HB 4: "An Act relating to the Alaska Gasline Development Corporation; making the Alaska Gasline Development Corporation, a subsidiary of the Alaska Housing Finance Corporation, an independent public corporation of the state; establishing and relating to the in-state natural gas pipeline fund; making certain information provided to or by the Alaska Gasline Development Corporation exempt from inspection as a public record; relating to the Joint In-State Gasline Development Team; relating to the Alaska Housing Finance Corporation; relating to judicial review of a right-of-way lease or an action or decision related to the development or construction of an oil or gas pipeline on state land; relating to the lease of a right-of-way for a gas pipeline transportation corridor, including a corridor for a natural gas pipeline that is a contract carrier; relating to the cost of natural resources, permits, and leases provided to the Alaska Gasline Development Corporation; relating to procurement by the Alaska Gasline Development Corporation; relating to the review by the Regulatory Commission of Alaska of natural gas transportation contracts; relating to the regulation by the Regulatory Commission of Alaska of an in-state natural gas pipeline project developed by the Alaska Gasline Development Corporation; relating to the regulation by the Regulatory Commission of Alaska of an in-state natural gas pipeline that provides transportation by contract carriage; relating to the Alaska Natural Gas Development Authority; relating to the procurement of certain services by the Alaska Natural Gas Development Authority; exempting property of a project developed by the Alaska Gasline Development Corporation from property taxes before the commencement of commercial operations; and providing for an effective date."
00 HOUSE BILL NO. 4 01 "An Act relating to the Alaska Gasline Development Corporation; making the Alaska 02 Gasline Development Corporation, a subsidiary of the Alaska Housing Finance 03 Corporation, an independent public corporation of the state; establishing and relating to 04 the in-state natural gas pipeline fund; making certain information provided to or by the 05 Alaska Gasline Development Corporation exempt from inspection as a public record; 06 relating to the Joint In-State Gasline Development Team; relating to the Alaska Housing 07 Finance Corporation; relating to judicial review of a right-of-way lease or an action or 08 decision related to the development or construction of an oil or gas pipeline on state 09 land; relating to the lease of a right-of-way for a gas pipeline transportation corridor, 10 including a corridor for a natural gas pipeline that is a contract carrier; relating to the 11 cost of natural resources, permits, and leases provided to the Alaska Gasline 12 Development Corporation; relating to procurement by the Alaska Gasline Development
01 Corporation; relating to the review by the Regulatory Commission of Alaska of natural 02 gas transportation contracts; relating to the regulation by the Regulatory Commission 03 of Alaska of an in-state natural gas pipeline project developed by the Alaska Gasline 04 Development Corporation; relating to the regulation by the Regulatory Commission of 05 Alaska of an in-state natural gas pipeline that provides transportation by contract 06 carriage; relating to the Alaska Natural Gas Development Authority; relating to the 07 procurement of certain services by the Alaska Natural Gas Development Authority; 08 exempting property of a project developed by the Alaska Gasline Development 09 Corporation from property taxes before the commencement of commercial operations; 10 and providing for an effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 LEGISLATIVE FINDINGS AND INTENT. (a) The legislature finds that 15 (1) an in-state natural gas pipeline developed by the Alaska Gasline 16 Development Corporation is required for public convenience and necessity; 17 (2) the development of a natural gas pipeline by the Alaska Gasline 18 Development Corporation is in the best interest of the state; 19 (3) it is the policy of the state to make the state's share of royalty natural gas 20 available for shipment in an in-state natural gas pipeline developed by the Alaska Gasline 21 Development Corporation; 22 (4) making the Alaska Gasline Development Corporation an independent 23 public corporation of the State of Alaska located for administrative purposes under the 24 Department of Commerce, Community, and Economic Development will enhance the ability 25 of the Alaska Gasline Development Corporation to accomplish its purposes. 26 (b) It is the intent of the legislature that 27 (1) the Alaska Gasline Development Corporation, in its new placement as an
01 independent public corporation of the state, shall be treated for all purposes as the transfer of a 02 corporation within the state and not as the creation of a new entity by the State of Alaska; 03 (2) to the maximum extent permitted by law, in developing a natural gas 04 pipeline, the Alaska Gasline Development Corporation shall procure services, labor, products, 05 and natural resources from qualified businesses located in the state, including organizations 06 owned by Alaska Natives and municipal organizations directly affected by the project, if 07 those persons are competitive; and 08 (3) the Alaska Gasline Development Corporation shall, to the maximum 09 extent permitted by law, 10 (A) hire qualified residents from throughout the state for management, 11 engineering, construction, operations, maintenance, and other positions for a natural 12 gas pipeline project; 13 (B) establish hiring facilities in the state or use existing hiring facilities 14 in the state; and 15 (C) use, as far as practicable, the job centers and associated services 16 operated by the Department of Labor and Workforce Development and an Internet- 17 based labor exchange system operated by the state. 18 * Sec. 2. AS 18.56.086 is amended to read: 19 Sec. 18.56.086. Creation of subsidiaries. The corporation may create 20 subsidiary corporations for the purpose of financing or facilitating the financing of 21 school construction, facilities for the University of Alaska, facilities for ports and 22 harbors, the acquisition, development, management, or operation of affordable 23 housing, prepayment of all or a portion of a governmental employer's share of 24 unfunded accrued actuarial liability of retirement systems, or other capital projects. [A 25 SUBSIDIARY CORPORATION MAY ALSO BE CREATED FOR THE PURPOSE 26 OF PLANNING, CONSTRUCTING, AND FINANCING IN-STATE NATURAL 27 GAS PIPELINE PROJECTS OR FOR THE PURPOSE OF AIDING IN THE 28 PLANNING, CONSTRUCTION, AND FINANCING OF IN-STATE NATURAL 29 GAS PIPELINE PROJECTS.] A subsidiary corporation created under this section 30 may be incorporated under AS 10.20.146 - 10.20.166. The corporation may transfer 31 assets of the corporation to a subsidiary created under this section. A subsidiary
01 created under this section may borrow money and issue bonds as evidence of that 02 borrowing, and has all the powers of the corporation that the corporation grants to it. 03 However, a subsidiary created for the purpose of financing or facilitating the financing 04 of prepayment of a governmental employer's share of unfunded accrued actuarial 05 liability of retirement systems may borrow money and issue bonds only if the state 06 bond rating is the equivalent of AA- or better and subject to AS 37.15.903. [A 07 SUBSIDIARY CORPORATION CREATED FOR THE PURPOSE OF PLANNING, 08 CONSTRUCTING, AND FINANCING IN-STATE NATURAL GAS PIPELINE 09 PROJECTS OR FOR THE PURPOSE OF AIDING IN THE PLANNING, 10 CONSTRUCTION, OR FINANCING OF IN-STATE NATURAL GAS PIPELINE 11 PROJECTS IS EXEMPT FROM AS 36.30, INCLUDING AS 36.30.015(d) AND (f).] 12 Unless otherwise provided by the corporation, the debts, liabilities, and obligations of 13 a subsidiary corporation created under this section are not the debts, liabilities, or 14 obligations of the corporation. 15 * Sec. 3. AS 31 is amended by adding a new chapter to read: 16 Chapter 25. Alaska Gasline Development Corporation. 17 Article 1. Organization, Administration, and Powers. 18 Sec. 31.25.010. Structure. The Alaska Gasline Development Corporation is a 19 public corporation and government instrumentality located for administrative purposes 20 in the Department of Commerce, Community, and Economic Development, but 21 having a legal existence independent of and separate from the state. The corporation 22 may not be terminated as long as it has bonds, notes, or other obligations outstanding. 23 Upon termination of the corporation, its rights and property pass to the state. 24 Sec. 31.25.020. Governing body. (a) The corporation shall be governed by a 25 board of directors consisting of five members. 26 (b) Members of the board shall be appointed by the governor and are subject 27 to confirmation by the legislature. When appointing a member to the board, the 28 governor shall consider an individual's expertise and experience in gas transmission, 29 gas marketing, finance, and large project management, and other expertise and 30 experience that is relevant to the purpose, powers, and duties of the corporation. 31 Members of the board serve staggered seven-year terms. A member may be removed
01 from office by the governor only for cause. A removal by the governor must be in 02 writing, must state the reason for the removal, and must be made available to the 03 public. A vacancy shall be filled in the same manner as the original appointment. 04 (c) Notwithstanding AS 39.05.055, the terms of the initially appointed 05 members of the board shall be set by the governor to be two years for one member, 06 three years for one member, five years for one member, and seven years for two 07 members. 08 (d) The members of the board described in (a) of this section receive $400 09 compensation for each day spent on official business of the corporation and may be 10 reimbursed by the corporation for actual and necessary expenses at the same rate paid 11 to members of state boards under AS 39.20.180. 12 Sec. 31.25.030. Meetings of board. (a) The board shall elect a chair, secretary, 13 and treasurer from among its membership at each annual meeting. A majority of the 14 members constitutes a quorum for organizing the board, conducting its business, and 15 exercising the powers of the corporation. The board shall meet at the call of the chair. 16 The board shall meet at least once every three months. 17 (b) The board may meet and transact business by electronic media if 18 (1) public notice of the time and locations where the meeting will be 19 held by electronic media has been given in the same manner as if the meeting were 20 held in a single location; 21 (2) participants and members of the public in attendance can hear and 22 have the same right to participate in the meeting as if the meeting were conducted in 23 person; and 24 (3) copies of pertinent reference materials, statutes, regulations, and 25 audio-visual materials are reasonably available to participants and to the public. 26 (c) A meeting by electronic media as provided in this section has the same 27 legal effect as a meeting in person. 28 (d) For the purposes of this chapter, public notice of 24 hours or more is 29 adequate notice of a meeting of the board at which the issuance of corporation bonds 30 is authorized. 31 Sec. 31.25.035. Minutes of meetings. The board shall keep minutes of each
01 meeting and send certified copies to the governor and to the Legislative Budget and 02 Audit Committee. 03 Sec. 31.25.040. Administration of affairs. The board shall manage the assets 04 and business of the corporation and may adopt, amend, and repeal bylaws and 05 regulations governing the manner in which the business of the corporation is 06 conducted and the manner in which its powers are exercised. The board shall delegate 07 supervision of the administration of the corporation to the executive director, 08 appointed in accordance with AS 31.25.045. 09 Sec. 31.25.045. Executive director. The corporation shall employ an 10 executive director, who may not be a member of the board. The executive director 11 shall be appointed by the board and serves at the pleasure of the board. 12 Sec. 31.25.050. Legal counsel. The corporation shall retain an attorney as 13 legal counsel for the corporation. The attorney retained by the corporation shall advise 14 the corporation in legal matters and represent it in suits. 15 Sec. 31.25.060. Employment of personnel. The board may appoint other 16 officers and engage professional and technical advisors as independent contractors. 17 The executive director may hire employees of the corporation and engage professional 18 and technical advisors under contract with the corporation. The board shall prescribe 19 the duties and compensation of corporation personnel, including the executive 20 director. 21 Sec. 31.25.065. Personnel exempt from State Personnel Act. The personnel 22 of the corporation are exempt from AS 39.25. 23 Sec. 31.25.070. Purpose. The corporation shall, to the fullest extent possible, 24 (1) advance an in-state natural gas pipeline as described in the July 1, 25 2011, project plan prepared under former AS 38.34.040 by the corporation while a 26 subsidiary of the Alaska Housing Finance Corporation and the Joint In-State Gasline 27 Development Team, with modifications determined by the corporation to be necessary 28 to construct and operate an in-state natural gas pipeline in a safe, prudent, economical, 29 and efficient manner, for the purpose of making natural gas available to Fairbanks, the 30 Southcentral region of the state, and other communities in the state at the lowest rates 31 possible;
01 (2) endeavor to develop natural gas pipelines to deliver natural gas to 02 public utility and industrial customers in areas of the state to which the natural gas 03 may be delivered at commercially reasonable rates; and 04 (3) endeavor to develop natural gas pipelines to provide shippers 05 access to natural gas produced in the state for transport at commercially reasonable 06 rates. 07 Sec. 31.25.080. Powers and duties. (a) In addition to other powers granted in 08 this chapter, the corporation may 09 (1) determine the form of ownership and the operating structure of an 10 in-state natural gas pipeline developed by the corporation and may enter into 11 agreements with other persons for joint ownership, joint operation, or both of an in- 12 state natural gas pipeline; 13 (2) plan, finance, construct, develop, acquire, maintain, and operate a 14 pipeline system, including pipelines, compressors, storage facilities, and other related 15 facilities, equipment, and works of public improvement, in the state to facilitate 16 production, transportation, distribution, and delivery of natural gas or other related 17 natural resources to the point of consumption or to the point of distribution for 18 consumption; 19 (3) lease or rent facilities, structures, and properties to another for the 20 purpose of facilitating the production, transportation, distribution, and delivery of 21 natural gas or other related natural resources to the point of consumption or to the 22 point of distribution for consumption; 23 (4) exercise the power of eminent domain and file a declaration of 24 taking under AS 09.55.240 - 09.55.460 to acquire land or an interest in land that is 25 necessary for an in-state natural gas pipeline; the exercise of powers by the 26 corporation under this paragraph may not exceed the permissible exercise of the 27 powers by the state; 28 (5) acquire, by purchase, lease, or gift, land, structures, real or personal 29 property, an interest in property, a right-of-way, a franchise, an easement, or other 30 interest in land, or an interest in or right to capacity in any pipeline system determined 31 to be necessary or convenient for the development, financing, construction, or
01 operation of an in-state natural gas pipeline project or part of an in-state natural gas 02 pipeline project; 03 (6) transfer or otherwise dispose of all or part of an in-state natural gas 04 pipeline project developed by the corporation or transfer or otherwise dispose of an 05 interest in an asset of the corporation; 06 (7) provide transportation of natural gas as a contract carrier; 07 (8) provide light, water, security, and other services for property of the 08 corporation; 09 (9) conduct hearings to gather and develop data consistent with the 10 purpose and powers of the corporation; 11 (10) for the purposes of this chapter, subpoena witnesses; the superior 12 court may compel obedience to the corporation's subpoena in the same manner as 13 prescribed for obedience to a subpoena issued by the court; 14 (11) advocate for new pipeline capacity before the Federal Energy 15 Regulatory Commission; 16 (12) make and execute agreements, contracts, and other instruments 17 necessary or convenient in the exercise of the powers and functions of the corporation 18 under this chapter, including contracts with any person, firm, corporation, 19 governmental agency, or other entity; 20 (13) sue and be sued in its own name; 21 (14) adopt an official seal; 22 (15) adopt bylaws for the regulation of its affairs and the conduct of its 23 business and adopt regulations and policies in connection with the performance of its 24 functions and duties; 25 (16) employ fiscal consultants, engineers, attorneys, appraisers, and 26 other consultants and employees that may, in the judgment of the corporation, be 27 required and fix and pay their compensation from funds available to the corporation; 28 (17) procure insurance against any loss in connection with its 29 operation; 30 (18) borrow money as provided in this chapter to carry out its 31 corporate purposes and issue its obligations as evidence of borrowing;
01 (19) include in a borrowing the amounts necessary to pay financing 02 charges, interest on the obligations for a period not exceeding one year after the date 03 on which the corporation estimates funds will otherwise be available to pay the 04 interest, consultant, advisory, and legal fees, and other expenses that are necessary or 05 incident to the borrowing; 06 (20) receive, administer, and comply with the conditions and 07 requirements of any appropriation, gift, grant, or donation of property or money; 08 (21) do all acts and things necessary, convenient, or desirable to carry 09 out the powers expressly granted or necessarily implied in this chapter; 10 (22) invest or reinvest, subject to its contracts with noteholders and 11 bondholders, any money or funds held by the corporation, including funds in the in- 12 state natural gas pipeline fund (AS 31.25.100), in any obligations or other securities or 13 investments in which banks or trust companies in the state may legally invest funds 14 held in reserves or sinking funds or any funds not required for immediate 15 disbursement, and in certificates of deposit or time deposits secured by obligations of, 16 or guaranteed by, the state or the United States. 17 (b) The corporation shall establish a schedule of reasonable fees and collect 18 fees, rentals, and other charges for use of the facilities of the corporation. 19 (c) The corporation may not commit to a project that requires state financial 20 participation unless the commitment to the project is made contingent on the 21 legislature's sanctioning the project through the appropriation of necessary funds and 22 the enactment of that appropriation. 23 (d) If commitments to acquire firm transportation capacity are received in an 24 open season conducted by the corporation, the corporation shall, within 10 days after 25 accepting and executing the written commitments received during the open season, 26 report the results of the open season to the president of the senate and the speaker of 27 the house of representatives and inform the public of the results of the open season 28 through publication on the Internet website of the corporation and in a press release or 29 other announcement to the media. The results made public must include the name of 30 each prospective shipper, the amount of capacity allocated, and the period of the 31 commitment.
01 (e) In this section, "in-state natural gas pipeline" has the meaning given in 02 AS 38.34.099. 03 Sec. 31.25.090. Interagency cooperation; confidentiality. (a) The 04 corporation may have access to information of departments, agencies, and public 05 corporations of the state that is directly related to the planning, design, construction, or 06 operation of the in-state natural gas pipeline. The corporation shall avoid duplicating 07 studies, plans, and designs that have already been provided or obtained by other state 08 entities. All departments, agencies, and public corporations of the state shall cooperate 09 with and may provide information, services, facilities, and loans to the corporation 10 upon its request and, except for requests from the Alaska Gasline Inducement Act 11 coordinator (AS 43.90.250), give priority to requests of the corporation. 12 (b) Upon request by the corporation, a state entity shall provide water, sand 13 and gravel, other nonhydrocarbon natural resources, and a permit or a lease to the 14 corporation at the usual and customary rates, except as provided in (d) of this section. 15 Review of and action on a request shall be conducted and taken as provided in 16 AS 38.34.020. In this subsection, "state entity" means a state department, authority, or 17 other administrative unit of the executive branch of state government, a public 18 university, or a public corporation of the state. 19 (c) That part of the cost of providing, under (b) of this section, water, sand and 20 gravel, or other nonhydrocarbon natural resources, or of entering into a lease or 21 issuing a permit, that is borne by the corporation for an in-state natural gas pipeline 22 project that is owned in whole or in part by the corporation may not be included in the 23 rate base in a proceeding under AS 42 or before the Federal Energy Regulatory 24 Commission. 25 (d) Notwithstanding any contrary provision of law, the Department of Natural 26 Resources shall grant the corporation a right-of-way lease under AS 38.35 for the gas 27 pipeline transportation corridor at no appraisal or rental cost if 28 (1) a complete right-of-way lease application under AS 38.35.050 is 29 submitted; 30 (2) the lease application is made the subject of notice and other 31 reasonable and appropriate publication requirements under AS 38.35.070; and
01 (3) the corporation that submits the application for the right-of-way 02 lease agrees to be bound by the right-of-way lease covenants set out in AS 38.35.121. 03 (e) After approval by the commissioner of natural resources, a right-of-way 04 lease received by the corporation under (d) of this section may be transferred to a 05 successor in interest under the same terms and conditions applicable to the right-of- 06 way lease granted to the corporation. 07 (f) The corporation may enter into confidentiality agreements necessary to 08 acquire or provide information to carry out its functions. If a state agency determines 09 that a law or provision of a contract to which the state agency is a party requires the 10 state agency to preserve the confidentiality of the information and that delivering the 11 information to the corporation would violate the confidentiality provision of that law 12 or contract, the state agency 13 (1) shall identify the applicable law or contract provision to the 14 corporation; and 15 (2) may require the corporation to obtain the consent of the person who 16 has the right to waive the confidentiality of the information under the applicable law 17 or contract provision before the state agency transfers the information to the 18 corporation. 19 (g) Information acquired or provided by the corporation under a 20 confidentiality agreement is not subject to disclosure under AS 40.25.110. The 21 corporation may enter into confidentiality agreements with a public agency, as defined 22 in AS 40.25.220, to allow release of confidential information. The portions of the 23 records and files of a public agency bound by a confidentiality agreement that reflect, 24 incorporate, or analyze information subject to a confidentiality agreement under this 25 subsection are not public records. Confidentiality agreements entered into under this 26 subsection are valid and binding against all parties in accordance with the terms of the 27 confidentiality agreement. 28 (h) The conduct of and results from field studies and other technical 29 information developed or obtained by the corporation relating to the development, 30 financing, construction, or operation of an in-state natural gas pipeline project by the 31 corporation are confidential and not subject to disclosure under AS 40.25.110. The
01 corporation may waive the confidentiality of the information described in this 02 subsection, except for information acquired from another person that is subject to a 03 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 Sec. 31.25.100. In-state natural gas pipeline fund. The in-state natural gas 07 pipeline fund is established in the corporation and consists of money appropriated to 08 it. Unless otherwise provided by law, money appropriated to the fund lapses into the 09 general fund on the day this section is repealed. Interest and other income received on 10 money in the fund shall be separately accounted for and may be appropriated to the 11 fund. The corporation may use money appropriated to the fund without further 12 appropriation for the planning, designing, financing, development, construction, and 13 operation of an in-state natural gas pipeline. 14 Sec. 31.25.110. International borrowing. (a) For the purpose of obtaining 15 access to international capital markets to borrow money, the corporation may 16 (1) establish, or cause to be established, subsidiary corporations 17 incorporated in the state or in another state, or under the laws of a foreign jurisdiction; 18 (2) invest in corporations established under this section; 19 (3) issue bonds and borrow money for investments in corporations 20 established under this section; 21 (4) borrow from corporations established under this section; 22 (5) guarantee the obligations of corporations established under this 23 section; or 24 (6) enter into agreements with corporations established under this 25 section or with other persons. 26 (b) In exercising a power under this section, the corporation may not subject 27 its assets to risk of loss through foreign currency exchange. 28 (c) A guarantee under this section constitutes a bond of the corporation as 29 defined in AS 31.25.390. 30 Sec. 31.25.120. Creation of subsidiaries. The corporation may create 31 subsidiary corporations for the purpose of planning, constructing, and financing in-
01 state natural gas pipeline projects; for the purpose of aiding in the planning, 02 construction, and financing of in-state natural gas pipeline projects; or for the purpose 03 of marketing the state's royalty share of natural gas production. A subsidiary 04 corporation created under this section may be incorporated under AS 10.20.146 - 05 10.20.166. The corporation may transfer assets of the corporation to a subsidiary 06 created under this section. A subsidiary created under this section may borrow money 07 and issue bonds as evidence of that borrowing and has all the powers of the 08 corporation that the corporation grants to it. Unless otherwise provided by the 09 corporation, the debts, liabilities, and obligations of a subsidiary corporation created 10 under this section are not the debts, liabilities, or obligations of the corporation. 11 Sec. 31.25.130. Administrative procedure; regulations. (a) Except for 12 AS 44.62.310 - 44.62.319 (Open Meetings Act), AS 44.62 (Administrative Procedure 13 Act) does not apply to this chapter. The corporation shall make available to members 14 of the public copies of the regulations adopted under (b) - (e) of this section. Within 45 15 days after adoption, the chair of the board shall submit a regulation adopted under (b) - 16 (e) of this section to the chair of the Administrative Regulation Review Committee 17 under AS 24.20.400 - 24.20.460. 18 (b) The board may adopt regulations by motion or by resolution or in any 19 other manner permitted by its bylaws. 20 (c) The board may adopt regulations to carry out the purposes of this chapter. 21 (d) Except as provided in (e) of this section, at least 15 days before the 22 adoption, amendment, or repeal of a regulation, the board shall give public notice of 23 the proposed action by posting notice on the corporation's Internet website and on the 24 Alaska Online Public Notice System and by mailing a copy of the notice to every 25 person who has filed a request for notice of proposed regulations with the board or the 26 corporation. The public notice must include a statement of the time, place, and nature 27 of the proceedings for the adoption, amendment, or repeal of the regulation and must 28 include an informative summary of the proposed subject of the regulation. On the date 29 and at the time and place designated in the notice, the board shall give each interested 30 person or an authorized representative, or both, the opportunity to present statements, 31 arguments, or contentions in writing and shall give members of the public an
01 opportunity to present oral statements, arguments, or contentions for a total period of 02 at least one hour. The board shall consider all relevant matter presented to it before 03 adopting, amending, or repealing a regulation. At a hearing under this subsection, the 04 board may continue or postpone the hearing to a time and place that it determines. A 05 regulation that is adopted, or its amendment or repeal, may vary in content from the 06 informative summary specified in this subsection if the subject matter of the 07 regulation, or its amendment or repeal, remains the same and the original notice was 08 written to ensure that members of the public are reasonably notified of the proposed 09 subject of the board's action in order for them to determine whether their interests 10 could be affected by the board's action on that subject. 11 (e) A regulation or order of repeal may be adopted as an emergency regulation 12 or order of repeal if the board makes a finding in its order of adoption or repeal, 13 including a statement of the facts that constitute the emergency, that the adoption of 14 the regulation or order of repeal is necessary for the immediate preservation of the 15 orderly operation of the corporation's bonding programs. Upon adoption of an 16 emergency regulation, the board shall, within 10 days after adoption, give notice of the 17 adoption in accordance with (d) of this section. An emergency regulation adopted 18 under this subsection does not remain in effect more than 120 days unless the board 19 complies with (d) of this section during the 120-day period. 20 (f) A regulation adopted under (b) - (e) of this section becomes effective 21 immediately upon its adoption by the board, unless otherwise specifically provided by 22 the order of adoption. 23 Sec. 31.25.140. Exemption from the State Procurement Code and the 24 Executive Budget Act; corporation finances. (a) The corporation and its subsidiaries 25 are exempt from the provisions of AS 36.30 (State Procurement Code) and AS 37.07 26 (Executive Budget Act). 27 (b) To further ensure effective budgetary decision making by the legislature, 28 the board shall 29 (1) annually review the corporation's assets, including the assets of the 30 in-state natural gas pipeline fund under AS 31.25.100, to determine whether assets of 31 the corporation exceed an amount required to fulfill the purposes of the corporation as
01 defined in this chapter; in making its review, the board shall determine whether, and to 02 what extent, assets in excess of the amount required to fulfill the purposes of the 03 corporation during the next fiscal year are available without 04 (A) breaching any agreement entered into by the corporation; 05 (B) materially impairing the operations or financial integrity of 06 the corporation; or 07 (C) materially affecting the ability of the corporation to fulfill 08 the purposes of the corporation as defined in this chapter; 09 (2) specifically identify in the corporation's assets the amounts that the 10 board believes are necessary to meet the requirements of (1)(C) of this subsection; and 11 (3) present to the legislature by January 10 of each year a complete 12 accounting of all assets of the corporation, including assets of the in-state natural gas 13 pipeline fund under AS 31.25.100, and a report of the review and determination made 14 under (1) and (2) of this subsection; the accounting shall be audited by an independent 15 outside auditor. 16 Article 2. Bonds and Notes. 17 Sec. 31.25.150. Federal taxation of interest on bonds and bond anticipation 18 notes. If the interest on bonds or bond anticipation notes of the corporation becomes 19 taxable under the income tax laws of the United States, the legislature may appropriate 20 an amount sufficient to pay the outstanding principal of and interest on the bonds or 21 bond anticipation notes. Nothing in this section creates a debt or liability of the state. 22 Sec. 31.25.160. Bonds and notes. (a) The corporation may, by resolution, 23 issue bonds and bond anticipation notes to provide funds to carry out its purposes. 24 (b) The principal of and interest on the bonds or notes are payable from 25 corporation funds. Bond anticipation notes may be payable from the proceeds of the 26 sale of bonds or from the proceeds of sale of other bond anticipation notes or, in the 27 event bond or bond anticipation note proceeds are not available, from other funds or 28 assets of the corporation. Bonds or notes may be additionally secured by a pledge of a 29 grant or contribution from the federal government, or a corporation, association, 30 institution, or person, or a pledge of money, income, or revenue of the corporation 31 from any source.
01 (c) Bonds or bond anticipation notes may be issued in one or more series and 02 shall be dated, bear interest at the rate or rates a year or within the maximum rate, be 03 in the denomination, be in the form, either coupon or registered, carry the conversion 04 or registration provisions, have the rank or priority, be executed in the manner and 05 form, be payable from the sources in the medium of payment and place or places 06 within or outside the state, be subject to authentication by a trustee or fiscal agent, and 07 be subject to the terms of redemption with or without premium, as the resolution of the 08 corporation may provide. Bond anticipation notes shall mature at the time or times that 09 are determined by the corporation. Bonds shall mature at a time, not exceeding 50 10 years from their date, that is determined by the corporation. Before the preparation of 11 definitive bonds or bond anticipation notes, the corporation may issue interim receipts 12 or temporary bonds or bond anticipation notes, with or without coupons, exchangeable 13 for bonds or bond anticipation notes when the definitive bonds or bond anticipation 14 notes have been executed and are available for delivery. 15 (d) Bonds or bond anticipation notes may be sold in the manner and on the 16 terms the corporation determines. 17 (e) If an officer whose signature or a facsimile of whose signature appears on 18 any bonds or notes or coupons attached to them ceases to be an officer before the 19 delivery of the bond, note, or coupon, the signature or facsimile is valid the same as if 20 the officer had remained in office until delivery. 21 (f) In any resolution of the corporation authorizing or relating to the issuance 22 of bonds or bond anticipation notes, the corporation has power by provisions in the 23 resolution that will constitute covenants of the corporation and contracts with the 24 holders of the bonds or bond anticipation notes 25 (1) to pledge to any payment or purpose all or any part of its revenue 26 to which its right then exists or may thereafter come into existence, the money derived 27 from the revenue, and the proceeds of any bonds or notes; 28 (2) to covenant against pledging all or any part of its revenue or 29 against permitting or suffering a lien on the revenue of its property; 30 (3) to covenant as to the use and disposition of payments of principal 31 or interest received by the corporation on investments held by the corporation;
01 (4) to covenant as to establishment of reserves or sinking funds and the 02 making of provision for and the regulation and disposition of the reserves or sinking 03 funds; 04 (5) to covenant with respect to or against limitations on a right to sell 05 or otherwise dispose of property of any kind; 06 (6) to covenant as to bonds and notes to be issued, and their 07 limitations, terms, and condition, and as to the custody, application, and disposition of 08 the proceeds of the bonds and notes; 09 (7) to covenant as to the issuance of additional bonds or notes or as to 10 limitations on the issuance of additional bonds or notes and the incurring of other 11 debts; 12 (8) to covenant as to the payment of the principal of or interest on the 13 bonds or notes, as to the sources and methods of the payment, as to the rank or priority 14 of the bonds or notes with respect to a lien or security, or as to the acceleration of the 15 maturity of the bonds or notes; 16 (9) to provide for the replacement of lost, stolen, destroyed, or 17 mutilated bonds or notes; 18 (10) to covenant against extending the time for the payment of bonds 19 or notes or interest on the bonds or notes; 20 (11) to covenant as to the redemption of bonds or notes and privileges 21 of their exchange for other bonds or notes of the corporation; 22 (12) to covenant to create or authorize the creation of special funds of 23 money to be held in pledge or otherwise for operating expenses, payment or 24 redemption of bonds or notes, reserves, or other purposes, and as to the use and 25 disposition of the money held in the funds; 26 (13) to establish the procedure, if any, by which the terms of any 27 contract or covenant with or for the benefit of the holders of bonds or notes may be 28 amended or abrogated, the amount of bonds or notes the holders of which must 29 consent to amendment or abrogation, and the manner in which the consent may be 30 given; 31 (14) to covenant as to the custody of any of its properties or
01 investments, the safekeeping and insurance of its properties or investments, and the 02 use and disposition of insurance money; 03 (15) to covenant as to the time or manner of enforcement or restraint 04 from enforcement of any rights of the corporation arising by reason of or with respect 05 to nonpayment or violation of the terms of any agreement to which the corporation is a 06 party or with respect to which the corporation has enforcement rights; 07 (16) to provide for the rights, liabilities, powers, and duties arising 08 upon the breach of any covenant, condition, or obligation, and to prescribe the events 09 of default and the terms and conditions on which any or all of the bonds, notes, or 10 other obligations of the corporation become or may be declared due and payable 11 before maturity and the terms and conditions on which a declaration and its 12 consequences may be waived; 13 (17) to vest in a trustee or trustees within or outside the state the 14 property, rights, powers, and duties in trust as the corporation may determine, which 15 may include any or all of the rights, powers, and duties of any trustee appointed by the 16 holders of any bonds or notes, and to limit or abrogate the right of the holders of any 17 bonds or notes of the corporation to appoint a trustee under this chapter or limit the 18 rights, powers, and duties of the trustee; 19 (18) to pay the costs or expenses incident to the enforcement of the 20 bonds or notes or of the provisions of the resolution or of any covenant or agreement 21 of the corporation with the holders of its bonds or notes; 22 (19) to agree with any corporate trustee, which may be any trust 23 company or bank having the powers of a trust company within or outside the state, as 24 to the pledging or assigning of revenue or funds to which or in which the corporation 25 has any rights or interest; the agreement may further provide for other rights and 26 remedies exercisable by the trustee as may be proper for the protection of the holders 27 of any bonds or notes of the corporation and not otherwise in violation of law and may 28 provide for the restriction of the rights of an individual holder of bonds or notes of the 29 corporation; 30 (20) to appoint and provide for the duties and obligations of any 31 paying agent or paying agents, or other fiduciaries as the resolution may provide
01 within or outside the state; 02 (21) to limit the rights of the holders of any bonds or notes to enforce 03 any pledge or covenant securing bonds or notes; 04 (22) to make covenants other than and in addition to the covenants 05 expressly authorized in this section, of like or different character, and to make 06 covenants to do or refrain from doing acts and things as may be necessary, or as may 07 be convenient and desirable, to better secure bonds or notes or that, in the absolute 08 discretion of the corporation, would tend to make bonds or notes more marketable, 09 notwithstanding that the covenants, acts, or things may not be enumerated in this 10 section. 11 Sec. 31.25.170. Independent financial advisor. In negotiating the private sale 12 of bonds or bond anticipation notes to an underwriter, the corporation may retain a 13 financial advisor. A financial advisor retained under this section must be independent 14 from the underwriter. 15 Sec. 31.25.180. Validity of any pledge. The pledge of assets or revenue of the 16 corporation to the payment of the principal of or interest on any obligations of the 17 corporation is valid and binding from the time the pledge is made, and the assets or 18 revenue are immediately subject to the lien of the pledge without physical delivery or 19 further act. The lien of any pledge is valid and binding against all parties having 20 claims of any kind in tort, contract, or otherwise against the corporation, regardless of 21 whether those parties have notice of the lien of the pledge. This section does not 22 prohibit the corporation from selling assets subject to any pledge, except that any sale 23 may be restricted by the trust agreement or resolution providing for the issuance of the 24 obligations. 25 Sec. 31.25.190. Capital reserve funds. (a) For the purpose of securing any 26 one or more issues of its obligations, the corporation may establish one or more 27 special funds, called "capital reserve funds," and shall pay into those capital reserve 28 funds 29 (1) any money appropriated and made available by the state for the 30 purpose of any of those funds; 31 (2) any proceeds of the sale of its obligations, to the extent provided in
01 the resolution or resolutions of the corporation authorizing their issuance; and 02 (3) any other money that may be made available to the corporation for 03 the purposes of those funds from any other source. 04 (b) All money held in a capital reserve fund, except as provided in this section, 05 shall be used as required, solely for the payment of the principal of obligations or of 06 the sinking fund payments with respect to those obligations; the purchase or 07 redemption of obligations; the payment of interest on obligations; or the payment of 08 any redemption premium required to be paid when those obligations are redeemed 09 before maturity. However, money in any fund may not, at any time, be withdrawn 10 from the fund in an amount that would reduce the amount of that fund to less than the 11 capital reserve requirement set out in (c) of this section, except for the purpose of 12 making, with respect to those obligations, payment, when due, of principal, interest, 13 redemption premiums, and the sinking fund payments for the payment of which other 14 money of the corporation is not available. Any income or interest earned by, or 15 increment to, a capital reserve fund, because of the investment of the fund or any other 16 amounts in it, may be transferred by the corporation to other funds or accounts of the 17 corporation to the extent that the transfer does not reduce the amount of the capital 18 reserve fund below the capital reserve fund requirement. 19 (c) If the corporation decides to issue obligations secured by a capital reserve 20 fund, the obligations may not be issued if the amount in the capital reserve fund is less 21 than a percentage, not exceeding 10 percent of the principal amount of all of those 22 obligations secured by that capital reserve fund then to be issued and then outstanding 23 in accordance with their terms, as may be established by resolution of the corporation 24 (called the "capital reserve fund requirement"), unless the corporation, at the time of 25 issuance of the obligations, deposits in the capital reserve fund from the proceeds of 26 the obligations to be issued or from other sources, an amount that, together with the 27 amount then in the fund, would not be less than the capital reserve fund requirement. 28 (d) In computing the amount of a capital reserve fund for the purpose of this 29 section, securities in which all or a portion of the funds are invested shall be valued at 30 par or, if purchased at less than par, at amortized costs as the term is defined by 31 resolution of the corporation authorizing the issue of the obligations, or by some other
01 reasonable method established by the corporation by resolution. Valuation on a 02 particular date shall include the amount of any interest earned or accrued to that date. 03 (e) The chair of the corporation shall annually, not later than January 2, make 04 and deliver to the governor and chairs of the house and senate finance committees a 05 certificate stating the sum, if any, required to restore any capital reserve fund to the 06 capital reserve fund requirement. The legislature may appropriate that sum, and the 07 corporation shall deposit all sums appropriated by the legislature during the then 08 current fiscal year for the restoration in the proper capital reserve fund. Nothing in this 09 section creates a debt or liability of the state. 10 Sec. 31.25.200. Remedies. A holder of obligations or coupons attached to 11 them issued under of this chapter, and a trustee under any trust agreement or resolution 12 authorizing the issuance of the obligations, except as restricted by a trust agreement or 13 resolution, either at law or in equity, 14 (1) may enforce all rights granted under this chapter, under the trust 15 agreement or resolution, or under any other contract executed by the corporation under 16 this chapter; and 17 (2) may enforce and compel the performance of all duties required by 18 this chapter or by the trust agreement or resolution to be performed by the corporation 19 or by any officer of the corporation. 20 Sec. 31.25.210. Negotiable instruments. All obligations and interest coupons 21 attached to them are negotiable instruments under the laws of this state, subject only to 22 any applicable provisions for registration. 23 Sec. 31.25.220. Obligations eligible for investment. Obligations issued under 24 this chapter are securities in which all public officers and public bodies of the state and 25 its political subdivisions and all insurance companies, trust companies, banking 26 associations, investment companies, executors, administrators, trustees, and other 27 fiduciaries may properly and legally invest funds, including capital in their control or 28 belonging to them. Those obligations may be deposited with any state or municipal 29 officer of any agency or political subdivision of the state for any purpose for which the 30 deposit of bonds, notes, or obligations of the state is authorized by law. 31 Sec. 31.25.230. Refunding obligations. (a) The corporation may provide for
01 the issuance of refunding obligations for the purpose of refunding any obligations then 02 outstanding that have been issued under this chapter, including the payment of any 03 redemption premium on them and any interest accrued or to accrue to the date of 04 redemption of the obligations. The issuance of the obligations, the maturities and other 05 details of them, the rights of the holders of them, and the rights, duties, and obligations 06 of the corporation with respect to them are governed by the provisions of this chapter 07 that relate to the issuance of obligations, insofar as those provisions may be 08 appropriate. 09 (b) Refunding obligations may be sold or exchanged for outstanding 10 obligations issued under this chapter and, if sold, the proceeds may be applied, in 11 addition to any other authorized purposes, to the purchase, redemption, or payment of 12 the outstanding obligations. Pending the application of the proceeds of refunding 13 obligations, with any other available funds, to the payment of the principal of, accrued 14 interest on, and any redemption premium on the obligations being refunded and, if so 15 provided or permitted in the resolution authorizing the issuance of the refunding 16 obligations or in the trust agreement securing them, to the payment of any interest on 17 the refunding obligations and any expenses in connection with the refunding, the 18 proceeds may be invested in direct obligations of, or obligations the principal of and 19 the interest on which are unconditionally guaranteed by, the United States that mature 20 or that will be subject to redemption, at the option of the holders of them, not later 21 than the respective dates when the proceeds, together with the interest accruing on 22 them, will be required for the purposes intended. 23 Sec. 31.25.240. Credit of state not pledged. (a) Obligations issued under this 24 chapter do not constitute a debt, liability, or obligation of the state or of any political 25 subdivision of the state or a pledge of the faith and credit of the state or of a political 26 subdivision but are payable solely from the revenue or assets of the corporation. Each 27 obligation issued under this chapter shall contain on its face a statement that the 28 corporation is not obligated to pay the obligation or the interest on the obligation 29 except from the revenue or assets of the corporation and that neither the faith and 30 credit nor the taxing power of the state or of any political subdivision of the state is 31 pledged to the payment of the principal of or the interest on the obligation. This
01 subsection applies to all debt, obligations, and liabilities of the corporation regardless 02 of how the debt, obligations, or liabilities are created, including by contract, tort, or 03 bond or note issuance. Except as provided in this subsection, a person may not bring 04 suit against the state or any part or subdivision of the state or against the corporation 05 or a subsidiary corporation of the corporation other than the corporation in the courts 06 of the state to enforce or seek a remedy with respect to a debt, obligation, or liability 07 of the corporation. The corporation may waive, in whole or in part, the application of 08 this subsection to the corporation with respect to a debt, obligation, or liability of the 09 corporation. To be effective, a waiver by the corporation must be in writing and shall 10 only have effect to the extent provided in the writing. 11 (b) Expenses incurred by the corporation in carrying out the provisions of this 12 chapter are payable from funds provided under this chapter and liability may not be 13 incurred by the corporation in excess of those funds. 14 Article 3. General Provisions. 15 Sec. 31.25.250. Officers not liable. A member or other officer of the 16 corporation is not subject to personal liability or accountability because of having 17 executed or issued any obligation. 18 Sec. 31.25.260. Tax exemption. (a) The exercise of the powers granted by this 19 chapter is, in all respects, for the benefit of the people of the state, for their well-being 20 and prosperity, and for the improvement of their social and economic conditions, and 21 the corporation is not required to pay a tax or assessment on any property owned by 22 the corporation under the provisions of this chapter or on the income from it, including 23 state taxes levied or authorized under AS 43.56.010(a) and local taxes under 24 AS 43.56.010(b) as provided in AS 43.56.020. 25 (b) All obligations issued under this chapter are declared to be issued by a 26 body corporate and public of the state and for an essential public and governmental 27 purpose, and the obligations, and the interest and income on and from the obligations, 28 and all fees, charges, funds, revenue, income, and other money pledged or available to 29 pay or secure the payment of the obligations, or interest on the obligations, are exempt 30 from taxation except for transfer, inheritance, and estate taxes. 31 Sec. 31.25.270. Annual report. (a) The corporation shall prepare and transmit
01 annually a report to the governor accounting for the efficient discharge of all 02 responsibility assigned by law or by directive to the corporation. The corporation shall 03 notify the legislature that the report is available. 04 (b) By January 10 of each year, the board shall publish a report of the 05 corporation for distribution. The board shall notify the governor, the legislature, and 06 the public that the report is available. The report shall be written in easily 07 understandable language. The report must include a financial statement audited by an 08 independent outside auditor, a comparison of the corporation's performance with the 09 goals of the corporation, and any other information the board believes would be of 10 interest to the governor, the legislature, and the public. The annual income statement 11 and balance sheet of the corporation shall be published in at least one newspaper in 12 each judicial district. The board may also publish other reports it considers desirable to 13 carry out its purpose. 14 Sec. 31.25.390. Definitions for AS 31.25.010 - 31.25.390. In AS 31.25.010 - 15 31.25.390, unless the context clearly indicates a different meaning, 16 (1) "board" means the board of directors of the corporation; 17 (2) "bond" or "obligation" means a bond, bond anticipation note, or 18 other note of the corporation authorized to be issued by the corporation under this 19 chapter; 20 (3) "corporation" means the Alaska Gasline Development Corporation; 21 (4) "governmental agency" means any department, division, public 22 agency, political subdivision, or other public instrumentality of the state or the federal 23 government. 24 * Sec. 4. AS 36.30.850(b) is amended by adding new paragraphs to read: 25 (46) contracts by the Alaska Natural Gas Development Authority 26 under AS 41.41.070(d); 27 (47) the Alaska Gasline Development Corporation (AS 31.25) and 28 subsidiaries of the Alaska Gasline Development Corporation. 29 * Sec. 5. AS 38.05.180(bb)(1) is amended to read: 30 (1) "gas or electric utility" includes an electric cooperative organized 31 under AS 10.25, a municipal utility, and a gas or electric utility regulated under
01 AS 42.05; [PROVIDED THAT,] if the contract gas is transmitted to consumers 02 through a pipeline and the gas utility either owns the pipeline or is related in 03 ownership to the owner of the pipeline, then the gas utility qualifies as a "gas or 04 electric utility" within the meaning of this paragraph only if it is bound or agrees to be 05 bound by the covenants set out in AS 38.35.120 or 38.35.121, as applicable; 06 * Sec. 6. AS 38.34.099 is repealed and reenacted to read: 07 Sec. 38.34.099. Definitions. In this chapter, 08 (1) "Alaska Gasline Development Corporation" means the corporation 09 created under AS 31.25.010; 10 (2) "in-state natural gas pipeline" means a natural gas pipeline for 11 transporting natural gas in the state; 12 (3) "natural gas pipeline" means a total system of pipe and connected 13 facilities for the transportation, treatment or conditioning, delivery, storage, or further 14 transportation of natural gas, including all pipe, compressor stations, station 15 equipment, and all other facilities used or necessary for an integral line of pipe to carry 16 out the transportation of the natural gas. 17 * Sec. 7. AS 38.35.100(d) is amended to read: 18 (d) The commissioner shall include in a conditional lease each requirement 19 and condition of the covenants established under AS 38.35.120 or 38.35.121, as 20 applicable. The commissioner may also require that the lessee agree to additional 21 conditions that the commissioner finds to be in the public interest. In place of the 22 covenant established under AS 38.35.120(a)(9), the commissioner shall require the 23 lessee to agree that it will not transfer, assign, pledge, or dispose of in any manner, 24 directly or indirectly, its interest in a conditional right-of-way lease or a pipeline 25 subject to the conditional lease, unless the commissioner, after considering the public 26 interest and issuing written findings to substantiate a decision to allow the transfer, 27 authorizes the transfer. The commissioner shall also require the lessee to agree not to 28 allow the transfer of control of the lessee without the approval of the commissioner; as 29 used in this subsection, "transfer of control of the lessee" means the transfer of 30 30 percent or more, in the aggregate, of ownership interest in the lessee in one or more 31 transactions to one or more persons by one or more persons.
01 * Sec. 8. AS 38.35.120(a) is amended to read: 02 (a) Except as provided for a natural gas pipeline subject to AS 38.35.121, 03 a [A] noncompetitive lease of state land for a right-of-way for an oil or natural gas 04 pipeline valued at $1,000,000 or more may be granted only upon the condition that the 05 lessee expressly covenants in the lease, in consideration of the rights acquired by it 06 under the lease, that 07 (1) it assumes the status of and will perform all of its functions 08 undertaken under the lease as a common carrier and will accept, convey, and transport 09 without discrimination crude oil or natural gas, depending on the kind of pipeline 10 involved, delivered to it for transportation from fields in the vicinity of the pipeline 11 subject to the lease throughout its route both on state land obtained under the lease and 12 on the other land; it will accept, convey, and transport crude oil or natural gas without 13 unjust or unreasonable discrimination in favor of one producer or person, including 14 itself, as against another but will take the crude oil or natural gas, depending on the 15 kind of pipeline involved, delivered or offered, without unreasonable discrimination, 16 that the Regulatory Commission of Alaska shall, after a full hearing with due notice to 17 the interested parties and a proper finding of facts, determine to be reasonable in the 18 performance of its duties as a common carrier; however, a lessee that owns or operates 19 a natural gas pipeline 20 (A) subject to regulation either under 15 U.S.C. 717 et seq. 21 (Natural Gas Act) [THE NATURAL GAS ACT (15 U.S.C. 717 ET SEQ.) OF 22 THE UNITED STATES] or by the state or a political subdivision 23 [SUBDIVISIONS] with respect to rates and charges for the sale of natural gas, 24 is, to the extent of that regulation, exempt from the common carrier 25 requirement in this paragraph; 26 (B) that is a North Slope natural gas pipeline (i) is required to 27 operate as a common carrier only with respect to the intrastate transportation of 28 North Slope natural gas, as that term is defined in AS 42.06.630, and (ii) is not 29 required to operate as a common carrier as to a liquefied natural gas facility or 30 a marine terminal facility associated with the pipeline, and is not otherwise 31 required to perform its functions under the lease as a common carrier; for
01 purposes of this subparagraph, "North Slope natural gas pipeline" means all the 02 facilities of a total system of pipe, whether owned or operated under a contract, 03 agreement, or lease, used by a carrier for transportation of North Slope natural 04 gas, as defined by AS 42.06.630, for delivery, for storage, or for further 05 transportation, and including all pipe, [PUMP, OR] compressor stations, 06 station equipment, tanks, valves, access roads, bridges, airfields, terminals and 07 terminal facilities, including docks and tanker loading facilities, operations 08 control centers for both the upstream part of the pipeline and the terminal, 09 tanker ballast treatment facilities, fire protection system, communication 10 system, and all other facilities used or necessary for an integral line of pipe, 11 taken as a whole, to carry out transportation, including an extension or 12 enlargement of the line; 13 (2) it will interchange crude oil or natural gas, depending on the kind 14 of pipeline involved, with each like common carrier and provide connections and 15 facilities for the interchange of crude oil or natural gas at every locality reached by 16 both pipelines when the necessity exists, subject to rates and regulations made by the 17 appropriate state or federal regulatory agency; 18 (3) it will maintain and preserve books, accounts, and records and will 19 make those reports that the state may prescribe by regulation or law as necessary and 20 appropriate for purposes of administration of this chapter; 21 (4) it will accord at all reasonable times to the state and its authorized 22 agents and auditors the right of access to its property and records, of inspection of its 23 property, and of examination and copying of records; 24 (5) it will provide connections, as determined by the Regulatory 25 Commission of Alaska under AS 42.06.340, to facilities on the pipeline subject to the 26 lease, both on state land and other land in the state, for the purpose of delivering crude 27 oil or natural gas, depending on the kind of pipeline involved, to persons (including 28 the state and its political subdivisions) contracting for the purchase at wholesale of 29 crude oil or natural gas transported by the pipeline when required by the public 30 interest; 31 (6) it shall, notwithstanding any other provision, provide connections
01 and interchange facilities at state expense at [SUCH] places the state considers 02 necessary if the state determines to take a portion of its royalty or taxes in oil or 03 natural gas; 04 (7) it will construct and operate the pipeline in accordance with 05 applicable state laws and lawful regulations and orders of the Regulatory Commission 06 of Alaska; 07 (8) it will, at its own expense, during the term of the lease, 08 (A) maintain the leasehold and pipeline in good repair; 09 (B) promptly repair or remedy any damage to the leasehold; 10 (C) promptly compensate for any damage to or destruction of 11 property for which the lessee is liable resulting from damage to or destruction 12 of the leasehold or pipeline; 13 (9) it will not transfer, assign, or dispose of in any manner, directly or 14 indirectly, or by transfer of control of the carrier corporation, its interest in a right-of- 15 way lease, or any rights under the lease or any pipeline subject to the lease to any 16 person other than another owner of the pipeline (including subsidiaries, parents, and 17 affiliates of the owners), except to the extent that the commissioner, after 18 consideration of the protection of the public interest (including whether the proposed 19 transferee is fit, willing, and able to perform the transportation or other acts proposed 20 in a manner that will reasonably protect the lives, property, and general welfare of the 21 people of Alaska), authorizes; the commissioner shall not unreasonably withhold 22 consent to the transfer, assignment, or disposal; 23 (10) it will file with the commissioner a written appointment of a 24 named permanent resident of the state to be its registered agent in the state and to 25 receive service of notices, regulations, decisions, and orders of the commissioner; if it 26 fails to appoint an agent for service, service may be made by posting a copy in the 27 office of the commissioner, filing a copy in the office of the lieutenant governor, and 28 mailing a copy to the lessee's last known address; 29 (11) the applicable law of this state will be used in resolving questions 30 of interpretation of the lease; 31 (12) the granting of the right-of-way lease is subject to the express
01 condition that the exercise of the rights and privileges granted under the lease will not 02 unduly interfere with the management, administration, or disposal by the state of the 03 land affected by the lease, and that the lessee agrees and consents to the occupancy 04 and use by the state, its grantees, permittees, or other lessees of any part of the right- 05 of-way not actually occupied or required by the pipeline for the full and safe 06 utilization of the pipeline, for necessary operations incident to land management, 07 administration, or disposal; 08 (13) it will be liable to the state for damages or injury incurred by the 09 state caused by the construction, operation, or maintenance of the pipeline and it will 10 indemnify the state for the liabilities or damages; 11 (14) it will procure and furnish liability and property damage insurance 12 from a company licensed to do business in the state or furnish other security or 13 undertaking upon the terms and conditions the commissioner considers necessary if 14 the commissioner finds that the net assets of the lessee are insufficient to protect the 15 public from damage for which the lessee may be liable arising out of the construction 16 or operation of the pipeline. 17 * Sec. 9. AS 38.35.120(b) is amended to read: 18 (b) Except as provided for a natural gas pipeline subject to AS 38.35.121, 19 for [FOR] a right-of-way lease granted under this chapter for an oil or natural gas 20 pipeline valued at $1,000,000 or more to be valid and of legal effect, it must contain 21 the terms required to be inserted under the provisions of AS 38.35.110 - 38.35.140. An 22 oil or natural gas pipeline right-of-way lease granted under this chapter and subject to 23 this section that does not contain the required terms is null and void and without legal 24 effect and does not vest any interest in state land or any authority in the carrier granted 25 the lease. 26 * Sec. 10. AS 38.35 is amended by adding a new section to read: 27 Sec. 38.35.121. Covenants required to be in a lease to a natural gas 28 pipeline that is a contract carrier. (a) For a lease of state land for a right-of-way for 29 which an applicant has applied as a contract carrier under AS 42.08, a noncompetitive 30 lease of state land for a right-of-way for a natural gas pipeline valued at $1,000,000 or 31 more may be granted only on the condition that the lessee expressly covenant in the
01 lease, in consideration of the rights acquired by it under the lease, that 02 (1) except for the covenants in AS 38.35.120(a)(1), (2), and (5), it will 03 meet the requirements of AS 38.35.120; 04 (2) it will interchange natural gas and provide connections with each 05 public utility pipeline, common carrier pipeline, or contract carrier pipeline, and 06 facilities for the interchange of natural gas at every locality reached by both pipelines 07 when the necessity exists, as provided in contracts on file with the Regulatory 08 Commission of Alaska; 09 (3) it assumes the status of and will perform all of its functions 10 undertaken under the lease as a contract carrier and, subject to contracts with shippers, 11 will accept, convey, and transport, without discrimination, natural gas delivered to it 12 for transportation from fields in the vicinity of the pipeline subject to the right-of-way 13 lease throughout the pipeline route, both on state land obtained under the lease and on 14 other land, and that, subject to contracts with shippers, it will accept, convey, and 15 transport natural gas without unjust or unreasonable discrimination in favor of itself or 16 one producer or person against another, but will take the natural gas delivered or 17 offered without unreasonable discrimination; 18 (4) it will expand the natural gas pipeline on commercially reasonable 19 terms that, when possible, encourage exploration and development of gas resources in 20 this state without increasing transportation costs for a shipper except as provided for in 21 the contract with the shipper; in this paragraph, "commercially reasonable terms" 22 means terms that produce sufficient revenue from transportation contracts to cover the 23 cost of the expansion, including increased fuel costs and a reasonable return on capital, 24 without impairing the ability of the pipeline to recover the costs of existing facilities; 25 (5) it will not require a shipper to pay a rate in excess of the rates 26 provided for in the contract with that shipper. 27 (b) A contract carrier may offer to a shipper firm transportation service, 28 interruptible transportation service, or both. 29 (c) Expansion under (a) of this section may not cause a pipeline to be a 30 competing natural gas pipeline project. In this subsection, "competing natural gas 31 pipeline project" has the meaning given in AS 43.90.440.
01 (d) In this section, "firm transportation service" means service by a natural gas 02 pipeline carrier that is not subject to a prior claim by another shipper or another class 03 of service and is not subject to reduction unless the overall capacity of the pipeline is 04 diminished; service is "firm transportation service" if the service requires the same 05 priority as any other class of firm transportation service. 06 * Sec. 11. AS 38.35.140 is amended by adding a new subsection to read: 07 (c) Notwithstanding (a) of this section, a right-of-way lease shall be granted 08 without appraisal or rental costs to the Alaska Gasline Development Corporation 09 created under AS 31.25.010. 10 * Sec. 12. AS 38.35.200 is amended by adding new subsections to read: 11 (c) Except as provided for an applicant in (a) of this section and 12 notwithstanding any contrary provision of law, an action or decision of the 13 commissioner or other state officer or agency concerning the issuance or approval of a 14 necessary right-of-way, permit, lease, certificate, license, or other authorization for the 15 development, construction, or initial operation of a natural gas pipeline by the Alaska 16 Gasline Development Corporation under AS 31.25 that uses a right-of-way subject to 17 this chapter may not be subject to judicial review, except that a claim alleging the 18 invalidity of this subsection must be brought within 60 days after the effective date of 19 this Act, and a claim alleging that an action will deny rights under the Constitution of 20 the State of Alaska must be brought within 60 days following the date of that action. A 21 claim that is not filed within the limitations established in this subsection is barred. A 22 complaint under this subsection must be filed in superior court, and the superior court 23 has exclusive jurisdiction. Notwithstanding AS 22.10.020(c), except in conjunction 24 with a final judgment on a claim filed under this subsection, the superior court may 25 not grant injunctive relief, including a temporary restraining order, preliminary 26 injunction, permanent injunction, or stay, against the issuance of a necessary right-of- 27 way, permit, lease, certificate, license, or other authorization for the development, 28 construction, or initial operation of a natural gas pipeline by the Alaska Gasline 29 Development Corporation. In this subsection, "natural gas pipeline" has the meaning 30 given in AS 38.34.099. 31 (d) An appeal of a permitting decision or authorization by the Department of
01 Environmental Conservation under AS 46.03 or AS 46.14 that is made under a 02 program approved or delegated by the United States Environmental Protection Agency 03 is not 04 (1) subject to the limitation in (a) of this section; 05 (2) included in the actions or decisions described in (c) of this section. 06 * Sec. 13. AS 39.25.110(11) is amended by adding a new subparagraph to read: 07 (H) Alaska Gasline Development Corporation and subsidiaries 08 of the Alaska Gasline Development Corporation; 09 * Sec. 14. AS 39.50.200(b) is amended by adding a new paragraph to read: 10 (64) the board of directors of the Alaska Gasline Development 11 Corporation or the board of directors of a subsidiary of the Alaska Gasline 12 Development Corporation. 13 * Sec. 15. 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 of the Alaska Gasline Development Corporation 12 created under AS 31.25.010 or a subsidiary of the Alaska Gasline Development 13 Corporation that is confidential by law or under a valid confidentiality 14 agreement. 15 * Sec. 16. AS 41.41.010(a) is amended to read: 16 (a) There is established the Alaska Natural Gas Development Authority, the 17 purpose of which is to provide one or more of the following services and functions in 18 order to acquire [BRING] natural gas produced in [FROM THE NORTH SLOPE 19 OR OTHER REGIONS OF] the state for delivery to market, including 20 [(1)] the acquisition and conditioning of natural gas [; 21 (2) THE DESIGN AND CONSTRUCTION OF THE PIPELINE 22 SYSTEM; 23 (3) THE OPERATION AND MAINTENANCE OF THE PIPELINE 24 SYSTEM; 25 (4) THE DESIGN, CONSTRUCTION, AND OPERATION OF 26 OTHER FACILITIES NECESSARY FOR DELIVERING THE GAS TO MARKET, 27 INCLUDING MARKETS IN THE STATE;] and 28 [(5)] the acquisition of natural gas market share sufficient to ensure the 29 long-term feasibility of pipeline system projects. 30 * Sec. 17. AS 41.41.010(b) is amended to read: 31 (b) The authority is a subsidiary of the Alaska Gasline Development
01 Corporation created under AS 31.25.120 [PUBLIC CORPORATION AND AN 02 INSTRUMENTALITY OF THE STATE WITHIN THE DEPARTMENT OF 03 REVENUE]. 04 * Sec. 18. AS 41.41.010(d) is amended to read: 05 (d) Acquiring [THE ACQUISITION OF] natural gas from the North Slope 06 and other regions of the state, including the Alaska outer continental shelf, and 07 providing that natural gas to [ITS DELIVERY TO MARKETS IN THE STATE 08 FOR USE BY] markets in the state or for export from the state [TO TIDEWATER 09 FOR SHIPMENT TO MARKET BY THE AUTHORITY] are essential government 10 functions of the state. 11 * Sec. 19. AS 41.41.010 is amended by adding a new subsection to read: 12 (f) To honor delivery commitments in a contract entered into by the authority, 13 the authority and the commissioner of natural resources may pledge, as necessary, 14 royalty gas owned by the state and not otherwise committed by contract to other 15 purchasers of royalty gas. The commissioner of natural resources shall determine the 16 amount of gas that may be pledged and the price for that gas. A pledge made under 17 this subsection shall be treated as a disposal of gas other than by sale or exchange for 18 purposes of AS 38.05.183. 19 * Sec. 20. AS 41.41.020 is repealed and reenacted to read: 20 Sec. 41.41.020. Authority governing body. The authority shall be governed 21 by the board of directors of the Alaska Gasline Development Corporation. 22 * Sec. 21. AS 41.41.060 is amended to read: 23 Sec. 41.41.060. Compensation of board members; reimbursement of [PER 24 DIEM AND TRAVEL] expenses. Members of the board described in 25 AS 31.25.020(a) are entitled to compensation and reimbursement as provided in 26 AS 31.25.020(d) when on official business of the authority [PER DIEM AND 27 TRAVEL EXPENSES AUTHORIZED FOR BOARDS AND COMMISSIONS 28 UNDER AS 39.20.180]. 29 * Sec. 22. AS 41.41.070(d) is amended to read: 30 (d) In addition to its employees, the authority may contract for and engage the 31 services of [BOND COUNSEL,] consultants, experts, [AND] financial advisors, and
01 legal counsel, including bond counsel, the authority considers necessary for the 02 purpose of developing information, furnishing advice, or conducting studies, 03 investigations, hearings, or other proceedings. The procurement of services under 04 this subsection is exempt from AS 36.30, including AS 36.30.015(d) and (f). 05 * Sec. 23. AS 41.41.090(b) is amended to read: 06 (b) If a member of the board or an employee of the authority acquires, owns, 07 or controls an interest, direct or indirect, in an entity [OR PROJECT] in which assets 08 of the authority are invested, the member shall immediately disclose the interest to the 09 board. The disclosure is a matter of public record and shall be included in the minutes 10 of the first board meeting following the disclosure. 11 * Sec. 24. AS 41.41.150(a) is amended to read: 12 (a) Information in the possession of the authority is a public record, except 13 that information that is contained in or subject to a confidentiality agreement 14 between the authority and the Alaska Gasline Development Corporation or that 15 discloses the particulars of the business or affairs of a private enterprise or investor is 16 confidential and is not a public record for purposes of AS 40.25.110 - 40.25.140. 17 Confidential information may be disclosed only for the purposes of an official law 18 enforcement investigation or when its production is required in a court proceeding. 19 * Sec. 25. AS 41.41.200 is amended to read: 20 Sec. 41.41.200. Powers of the authority. In furtherance of its corporate 21 purposes, in addition to its other powers, the authority may 22 (1) sue and be sued; 23 (2) adopt a seal; 24 (3) adopt, amend, and repeal bylaws and regulations; 25 (4) make and execute contracts and other instruments; 26 (5) in its own name acquire property, lease, rent, convey, or acquire 27 real and personal property [; A PROJECT SITE OR PART OF A PROJECT SITE 28 MAY BE ACQUIRED BY EMINENT DOMAIN]; 29 (6) acquire natural gas supplies; 30 (7) issue bonds and otherwise incur indebtedness in accordance with 31 AS 41.41.300 - 41.41.410 in order to pay the cost of a project;
01 (8) accept gifts, grants, or loans from and enter into contracts or other 02 transactions regarding gifts, grants, or loans with a federal agency or an agency or 03 instrumentality of the state, a municipality, private organization, or other source; 04 (9) enter into contracts or agreements with a federal agency, agency or 05 instrumentality of the state, municipality, or public or private individual or entity, with 06 respect to the exercise of its powers; 07 (10) charge fees or other forms of remuneration for the use of authority 08 properties and facilities; 09 (11) defend and indemnify a current or former member of the board or 10 an employee or agent of the authority against the costs, expenses, judgments, and 11 liabilities as a result of actions taken in good faith on behalf of the authority; and 12 (12) purchase insurance to protect its assets, services, and employees 13 against liabilities that may arise from authority operations and activities. 14 * Sec. 26. AS 41.41.990(2) is amended to read: 15 (2) "board" means the board of directors of the Alaska Gasline 16 Development Corporation acting as the board of the Alaska Natural Gas 17 Development Authority; 18 * Sec. 27. AS 42.04.080(a) is amended to read: 19 (a) Except as provided in AS 42.05.171 or AS 42.06.140, when a matter 20 comes for decision before the commission under AS 42.05, [OR] AS 42.06, or 21 AS 42.08, the chair shall appoint a hearing panel composed of three or more members 22 to hear, or if a hearing is not required, to otherwise consider, and decide the case. The 23 panel shall exercise the powers of the commission with respect to the matter. 24 * Sec. 28. AS 42.05 is amended by adding a new section to read: 25 Sec. 42.05.433. Review of certain contracts by the commission. (a) A 26 precedent agreement or contract entered into by a public utility with the Alaska 27 Gasline Development Corporation or its successors or assigns may contain a covenant 28 for the public utility to establish, charge, and collect rates sufficient to meet its 29 obligations under the contract. If the precedent agreement associated with the contract 30 is approved by the commission under AS 42.08, the rate covenant in the associated 31 contract is valid and enforceable.
01 (b) A public utility negotiating to purchase natural gas to be shipped through 02 an in-state natural gas pipeline regulated under AS 42.08 shall submit the contract to 03 the commission before the contract takes effect. 04 (c) A public utility negotiating to contract for the storage of natural gas 05 shipped in an in-state natural gas pipeline regulated under AS 42.08 shall submit the 06 contract to the commission before the contract takes effect. 07 (d) The commission shall review and may conduct an investigation and 08 hearing to determine whether a contract submitted under (b) or (c) of this section is 09 just and reasonable. The review and determination shall be conducted as provided in 10 AS 42.08.320(b) - (d). The commission shall either approve the contract as presented 11 or, if the commission finds that a contract is not just and reasonable, disapprove the 12 contract. Notwithstanding AS 42.05.175, if the commission has not acted within 180 13 days after the contract is submitted, the contract shall be considered approved and 14 shall take effect immediately. The commission may, by order, extend the 180-day 15 review period by the duration of any delay caused by a failure of the public utility to 16 submit supplemental information that is available to the public utility. A contract that 17 is approved or considered approved under this section is not subject to further review 18 by the commission. 19 * Sec. 29. AS 42.05.711 is amended by adding a new subsection to read: 20 (t) An in-state natural gas pipeline subject to AS 42.08 and an in-state natural 21 gas pipeline carrier subject to AS 42.08 are exempt from this chapter. 22 * Sec. 30. AS 42.06 is amended by adding a new section to article 7 to read: 23 Sec. 42.06.601. Exemption. An in-state natural gas pipeline subject to 24 AS 42.08 and an in-state natural gas pipeline carrier subject to AS 42.08 are exempt 25 from this chapter. 26 * Sec. 31. AS 42 is amended by adding a new chapter to read: 27 Chapter 08. In-State Pipeline Contract Carrier. 28 Article 1. Application of Chapter; Purpose. 29 Sec. 42.08.010. Application of chapter; exemption. (a) This chapter applies 30 to the regulation of in-state natural gas pipelines that provide transportation by 31 contract carriage.
01 (b) An in-state natural gas pipeline subject exclusively to federal jurisdiction 02 is exempt from this chapter. 03 Sec. 42.08.020. Qualification of the Alaska Gasline Development 04 Corporation; findings. (a) The Alaska Gasline Development Corporation is 05 financially fit, willing, and able to take the actions, perform the service, and conform 06 to the requirements of this chapter. 07 (b) The board of directors and the officers of the Alaska Gasline Development 08 Corporation are managerially fit, willing, and able to manage the Alaska Gasline 09 Development Corporation and to take the actions, perform the service, and conform to 10 the requirements of this chapter. 11 (c) The proposed service, construction, and operation of an in-state natural gas 12 pipeline for which the Alaska Gasline Development Corporation applies for a 13 certificate under this chapter is required by present and future public convenience and 14 necessity. 15 (d) The findings that the Alaska Gasline Development Corporation is 16 financially fit in (a) of this section and managerially fit in (b) of this section and that 17 an in-state natural gas pipeline is required by present or future public convenience and 18 necessity in (c) of this section are conclusive and binding on the commission. 19 (e) The commission shall determine whether a person making application 20 under this chapter is technically fit, willing, and able to take the actions, perform the 21 service, and conform to the requirements in this chapter. 22 Article 2. Powers and Duties of Regulatory Commission of Alaska. 23 Sec. 42.08.220. General powers and duties. (a) The commission shall 24 (1) regulate, under the provisions of this chapter, an in-state natural gas 25 pipeline that provides transportation by way of contract carriage; 26 (2) require permits for the construction, enlargement in size or 27 operating capacity, extension, connection and interconnection, operation, or 28 abandonment of an in-state natural gas pipeline facility under the provisions of this 29 chapter and subject to the same standards as certification in AS 42.08.330; 30 (3) provide all reasonable assistance to the Department of Law in 31 intervening in, offering evidence in, and participating in proceedings before an officer,
01 department, board, commission, or court of another state or the United States 02 involving an in-state natural gas pipeline carrier or an affiliated interest and affecting 03 the interests of the state. 04 (b) The commission may 05 (1) approve contracts as otherwise provided in this chapter; 06 (2) investigate, on complaint or its own motion, disputes related to 07 rules, regulations, services, practices, and facilities that are not subject to the dispute 08 resolution provisions in an in-state natural gas pipeline carrier's contracts or tariffs or 09 (A) that relate to an unreasonable diminution in the quantity or 10 quality in the provision of service to a public utility; 11 (B) that are a violation of the in-state natural gas pipeline 12 carrier's tariff or contract with the public utility; 13 (C) that have not been resolved by the in-state natural gas 14 pipeline carrier; and 15 (D) in which it clearly appears from specific facts shown by 16 affidavit or by verified complaint that immediate injury, loss, or damage will 17 result to the peace, health, safety, or general welfare of the public from a 18 violation; 19 (3) adopt regulations that are necessary and proper to the performance 20 of the duties of the commission under this chapter, including regulations governing 21 practices and procedures of the commission; regulations adopted by the commission 22 may not be inconsistent with state law; 23 (4) initiate, intervene in, and appear personally or by counsel and offer 24 evidence in and participate in, any proceedings before an officer, department, board, 25 commission, or court of this state involving an in-state natural gas pipeline carrier and 26 affecting the interests of the state; and 27 (5) appoint a qualified, unbiased, and impartial administrative law 28 judge with experience in the general practice of law to conduct hearings under this 29 chapter; the administrative law judge may perform other duties in connection with the 30 administration of this chapter and other laws; an administrative law judge hired to 31 conduct hearings under this chapter shall have been admitted to practice law for at
01 least five years immediately before appointment under this paragraph. 02 (c) The commission may not 03 (1) require rates, rate design, or tariff rules or regulations except as 04 provided in this chapter; and 05 (2) conduct further review, investigate, or order a modification of a 06 contract that is approved, considered approved, or filed under this chapter. 07 Sec. 42.08.230. Commission decision-making procedures. The commission 08 shall comply with AS 42.04.080(a) and expeditiously adjudicate all matters that come 09 before the commission. 10 Sec. 42.08.240. Publication of reports, orders, decisions, and regulations. 11 All reports, orders, decisions, and regulations of the commission shall be in writing. 12 The commission shall notify all affected operators of in-state natural gas pipeline 13 facilities and interested parties of reports, orders, decisions, and regulations as they are 14 issued and adopted and, when appropriate, publish them in a manner that will 15 reasonably inform the public or the affected consumers of the services of an in-state 16 natural gas pipeline facility. The commission may set charges for costs of printing or 17 reproducing and furnishing copies of reports, orders, decisions, and regulations. The 18 publication requirement, as it pertains to regulations, does not supersede the 19 requirements of AS 44.62 (Administrative Procedure Act). 20 Sec. 42.08.250. Application of Administrative Procedure Act. (a) The 21 administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) 22 do not apply to adjudicatory proceedings of the commission under this chapter, except 23 that final administrative determinations by the commission are subject to judicial 24 review under AS 44.62 (Administrative Procedure Act) as provided in AS 42.08.530. 25 (b) AS 44.62 (Administrative Procedure Act) applies to regulations adopted 26 by the commission. 27 Sec. 42.08.260. Annual report. The commission shall include in its annual 28 reports under AS 42.05.211 and AS 42.06.220 a review of its activities under this 29 chapter during the previous fiscal year. The report must address the regulation of in- 30 state natural gas pipeline facilities in the state as of June 30 of each year and must 31 contain details about the commission's compliance with the performance measures in
01 this chapter. 02 Article 3. Contract Review; Contract Carriage Certificate; Open Seasons. 03 Sec. 42.08.300. Open seasons. (a) An in-state natural gas pipeline carrier shall 04 publish reasonable public notice in advance of an open season. The notice shall 05 contain the proposed recourse tariff, the proposed form of the precedent agreement, 06 the proposed form of the firm transportation service agreement, and other information 07 sufficient to show the proposed route, capacity, operating pressures, in-service date, 08 quality specifications, and other operating conditions that the pipeline carrier 09 determines are relevant to an evaluation of the proposed service. The notice shall also 10 state the methods for awarding capacity and whether presubscription agreements have 11 been executed. An in-state natural gas pipeline carrier shall provide a mechanism for 12 providing additional relevant information requested by potential shippers. 13 (b) An open season shall be conducted and firm transportation service shall be 14 awarded without undue discrimination or preference. 15 (c) An in-state natural gas pipeline carrier shall conduct an open season for 16 firm transportation service when it has existing uncommitted firm transportation 17 capacity and has received a request for firm transportation capacity from one or more 18 potential shippers that meet the pipeline's creditworthiness requirements. 19 (d) An in-state natural gas pipeline carrier shall conduct an open season for an 20 expansion of its pipeline system when it has received one or more requests for firm 21 transportation service from potential shippers that meet the pipeline's creditworthiness 22 requirements and that, in the aggregate, would enable the expansion of the pipeline's 23 system on a commercially reasonable basis. An expansion of the pipeline system is not 24 commercially reasonable if the expansion would cause the pipeline to be a competing 25 natural gas pipeline project as defined in AS 43.90.440. 26 (e) A natural gas pipeline carrier may enter into presubscription agreements 27 before the start of an open season. 28 Sec. 42.08.310. Transportation service. (a) Firm transportation service shall 29 be made available only through a presubscription agreement or an open season 30 conducted in accordance with AS 42.08.300. 31 (b) The pipeline carrier shall offer a recourse tariff for firm transportation
01 service. The rates included in the recourse tariff shall be determined on a cost-of- 02 service basis. The recourse tariff may not preclude the pipeline carrier from collecting 03 rolled-in rates so long as the resulting rate for prior shippers does not exceed the initial 04 maximum rate allowable under agreements for capacity. 05 (c) An in-state natural gas pipeline carrier may contract to provide firm 06 transportation service on terms and for rates different than those in the recourse tariff. 07 (d) An in-state natural gas pipeline carrier shall provide interruptible 08 transportation service through capacity not used for firm transportation service. An in- 09 state natural gas pipeline carrier shall establish means for routinely advising potential 10 shippers of the availability of interruptible transportation service. 11 Sec. 42.08.320. Review of certain contracts by the commission. (a) An in- 12 state natural gas pipeline carrier shall submit each of its precedent agreements for firm 13 transportation service to the commission. A precedent agreement negotiated with an 14 entity that is not a public utility regulated by the commission may be filed under seal. 15 Under AS 42.08.400, the commission shall keep confidential a precedent agreement 16 filed under seal. Submission of precedent agreements to the commission is permissible 17 before construction of an in-state natural gas pipeline and before a request for 18 certification under this chapter. 19 (b) In the review of a precedent agreement submitted under (a) of this section 20 or a related contract submitted under AS 42.05.433(b) or (c), the commission shall 21 (1) conclude that any precedent agreement or related contract 22 negotiated at arm's length between the parties is just and reasonable unless the 23 commission finds that unlawful market activity affected the rate or unfair dealing, 24 such as fraud or duress, affected the formation of the contract; 25 (2) review and may conduct an investigation and hearing to determine 26 whether a contract submitted under (a) of this section is just and reasonable; the 27 commission shall either approve the contract as presented or, if the commission finds 28 that a contract is not just and reasonable, disapprove the contract; if the commission 29 has not acted within 180 days after the submission of a contract, the contract shall be 30 considered approved and shall take effect immediately; a contract that is approved or 31 considered approved under this paragraph and the associated firm transportation
01 agreement are not subject to further review by the commission. 02 (c) For purposes of (b)(1) of this section, a precedent agreement or related 03 contract is arm's length 04 (1) if it incorporates the recourse tariff; or 05 (2) if it does not incorporate the recourse tariff, 06 (A) the precedent agreement or related contract is between two 07 state-owned parties; 08 (B) the parties are not affiliated; or 09 (C) if the parties are affiliated, the precedent agreement or 10 related contract is substantially similar to a precedent agreement or related 11 contract between unaffiliated parties. 12 (d) If a precedent agreement or related contract is not arm's length, the 13 commission shall determine whether the precedent agreement or related contract is 14 just and reasonable using the standards normally applied under AS 42.06.140. If the 15 commission is reviewing a precedent agreement, the natural gas pipeline carrier shall 16 provide to the commission a cost study that shall be used solely for the purpose of this 17 subsection. When considering whether to approve a contract as just and reasonable 18 under this subsection, the commission shall consider the consequences of failing to 19 approve the contract. 20 Sec. 42.08.330. Contract carriage certificate. (a) The owner of an in-state 21 natural gas pipeline subject to this chapter may not engage in the transportation of 22 natural gas or undertake the construction of a natural gas pipeline facility for that 23 purpose, or acquire or operate an in-state natural gas pipeline facility, unless a 24 certificate of public convenience and necessity by the commission authorizing contract 25 carriage is in force with respect to that owner. A certificate shall describe the nature 26 and extent of the authority granted, including, as appropriate for the services involved, 27 a description of the authorized area and scope of operation for the in-state natural gas 28 pipeline facility. 29 (b) Application for a certificate shall be made in writing to the commission 30 and verified under oath. The commission by regulation shall establish the 31 requirements for the form of the application and the information to be contained in the
01 application. Notice of the application shall be provided to interested parties in the 02 manner provided by regulation. 03 (c) Within 180 days after receiving an application under this chapter, a 04 contract carriage certificate shall be issued to a qualified applicant, authorizing, in 05 whole or in part, the operation, service, construction, or acquisition covered by the 06 application, if the commission finds that the applicant is fit, willing, and able to do the 07 acts, perform the proposed service, and conform to the provisions of this chapter and 08 the requirements of the commission, and that the proposed service, operation, 09 construction, extension, or acquisition, to the extent authorized by the certificate, is or 10 will be required by the present or future public convenience and necessity. The 11 application must be denied if the commission fails to find that the applicant is fit, 12 willing, and able under this subsection. 13 (d) Consistent with the terms of this chapter, the commission may attach to a 14 contract carriage certificate terms and conditions that are in the best interest of the in- 15 state natural gas pipeline facility and the public. 16 (e) Operating authority may not be transferred by sale or lease of the contract 17 carriage certificate or by the sale of substantially all of the stock or assets of a pipeline 18 carrier holding a certificate without prior approval and a best interest of the public 19 finding by the commission. The commission shall summarily approve a transfer not 20 involving a substantial change in ownership. 21 (f) After receiving a complaint or on its own motion, the commission, after 22 notice and hearing and for good cause shown, may amend, modify, suspend, or 23 revoke, in whole or in part, a certificate. Good cause for amendment, modification, 24 suspension, or revocation of a certificate is shown by 25 (1) misrepresentation of a material fact in obtaining the certificate; 26 (2) unauthorized discontinuance or abandonment of all or part of a 27 service that is the subject of the certificate; 28 (3) wilful failure to comply with the provisions of this chapter or a 29 regulation or order of the commission; or 30 (4) wilful failure to comply with a term, condition, or limitation of the 31 certificate.
01 (g) A person holding a certificate issued under this chapter may not abandon 02 or permanently discontinue the use of all or a portion of an in-state natural gas pipeline 03 without permission and approval by the commission, after due notice and hearing and 04 a finding by the commission that continued service is not required by public 05 convenience and necessity. Any interested person may file a protest or memorandum 06 of opposition to or in support of discontinuance or abandonment with the commission. 07 The commission may order the temporary suspension of a service or part of a service. 08 Sec. 42.08.340. Filing requirements; public inspection. (a) An in-state 09 natural gas pipeline carrier shall file with the commission all recourse tariffs, rules, 10 regulations, terms, and conditions pertaining to service provided under the certificate 11 and copies of all contracts with shippers that in any way affect or relate to the carrier's 12 rates, tariffs, charges, classifications, rules, regulations, terms, and conditions to 13 service provided under the certificate. The in-state natural gas pipeline carrier shall 14 maintain copies on file at its principal business office and at places designated by the 15 commission and make the copies available to, and subject to inspection by, the general 16 public on demand. Rules, regulations, terms, and conditions not included in the tariff 17 of an in-state natural gas pipeline carrier shall be included in the contract with each 18 shipper. 19 (b) The terms and conditions under which an in-state natural gas pipeline 20 carrier offers its services and facilities to the public shall be governed strictly by the 21 provisions of the tariffs and filed contracts that are in effect. A change in tariff rate, 22 charge, rule, regulation, or condition of service is not effective until filed under (a) of 23 this section. If more than one tariff rate or charge may reasonably be applied for 24 billing purposes, the tariff, rate, or charge most advantageous to the shipper shall be 25 used. 26 Sec. 42.08.350. Uniform system of accounts. An in-state natural gas pipeline 27 carrier operating under this chapter shall maintain its records and accounts in 28 accordance with the uniform system of accounts for class A natural gas pipelines in 18 29 C.F.R. 201 (Federal Energy Regulatory Commission), as amended. 30 Sec. 42.08.360. Expansion; dispute resolution. (a) A contract entered into by 31 an in-state natural gas pipeline carrier may provide for expansion unless the expansion
01 would cause the pipeline to be a competing natural gas pipeline project as defined in 02 AS 43.90.440. 03 (b) A contract entered into by an in-state natural gas pipeline carrier shall 04 include dispute resolution procedures. 05 Sec. 42.08.370. Regulatory cost charge. (a) Each year, a person operating an 06 in-state natural gas pipeline under this chapter shall pay to the commission a 07 regulatory cost charge if the pipeline for which the charge is assessed is subject to this 08 chapter and the commission has taken action on the pipeline or certificate under this 09 chapter during the prior fiscal year. The amount of the regulatory cost charge may not 10 exceed the sum of the following percentages of gross revenue derived from operations 11 in the state: 12 (1) 0.7 percent to fund the operations of the commission; and 13 (2) 0.17 percent to fund operations of the public advocacy function 14 under AS 42.04.070(c) and AS 44.23.020(e) in the Department of Law. 15 (b) The commission shall by regulation establish a method to determine 16 annually the amount of the regulatory cost charge that will apply to a pipeline 17 regulated under this chapter. If the amount the commission expects to collect under (a) 18 of this section, AS 42.05.254(a), and AS 42.06.286(a) exceeds the authorized budgets 19 of the commission and the Department of Law public advocacy function under 20 AS 42.04.070(c) and AS 44.23.020(e), the commission shall, by order, reduce the 21 percentage determined under a regulation adopted under this subsection so that the 22 total amount of the fees collected approximately equals the authorized budgets of the 23 commission and the Department of Law public advocacy function under 24 AS 42.04.070(c) and AS 44.23.020(e) for the fiscal year. 25 (c) The commission shall administer the charge imposed under this section. 26 The Department of Revenue shall collect and enforce the charge imposed under this 27 section. The Department of Administration shall identify the amount of the operating 28 budgets of the commission and the Department of Law public advocacy function 29 under AS 42.04.070(c) and AS 44.23.020(e) that lapse into the general fund each year. 30 The legislature may appropriate an amount equal to the lapsed amount to the 31 commission and to the Department of Law public advocacy function under
01 AS 42.04.070(c) and AS 44.23.020(e) for operating costs for the next fiscal year. If the 02 legislature does so, the commission shall reduce the total regulatory cost charge 03 collected for that fiscal year by a comparable amount. 04 (d) The commission may adopt regulations under AS 44.62 (Administrative 05 Procedure Act) necessary to administer this section, including procedures and 06 requirements for reporting information and a requirement for paying the regulatory 07 cost charge in quarterly payments. The Department of Revenue may adopt regulations 08 under AS 44.62 (Administrative Procedure Act) for investigating the accuracy of filed 09 information and for collecting required payments. 10 Sec. 42.08.380. Effect of chapter on taxes and royalties. Nothing in this 11 chapter shall alter the calculation of a production tax under AS 43.55.011 - 43.55.180 12 or the calculation of a royalty due for a lease issued under AS 38.05.180. 13 Article 4. Records; Investigations. 14 Sec. 42.08.400. Public records. (a) Except as provided in (b) and (c) of this 15 section or prohibited from disclosure under state or federal law, records in the 16 possession of the commission are open to public inspection at reasonable times. 17 (b) The commission may by regulation classify records received from an in- 18 state natural gas pipeline carrier or in-state natural gas pipeline as privileged records 19 that are not open to the public for inspection. 20 (c) A record filed with the commission that is a precedent agreement between 21 an in-state natural gas pipeline carrier and an unregulated entity is a privileged record 22 that is not open to the public for inspection. For a record that relates to a precedent 23 agreement, or is or relates to a contract other than a precedent agreement between an 24 in-state natural gas pipeline carrier and an unregulated entity, an in-state natural gas 25 pipeline carrier shall identify the provisions of the record that contain information that, 26 if disclosed, could adversely affect the competitive position of the shipper, and the 27 information shall be treated by the commission as confidential. 28 (d) A person may make written objection to the public disclosure of 29 information contained in a record filed under this chapter or of information obtained 30 by the commission or by the attorney general under this chapter, stating the grounds 31 for the objection. When an objection is made, the commission shall order the
01 information withheld from public disclosure if the information adversely affects the 02 interest of the person making written objection and disclosure is not required in the 03 interest of the public. 04 (e) A commissioner may certify as to all official records of the commission 05 under this section and may certify as to all official acts of the commission under this 06 chapter. 07 Sec. 42.08.410. Investigations. The commission may investigate any matter 08 for which an investigation is authorized under this chapter. An investigation may be 09 public, nonpublic, or both. In conducting an investigation, the commission may 10 compel the attendance and testimony of witnesses and the production of records and 11 testimony before the commission or its designee. In the course of an investigation, the 12 commission may, subject to AS 44.23.020(e), exclude from attendance at the taking of 13 investigative testimony all persons except a person compelled to attend, that person's 14 attorney, members of the commission or the commission's staff, and a person 15 authorized to transcribe the proceedings. 16 Article 5. General Provisions. 17 Sec. 42.08.510. Designation of service agents. An in-state natural gas pipeline 18 carrier shall file with the commission a written appointment of a named permanent 19 resident, which may be a corporation, of this state as its registered agent in this state 20 on whom service of all notices, regulations, and requests of the commission may be 21 made. The appointment shall specify the address in this state of the appointed agent. 22 The address may be changed from time to time by filing a new address in the state 23 with the commission. If an in-state natural gas pipeline carrier fails to appoint a 24 registered agent, service of notices, regulations, and requests may be made by posting 25 a copy in the main office of the commission and filing a copy in the office of the 26 lieutenant governor. 27 Sec. 42.08.520. Effect of regulations. Regulations adopted by the commission 28 under this chapter have the effect of law. 29 Sec. 42.08.530. Judicial review and enforcement. (a) Except as provided in 30 AS 38.35.200(c), a final order of the commission under this chapter is subject to 31 judicial review under AS 44.62.560 and 44.62.570.
01 (b) If an appeal is not taken from a final order of the commission within 10 02 calendar days after an investigation under AS 42.08.220(b)(2), the commission may 03 apply to the superior court for enforcement of the order of the commission. The court 04 shall enforce the order by injunction or other process. 05 Sec. 42.08.540. Joinder of actions. Under the applicable court rules, appeals 06 from orders of the commission and applications for enforcement of orders of the 07 commission may be joined. The court may, in the interests of justice, separate the 08 actions. 09 Sec. 42.08.900. Definitions. In this chapter, 10 (1) "commission" means the Regulatory Commission of Alaska 11 (AS 42.04.010); 12 (2) "commissioner" means a member of the commission; 13 (3) "firm transportation service" means service by an in-state natural 14 gas pipeline carrier that is not subject to a prior claim by another shipper or another 15 class of service; service constitutes "firm transportation service" if the service receives 16 the same priority as any other class of firm transportation service; 17 (4) "in-state natural gas pipeline" or "in-state natural gas pipeline 18 facility" means a natural gas pipeline that transports natural gas in the state by way of 19 contract carriage; 20 (5) "in-state natural gas pipeline carrier" means the owner, including a 21 corporation, company, or other entity organized under the laws of the United States or 22 of any state, of an in-state natural gas pipeline or an interest in it, or any person, 23 including a corporation, company, or other entity organized under the laws of the 24 United States or of any state, that transports natural gas as a contract carrier; 25 (6) "natural gas pipeline" has the meaning given in AS 38.34.099; 26 (7) "precedent agreement" means a contractual commitment to acquire 27 firm transportation capacity, executed between an in-state natural gas pipeline carrier 28 and another person, that establishes the rates, terms, and conditions for service; 29 (8) "record" means a report, file, book, account, paper, or application 30 and the facts and information contained in it. 31 * Sec. 32. AS 43.56.020 is amended by adding a new subsection to read:
01 (d) Taxable property of a natural gas pipeline project owned or financed by 02 the Alaska Gasline Development Corporation or a joint venture, partnership, or other 03 entity that includes the Alaska Gasline Development Corporation is exempt from state 04 taxes levied or authorized under AS 43.56.010(a) and local taxes levied or authorized 05 under AS 43.56.010(b) before the commencement of commercial operations of that 06 natural gas pipeline project. In this subsection, "commencement of commercial 07 operations" means the first flow of natural gas in the project that generates revenue to 08 the owners of the natural gas pipeline project. 09 * Sec. 33. AS 36.30.850(b)(45); AS 38.34.030, 38.34.040, 38.34.050, 38.34.060; 10 AS 41.41.030, 41.41.040, 41.41.050, 41.41.080, and 41.41.100 are repealed. 11 * Sec. 34. Section 1, 2002 Ballot Measure No. 3, is repealed. 12 * Sec. 35. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 TRANSITION AND LEGISLATIVE INTENT. (a) It is the intent of the legislature 15 that a right-of-way lease subject to AS 31.25.090(d), enacted by sec. 3 of this Act, 16 AS 38.35.100(d), as amended by sec. 7 of this Act, AS 38.35.120(a), as amended by sec. 8 of 17 this Act, AS 38.35.120(b), as amended by sec. 9 of this Act, and AS 38.35.121, enacted by 18 sec. 10 of this Act, that is entered into between the commissioner of natural resources and the 19 Alaska Gasline Development Corporation before the effective dates of secs. 3 and 7 - 10 of 20 this Act be amended as soon as practicable after the effective dates of secs. 3 and 7 - 10 of this 21 Act to conform to the requirements of AS 31.25.090(d), enacted by sec. 3 of this Act, 22 AS 38.35.100(d), as amended by sec. 7 of this Act, AS 38.35.120(a), as amended by sec. 8 of 23 this Act, AS 38.35.120(b), as amended by sec. 9 of this Act, and AS 38.35.121, enacted by 24 sec. 10 of this Act. 25 (b) The transition of the Alaska Gasline Development Corporation from a subsidiary 26 of the Alaska Housing Finance Corporation to an independent public corporation of the state 27 may not disrupt, interfere, or alter the work of the Alaska Gasline Development Corporation. 28 The governor shall appoint the board of the Alaska Gasline Development Corporation as soon 29 as practicable after the effective date of this Act. It is the intent of the legislature that the 30 governor appoint the new board of the Alaska Gasline Development Corporation within 90 31 days after the effective date of this Act. The board of the Alaska Housing Finance
01 Corporation shall serve as the board of the Alaska Gasline Development Corporation until the 02 governor appoints the board of the Alaska Gasline Development Corporation under this 03 subsection. The board of directors of the Alaska Gasline Development Corporation shall work 04 with the board of directors of the Alaska Housing Finance Corporation and the commissioner 05 of commerce, community, and economic development to ensure the smooth transition of the 06 Alaska Gasline Development Corporation to being an independent public corporation, 07 including modifying the articles of incorporation of the Alaska Gasline Development 08 Corporation. 09 (c) It is the intent of the legislature that the transition of the Alaska Gasline 10 Development Corporation to being an independent public corporation of the state located for 11 administrative purposes in the Department of Commerce, Community, and Economic 12 Development be treated for all purposes only as a change of placement within the state and 13 not as the creation of a new public corporation of the state. 14 (d) It is the intent of the legislature that the Alaska Housing Finance Corporation, the 15 board of directors of the Alaska Gasline Development Corporation as a subsidiary created 16 under AS 18.56.086 by the Alaska Housing Finance Corporation, and the commissioner of 17 commerce, community, and economic development expeditiously amend the articles of 18 incorporation, the bylaws, and other documents of the Alaska Gasline Development 19 Corporation to reflect the change in the placement of the Alaska Gasline Development 20 Corporation from being a subsidiary of the Alaska Housing Finance Corporation to being an 21 independent public corporation of the state as provided in AS 31.25, enacted by sec. 3 of this 22 Act. 23 (e) It is the intent of the legislature that the Alaska Housing Finance Corporation and 24 the commissioner of commerce, community, and economic development coordinate the 25 transition of the Alaska Gasline Development Corporation to its new placement within the 26 state as an independent public corporation of the state and assist the newly appointed board of 27 directors of the Alaska Gasline Development Corporation to ensure that the development of 28 an in-state natural gas pipeline is not unreasonably delayed because of the change in 29 placement within the state of the corporation. 30 * Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:
01 REVISOR'S INSTRUCTIONS. The revisor of statutes shall change the catch lines of 02 (1) AS 38.35.120 from "Covenants required to be included in lease" to 03 "Covenants required to be included in lease to a pipeline that is not a natural gas pipeline 04 contract carrier"; and 05 (2) AS 38.35.200 from "Judicial review of decisions of commissioner on 06 application" to "Judicial review." 07 * Sec. 37. This Act takes effect immediately under AS 01.10.070(c).