SB 191: "An Act authorizing the negotiation for the lease, sale, or other disposal of state land with a common carrier that is engaged in the intrastate transportation of natural gas by pipeline or with a public utility; relating to the authority of the Alaska Natural Gas Development Authority; relating to a right-of-way across state land for the purpose of developing an intrastate gas pipeline project identified by the governor; relating to the authority of the governor to identify an intrastate gas pipeline project to be developed in conjunction with the Alaska Natural Gas Development Authority; and providing for an effective date."
00 SENATE BILL NO. 191 01 "An Act authorizing the negotiation for the lease, sale, or other disposal of state land 02 with a common carrier that is engaged in the intrastate transportation of natural gas by 03 pipeline or with a public utility; relating to the authority of the Alaska Natural Gas 04 Development Authority; relating to a right-of-way across state land for the purpose of 05 developing an intrastate gas pipeline project identified by the governor; relating to the 06 authority of the governor to identify an intrastate gas pipeline project to be developed in 07 conjunction with the Alaska Natural Gas Development Authority; and providing for an 08 effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 38.05.810(e) is repealed and reenacted to read: 11 (e) The lease, sale, or other disposal of state land at appraised fair market 12 value may be negotiated with a licensed public utility or a licensed common carrier if
01 the interest in state land is required for the conduct of the business of the licensed 02 public utility or licensed common carrier. The lease, sale, or other disposal of state 03 land in this subsection is subject to approval by the commissioner. 04 * Sec. 2. AS 38.35.050 is amended by adding a new subsection to read: 05 (e) The commissioner may accept an application from the Alaska Natural Gas 06 Development Authority established under AS 41.41.010 for a noncompetitive right-of- 07 way lease of state land for the purpose of developing the gas pipeline project 08 designated by the governor under AS 44.19.037. 09 * Sec. 3. AS 41.41.010(a) is amended to read: 10 (a) There is established the Alaska Natural Gas Development Authority, the 11 purpose of which is to provide one or more of the following services and functions in 12 order to bring natural gas produced in the state [FROM THE NORTH SLOPE] to 13 market, including 14 (1) the acquisition and conditioning of North Slope natural gas; 15 (2) the design and construction of a [THE] pipeline system; 16 (3) the operation and maintenance of a [THE] pipeline system; 17 (4) the design, construction, and operation [,] of other facilities 18 necessary for delivering the gas to market and to Southcentral Alaska; [AND] 19 (5) the acquisition of natural gas market share sufficient to ensure the 20 long-term feasibility of a [THE] pipeline system project, other than the project 21 designated by the governor under AS 44.19.037; and 22 (6) assisting the person developing the intrastate gas pipeline 23 project designated by the governor under AS 44.19.037 by applying for a 24 noncompetitive right-of-way lease of state land under AS 19.40.200 or AS 38.35 25 (Alaska Right-of-Way Leasing Act) and assisting in the acquisition of federal and 26 state permits and authorizations required for the project. 27 * Sec. 4. AS 41.41.010(d) is amended to read: 28 (d) The acquisition of natural gas from the North Slope and its delivery to 29 tidewater for shipment to market and the provision of assistance in the development 30 of an intrastate gas pipeline under (a)(6) of this section by the authority are [IS 31 AN] essential government functions [FUNCTION] of the state.
01 * Sec. 5. AS 41.41.990(3) is amended to read: 02 (3) "project" means the gas transmission pipeline, together with all 03 related property and facilities, to extend from the Prudhoe Bay area on the North Slope 04 of Alaska either to tidewater at a point on Prince William Sound and the spur line 05 from Glennallen to the Southcentral gas distribution grid or to tidewater at a point on 06 Cook Inlet, and includes planning, design, and construction of the pipeline and 07 facilities as described in AS 41.41.010(a)(1) - (5), except that "project" does not 08 include the project designated by the governor under AS 44.19.037. 09 * Sec. 6. AS 44.19 is amended by adding a new section to article 1 to read: 10 Sec. 44.19.037. Identification of an intrastate pipeline project. (a) The 11 governor may designate a proposed project for the development of an intrastate gas 12 pipeline to be developed with the assistance of the Alaska Natural Gas Development 13 Authority under AS 41.41.010. 14 (b) Before designating a proposed project under (a) of this section, the 15 governor shall 16 (1) define the proposed project, including the proposed route for the 17 pipeline; 18 (2) determine the economic feasibility of the proposed project and the 19 probability of the success of the project; 20 (3) identify federal and state permits and other authorizations required 21 for the project and develop a plan for obtaining the necessary permits; 22 (4) determine whether there are or are likely to be necessary 23 commitments of gas to be transported by the proposed project to make the project 24 economically viable; 25 (5) identify the person or persons that would design, construct, and 26 operate the project; 27 (6) develop a project plan for the design and construction of the 28 project, including 29 (A) a project timeline; 30 (B) procurement of labor, materials, and necessary permits; and 31 (C) the estimated total cost of the project;
01 (7) identify major factors that affect the viability of the project, which 02 may include the availability of gas production and a market for the gas to be 03 transported, the cost of materials to develop the project, competition from gas 04 produced outside the state in the market to be served by the proposed project, an 05 estimate of the tariffs to be imposed during the life of the project, and the market price 06 for gas in the markets served by the proposed project; 07 (8) determine that the person proposing the development of the project 08 is fit, willing, and able to develop and complete the project; 09 (9) solicit public comments on the proposed project; 10 (10) determine that the proposed project is in the best interest of the 11 state; and 12 (11) make other findings and determinations the governor finds 13 necessary to determine the likelihood of success of the proposed project. 14 (c) Upon designating a proposed project for development under this section, 15 the governor shall provide written notice to the chair of the board of directors of the 16 authority. After receiving notice from the governor under this section, the authority 17 may assist in the development of the project under the authority of AS 41.41.010. 18 (d) In this section, "authority" means the Alaska Natural Gas Development 19 Authority established under AS 41.41.010. 20 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).