the fund annually. 01 (c) The commissioners shall adopt regulations that provide for application to 02 receive matching contributions for qualified expenditures as provided under 03 AS 43.90.110, and that provide for periodic audits of the use of money disbursed as 04 matching contributions under this chapter. 05 (d) Within 10 days after the convening of each regular session of the 06 legislature, the commissioners shall submit to the legislature a report that lists all the 07 disbursements from the fund in the preceding year with a written justification of each 08 disbursement and the projected amount of money that will be needed for matching 09 contributions in each of the next three fiscal years. 10 Sec. 43.90.410. Regulations. The commissioners may jointly adopt 11 regulations for the purpose of implementing the provisions of this chapter. The 12 commissioner of revenue may change regulations adopted under existing authority in 13 this title as necessary to implement the provisions of this chapter. The commissioner 14 of natural resources may change regulations adopted under existing authority in AS 38 15 as necessary to implement the provisions of this chapter. 16 Sec. 43.90.420. Statute of limitations. A person may not bring a judicial 17 action challenging the constitutionality of this chapter or a license issued under this 18 chapter unless the action is commenced in a court of the state of competent 19 jurisdiction within 90 days after the date that a license was issued. 20 Sec. 43.90.430. Interest. When a payment due to the state under this chapter 21 becomes delinquent, the payment bears interest in a calendar quarter at the annual rate 22 of five percentage points above the annual rate charged member banks for advances by 23 the 12th Federal Reserve District as of the first day of that calendar quarter, or at the 24 annual rate of 11 percent, whichever is greater, compounded quarterly as of the last 25 day of that quarter. 26 Sec. 43.90.440. Licensed project assurances. (a) Except as otherwise 27 provided in this chapter, the state grants a licensee assurances that the licensee has 28 exclusive enjoyment of the inducements provided under this chapter before the 29 commencement of commercial operation of the project. If, before the commencement 30 of commercial operation of the project, the state extends to another person preferential 31 royalty or tax treatment or grant of state money for the purpose of facilitating the 01 construction of a competing natural gas pipeline project in this state, and if the 02 licensee is in compliance with the requirements of the license and with the 03 requirements of state and federal statutes and regulations relevant to the project, the 04 licensee is entitled to payment from the state of an amount equal to three times the 05 total amount of the expenditures incurred and paid by the licensee that are qualified 06 expenditures for the purposes of AS 43.90.110 that the licensee incurred in developing 07 the licensee's project before the date that the state first extended preferential treatment 08 to another person. The payment to the licensee under this subsection is subject to 09 appropriation. Upon payment by the state of the amount owed under this section, the 10 licensee shall, at no cost to the state, assign to the state or the state's designee all 11 engineering designs, contracts, permits, and other data related to the project that are 12 acquired by the licensee during the term of the license. 13 (b) In this section, 14 (1) "competing natural gas pipeline project" means a project designed 15 to accommodate throughput of more than 500,000,000 cubic feet a day of North Slope 16 gas to market; 17 (2) "preferential royalty or tax treatment" does not include 18 (A) the state's exercise of its right to resolve disputes involving 19 royalties and taxes; 20 (B) the state's exercise of its right to modify royalties as 21 authorized by law in effect on the effective date of this section; or 22 (C) the benefits of a large project permit coordinator authorized 23 by a law in effect on the effective date of this section. 24 Sec. 43.90.450. Assignments. (a) A licensee may transfer all or part of the 25 license, including the rights and obligations arising under the license, if, after 26 publishing notice of the proposed transfer, providing notice to the presiding officer of 27 each house of the legislature, and providing a period of not less than 30 days for public 28 review and comment, 29 (1) the transfer is approved in writing in advance by the 30 commissioners; and 31 (2) the transfer does not increase or diminish the obligations created by 01 the license or diminish the likelihood of success of the project or the net present value 02 of the license to the state. 03 (b) Notwithstanding the commissioners' approval of a transfer of all or part of 04 a license under (a) of this section, the transferor of the license remains subject to the 05 requirements of AS 43.90.220 regarding all state money received by the licensee 06 before the effective date of the transfer. 07 (c) A person may transfer that person's rights to the royalty inducement under 08 AS 43.90.310 and the gas production tax exemption under AS 43.90.320 only in 09 connection with a sale or merger that results in transfer of all the person's assets in the 10 North Slope of this state, including the firm transportation capacity contracts in the 11 project. 12 (d) Except for the transfer of a voucher to a producer under AS 43.90.330(b), 13 a person receiving a voucher under AS 43.90.330 based on the person's acquisition of 14 firm transportation capacity in the first binding open season of the project may transfer 15 the voucher only if the transfer is in connection with the permanent assignment by the 16 person of 100 percent of the firm transportation capacity acquired in the first binding 17 open season of the project. 18 Sec. 43.90.460. Conflicting laws. Nothing in this chapter shall be construed to 19 repeal or abrogate the administrative, regulatory, or statutory procedures and functions 20 of state and federal law governing the development and oversight of a project. 21 Sec. 43.90.470. State pipeline employment development. The commissioner 22 of labor and workforce development shall develop a job training program that will 23 provide training for Alaskans in gas pipeline project management, construction, 24 operations, maintenance, and other gas pipeline-related positions. 25 Article 5. General Provisions. 26 Sec. 43.90.900. Definitions. In this chapter, unless the context otherwise 27 requires, 28 (1) "affiliate" means another person that controls, is controlled by, or is 29 under common control with a person; "affiliate" includes a division that operates as a 30 functional unit; 31 (2) "Alaska Gasline Inducement Act coordinator" means the person 01 appointed under AS 43.90.250; 02 (3) "commencement of commercial operations" means the first flow of 03 gas in the project that generates revenue to the owners; 04 (4) "commissioners" means the commissioner of revenue and the 05 commissioner of natural resources, acting jointly; 06 (5) "control" means the possession of ownership interest or authority 07 sufficient to, directly or indirectly, and whether acting alone or in conjunction with 08 others, direct or cause the direction of the management or policies of a company, and 09 is rebuttably presumed if the voting interest held is 10 percent or more; 10 (6) "equity holder" means the 11 (A) stockholders of a corporation; 12 (B) members of a limited liability company; 13 (C) partners of a partnership; 14 (D) joint venturers of a joint venture; 15 (E) members of a governmental authority and similar persons; 16 or 17 (F) holders of any other entity or person; 18 (7) "gas processing" means post-production treatment of gas to extract 19 natural gas liquids; 20 (8) "governing body" means a corporation's board of directors, a 21 limited liability company's managing members, a partnership's general partners, a joint 22 venturer's joint venturers, a governmental authority's board or council members, and 23 similar entities; 24 (9) "lease" means an oil and gas, or gas, lease issued by this state; 25 (10) "lessee" means a person that holds a working interest in an oil and 26 gas, or gas, lease issued by this state; 27 (11) "license" means a license issued under this chapter; 28 (12) "licensee" means the holder of a license issued under this chapter 29 and all affiliates, successors, assigns, and agents of the holder; 30 (13) "North Slope" means the area of Alaska north of 68 degrees North 31 latitude; 01 (14) "project" means a natural gas pipeline project authorized under a 02 license issued under this chapter; 03 (15) "recourse rates" means cost-based rates with a minimum and 04 maximum range that are approved by the Federal Energy Regulatory Commission, the 05 Regulatory Commission of Alaska, or the National Energy Board of Canada, as 06 appropriate, and set out in the pipeline's tariff; "recourse rates" includes only those 07 rates that the pipeline must make available to all shippers; 08 (16) "sanction" means financial commitments to go forward with the 09 project as evidenced by entering into financial commitments of at least 10 $1,000,000,000 with third parties; 11 (17) "under common control with" has the meaning given "control" in 12 this section; 13 (18) "unit agreement" means an agreement executed by the working 14 interest owners and royalty owners creating the unit. 15 Sec. 43.90.990. Short title. This chapter may be cited as the Alaska Gasline 16 Inducement Act. 17 * Sec. 2. AS 36.30.850(b) is amended by adding a new paragraph to read: 18 (45) contracts for an arbitration panel to determine whether a project is 19 uneconomic under AS 43.90.240, and contracts for the development of application 20 provisions for licensure and for the evaluation of those applications under AS 43.90. 21 * Sec. 3. AS 39.25.110 is amended by adding a new paragraph to read: 22 (41) the Alaska Gasline Inducement Act coordinator appointed under 23 AS 43.90.250. 24 * Sec. 4. AS 40.25.120(a) is amended to read: 25 (a) Every person has a right to inspect a public record in the state, including 26 public records in recorders' offices, except 27 (1) records of vital statistics and adoption proceedings, which shall be 28 treated in the manner required by AS 18.50; 29 (2) records pertaining to juveniles unless disclosure is authorized by 30 law; 31 (3) medical and related public health records; 01 (4) records required to be kept confidential by a federal law or 02 regulation or by state law; 03 (5) to the extent the records are required to be kept confidential under 04 20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure 05 or retain federal assistance; 06 (6) records or information compiled for law enforcement purposes, but 07 only to the extent that the production of the law enforcement records or information 08 (A) could reasonably be expected to interfere with enforcement 09 proceedings; 10 (B) would deprive a person of a right to a fair trial or an 11 impartial adjudication; 12 (C) could reasonably be expected to constitute an unwarranted 13 invasion of the personal privacy of a suspect, defendant, victim, or witness; 14 (D) could reasonably be expected to disclose the identity of a 15 confidential source; 16 (E) would disclose confidential techniques and procedures for 17 law enforcement investigations or prosecutions; 18 (F) would disclose guidelines for law enforcement 19 investigations or prosecutions if the disclosure could reasonably be expected to 20 risk circumvention of the law; or 21 (G) could reasonably be expected to endanger the life or 22 physical safety of an individual; 23 (7) names, addresses, and other information identifying a person as a 24 participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the 25 advance college tuition savings program under AS 14.40.803 - 14.40.817; 26 (8) public records containing information that would disclose or might 27 lead to the disclosure of a component in the process used to execute or adopt an 28 electronic signature if the disclosure would or might cause the electronic signature to 29 cease being under the sole control of the person using it; 30 (9) reports submitted under AS 05.25.030 concerning certain 31 collisions, accidents, or other casualties involving boats; 01 (10) records or information pertaining to a plan, program, or 02 procedures for establishing, maintaining, or restoring security in the state, or to a 03 detailed description or evaluation of systems, facilities, or infrastructure in the state, 04 but only to the extent that the production of the records or information 05 (A) could reasonably be expected to interfere with the 06 implementation or enforcement of the security plan, program, or procedures; 07 (B) would disclose confidential guidelines for investigations or 08 enforcement and the disclosure could reasonably be expected to risk 09 circumvention of the law; or 10 (C) could reasonably be expected to endanger the life or 11 physical safety of an individual or to present a real and substantial risk to the 12 public health and welfare; 13 (11) the written notification regarding a proposed regulation provided 14 under AS 24.20.105 to the Department of Law and the affected state agency and 15 communications between the Legislative Affairs Agency, the Department of Law, and 16 the affected state agency under AS 24.20.105; 17 (12) records that are 18 (A) proprietary or a trade secret in accordance with 19 AS 43.90.150; 20 (B) applications that are received under AS 43.90 until 21 notice is published under AS 43.90.160. 22 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 FIRST REQUEST FOR APPLICATIONS FOR THE LICENSE. It is the intent of the 25 legislature that the first request for applications for the license by the commissioners under 26 AS 43.90.120 as enacted in sec. 1 of this Act be issued within 90 days after the effective date 27 of this Act. 28 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 EXPEDITED CONSIDERATION OF COURT CASES. It is the intent of the 31 legislature that the courts of the state, when considering a case related to the development and 01 construction of a natural gas pipeline under this Act or to the commitment of a shipper to 02 acquire firm transportation capacity during the first binding open season for a project 03 developed under this Act, expedite the resolution of the case by giving the case priority over 04 all other civil cases to the extent permitted under the Alaska Rules of Court. 05 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 SEVERABILITY. Under AS 01.10.030, if any provision of this Act, or the application 08 of it to any person or circumstance, is held invalid, the remainder of this Act and the 09 application to other persons or circumstances are not affected. 10 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).