00 CS FOR HOUSE BILL NO. 9(FIN) am 01 "An Act relating to the Alaska Gasline Development Corporation, a subsidiary created 02 by the Alaska Housing Finance Corporation; establishing and relating to the in-state 03 natural gas pipeline fund; making certain information provided to or by the Alaska 04 Gasline Development Corporation exempt from inspection as a public record; relating 05 to the Joint In-State Gasline Development Team; relating to the judicial review of a 06 right-of-way lease or an action or decision related to the development or construction of 07 an oil or gas pipeline on state land; relating to the lease of a right-of-way by the Alaska 08 Gasline Development Corporation or a successor in interest for a gas pipeline 09 transportation corridor; relating to the cost of natural resources, permits, and leases 10 provided to the Alaska Gasline Development Corporation; relating to the review of 11 natural gas transportation contracts by the Regulatory Commission of Alaska; relating 12 to the regulation by the Regulatory Commission of Alaska of an in-state gas pipeline 01 project developed by the Alaska Gasline Development Corporation; relating to the 02 regulation by the Regulatory Commission of Alaska of an in-state natural gas pipeline 03 that is expressly authorized to provide transportation as a contract carrier; relating to 04 the Alaska Natural Gas Development Authority; relating to the procurement of certain 05 services by the Alaska Natural Gas Development Authority; exempting property of a 06 project developed by the Alaska Gasline Development Corporation from property taxes 07 before the commencement of commercial operations; and providing for an effective 08 date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 11 to read: 12 LEGISLATIVE FINDINGS AND INTENT. It is the intent of the legislature that 13 (1) passage of this Act constitutes a finding of public convenience and 14 necessity for an in-state natural gas pipeline developed by the Alaska Gasline Development 15 Corporation; 16 (2) the development of a natural gas pipeline by the Alaska Gasline 17 Development Corporation is in the best interest of the state; 18 (3) it is the policy of the state to make the state's share of royalty natural gas 19 available for shipment in an in-state natural gas pipeline developed by the Alaska Gasline 20 Development Corporation; 21 (4) to the maximum extent permitted by law, in developing a natural gas 22 pipeline, the Alaska Gasline Development Corporation shall procure services, labor, products, 23 and natural resources from qualified businesses located in the state, including organizations 24 owned by Alaska Natives and municipal organizations directly affected by the project, if 25 those persons are competitive; and 26 (5) the Alaska Gasline Development Corporation shall, to the maximum 27 extent permitted by law, 28 (A) hire qualified residents from throughout the state for management, 01 engineering, construction, operations, maintenance, and other positions for a natural 02 gas pipeline project; 03 (B) establish hiring facilities in the state or use existing hiring facilities 04 in the state; and 05 (C) use, as far as practicable, the job centers and associated services 06 operated by the Department of Labor and Workforce Development and an Internet- 07 based labor exchange system operated by the state. 08 * Sec. 2. AS 18.56 is amended by adding a new section to read: 09 Sec. 18.56.087. Alaska Gasline Development Corporation. (a) The Alaska 10 Gasline Development Corporation, a subsidiary created under AS 18.56.086, shall 11 have all powers granted to it by the corporation. The Alaska Gasline Development 12 Corporation shall, to the fullest extent possible, 13 (1) advance an in-state natural gas pipeline as described in the July 1, 14 2011, project plan prepared under AS 38.34.040 by the Alaska Gasline Development 15 Corporation and the Joint In-State Gasline Development Team, with modifications 16 determined by the Alaska Gasline Development Corporation to be necessary to 17 construct and operate an in-state natural gas pipeline in a safe and economic manner; 18 (2) construct, own, operate, manage, or participate in natural gas 19 pipelines and associated facilities and operations for the purpose of making natural gas 20 available to Fairbanks, the Southcentral region of the state, and other communities in 21 the state at the lowest rate possible for a natural gas pipeline that operates in a manner 22 consistent with safe and prudent standards; 23 (3) endeavor to develop natural gas pipelines to deliver natural gas to 24 public utility and industrial customers in areas of the state to which the natural gas 25 may be delivered at commercially reasonable rates; and 26 (4) endeavor to develop natural gas pipelines to provide shippers 27 access to natural gas produced in the state for transport at commercially reasonable 28 rates. 29 (b) In addition to the powers granted to it by the corporation, the Alaska 30 Gasline Development Corporation may 31 (1) determine the form of ownership and the operating structure of an 01 in-state natural gas pipeline developed by the Alaska Gasline Development 02 Corporation and may enter into agreements with other persons for joint ownership or 03 operation or both of the in-state natural gas pipeline; 04 (2) exercise the power of eminent domain or file a declaration of 05 taking under AS 09.55.240 - 09.55.460 to acquire land or an interest in land that is 06 necessary for an in-state natural gas pipeline; the exercise of powers by the Alaska 07 Gasline Development Corporation under this paragraph may not exceed the 08 permissible exercise of the powers by the state; 09 (3) acquire, by purchase, lease, or gift, land, structures, real or personal 10 property, an interest in property, a right-of-way, a franchise, an easement, other 11 interest in land, or an interest in or right to capacity in any pipeline system determined 12 to be necessary or convenient for the development, financing, construction, or 13 operation of an in-state natural gas pipeline project or part of an in-state natural gas 14 pipeline project; 15 (4) transfer or otherwise dispose of all or part of an in-state natural gas 16 pipeline project developed by the Alaska Gasline Development Corporation or transfer 17 or otherwise dispose of an interest in an asset of the Alaska Gasline Development 18 Corporation; and 19 (5) provide transportation of natural gas by contract carriage. 20 (c) Upon commencement of construction of an in-state natural gas pipeline, 21 the Alaska Gasline Development Corporation shall analyze additional natural gas 22 pipelines connecting to industrial, residential, or utility customers in other regions of 23 the state. If the Alaska Gasline Development Corporation finds that a natural gas 24 pipeline analyzed under this subsection is in the best interest of the state and can meet 25 the needs of industrial, residential, or utility customers at commercially reasonable 26 rates, the Alaska Gasline Development Corporation shall finance, construct, or operate 27 the natural gas pipeline as necessary, subject to appropriation. When developing or 28 constructing an additional natural gas pipeline, the Alaska Gasline Development 29 Corporation shall, to the maximum extent feasible, use existing land, structures, real or 30 personal property, rights-of-way, easements, or other interests in land acquired by the 31 Alaska Gasline Development Corporation or the Alaska Natural Gas Development 01 Authority. 02 (d) The Alaska Gasline Development Corporation may issue bonds and notes 03 and otherwise incur indebtedness in order to carry out and accomplish its purposes. 04 The provisions of AS 18.56.110(a) - (f) and 18.56.115 - 18.56.190 apply to the Alaska 05 Gasline Development Corporation in the exercise of its powers under this subsection, 06 except that, in AS 18.56.110 - 18.56.190, as applicable under this subsection, the term 07 "corporation" shall mean the Alaska Gasline Development Corporation. The Alaska 08 Gasline Development Corporation may issue bonds and notes and otherwise incur 09 indebtedness under this subsection without limit as to principal amount. The bonds, 10 notes, and other indebtedness of the Alaska Gasline Development Corporation do not 11 create an obligation or liability of the corporation except to the extent that the 12 corporation agrees in writing to accept the obligation or liability. 13 (e) No debt, obligation, or liability of the Alaska Gasline Development 14 Corporation shall become a debt, obligation, or liability of the state or any part or 15 subdivision of the state or of the corporation or a subsidiary corporation of the 16 corporation other than the Alaska Gasline Development Corporation, except as 17 provided in this subsection. This subsection applies to all debt, obligations, and 18 liabilities of the Alaska Gasline Development Corporation regardless of how the debt, 19 obligations, or liabilities are created, including by contract, tort, or bond or note 20 issuance. Except as provided in this subsection, a person may not bring suit against the 21 state or any part or subdivision of the state or against the corporation or a subsidiary 22 corporation of the corporation other than the Alaska Gasline Development 23 Corporation in the courts of the state to enforce or seek a remedy with respect to a 24 debt, obligation, or liability of the Alaska Gasline Development Corporation. The 25 corporation may waive, in whole or in part, the application of the provisions of this 26 subsection to the corporation with respect to a debt, obligation, or liability of the 27 Alaska Gasline Development Corporation. To be effective, a waiver by the 28 corporation must be in writing and shall only have effect to the extent provided in the 29 writing. 30 (f) In the exercise of its powers under (d) and (e) of this section, the Alaska 31 Gasline Development Corporation may not pledge the faith and credit of the state or a 01 political subdivision of the state other than the Alaska Gasline Development 02 Corporation to the repayment of the principal of or interest on any bonds issued by the 03 Alaska Gasline Development Corporation. 04 (g) The in-state natural gas pipeline fund is established in the Alaska Gasline 05 Development Corporation and consists of money appropriated to it. Unless otherwise 06 provided by law, money appropriated to the fund lapses into the general fund on the 07 day this subsection is repealed. The Alaska Gasline Development Corporation shall 08 manage and invest the fund to yield competitive market rates. The Alaska Gasline 09 Development Corporation shall invest money in the fund in the same manner and on 10 the same conditions as permitted for investment by the commissioner of revenue of 11 funds belonging to the state or held in the treasury under AS 37.10.070 and as 12 provided for fiduciaries of state funds under AS 37.10.071. Interest and other income 13 received on money in the fund shall be separately accounted for and may be 14 appropriated to the fund. The Alaska Gasline Development Corporation may use 15 money appropriated to the fund for the planning, designing, financing, development, 16 construction, and operation of an in-state natural gas pipeline. 17 (h) An executed pipeline operating agreement between the Alaska Gasline 18 Development Corporation and the operator of the pipeline developed by the Alaska 19 Gasline Development Corporation shall be disclosed to the public to the extent the 20 disclosure would not divulge trade secrets or other proprietary business information of 21 the Alaska Gasline Development Corporation or the operator. 22 (i) If commitments to acquire firm transportation capacity are received in an 23 open season conducted by the Alaska Gasline Development Corporation, the Alaska 24 Gasline Development Corporation shall, within 10 days after executing the 25 commitments, report the results of the open season to the president of the senate and 26 the speaker of the house of representatives and inform the public of the results of the 27 open season through publication on the Internet website of the Alaska Gasline 28 Development Corporation and in a press release or other announcement to the media. 29 The results made public must include the name of each prospective shipper, the 30 amount of capacity allocated, and the period of the commitment. 31 (j) In this section, "in-state natural gas pipeline" and "natural gas pipeline" 01 have the meanings given in AS 38.34.099. 02 * Sec. 3. AS 36.30.850(b) is amended by adding a new paragraph to read: 03 (49) contracts by the Alaska Natural Gas Development Authority 04 under AS 41.41.070(d). 05 * Sec. 4. AS 38.34.050(a) is amended to read: 06 (a) The Alaska Gasline Development Corporation [JOINT IN-STATE 07 GASLINE DEVELOPMENT TEAM] may have access to information of all state 08 agencies that is directly related to the planning, design, construction, or operation of 09 the in-state natural gas pipeline. If a state agency finds that the information to be 10 transferred under this subsection is confidential, the state agency may require the 11 Alaska Gasline Development Corporation to enter into a confidentiality 12 agreement under (e) of this section before the transfer of that information, or, if 13 the state agency determines that a law or provision of a contract to which the 14 state agency is a party requires the state agency to preserve the confidentiality of 15 the information and that delivering the information to the Alaska Gasline 16 Development Corporation would violate the confidentiality provision of that law 17 or contract, the state agency shall identify the applicable law or contract 18 provision to the Alaska Gasline Development Corporation and may require the 19 Alaska Gasline Development Corporation to obtain the consent of the person 20 who has the right to waive the confidentiality of the information under the 21 applicable law or contract provision before the state agency transfers the 22 information to the Alaska Gasline Development Corporation. 23 * Sec. 5. AS 38.34.050(b) is amended to read: 24 (b) All state agencies or entities shall cooperate with and, except for requests 25 from the Alaska Gasline Inducement Act coordinator (AS 43.90.250), give priority to 26 requests for information from the Alaska Gasline Development Corporation 27 [JOINT IN-STATE GASLINE DEVELOPMENT TEAM]. The Alaska Gasline 28 Development Corporation [DEVELOPMENT TEAM] shall avoid duplicating 29 studies, plans, and designs that have already been produced or otherwise obtained by 30 other state entities. 31 * Sec. 6. AS 38.34.050(c) is amended to read: 01 (c) Notwithstanding any contrary provision of law, the Department of Natural 02 Resources shall grant the Alaska Gasline Development Corporation [ALASKA 03 HOUSING FINANCE CORPORATION] a right-of-way lease under AS 38.35 for the 04 gas pipeline transportation corridor at no appraisal or rental cost if 05 (1) [THE CORPORATION SUBMITS] a complete right-of-way lease 06 application under AS 38.35.050 is submitted; 07 (2) the lease application is made the subject of notice and other 08 reasonable and appropriate publication requirements under AS 38.35.070; and 09 (3) the corporation that submits the application for the right-of-way 10 lease agrees to be bound by the right-of-way lease covenants set out in AS 38.35.120, 11 except for the covenants in AS 38.35.120(a)(1), (2), and (5); notwithstanding AS 12 38.35.120(b), a right-of-way lease subject to this paragraph is valid and of legal 13 effect. 14 * Sec. 7. AS 38.34.050 is amended by adding new subsections to read: 15 (e) The Alaska Gasline Development Corporation may enter into 16 confidentiality agreements necessary to acquire or provide information to carry out its 17 functions. Information acquired or provided by the Alaska Gasline Development 18 Corporation under a confidentiality agreement is not subject to disclosure under AS 19 40.25.110. The Alaska Gasline Development Corporation may enter into 20 confidentiality agreements with a public agency, as defined in AS 40.25.220, to allow 21 release of confidential information. The portions of the records and files of a public 22 agency bound by a confidentiality agreement that reflect, incorporate, or analyze 23 information subject to a confidentiality agreement under this subsection are not public 24 records. Confidentiality agreements entered into under this subsection are valid and 25 binding against all parties in accordance with the terms of the confidentiality 26 agreement. 27 (f) Information relating to field studies conducted and other technical 28 information developed or obtained by the Alaska Gasline Development Corporation 29 that relates to the development, financing, construction, or operation of an in-state 30 natural gas pipeline project by the Alaska Gasline Development Corporation is 31 confidential and not subject to disclosure under AS 40.25.110. The Alaska Gasline 01 Development Corporation may waive the confidentiality of the information described 02 in this subsection, except for information acquired from another person that is subject 03 to a confidentiality agreement, if the waiver is in the best interest of the state and will 04 facilitate the development, financing, or construction of an in-state natural gas 05 pipeline. 06 (g) Upon request by the Alaska Gasline Development Corporation, a 07 municipality or a state entity shall provide water, sand and gravel, other 08 nonhydrocarbon natural resources, and a permit or a lease to the Alaska Gasline 09 Development Corporation at the usual and customary rates, except as provided in (c) 10 of this section. In this subsection, "state entity" means a state department, authority, or 11 other administrative unit of the executive branch of state government, a public 12 university, or a state public corporation. 13 (h) That part of the cost of providing, under (g) of this section, water, sand and 14 gravel, or other nonhydrocarbon natural resources, or of entering into a lease or 15 issuing a permit, that is borne by the Alaska Gasline Development Corporation for an 16 in-state natural gas pipeline project that is owned in whole or in part by the Alaska 17 Gasline Development Corporation may not be included in the rate base in a 18 proceeding under AS 42 or before the Federal Energy Regulatory Commission. 19 (i) After approval by the commissioner of natural resources, a lease received 20 by the Alaska Gasline Development Corporation under (c) of this section may be 21 transferred to a successor in interest under the same terms and conditions applicable to 22 the right-of-way lease granted to the Alaska Gasline Development Corporation. 23 * Sec. 8. AS 38.34.099 is repealed and reenacted to read: 24 Sec. 38.34.099. Definitions. In this chapter, 25 (1) "Alaska Gasline Development Corporation" means the corporation 26 created under AS 18.56.086 that is authorized to exercise the powers and take the 27 actions described in AS 18.56.087; 28 (2) "in-state natural gas pipeline" means a natural gas pipeline for 29 transporting natural gas in the state; 30 (3) "natural gas pipeline" means all the facilities of a total system of 31 pipe for transportation of natural gas for treatment or conditioning, delivery, storage, 01 or further transportation, and including all pipe, pump and compressor stations, station 02 equipment, and all other facilities used or necessary for an integral line of pipe to carry 03 out the transportation of the gas. 04 * Sec. 9. AS 38.35.100(d) is amended to read: 05 (d) The commissioner shall include in a conditional lease each requirement 06 and condition of the covenants established under AS 38.35.120, except that, for a 07 lease entered into under AS 38.34.050(c), the covenants in AS 38.35.120(a)(1), (2), 08 and (5) may not be included. The commissioner may also require that the lessee 09 agree to additional conditions that the commissioner finds to be in the public interest. 10 In place of the covenant established under AS 38.35.120(a)(9), the commissioner shall 11 require the lessee to agree that it will not transfer, assign, pledge, or dispose of in any 12 manner, directly or indirectly, its interest in a conditional right-of-way lease or a 13 pipeline subject to the conditional lease, unless the commissioner, after considering 14 the public interest and issuing written findings to substantiate a decision to allow the 15 transfer, authorizes the transfer. The commissioner shall also require the lessee to 16 agree not to allow the transfer of control of the lessee without the approval of the 17 commissioner; as used in this subsection, "transfer of control of the lessee" means the 18 transfer of 30 percent or more, in the aggregate, of ownership interest in the lessee in 19 one or more transactions to one or more persons by one or more persons. 20 * Sec. 10. AS 38.35.120(a) is amended to read: 21 (a) Except as provided in AS 38.34.050(c), a [A] noncompetitive lease of 22 state land for a right-of-way for an oil or natural gas pipeline valued at $1,000,000 or 23 more may be granted only upon the condition that the lessee expressly covenants in 24 the lease, in consideration of the rights acquired by it under the lease, that 25 (1) it assumes the status of and will perform all of its functions 26 undertaken under the lease as a common carrier and will accept, convey, and transport 27 without discrimination crude oil or natural gas, depending on the kind of pipeline 28 involved, delivered to it for transportation from fields in the vicinity of the pipeline 29 subject to the lease throughout its route both on state land obtained under the lease and 30 on the other land; it will accept, convey, and transport crude oil or natural gas without 31 unjust or unreasonable discrimination in favor of one producer or person, including 01 itself, as against another but will take the crude oil or natural gas, depending on the 02 kind of pipeline involved, delivered or offered, without unreasonable discrimination, 03 that the Regulatory Commission of Alaska shall, after a full hearing with due notice to 04 the interested parties and a proper finding of facts, determine to be reasonable in the 05 performance of its duties as a common carrier; however, a lessee that owns or operates 06 a natural gas pipeline 07 (A) subject to regulation either under the Natural Gas Act (15 08 U.S.C. 717 et seq.) of the United States or by the state or political subdivisions 09 with respect to rates and charges for the sale of natural gas, is, to the extent of 10 that regulation, exempt from the common carrier requirement in this 11 paragraph; 12 (B) that is a North Slope natural gas pipeline (i) is required to 13 operate as a common carrier only with respect to the intrastate transportation of 14 North Slope natural gas, as that term is defined in AS 42.06.630, and (ii) is not 15 required to operate as a common carrier as to a liquefied natural gas facility or 16 a marine terminal facility associated with the pipeline, and is not otherwise 17 required to perform its functions under the lease as a common carrier; for 18 purposes of this subparagraph, "North Slope natural gas pipeline" means all the 19 facilities of a total system of pipe, whether owned or operated under a contract, 20 agreement, or lease, used by a carrier for transportation of North Slope natural 21 gas, as defined by AS 42.06.630, for delivery, for storage, or for further 22 transportation, and including all pipe, pump, or compressor stations, station 23 equipment, tanks, valves, access roads, bridges, airfields, terminals and 24 terminal facilities, including docks and tanker loading facilities, operations 25 control centers for both the upstream part of the pipeline and the terminal, 26 tanker ballast treatment facilities, fire protection system, communication 27 system, and all other facilities used or necessary for an integral line of pipe, 28 taken as a whole, to carry out transportation, including an extension or 29 enlargement of the line; 30 (2) it will interchange crude oil or natural gas, depending on the kind 31 of pipeline involved, with each like common carrier and provide connections and 01 facilities for the interchange of crude oil or natural gas at every locality reached by 02 both pipelines when the necessity exists, subject to rates and regulations made by the 03 appropriate state or federal regulatory agency; 04 (3) it will maintain and preserve books, accounts, and records and will 05 make those reports that the state may prescribe by regulation or law as necessary and 06 appropriate for purposes of administration of this chapter; 07 (4) it will accord at all reasonable times to the state and its authorized 08 agents and auditors the right of access to its property and records, of inspection of its 09 property, and of examination and copying of records; 10 (5) it will provide connections, as determined by the Regulatory 11 Commission of Alaska under AS 42.06.340, to facilities on the pipeline subject to the 12 lease, both on state land and other land in the state, for the purpose of delivering crude 13 oil or natural gas, depending on the kind of pipeline involved, to persons (including 14 the state and its political subdivisions) contracting for the purchase at wholesale of 15 crude oil or natural gas transported by the pipeline when required by the public 16 interest; 17 (6) it shall, notwithstanding any other provision, provide connections 18 and interchange facilities at state expense at such places the state considers necessary 19 if the state determines to take a portion of its royalty or taxes in oil or natural gas; 20 (7) it will construct and operate the pipeline in accordance with 21 applicable state laws and lawful regulations and orders of the Regulatory Commission 22 of Alaska; 23 (8) it will, at its own expense, during the term of the lease, 24 (A) maintain the leasehold and pipeline in good repair; 25 (B) promptly repair or remedy any damage to the leasehold; 26 (C) promptly compensate for any damage to or destruction of 27 property for which the lessee is liable resulting from damage to or destruction 28 of the leasehold or pipeline; 29 (9) it will not transfer, assign, or dispose of in any manner, directly or 30 indirectly, or by transfer of control of the carrier corporation, its interest in a right-of- 31 way lease, or any rights under the lease or any pipeline subject to the lease to any 01 person other than another owner of the pipeline (including subsidiaries, parents, and 02 affiliates of the owners), except to the extent that the commissioner, after 03 consideration of the protection of the public interest (including whether the proposed 04 transferee is fit, willing, and able to perform the transportation or other acts proposed 05 in a manner that will reasonably protect the lives, property, and general welfare of the 06 people of Alaska), authorizes; the commissioner shall not unreasonably withhold 07 consent to the transfer, assignment, or disposal; 08 (10) it will file with the commissioner a written appointment of a 09 named permanent resident of the state to be its registered agent in the state and to 10 receive service of notices, regulations, decisions, and orders of the commissioner; if it 11 fails to appoint an agent for service, service may be made by posting a copy in the 12 office of the commissioner, filing a copy in the office of the lieutenant governor, and 13 mailing a copy to the lessee's last known address; 14 (11) the applicable law of this state will be used in resolving questions 15 of interpretation of the lease; 16 (12) the granting of the right-of-way lease is subject to the express 17 condition that the exercise of the rights and privileges granted under the lease will not 18 unduly interfere with the management, administration, or disposal by the state of the 19 land affected by the lease, and that the lessee agrees and consents to the occupancy 20 and use by the state, its grantees, permittees, or other lessees of any part of the right- 21 of-way not actually occupied or required by the pipeline for the full and safe 22 utilization of the pipeline, for necessary operations incident to land management, 23 administration, or disposal; 24 (13) it will be liable to the state for damages or injury incurred by the 25 state caused by the construction, operation, or maintenance of the pipeline and it will 26 indemnify the state for the liabilities or damages; 27 (14) it will procure and furnish liability and property damage insurance 28 from a company licensed to do business in the state or furnish other security or 29 undertaking upon the terms and conditions the commissioner considers necessary if 30 the commissioner finds that the net assets of the lessee are insufficient to protect the 31 public from damage for which the lessee may be liable arising out of the construction 01 or operation of the pipeline. 02 * Sec. 11. AS 38.35.120(b) is amended to read: 03 (b) Except as provided in AS 38.34.050(c), for [FOR] a right-of-way lease 04 granted under this chapter for an oil or natural gas pipeline valued at $1,000,000 or 05 more to be valid and of legal effect, it must contain the terms required to be inserted 06 under the provisions of AS 38.35.110 - 38.35.140. Except as provided in AS 07 38.34.050(c), an [AN] oil or natural gas pipeline right-of-way lease granted under this 08 chapter that does not contain the required terms is null and void and without legal 09 effect and does not vest any interest in state land or any authority in the carrier granted 10 the lease. 11 * Sec. 12. AS 38.35.140 is amended by adding a new subsection to read: 12 (c) Notwithstanding (a) of this section, a right-of-way lease shall be granted 13 without appraisal or rental costs to the Alaska Gasline Development Corporation 14 created under AS 18.56.086. 15 * Sec. 13. AS 38.35.200 is amended by adding new subsections to read: 16 (c) Except as provided for an applicant under (a) of this section, 17 notwithstanding any contrary provision of law, an action or decision of the 18 commissioner or other state officer or agency concerning the issuance or approval of a 19 necessary right-of-way, permit, lease, certificate, license, or other authorization for the 20 development, construction, or initial operation of a natural gas pipeline by the Alaska 21 Gasline Development Corporation, a subsidiary created by the Alaska Housing 22 Finance Corporation under AS 18.56.086, that uses a right-of-way subject to this 23 chapter may not be subject to judicial review, except that a claim alleging the 24 invalidity of this subsection must be brought within 60 days after the effective date of 25 this Act, and a claim alleging that an action will deny rights under the Constitution of 26 the State of Alaska must be brought within 60 days following the date of that action. A 27 claim that is not filed within the limitations established in this subsection is barred. A 28 complaint under this subsection must be filed in superior court, and the superior court 29 has exclusive jurisdiction. Notwithstanding AS 22.10.020(c), except in conjunction 30 with a final judgment on a claim filed under this subsection, the superior court may 31 not grant injunctive relief, including a temporary restraining order, preliminary 01 injunction, permanent injunction, or stay against the issuance of a necessary right-of- 02 way, permit, lease, certificate, license, or other authorization for the development, 03 construction, or initial operation of a natural gas pipeline by the Alaska Gasline 04 Development Corporation, a subsidiary created by the Alaska Housing Finance 05 Corporation under AS 18.56.086. In this subsection, "natural gas pipeline" has the 06 meaning given in AS 38.34.099. 07 (d) An appeal of a permitting decision or authorization by the Department of 08 Environmental Conservation under AS 46.03 or AS 46.14 that is made under a 09 program approved or delegated by the United States Environmental Protection Agency 10 is not 11 (1) subject to the limitation in (a) of this section; 12 (2) included in the actions or decisions described in (c) of this section. 13 * Sec. 14. AS 40.25.120(a) is amended to read: 14 (a) Every person has a right to inspect a public record in the state, including 15 public records in recorders' offices, except 16 (1) records of vital statistics and adoption proceedings, which shall be 17 treated in the manner required by AS 18.50; 18 (2) records pertaining to juveniles unless disclosure is authorized by 19 law; 20 (3) medical and related public health records; 21 (4) records required to be kept confidential by a federal law or 22 regulation or by state law; 23 (5) to the extent the records are required to be kept confidential under 24 20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure 25 or retain federal assistance; 26 (6) records or information compiled for law enforcement purposes, but 27 only to the extent that the production of the law enforcement records or information 28 (A) could reasonably be expected to interfere with enforcement 29 proceedings; 30 (B) would deprive a person of a right to a fair trial or an 31 impartial adjudication; 01 (C) could reasonably be expected to constitute an unwarranted 02 invasion of the personal privacy of a suspect, defendant, victim, or witness; 03 (D) could reasonably be expected to disclose the identity of a 04 confidential source; 05 (E) would disclose confidential techniques and procedures for 06 law enforcement investigations or prosecutions; 07 (F) would disclose guidelines for law enforcement 08 investigations or prosecutions if the disclosure could reasonably be expected to 09 risk circumvention of the law; or 10 (G) could reasonably be expected to endanger the life or 11 physical safety of an individual; 12 (7) names, addresses, and other information identifying a person as a 13 participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the 14 advance college tuition savings program under AS 14.40.803 - 14.40.817; 15 (8) public records containing information that would disclose or might 16 lead to the disclosure of a component in the process used to execute or adopt an 17 electronic signature if the disclosure would or might cause the electronic signature to 18 cease being under the sole control of the person using it; 19 (9) reports submitted under AS 05.25.030 concerning certain 20 collisions, accidents, or other casualties involving boats; 21 (10) records or information pertaining to a plan, program, or 22 procedures for establishing, maintaining, or restoring security in the state, or to a 23 detailed description or evaluation of systems, facilities, or infrastructure in the state, 24 but only to the extent that the production of the records or information 25 (A) could reasonably be expected to interfere with the 26 implementation or enforcement of the security plan, program, or procedures; 27 (B) would disclose confidential guidelines for investigations or 28 enforcement and the disclosure could reasonably be expected to risk 29 circumvention of the law; or 30 (C) could reasonably be expected to endanger the life or 31 physical safety of an individual or to present a real and substantial risk to the 01 public health and welfare; 02 (11) the written notification regarding a proposed regulation provided 03 under AS 24.20.105 to the Department of Law and the affected state agency and 04 communications between the Legislative Affairs Agency, the Department of Law, and 05 the affected state agency under AS 24.20.105; 06 (12) records that are 07 (A) proprietary, privileged, or a trade secret in accordance with 08 AS 43.90.150 or 43.90.220(e); 09 (B) applications that are received under AS 43.90 until notice is 10 published under AS 43.90.160; 11 (13) information that is covered by a confidentiality agreement 12 between the Alaska Gasline Development Corporation created under AS 13 18.56.086 and the provider or recipient of the information. 14 * Sec. 15. AS 41.41.010(a) is amended to read: 15 (a) There is established the Alaska Natural Gas Development Authority, the 16 purpose of which is to provide one or more of the following services and functions in 17 order to acquire [BRING] natural gas produced in [FROM THE NORTH SLOPE 18 OR OTHER REGIONS OF] the state for delivery to market, including 19 [(1)] the acquisition and conditioning of natural gas [; 20 (2) THE DESIGN AND CONSTRUCTION OF THE PIPELINE 21 SYSTEM; 22 (3) THE OPERATION AND MAINTENANCE OF THE PIPELINE 23 SYSTEM; 24 (4) THE DESIGN, CONSTRUCTION, AND OPERATION OF 25 OTHER FACILITIES NECESSARY FOR DELIVERING THE GAS TO MARKET, 26 INCLUDING MARKETS IN THE STATE;] and 27 [(5)] the acquisition of natural gas market share sufficient to ensure the 28 long-term feasibility of pipeline system projects. 29 * Sec. 16. AS 41.41.010(d) is amended to read: 30 (d) The acquisition of natural gas from the North Slope and other regions of 31 the state, including the Alaska outer continental shelf, and making that natural gas 01 available to [ITS DELIVERY TO MARKETS IN THE STATE FOR USE BY] 02 markets in the state or for export from the state [TO TIDEWATER FOR 03 SHIPMENT TO MARKET BY THE AUTHORITY] are essential government 04 functions of the state. 05 * Sec. 17. AS 41.41.010 is amended by adding a new subsection to read: 06 (f) To honor delivery commitments in a contract entered into by the authority, 07 the authority and the commissioner of natural resources may pledge, as necessary, 08 royalty gas owned by the state and not otherwise committed by contract to other 09 purchasers of royalty gas. The commissioner of natural resources shall determine the 10 amount of gas that may be pledged and the price for that gas. A pledge made under 11 this subsection shall be treated as a disposal of gas other than by sale or exchange for 12 purposes of AS 38.05.183. 13 * Sec. 18. AS 41.41.020 is repealed and reenacted to read: 14 Sec. 41.41.020. Authority governing body. The authority shall be governed 15 by the board of directors of the Alaska Housing Finance Corporation. 16 * Sec. 19. AS 41.41.060 is amended to read: 17 Sec. 41.41.060. Compensation of board members; per diem and travel 18 expenses. Members of the board described in AS 18.56.030(a)(4) are entitled to 19 compensation and reimbursement as provided in AS 18.56.030(e) when on official 20 business of the authority [PER DIEM AND TRAVEL EXPENSES AUTHORIZED 21 FOR BOARDS AND COMMISSIONS UNDER AS 39.20.180]. 22 * Sec. 20. AS 41.41.070(d) is amended to read: 23 (d) In addition to its employees, the authority may contract for and engage the 24 services of [BOND COUNSEL,] consultants, experts, [AND] financial advisors, and 25 legal counsel, including bond counsel, the authority considers necessary for the 26 purpose of developing information, furnishing advice, or conducting studies, 27 investigations, hearings, or other proceedings. The procurement of services under 28 this subsection is exempt from AS 36.30, including AS 36.30.015(d) and (f). 29 * Sec. 21. AS 41.41.090(b) is amended to read: 30 (b) If a member of the board or an employee of the authority acquires, owns, 31 or controls an interest, direct or indirect, in an entity [OR PROJECT] in which assets 01 of the authority are invested, the member shall immediately disclose the interest to the 02 board. The disclosure is a matter of public record and shall be included in the minutes 03 of the first board meeting following the disclosure. 04 * Sec. 22. AS 41.41.150(a) is amended to read: 05 (a) Information in the possession of the authority is a public record, except 06 that information that is contained in or subject to a confidentiality agreement 07 between the authority and the Alaska Gasline Development Corporation or that 08 discloses the particulars of the business or affairs of a private enterprise or investor is 09 confidential and is not a public record for purposes of AS 40.25.110 - 40.25.140. 10 Confidential information may be disclosed only for the purposes of an official law 11 enforcement investigation or when its production is required in a court proceeding. 12 * Sec. 23. AS 41.41.200 is amended to read: 13 Sec. 41.41.200. Powers of the authority. In furtherance of its corporate 14 purposes, in addition to its other powers, the authority may 15 (1) sue and be sued; 16 (2) adopt a seal; 17 (3) adopt, amend, and repeal bylaws and regulations; 18 (4) make and execute contracts and other instruments; 19 (5) in its own name acquire property, lease, rent, convey, or acquire 20 real and personal property [; A PROJECT SITE OR PART OF A PROJECT SITE 21 MAY BE ACQUIRED BY EMINENT DOMAIN]; 22 (6) acquire natural gas supplies; 23 (7) issue bonds and otherwise incur indebtedness in accordance with 24 AS 41.41.300 - 41.41.410 in order to pay the cost of a project; 25 (8) accept gifts, grants, or loans from and enter into contracts or other 26 transactions regarding gifts, grants, or loans with a federal agency or an agency or 27 instrumentality of the state, a municipality, private organization, or other source; 28 (9) enter into contracts or agreements with a federal agency, agency or 29 instrumentality of the state, municipality, or public or private individual or entity, with 30 respect to the exercise of its powers; 31 (10) charge fees or other forms of remuneration for the use of authority 01 properties and facilities; 02 (11) defend and indemnify a current or former member of the board or 03 an employee or agent of the authority against the costs, expenses, judgments, and 04 liabilities as a result of actions taken in good faith on behalf of the authority; and 05 (12) purchase insurance to protect its assets, services, and employees 06 against liabilities that may arise from authority operations and activities. 07 * Sec. 24. AS 41.41.990(2) is amended to read: 08 (2) "board" means the board of directors of the Alaska Housing 09 Finance Corporation acting as the board of the Alaska Natural Gas Development 10 Authority; 11 * Sec. 25. AS 42.04.080(a) is amended to read: 12 (a) Except as provided in AS 42.05.171 or AS 42.06.140, when a matter 13 comes for decision before the commission under AS 42.05, [OR] AS 42.06, or AS 14 42.08, the chair shall appoint a hearing panel composed of three or more members to 15 hear, or if a hearing is not required, to otherwise consider, and decide the case. The 16 panel shall exercise the powers of the commission with respect to the matter. 17 * Sec. 26. AS 42.05 is amended by adding a new section to read: 18 Sec. 42.05.433. Review of certain contracts by the commission. (a) A 19 contract entered into by a public utility with the Alaska Gasline Development 20 Corporation (AS 18.56.087) or its successors or assigns may contain a covenant for 21 the public utility to establish, charge, and collect rates sufficient to meet its obligations 22 under the contract. If the contract is approved by the commission under AS 42.08, the 23 rate covenant is valid and enforceable. 24 (b) A public utility negotiating to purchase natural gas to be shipped on an in- 25 state natural gas pipeline regulated under AS 42.08 shall submit the contract to the 26 commission before the contract takes effect. 27 (c) A public utility negotiating to contract for the storage of natural gas related 28 to (b) of this section shall submit the contract to the commission before the contract 29 takes effect. 30 (d) The commission shall review and may conduct an investigation and hearing 31 to determine whether a contract submitted under (b) or (c) of this section is just and 01 reasonable. The commission shall either approve the contract as presented or, if the 02 commission finds that a contract is unjust or unreasonable, disapprove the contract. If 03 the commission has not acted within 180 days after the contract is submitted, the 04 contract shall be considered approved and shall take effect immediately. A contract 05 that is approved or considered approved under this section is not subject to further 06 review by the commission. The commission may, by order, extend the 180-day review 07 period by the duration of any delay caused by a failure of the public utility to submit 08 supplemental information that is available to the public utility. 09 * Sec. 27. AS 42.05.711 is amended by adding a new subsection to read: 10 (s) An in-state natural gas pipeline subject to AS 42.08 and an in-state natural 11 gas pipeline carrier subject to AS 42.08 are exempt from this chapter. 12 * Sec. 28. AS 42.06 is amended by adding a new section to article 7 to read: 13 Sec. 42.06.601. Exemption. An in-state natural gas pipeline subject to AS 14 42.08 and an in-state natural gas pipeline carrier subject to AS 42.08 are exempt from 15 this chapter. 16 * Sec. 29. AS 42 is amended by adding a new chapter to read: 17 Chapter 08. In-state Pipeline Contract Carrier. 18 Article 1. Application of Chapter; Purpose. 19 Sec. 42.08.010. Application of chapter; exemption. (a) This chapter applies 20 to the regulation of an in-state natural gas pipeline authorized by law to provide 21 transportation by contract carriage. 22 (b) An in-state natural gas pipeline subject exclusively to federal jurisdiction 23 is exempt from this chapter. 24 Sec. 42.08.020. Qualification of the Alaska Gasline Development 25 Corporation; findings. (a) The Alaska Gasline Development Corporation, a 26 subsidiary created under AS 18.56.086 and authorized to exercise the powers and take 27 the actions described in AS 18.56.087, is financially fit, willing, and able to take the 28 actions, properly to perform the service, and to conform to the requirements of this 29 chapter. 30 (b) The board of directors and the officers of the Alaska Gasline Development 31 Corporation are managerially fit, willing, and able to manage the Alaska Gasline 01 Development Corporation and to take the actions, properly to perform the service, and 02 to conform to the requirements of this chapter. 03 (c) The proposed service, construction, and operation of an in-state natural gas 04 pipeline is required by present and future public convenience and necessity. 05 (d) The findings that the Alaska Gasline Development Corporation is 06 financially fit in (a) of this section and managerially fit in (b) of this section and that 07 an in-state natural gas pipeline is required by present or future public convenience and 08 necessity in (c) of this section are conclusive and binding on the commission. 09 (e) The commission shall determine whether a person making application 10 under this chapter is technically fit, willing, and able to take the actions, properly to 11 perform the service, and to conform to the requirements in this chapter. 12 Article 2. Powers and Duties of Regulatory Commission of Alaska. 13 Sec. 42.08.220. General powers and duties. (a) The commission shall 14 (1) regulate, under the provisions of this chapter, an in-state natural gas 15 pipeline that is expressly authorized by law to provide transportation by way of 16 contract carriage; 17 (2) require permits for the construction, enlargement in size or 18 operating capacity, extension, connection and interconnection, operation, or 19 abandonment of an in-state natural gas pipeline facility, under the provisions of this 20 chapter and subject to the same standards as certification in AS 42.08.310; 21 (3) provide all reasonable assistance to the Department of Law in 22 intervening in, offering evidence in, and participating in proceedings involving an in- 23 state natural gas pipeline carrier or affiliated interest and affecting the interests of the 24 state, before an officer, department, board, commission, or court of another state or the 25 United States. 26 (b) The commission may 27 (1) approve contracts as otherwise provided in this chapter; 28 29 (2) investigate, on complaint or its own motion, disputes related to 30 rules, regulations, services, practices, and facilities 31 (A) that are not subject to the dispute resolution provisions in 01 an in-state natural gas pipeline carrier's contracts or tariffs; 02 (B) that relate to an unreasonable diminution in the quantity or 03 quality in the provision of service to a public utility; 04 (C) that are a violation of the in-state natural gas pipeline 05 carrier's tariff or contract with the public utility; 06 (D) that have not been resolved by the in-state natural gas 07 pipeline carrier; and 08 (E) in which it clearly appears from specific facts shown by 09 affidavit or by verified complaint that immediate and irreparable injury, loss, 10 or damage will result to the peace, health, safety, or general welfare of the 11 public from a violation; 12 (3) adopt regulations that are necessary and proper to the performance 13 of the duties of the commission under this chapter, including regulations governing 14 practices and procedures of the commission; the regulations may not be inconsistent 15 with state law; 16 (4) initiate, intervene in, and appear personally or by counsel and offer 17 evidence in and participate in, any proceedings involving an in-state natural gas 18 pipeline carrier and affecting the interests of the state, before an officer, department, 19 board, commission, or court of this state; and 20 (5) assign a qualified, unbiased, and impartial administrative law 21 judge, with experience in the general practice of law, to conduct hearings under this 22 chapter; the administrative law judge may perform other duties in connection with the 23 administration of this chapter and other laws; an administrative law judge hired to 24 conduct hearings under this chapter shall have been admitted to practice law for at 25 least five years immediately before appointment under this paragraph. 26 (c) The commission may not 27 (1) require rates, rate design, or tariff rules or regulations except as 28 provided in this chapter; and 29 (2) conduct further review, investigate, or order a modification of a 30 contract that is approved or considered approved or filed under this chapter. 31 Sec. 42.08.230. Commission decision-making procedures. The commission 01 shall comply with AS 42.04.080(a) and expeditiously adjudicate all matters that come 02 before the commission. 03 Sec. 42.08.240. Publication of reports, orders, decisions, and regulations. 04 All reports, orders, decisions, and regulations of the commission shall be in writing. 05 The commission shall notify all affected operators of in-state natural gas pipeline 06 facilities and interested parties of reports, orders, decisions, and regulations as they are 07 issued and adopted, and, when appropriate, publish them in a manner that will 08 reasonably inform the public or the affected consumers of the services of an in-state 09 natural gas pipeline facility. The commission may set charges for costs of printing or 10 reproducing and furnishing copies of reports, orders, decisions, and regulations. The 11 publication requirement, as it pertains to regulations, does not supersede the 12 requirements of AS 44.62 (Administrative Procedure Act). 13 Sec. 42.08.250. Application of Administrative Procedure Act. (a) The 14 administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) 15 do not apply to adjudicatory proceedings of the commission under this chapter, except 16 that final administrative determinations by the commission are subject to judicial 17 review under AS 44.62 (Administrative Procedure Act) as provided in AS 42.08.530. 18 (b) AS 44.62 (Administrative Procedure Act) applies to regulations adopted 19 by the commission. 20 Sec. 42.08.260. Annual report. The commission shall include in its annual 21 report under AS 42.05.211 and AS 42.06.220 a review of its activities under this 22 chapter during the previous fiscal year and notify the legislature that the report is 23 available. The report must address the regulation of in-state natural gas pipeline 24 facilities in the state as of June 30 of each year and must contain details about the 25 commission's compliance with the performance measures in this chapter. 26 Article 3. Contract Review; Contract Carriage Certificate. 27 Sec. 42.08.300. Review of certain contracts by the commission. (a) The 28 Alaska Gasline Development Corporation or its successors or assigns shall submit 29 each of its precedent agreements for firm transportation service to the commission. A 30 precedent agreement negotiated with an entity that is not a public utility may be filed 31 under seal. Under AS 42.08.400, the commission shall keep confidential a precedent 01 agreement filed under seal. Submission of precedent agreements to the commission is 02 permissible before construction of an in-state natural gas pipeline and before a request 03 for certification under this chapter. 04 (b) In the review of a precedent agreement submitted under (a) of this section 05 and a related contract submitted under AS 42.05.433, the commission shall 06 (1) conclude that any transaction negotiated at arm's length between 07 the parties is just and reasonable unless the commission finds that there was unlawful 08 market activity connected to the contract rate or there was unfair dealing, such as fraud 09 or duress, at the contract formation stage; 10 (2) review and may conduct an investigation and hearing to determine 11 whether a contract submitted under (a) of this section is just and reasonable; the 12 commission shall either approve the contract as presented or, if the commission finds 13 that a contract is unjust or unreasonable, disapprove the contract; if the commission 14 has not acted within 180 days after the submission of a contract, the contract shall be 15 considered approved and shall take effect immediately; a contract that is approved or 16 considered approved under this paragraph is not subject to further review by the 17 commission. 18 (c) For the purposes of (b)(1) of this section, a transaction is arm's length if it 19 is between two unaffiliated parties or, if the parties are affiliated, the parties have 20 followed the standards of conduct for transmission providers adopted by the Federal 21 Energy Regulatory Commission. 22 Sec. 42.08.310. Contract carriage certificate. (a) The owner of an in-state 23 natural gas pipeline subject to this chapter may not engage in the transportation of 24 natural gas or undertake the construction of a natural gas pipeline facility for that 25 purpose, or acquire or operate an in-state natural gas pipeline facility, unless a 26 certificate of public convenience and necessity by the commission authorizing contract 27 carriage is in force with respect to that owner. A certificate shall describe the nature 28 and extent of the authority granted, including, as appropriate for the services involved, 29 a description of the authorized area and scope of operation for the in-state natural gas 30 pipeline facility. 31 (b) Application for a certificate shall be made in writing to the commission 01 and verified under oath. The commission by regulation shall establish the 02 requirements for the form of the application and the information to be contained in the 03 application. Notice of the application shall be provided to interested parties in the 04 manner provided by regulation. 05 (c) Within 180 days after receiving an application under this chapter, a 06 contract carriage certificate shall be issued to a qualified applicant, authorizing the 07 whole or any part of the operation, service, construction, or acquisition covered by the 08 application, if the commission finds that the applicant is fit, willing, and able properly 09 to do the acts, perform the service proposed, and conform to the provisions of this 10 chapter and the requirements of the commission, and that the proposed service, 11 operation, construction, extension, or acquisition, to the extent authorized by the 12 certificate, is or will be required by the present or future public convenience and 13 necessity. Otherwise, the application shall be denied. 14 (d) Consistent with the terms of this chapter, the commission may attach to a 15 contract carriage certificate terms and conditions that are in the best interest of the in- 16 state natural gas pipeline facility and the public. 17 (e) Operating authority may not be transferred by sale or lease of the contract 18 carriage certificate or by the sale of substantially all of the stock or assets of a pipeline 19 carrier holding a certificate without prior approval by the commission. A transfer not 20 involving a substantial change in ownership shall be summarily approved. The 21 commission's decision under this subsection shall be based on the best interest of the 22 public. 23 (f) After receiving a complaint or on its own motion, the commission, after 24 notice and hearing and for good cause shown, may amend, modify, suspend, or 25 revoke, in whole or in part, a certificate. Good cause for amendment, modification, 26 suspension, or revocation of a certificate is 27 (1) misrepresentation of a material fact in obtaining the certificate; 28 (2) unauthorized discontinuance or abandonment of all or part of a 29 service that is the subject of the certificate; 30 (3) wilful failure to comply with the provisions of this chapter or a 31 regulation or order of the commission; or 01 (4) wilful failure to comply with a term, condition, or limitation of the 02 certificate. 03 (g) Service or use of all or a portion of an in-state natural gas pipeline 04 certificated under this chapter may not be abandoned or permanently discontinued 05 without permission and approval by the commission, after due notice and hearing, and 06 a finding by the commission that continued service is not required by public 07 convenience and necessity. Any interested person may file a protest or memorandum 08 of opposition to or in support of discontinuance or abandonment with the commission. 09 The commission may order a temporary suspension of a service or of part of a service. 10 Sec. 42.08.320. Tariffs, contracts, filing, and public inspection. (a) An in- 11 state natural gas pipeline carrier shall file with the commission all rules, regulations, 12 terms, and conditions pertaining to service provided under the certificate, and copies 13 of all contracts with shippers that in any way affect or relate to the carrier's rates, 14 tariffs, charges, classifications, rules, regulations, terms, and conditions to service 15 provided under the certificate. The in-state natural gas pipeline carrier shall maintain 16 copies on file at its principal business office and at places designated by the 17 commission and make the copies available to, and subject to inspection by, the general 18 public on demand. Rules, regulations, terms, and conditions not included in the tariff 19 of an in-state natural gas pipeline carrier shall be included in the contract with each 20 shipper. 21 (b) The terms and conditions under which an in-state natural gas pipeline 22 carrier offers its services and facilities to the public shall be governed strictly by the 23 provisions of the tariffs and filed contracts that are in effect. A change in tariff rate, 24 charge, rule, regulation, or condition of service is not effective until filed under (a) of 25 this section. If more than one tariff rate or charge may reasonably be applied for 26 billing purposes, the tariff, rate, or charge most advantageous to the shipper shall be 27 used. 28 Sec. 42.08.330. Expansion; dispute resolution. (a) A contract entered into by 29 an in-state natural gas pipeline carrier may provide for expansion unless the expansion 30 would cause the pipeline to be a competing natural gas pipeline or project as defined 31 in AS 43.90.440. 01 (b) A contract entered into by an in-state natural gas pipeline carrier shall 02 include dispute resolution procedures. 03 Sec. 42.08.340. Regulatory cost charge. (a) An in-state natural gas pipeline 04 operating under this chapter shall pay to the commission an annual regulatory cost 05 charge in an amount not to exceed the sum of the following percentages of gross 06 revenue derived from operations in the state: (1) not more than 0.7 percent to fund the 07 operations of the commission, and (2) not more than 0.17 percent to fund operations of 08 the public advocacy function under AS 42.04.070(c) and AS 44.23.020(e) within the 09 Department of Law. A regulatory cost charge may not be assessed on a pipeline under 10 this chapter unless the pipeline is subject to this chapter and has used the commission's 11 services under this chapter in the prior fiscal year. 12 (b) The commission shall by regulation establish a method to determine 13 annually the amount of the regulatory cost charge. If the amount the commission 14 expects to collect under (a) of this section, AS 42.05.254(a), and AS 42.06.286(a) 15 exceeds the authorized budgets of the commission and the Department of Law public 16 advocacy function under AS 42.04.070(c) and AS 44.23.020(e), the commission shall, 17 by order, reduce the percentage determined under (e) of this section so that the total 18 amount of the fees collected approximately equals the authorized budgets of the 19 commission and the Department of Law public advocacy function under AS 20 42.04.070(c) and AS 44.23.020(e) for the fiscal year. 21 (c) The commission shall administer the charge imposed under this section. 22 The Department of Revenue shall collect and enforce the charge imposed under this 23 section. The Department of Administration shall identify the amount of the operating 24 budgets of the commission and the Department of Law public advocacy function 25 under AS 42.04.070(c) and AS 44.23.020(e) that lapse into the general fund each year. 26 The legislature may appropriate an amount equal to the lapsed amount to the 27 commission and to the Department of Law public advocacy function under AS 28 42.04.070(c) and AS 44.23.020(e) for operating costs for the next fiscal year. If the 29 legislature does so, the commission shall reduce the total regulatory cost charge 30 collected for that fiscal year by a comparable amount. 31 (d) The commission may adopt regulations under AS 44.62 (Administrative 01 Procedure Act) necessary to administer this section, including requirements and 02 procedures for reporting information and making quarterly payments. The Department 03 of Revenue may adopt regulations under AS 44.62 (Administrative Procedure Act) for 04 investigating the accuracy of filed information and for collecting required payments. 05 (e) The commission shall by regulation establish a method to determine 06 annually the maximum percentage of gross revenue that will apply to each regulated 07 public utility sector, the maximum percentage of gross revenue that will apply to the 08 regulated pipeline carrier sector under AS 42.06, and the maximum percentage of 09 gross revenue that will apply to pipelines regulated under this chapter in accordance 10 with AS 42.05.254(h). 11 Sec. 42.08.350. Nothing to alter the calculation of taxes and royalty. 12 Nothing in this chapter shall alter the calculation of production taxes under AS 13 43.55.011 - 43.55.180 or the calculation of royalty due for leases issued under AS 14 38.05.180. 15 Article 4. Records; Investigations. 16 Sec. 42.08.400. Public records. (a) Except as provided in (b) and (c) of this 17 section or prohibited from disclosure under state or federal law, records in the 18 possession of the commission are open to public inspection at reasonable times. 19 (b) The commission may by regulation classify records received from an in- 20 state natural gas pipeline carrier or in-state natural gas pipeline as privileged records 21 that are not open to the public for inspection. 22 (c) A record filed with the commission that is or relates to a precedent 23 agreement or other contract between an in-state natural gas pipeline carrier and an 24 unregulated entity is a privileged record that is not open to the public for inspection. 25 (d) A person may make written objection to the public disclosure of 26 information contained in a record filed under this chapter or of information obtained 27 by the commission or by the attorney general under this chapter, stating the grounds 28 for the objection. When an objection is made, the commission shall order the 29 information withheld from public disclosure if the information adversely affects the 30 interest of the person making written objection and disclosure is not required in the 31 interest of the public. 01 (e) A commissioner may certify as to all official records of the commission 02 under this section and may certify as to all official acts of the commission under this 03 chapter. 04 Sec. 42.08.410. Investigations. The commission may investigate any matter 05 set out in AS 42.08.220(b)(2). An investigation may be public, nonpublic, or both. In 06 conducting an investigation, the commission may compel the attendance and 07 testimony of witnesses and the production of records and testimony before the 08 commission or its designee. In the course of an investigation, the commission may 09 exclude from attendance at the taking of investigative testimony all persons except a 10 person compelled to attend, that person's attorney, members of the commission or the 11 commission's staff, and a person authorized to transcribe the proceedings. 12 Article 5. General Provisions. 13 Sec. 42.08.510. Designation of service agents. An in-state natural gas pipeline 14 carrier shall file with the commission a written appointment of a named permanent 15 resident, which may be a corporation, of this state as its registered agent in this state 16 upon whom service of all notices, regulations, and requests of the commission may be 17 made. The appointment shall specify the address in this state of the appointed agent. 18 The address may be changed from time to time by filing a new address in the state 19 with the commission. If an in-state natural gas pipeline carrier fails to appoint a 20 registered agent, service of notices, regulations, and requests may be made by posting 21 a copy in the main office of the commission and filing a copy in the office of the 22 lieutenant governor. 23 Sec. 42.08.520. Effect of regulations. Regulations adopted by the commission 24 under this chapter have the effect of law. 25 Sec. 42.08.530. Judicial review and enforcement. (a) Except as provided in 26 AS 38.35.200(c), a final order of the commission under this chapter is subject to 27 judicial review under AS 44.62.560 and 44.62.570. 28 (b) If an appeal is not taken from a final order of the commission within 10 29 calendar days after an investigation under AS 42.08.220(b)(2), the commission may 30 apply to the superior court for enforcement of the order of the commission. The court 31 shall enforce the order by injunction or other process. 01 Sec. 42.08.540. Joinder of actions. Under the applicable court rules, appeals 02 from orders of the commission and applications for enforcement of orders of the 03 commission may be joined. The court may, in the interests of justice, separate the 04 actions. 05 Sec. 42.08.900. Definitions. In this chapter, 06 (1) "commission" means the Regulatory Commission of Alaska (AS 07 42.04.010); 08 (2) "commissioner" means a member of the commission; 09 (3) "firm transportation service" means service by an in-state natural 10 gas pipeline carrier that is not subject to a prior claim by another shipper or another 11 class of service; service constitutes "firm transportation service" if the service receives 12 the same priority as any other class of firm transportation service; 13 (4) "in-state natural gas pipeline" or "in-state natural gas pipeline 14 facility" means a natural gas pipeline that has been authorized by the legislature to 15 transport natural gas in the state by way of contract carriage; 16 (5) "in-state natural gas pipeline carrier" means the owner, including a 17 corporation, company, or other entity organized under the laws of the United States or 18 of any state, of an in-state natural gas pipeline or an interest in it, or any person, 19 including a corporation, company, or other entity organized under the laws of the 20 United States or of any state, that has been granted the right to transport natural gas as 21 a contract carrier by the legislature; 22 (6) "natural gas pipeline" has the meaning given in AS 38.34.099; 23 (7) "precedent agreement" means a contractual commitment to acquire 24 firm transportation capacity, executed between an in-state natural gas pipeline carrier 25 and another person, that establishes the rates, terms, and conditions for service; 26 (8) "record" means a report, file, book, account, paper, or application, 27 and the facts and information contained in it. 28 * Sec. 30. AS 43.56.020 is amended by adding a new subsection to read: 29 (d) Taxable property of a natural gas pipeline project owned or financed by 30 the Alaska Gasline Development Corporation established under AS 18.56.086, or a 31 joint venture, partnership, or other entity that includes the Alaska Gasline 01 Development Corporation, is exempt from state taxes levied or authorized under AS 02 43.56.010(a) and local taxes levied or authorized under AS 43.56.010(b) before the 03 commencement of commercial operations of that natural gas pipeline project. In this 04 subsection, "commencement of commercial operations" means the first flow of natural 05 gas in the project that generates revenue to the owners of the natural gas pipeline 06 project. 07 * Sec. 31. AS 38.34.030, 38.34.040, 38.34.060; AS 41.41.030, 41.41.040, AS 41.41.050, 08 and 41.41.080 are repealed. 09 * Sec. 32. Section 1, 2002 Ballot Measure No. 3, is repealed. 10 * Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 TRANSITION AND LEGISLATIVE INTENT. It is the intent of the legislature that a 13 right-of-way lease subject to AS 38.34.050(c), as amended by sec. 6 of this Act, AS 14 38.35.100(d), as amended by sec. 9 of this Act, AS 38.35.120(a), as amended by sec. 10 of 15 this Act, and AS 38.35.120(b), as amended by sec. 11 of this Act, that is entered into between 16 the commissioner of natural resources and the Alaska Gasline Development Corporation, a 17 subsidiary of the Alaska Housing Finance Corporation created under AS 18.56.086, before the 18 effective dates of secs. 6 and 9 - 11 of this Act be amended as soon as practicable after the 19 effective dates of secs. 6 and 9 - 11 of this Act to conform to the requirements of AS 20 38.34.050(c), as amended by sec. 6 of this Act, AS 38.35.100(d), as amended by sec. 9 of this 21 Act, AS 38.35.120(a), as amended by sec. 10 of this Act, and AS 38.35.120(b), as amended 22 by sec. 11 of this Act. 23 * Sec. 34. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 REVISOR'S INSTRUCTIONS. The revisor of statutes shall change the catch lines of 26 (1) AS 38.34.050 from "Cooperation and access to information" to 27 "Cooperation; information sharing; permits, use of state resources, and leases"; and 28 (2) AS 38.35.200 from "Judicial review of decisions of commissioner on 29 application" to "Judicial review." 30 * Sec. 35. This Act takes effect immediately under AS 01.10.070(c).