CSHB 302(FIN): "An Act establishing the Alaska Gas Corporation, a public corporation, and providing for its structure, management, responsibilities, and operation, and requiring the development of a project plan to evaluate whether construction and operation of a natural gas transmission pipeline project by the corporation is feasible."

00 CS FOR HOUSE BILL NO. 302(FIN) 01 "An Act establishing the Alaska Gas Corporation, a public corporation, and providing 02 for its structure, management, responsibilities, and operation, and requiring the 03 development of a project plan to evaluate whether construction and operation of a 04 natural gas transmission pipeline project by the corporation is feasible." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 FINDINGS AND INTENT. (a) The legislature finds that 09 (1) art. VIII, sec. 1, Constitution of the State of Alaska, provides that it is the 10 policy of the state to encourage the settlement of its land and the development of its resources 11 by making them available for maximum use consistent with the public interest; 12 (2) art. VIII, sec. 2, Constitution of the State of Alaska, requires the legislature 13 to provide for the utilization, development, and conservation of all natural resources 14 belonging to the state, including land and waters, for the maximum benefit of its people;

01 (3) the production of oil and gas from state land is an important source of 02 revenue to the state and job opportunities for all the people of the state; 03 (4) natural gas located on the North Slope is a valuable resource to the state 04 that has not been produced for sale in the market place; 05 (5) the amount of natural gas located on the North Slope is substantial and, if 06 sold, will generate significant revenue to the state and opportunities and benefits to its people 07 for many years into the future; 08 (6) maximum benefit to the people of the State of Alaska by the sale of North 09 Slope natural gas may be realized only though public ownership of a corporate entity that 10 performs the essential government function of providing transportation infrastructure that 11 otherwise may not be provided; and 12 (7) failure to produce and sell the natural gas resource located in the state for 13 the maximum benefit of its people is in direct conflict with the provisions of the Constitution 14 of the State of Alaska. 15 (b) The intent of this Act is to 16 (1) provide the people of the state the maximum benefit possible through 17 extraction of natural resources as required by the Constitution of the State of Alaska; 18 (2) foster and promote the long-term economic growth and development of the 19 state; 20 (3) recognize that the production, ownership, and sale of natural gas is in the 21 long-term and maximum best interest of the citizens of the state; 22 (4) establish a means by which the state can bring North Slope natural gas 23 resources to market; 24 (5) create a public corporation with the powers, duties, and functions 25 necessary to facilitate the ownership of transportation infrastructure required for the sale of 26 North Slope natural gas; 27 (6) require the corporation to contract with private sector entities for the 28 following services and functions in order to bring natural gas from the North Slope to market: 29 (A) the design and construction of the natural gas pipeline system; and 30 (B) the operation and maintenance of the natural gas pipeline system. 31 * Sec. 2. AS 41 is amended by adding a new chapter to read:

01 Chapter 41. Alaska Gas Corporation. 02 Article 1. Establishment of the Corporation. 03 Sec. 41.41.010. Establishment of the corporation. (a) There is established 04 the Alaska Gas Corporation, the purpose of which is to provide one or more of the 05 following services and functions in order to bring natural gas from the North Slope to 06 market: 07 (1) the design and construction of the project; and 08 (2) the operation and maintenance of the project. 09 (b) The corporation is a public corporation and an instrumentality of the state 10 within the Department of Revenue. 11 (c) The corporation has a legal existence independent of and separate from the 12 state. 13 (d) The transportation of natural gas from the North Slope by the Alaska Gas 14 Corporation is an essential government function of the state. 15 (e) The corporation may not be terminated as long as it has bonds, notes, or 16 other obligations outstanding. 17 Sec. 41.41.020. Corporation governing body. (a) The corporation shall be 18 governed by a board of directors consisting of six members appointed by the governor 19 from the public, who may not hold another state or federal office, position, or 20 employment, either elective or appointive, except as a member of the armed forces of 21 either the United States or this state. 22 (b) The members of the board must have recognized competence and wide 23 experience in finance, business management, and gas industry-related endeavors. 24 (c) The board shall annually elect a chair, and may elect other officers, from 25 among its members. 26 Sec. 41.41.030. Term of office. The members of the board shall be appointed 27 for terms of four years, and they may be reappointed. The terms of the members shall 28 be staggered so that no more than two terms of members expire each year. 29 Sec. 41.41.040. Removal and vacancies. (a) The governor may remove a 30 member of the board from office only for cause. A removal by the governor must be 31 in writing and must state the reason for the removal. A member who is removed by

01 the governor may not participate in board business and may not be counted for 02 purposes of establishing a quorum after the member receives written notice of removal 03 from the governor. A member who is removed by the governor is not entitled to 04 honoraria, per diem, or travel expenses authorized under AS 41.41.060 for work 05 performed after the member receives the written notice of removal. 06 (b) The governor shall promptly fill a vacancy on the board by appointment. 07 An appointee to a vacancy shall hold office for the balance of the term for which the 08 appointee's predecessor on the board was appointed. 09 (c) A vacancy on the board does not impair the authority of a quorum of the 10 board to exercise all the powers and perform all the duties of the board. 11 Sec. 41.41.050. Quorum and voting. Four members of the board constitute a 12 quorum for the transaction of business and the exercise of the powers and duties of the 13 board. Action may be taken only upon the affirmative vote of a majority of the full 14 membership of the board. 15 Sec. 41.41.060. Compensation of board members; per diem and travel 16 expenses. (a) Members of the board receive an honorarium of $400 for each day 17 spent at a meeting of the board or at a meeting of a subcommittee of the board or at a 18 public meeting as a representative of the board. 19 (b) Members of the board are entitled to per diem and travel expenses 20 authorized for boards and commissions under AS 39.20.180. 21 Sec. 41.41.070. Corporation staff. (a) The board may employ and determine 22 the salary of an executive director. 23 (b) The executive director may, with the approval of the board, select and 24 employ additional staff as necessary. 25 (c) An employee of the corporation, including the executive director, may not 26 be a member of the board. The executive director and the other employees of the 27 board are in the exempt service under AS 39.25.110. 28 (d) In addition to its employees, the corporation may contract for and engage 29 the services of bond counsel, legal counsel, consultants, experts, and financial advisors 30 the corporation considers necessary for the purpose of developing information, 31 furnishing advice, or conducting studies, investigations, hearings, or other

01 proceedings. 02 Sec. 41.41.080. Conflicts of interest. (a) Members of the board and the 03 executive director of the corporation are subject to the provisions of AS 39.50. 04 (b) If a member of the board or an employee of the corporation acquires, 05 owns, or controls an interest, direct or indirect, in an entity or project in which assets 06 of the corporation are invested, the member shall immediately disclose the interest to 07 the board. The disclosure is a matter of public record and shall be included in the 08 minutes of the board meeting next following the disclosure. 09 Sec. 41.41.090. Corporation budget. (a) The revenue earned by corporate 10 operations must be identified as the source of the operating budget of the corporation 11 in the state's operating budget under AS 37.07 (Executive Budget Act). 12 (b) Earnings of the corporation in excess of future operating needs shall accrue 13 and be transferred to the state general fund once each year, not later than January 15, 14 after the first full year of operation. 15 Sec. 41.41.100. Audits. The Legislative Budget and Audit Committee may 16 provide for an annual post audit and annual operational and performance evaluations 17 of the corporation's operations and budget. 18 Sec. 41.41.110. Reports and publications. (a) By September 30 of each 19 year, the board shall publish a report of the corporation for distribution to the governor 20 and the public. The board shall notify the legislature that the report is available. 21 (b) The report must include financial statements audited by independent 22 outside auditors and a statement of the amount of money received by the corporation 23 from its operations during the period covered. 24 Sec. 41.41.120. Political activities. The resources of the corporation may not 25 be used to finance or influence political activities. 26 Sec. 41.41.130. Public access to information. (a) Information in the 27 possession of the corporation is a public record, except that information that discloses 28 the particulars of the business or affairs of a private enterprise or investor is 29 confidential and is not a public record for purposes of AS 40.25.110 - 40.25.140. 30 Confidential information may be disclosed only for the purposes of an official law 31 enforcement investigation or when its production is required in a court proceeding.

01 (b) The restrictions of (a) of this section do not prohibit the publication of 02 statistics presented in a manner that prevents the identification of particular reports, 03 items, persons, or enterprises. 04 Article 2. Powers of the Corporation. 05 Sec. 41.41.200. Powers of the corporation. In furtherance of corporate 06 purposes, in addition to other powers, the corporation may 07 (1) sue and be sued; 08 (2) adopt a seal; 09 (3) adopt, amend, and repeal bylaws and regulations; 10 (4) make and execute contracts and other instruments; 11 (5) in its own name acquire property, lease, rent, convey, or acquire 12 real and personal property; a project site or part of a project site may be acquired by 13 eminent domain; 14 (6) issue bonds and otherwise incur indebtedness in accordance with 15 AS 41.41.300 - 41.41.410 in order to pay the cost of a project; 16 (7) accept gifts, grants, or loans from and enter into contracts or other 17 transactions regarding gifts, grants, or loans with a federal agency or an agency or 18 instrumentality of the state, a municipality, private organization, or other source; 19 (8) enter into contracts or agreements with a federal agency, agency or 20 instrumentality of the state, municipality, or public or private individual or entity, with 21 respect to the exercise of its powers; 22 (9) charge fees or other forms of remuneration for the use of properties 23 and facilities of the corporation; 24 (10) defend and indemnify a current or former member of the board or 25 an employee or agent of the authority against the costs, expenses, judgments, and 26 liabilities as a result of actions taken in good faith on behalf of the authority; and 27 (11) purchase insurance to protect its assets, services, and employees 28 against liabilities that may arise from authority operations and activities. 29 Article 3. Revenue Bonds and Notes. 30 Sec. 41.41.300. Bonds and notes of the corporation. (a) The corporation, 31 by resolution, may issue revenue bonds and bond anticipation notes in order to provide

01 funds to carry out the purposes set out in AS 41.41.010(a). 02 (b) The principal and interest on the revenue bonds or notes authorized and 03 issued under (a) of this section are payable from corporation funds. Bond anticipation 04 notes may be payable from the proceeds of the sale of bonds or from the proceeds of 05 the sale of other bond anticipation notes or, in the event bond or bond anticipation note 06 proceeds are not available, the notes may be paid from other funds or assets of the 07 corporation. 08 (c) Bonds or notes may be additionally secured by a pledge of a grant or 09 contribution from the federal government, or a corporation, association, institution, or 10 person, or a pledge of money, income, or revenues of the corporation from any source. 11 (d) Bonds or bond anticipation notes of the corporation may be issued in one 12 or more series and shall be dated, bear interest at the rate or rates per year or within the 13 maximum rate, be in the denomination, be in the form, either coupon or registered, 14 carry the conversion or registration provisions, have the rank or priority, be executed 15 in the manner and form, be payable at the times, from the sources, and in the medium 16 of payment and place or places within or outside the state, be subject to authentication 17 by a trustee or fiscal agent, and be subject to the terms of redemption with or without 18 premium, as the resolution of the corporation may provide. Bond anticipation notes 19 shall mature at the time or times that are determined by the corporation. Bonds shall 20 mature at a time not exceeding a number of years from their date that is determined by 21 the corporation. Before the preparation of definitive bonds or bond anticipation notes, 22 the corporation may issue interim receipts or temporary bonds or bond anticipation 23 notes, with or without coupons, exchangeable for bonds or bond anticipation notes 24 when these definitive bonds or bond anticipation notes have been executed and are 25 available for delivery. 26 (e) Bonds or bond anticipation notes may be sold in the manner and on the 27 terms the corporation determines. 28 (f) If an officer whose signature or a facsimile of whose signature appears on a 29 bond, note, or coupon attached to them ceases to be an officer before the delivery of 30 the bond, note, or coupon, the signature or facsimile is valid the same as if the officer 31 had remained in office until delivery.

01 Sec. 41.41.310. Covenants. (a) In a resolution of the corporation authorizing 02 or relating to the issuance of bonds or bond anticipation notes, the corporation has 03 power by provisions in the resolution that will constitute covenants of the corporation 04 and contracts with the holders of the bonds or bond anticipation notes to 05 (1) pledge to a payment or purpose all or a part of its revenues to 06 which its right then exists or may thereafter come into existence, and the money 07 derived from the revenues, and the proceeds of bonds or notes; 08 (2) covenant as to the use and disposition of payments of principal or 09 interest received by the corporation on loans or other investments held by the 10 corporation; 11 (3) covenant as to establishment of reserves or sinking funds and the 12 making of provision for and the regulation and disposition of the reserves or sinking 13 funds; 14 (4) covenant with respect to or against limitations on a right to sell or 15 otherwise dispose of property of any kind; 16 (5) covenant as to bonds and notes to be issued, and their limitations, 17 terms, and conditions, and as to the custody, application, and disposition of the 18 proceeds of the bonds and notes; 19 (6) covenant as to the issuance of additional bonds or notes, or as to 20 limitations on the issuance of additional bonds or notes and the incurring of other 21 debts; 22 (7) covenant as to the payment of the principal of or interest on the 23 bonds or notes, as to the sources and methods of the payment, as to the rank or priority 24 of the bonds or notes with respect to a lien or security, or as to the acceleration of the 25 maturity of the bonds or notes; 26 (8) provide for the replacement of lost, stolen, destroyed, or mutilated 27 bonds or notes; 28 (9) covenant as to the redemption of bonds or notes and privileges of 29 their exchange for other bonds or notes of the corporation; 30 (10) covenant to create or authorize the creation of special funds of 31 money to be held in pledge or otherwise for operating expenses, payment or

01 redemption of bonds or notes, reserves, or other purposes; 02 (11) establish the procedure, if any, by which the terms of a contract or 03 covenant with or for the benefit of the holders of bonds or notes may be amended or 04 abrogated, the amount of bonds or notes the holders of which must consent to 05 amendment or abrogation, and the manner in which the consent may be given; 06 (12) covenant as to the custody of property or investments, their 07 safekeeping and insurance, and the use and disposition of insurance money; 08 (13) agree with a corporate trustee that may be a trust company or 09 bank having the powers of a trust company within or outside the state as to the 10 pledging or assigning of revenue or funds to which or in which the corporation has 11 rights or an interest; the agreement may further provide for other rights and remedies 12 exercisable by the trustee as may be proper for the protection of the holders of a bond 13 or note of the corporation and not otherwise in violation of law and may provide for 14 the restriction of the rights of an individual holder of bonds or notes of the 15 corporation; 16 (14) appoint and provide for the duties and obligations of a paying 17 agent or paying agents or other fiduciaries as the resolution may provide within or 18 outside the state; 19 (15) limit the rights of the holders of a bond or note to enforce a pledge 20 or covenant securing the bonds or notes; 21 (16) make covenants other than and in addition to the covenants 22 expressly authorized in this section of like or different character, and to make 23 covenants to do or refrain from doing acts and things as may be necessary or 24 convenient and desirable in order to better secure bonds or notes or that, in the 25 absolute discretion of the corporation, will tend to make bonds or notes more 26 marketable, notwithstanding that the covenants, acts, or things may not be enumerated 27 in this section. 28 Sec. 41.41.320. Limitations of issuance of bonds. (a) The corporation may 29 not issue bonds in an amount that exceeds the amount of bonds authorized to be issued 30 by the legislature. 31 (b) This section does not apply to the issuance by the corporation of refunding

01 bonds or to the issuance by the corporation of bonds the proceeds of which are 02 intended to be used to refinance the loans held by the corporation. 03 Sec. 41.41.330. Independent financial advisor. In negotiating the private 04 sale of bonds or bond anticipation notes to an underwriter, the corporation may retain 05 a financial advisor. A financial advisor retained under this section must be 06 independent from the underwriter. 07 Sec. 41.41.340. Validity of pledge. (a) The pledge of assets or revenue of the 08 corporation to the payment of the principal or interest on an obligation of the 09 corporation is valid and binding from the time the pledge is made, and the assets or 10 revenue are immediately subject to the lien of the pledge without physical delivery or 11 further act. The lien of a pledge is valid and binding against all parties having claims 12 in tort, contract, or otherwise against the corporation, irrespective of whether those 13 parties have notice of the lien of the pledge. 14 (b) This section does not prohibit the corporation from selling assets subject to 15 a pledge, except that a sale may be restricted by the trust agreement or resolution 16 providing for the issuance of the obligations. 17 Sec. 41.41.350. Capital reserve funds. (a) For the purpose of securing one 18 or more issues of its obligations, the corporation may establish one or more special 19 funds, called "capital reserve funds," and shall pay into those capital reserve funds (1) 20 money appropriated and made available by the state for the purpose of those funds, (2) 21 proceeds of the sale of its obligations, to the extent provided in the resolution or 22 resolutions of the corporation authorizing their issuance, and (3) other money that may 23 be made available to the corporation for the purposes of those funds from another 24 source. All money held in a capital reserve fund, except as provided in this section, 25 shall be used as required solely for the payment of the principal of obligations or of 26 the sinking fund payments with respect to those obligations; the purchase or 27 redemption of obligations; the payment of interest on obligations; or the payment of a 28 redemption premium required to be paid when those obligations are redeemed before 29 maturity. However, money in a fund may not be withdrawn from that fund at any time 30 in an amount that would reduce the amount of that fund to less than the capital reserve 31 requirement set out in (b) of this section, except for the purpose of making, with

01 respect to those obligations, payment, when due, of principal, interest, redemption 02 premiums, and the sinking fund payments for the payment of which other money of 03 the corporation is not available. Income or interest earned by, or increment to, a 04 capital reserve fund due to the investment of the fund or other amounts in it may be 05 transferred by the corporation to other funds or accounts of the corporation to the 06 extent that the transfer does not reduce the amount of the capital reserve fund below 07 the capital reserve fund requirement. 08 (b) If the corporation decides to issue obligations secured by a capital reserve 09 fund, the obligations may not be issued if the amount in the capital reserve fund is less 10 than a percent, not exceeding 10 percent of the principal amount of all of those 11 obligations secured by that capital reserve fund then to be issued and then outstanding 12 in accordance with their terms, as may be established by resolution of the corporation, 13 called the "capital reserve fund requirement," unless the corporation, at the time of 14 issuance of the obligations, deposits in the capital reserve fund from the proceeds of 15 the obligations to be issued or from other sources an amount that, together with the 16 amount then in the fund, will not be less than the capital reserve fund requirement. 17 (c) In computing the amount of a capital reserve fund for the purpose of this 18 section, securities in which all or a portion of the funds are invested shall be valued at 19 par or, if purchased at less than par, at amortized costs as the term is defined by 20 resolution of the corporation authorizing the issue of the obligations or by some other 21 reasonable method established by the corporation by resolution. Valuation on a 22 particular date must include the amount of interest earned or accrued to that date. 23 (d) To assure the continued operation and solvency of the corporation for the 24 carrying out of its corporate purposes, provision is made in (a) of this section for the 25 accumulation in capital reserve funds of an amount equal to their capital reserve fund 26 requirement. 27 (e) The chair of the corporation shall annually, no later than January 2, make 28 and deliver to the governor and chairs of the house and senate finance committees a 29 certificate stating the sum, if any, required to restore a capital reserve fund to the 30 capital reserve fund requirement. The legislature may appropriate that sum, and all 31 sums appropriated during the current fiscal year by the legislature for the restoration

01 shall be deposited by the corporation in the appropriate capital reserve fund. 02 (f) Nothing in this section creates a debt or liability of the state. 03 Sec. 41.41.360. Remedies. A holder of obligations or coupons attached to 04 them issued under the provisions of this chapter, and a trustee under a trust agreement 05 or resolution authorizing the issuance of the obligations, except as restricted by a trust 06 agreement or resolution, either at law or in equity, may enforce all rights granted 07 hereunder or under the trust agreement or resolution, or under another contract 08 executed by the corporation under this chapter, and may enforce and compel the 09 performance of all duties required by this chapter or by the trust agreement or 10 resolution to be performed by the corporation or by an officer of it. 11 Sec. 41.41.370. Negotiable instruments. All obligations and interest 12 coupons attached to them are negotiable instruments under the laws of this state, 13 subject only to applicable provisions for registration. 14 Sec. 41.41.380. Obligations eligible for investment. Obligations issued 15 under the provisions of this chapter are securities in which all public officers and 16 public bodies of the state and its political subdivisions, all insurance companies, trust 17 companies, banking associations, investment companies, executors, administrators, 18 trustees, and other fiduciaries may properly and legally invest funds, including capital 19 in their control or belonging to them. These obligations may be deposited with a state 20 or municipal officer of an agency or political subdivision of the state for a purpose for 21 which the deposit of bonds, notes, or obligations of the state is authorized by law. 22 Sec. 41.41.390. Refunding bonds. (a) The corporation may provide for the 23 issuance of refunding bonds for the purpose of refunding an obligation then 24 outstanding that have been issued under the provisions of this chapter, including the 25 payment of redemption premium on them and interest accrued or to accrue to the date 26 of redemption of the obligations. The issuance of the bonds, the maturities and other 27 details of them, the rights of the holders of them, and the rights, duties, and obligations 28 of the corporation in respect of them are governed by the provisions of this chapter 29 that relate to the issuance of obligations insofar as those provisions may be 30 appropriate. 31 (b) Refunding bonds may be sold or exchanged for outstanding bonds issued

01 under this chapter, and, if sold, the proceeds may be applied, in addition to another 02 authorized purpose, to the purchase, redemption, or payment of the outstanding 03 obligations. Pending the application of the proceeds of refunding bonds, with any 04 other available funds, to the payment of the principal, accrued interest, and redemption 05 premium on the obligations being refunded, and, if so provided or permitted in the 06 resolution authorizing the issuance of the refunding bonds or in the trust agreement 07 securing them, to the payment of any interest on the refunding bonds and expenses in 08 connection with the refunding, the proceeds may be invested in direct obligations of, 09 or obligations the principal of and the interest on which are unconditionally 10 guaranteed by, the United States that mature or that will be subject to redemption, at 11 the option of the holders of them, not later than the respective dates when the 12 proceeds, together with the interest accruing on them, will be required for the purposes 13 intended. 14 Sec. 41.41.400. Credit of state not pledged. (a) Obligations issued under 15 the provisions of this chapter do not constitute a debt, liability, or obligation of the 16 state or of a political subdivision of the state or a pledge of the faith and credit of the 17 state or of a political subdivision of the state but are payable solely from the revenue 18 or assets of the corporation. Each obligation issued under this chapter must contain on 19 its face a statement that the corporation is not obligated to pay it or the interest on it 20 except from the revenue or assets of the corporation and that neither the faith and 21 credit nor the taxing power of the state or of a political subdivision of the state is 22 pledged to the payment of the principal of or the interest on the obligation. 23 (b) Expenses incurred by the corporation in carrying out the provisions of this 24 chapter are payable from funds provided under this chapter, and liability may not be 25 incurred by the corporation in excess of these funds. 26 Sec. 41.41.410. Officers not liable. A board member or other officer of the 27 corporation is not subject to personal liability or accountability by reason of having 28 executed or issued an obligation. 29 Article 4. Property of the Corporation. 30 Sec. 41.41.450. Property of the corporation. The corporation may acquire, 31 by purchase, lease, or gift, upon terms that it considers proper, land, structures, real or

01 personal property rights, rights-of-way, franchises, easements, and other interests in 02 land it considers necessary or convenient for the financing of the project or a part of 03 the project. 04 Article 5. General Provisions. 05 Sec. 41.41.900. Tax exemption. (a) The exercise of the powers granted by 06 this chapter will be in all respects for the benefit of the people of the state, for their 07 well-being and prosperity, and for the improvement of their social and economic 08 conditions. The corporation is not required to pay a tax or assessment on property 09 owned by the corporation under the provisions of this chapter or on the income from 10 it. 11 (b) All obligations issued under this chapter are declared to be issued by a 12 body corporate and public of the state and for an essential public and governmental 13 purpose, and the obligations, and the interest and income on and from the obligations, 14 and all fees, charges, funds, revenues, income, and other money pledged or available 15 to pay or secure the payment of the obligations, or interest on the obligations, are 16 exempt from state taxation except for transfer, inheritance, and estate taxes. 17 Sec. 41.41.990. Definitions. In this chapter, 18 (1) "board" means the board of directors of the Alaska Gas 19 Corporation; 20 (2) "corporation" means the Alaska Gas Corporation; 21 (3) "project" means the gas transmission pipeline, together with all 22 related property and facilities, to extend from the Prudhoe Bay area on the North Slope 23 of Alaska to the interior of Alaska and from there either along a route proximate to the 24 Alaska Highway to interconnect with a gas transmission pipeline in Canada or to 25 tidewater at a point on Prince William Sound, or both, and includes planning, design, 26 and construction of the pipeline and related facilities. 27 * Sec. 3. AS 39.25.110(11) is amended by adding a new subparagraph to read: 28 (G) Alaska Gas Corporation; 29 * Sec. 4. AS 39.50.200(b) is amended by adding a new paragraph to read: 30 (57) the board of directors and executive director of the Alaska Gas 31 Corporation (AS 41.41.020).

01 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 DEVELOPMENT OF PROJECT PLAN. (a) The Joint Committee on Natural Gas 04 Pipelines (Twenty-Second Legislature, Legislative Resolve 32) shall submit a report to the 05 governor, the speaker of the house, and the president of the senate no later than the first day of 06 the Second Regular Session of the Twenty-Third Alaska State Legislature based on 07 conclusions drawn by qualified engineering, consulting, and other entities considered 08 appropriate as to whether the construction and operation of a natural gas transmission pipeline 09 project, as defined in AS 41.41.990, added by sec. 2 of this Act, by a public corporation is 10 feasible. 11 (b) The feasibility study must be a general description of the requirements and current 12 status of the requirements set out in (a) of this section with respect to gas supply, engineering, 13 technical, financial, regulatory, and market access matters relating to the project. In addition, 14 the plan must include the following specific items and findings and recommendations on each 15 item: 16 (1) the proposed methods and procedures by which the project will be 17 financed, including the amounts and times of issuance of bonds by the corporation; 18 (2) the method of securing the bonds; 19 (3) projected debt service requirements of the bonds; 20 (4) projected revenues, for the period of time during which reasonable 21 projections can be made, that will be available to the corporation to meet debt service 22 requirement; 23 (5) documentation that contractors have undertaken 24 (A) to use their best efforts to advertise for, recruit, and employ 25 qualified residents of the state; 26 (B) to subcontract with existing licensed Alaska firms within the state 27 and, in subcontracting with those firms, to encourage the contractors to employ and, 28 when necessary, train existing state residents; 29 (C) to enter into contracts with Alaska-licensed vendors, contractors, 30 and suppliers for the provision of supplies and services; and 31 (D) to conduct quarterly audits of the performance of the contractors

01 under (A) - (C) of this paragraph and to report the results of these audits to the 02 legislature and other interested state officials in a timely manner; 03 (6) the estimated number of Alaska workers who will be employed under the 04 provisions of (5) of this subsection, the estimated total number of workers to be employed on 05 the project during construction, the estimated dollar volume of contracts that will be let to 06 Alaska contractors or firms under the provisions of (5) of this subsection, and the estimated 07 total dollar volume of contracts that will be let for the project during construction; and 08 (7) documentation that the necessary documents and exhibits have been filed 09 before the appropriate federal regulatory agencies. 10 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 INITIAL APPOINTMENTS OF MEMBERS OF ALASKA GAS CORPORATION 13 BOARD OF DIRECTORS. (a) The governor shall appoint the initial members of the board 14 of directors of the Alaska Gas Corporation under AS 41.41.020, added by sec. 2 of this Act, 15 not later than 30 days after the date of submission of the report to the governor under sec. 5(a) 16 of this Act and only if the report that is submitted to the governor concludes that construction 17 and operation of a natural gas transmission pipeline project, as defined in AS 41.41.990, 18 added by sec. 2 of this Act, by a public corporation is feasible. 19 (b) Of the members first appointed under AS 41.41.020(a), enacted by sec. 2 of this 20 Act, 21 (1) two members shall be appointed to four-year terms; 22 (2) one member shall be appointed to a three-year term; 23 (3) two members shall be appointed to two-year terms; and 24 (4) one member shall be appointed to a one-year term.