Legislature(2013 - 2014)
2013-04-12 Senate Journal
Full Journal pdf2013-04-12 Senate Journal Page 1188 HB 4 SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) "An Act relating to the Alaska Gasline Development Corporation; establishing the Alaska Gasline Development Corporation as 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 and its subsidiaries 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 2013-04-12 Senate Journal Page 1189 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; repealing the statutes relating to the Alaska Natural Gas Development Authority and making conforming changes; 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" was before the Senate in third reading. Senator French called the Senate. The call was satisfied. Senator French moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 1. Without objection, the bill was returned to second reading. Senator French offered Amendment No. 1 : Page 36, line 31: Delete "AS 42.08.320(b) - (d)" Insert "AS 42.08.320(b) and (c)" Page 44, lines 9 - 13: Delete "(1) conclude that a precedent agreement or related contract negotiated at arm's length between the parties is just and reasonable unless the commission finds that unlawful market activity affected the rate or unfair dealing, such as fraud or duress, affected the formation of the contract; (2)" Page 44, line 21, through page 45, line 4: Delete all material. Reletter the following subsection accordingly. 2013-04-12 Senate Journal Page 1190 Page 45, line 5: Delete "If a precedent agreement or related contract is not arm's length, the" Insert "The" Page 45, lines 7 - 10: Delete "normally applied under AS 42.06.140. If the commission is reviewing a precedent agreement under (c)(2) of this section, the commission may consider the in-state natural gas pipeline carrier's approved recourse tariff, including the cost data underlying the tariff" Insert "applied under AS 42.06.140" Senator French moved for the adoption of Amendment No. 1. Senator Fairclough objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: SCS CSSSHB 4(FIN) Second Reading Amendment No. 1 YEAS: 7 NAYS: 13 EXCUSED: 0 ABSENT: 0 Yeas: Egan, Ellis, French, Gardner, Hoffman, Olson, Wielechowski Nays: Bishop, Coghill, Dunleavy, Dyson, Fairclough, Giessel, Huggins, Kelly, McGuire, Meyer, Micciche, Stedman, Stevens and so, Amendment No. 1 failed. SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) was automatically in third reading. Senator Wielechowski moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 2. Without objection, the bill was returned to second reading. 2013-04-12 Senate Journal Page 1191 Senator Wielechowski offered Amendment No. 2 : Page 1, line 3, following "fund;": Insert "allowing the legislature to consider disallowing an in- state natural gas pipeline project;" Page 11, following line 26: Insert a new subsection to read: "(g) The corporation or other person may not start construction of an in-state natural gas pipeline developed by the corporation without presenting details of the project to the legislature. The legislature shall have 60 days during a legislative session to decide whether to disallow the project as proposed." Senator Wielechowski moved for the adoption of Amendment No. 2. Senator McGuire objected. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: SCS CSSSHB 4(FIN) Second Reading Amendment No. 2 YEAS: 4 NAYS: 16 EXCUSED: 0 ABSENT: 0 Yeas: Ellis, French, Gardner, Wielechowski Nays: Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel, Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stedman, Stevens and so, Amendment No. 2 failed. SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) was automatically in third reading. Senator Wielechowski moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 3. Without objection, the bill was returned to second reading. 2013-04-12 Senate Journal Page 1192 Senator Wielechowski offered Amendment No. 3 : Page 8, line 22, following "consumption": Insert ", except that the corporation or a subsidiary of the corporation may not issue bonds or make other financial commitments to finance the construction of an in-state natural gas pipeline until the corporation has received firm transportation commitments to transport 400,000,000 cubic feet a day of natural gas in the in-state natural gas pipeline" Page 17, line 19: Delete "The" Insert "Except as provided in AS 31.25.080(a)(2), the" Senator Wielechowski moved for the adoption of Amendment No. 3. Senator Fairclough objected. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: SCS CSSSHB 4(FIN) Second Reading Amendment No. 3 YEAS: 4 NAYS: 16 EXCUSED: 0 ABSENT: 0 Yeas: Ellis, French, Gardner, Wielechowski Nays: Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel, Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stedman, Stevens and so, Amendment No. 3 failed. SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) was automatically in third reading. Senator French moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 4. Without objection, the bill was returned to second reading. 2013-04-12 Senate Journal Page 1193 Senator French offered Amendment No. 4 : Page 1, lines 7 - 8: Delete "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;" Page 33, lines 2 - 29: Delete all material. Renumber the following bill sections accordingly. Page 55, lines 17 - 18: Delete "Except as provided in AS 38.35.200(c), a" Insert "A" Page 59, line 3: Delete "lines" Insert "line" Page 59, line 4: Delete "(1)" Page 59, lines 6 - 8: Delete "carrier"; and (2) AS 38.35.200 from "Judicial review of decisions of commissioner on application" to "Judicial review."" Insert "carrier."" Senator French moved for the adoption of Amendment No. 4. Senator Fairclough objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: SCS CSSSHB 4(FIN) Second Reading Amendment No. 4 YEAS: 5 NAYS: 15 EXCUSED: 0 ABSENT: 0 2013-04-12 Senate Journal Page 1194 Yeas: Ellis, French, Gardner, Olson, Wielechowski Nays: Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel, Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Stedman, Stevens and so, Amendment No. 4 failed. SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) was automatically in third reading. Senator Wielechowski moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 5. Without objection, the bill was returned to second reading. Senator Wielechowski offered Amendment No. 5 : Page 11, following line 26: Insert a new subsection to read: "(g) The corporation shall, to the maximum extent possible, use contractors and suppliers in the state in order to benefit from the experience of workers and businesses in the state in arctic engineering and construction." Page 12, line 26: Delete the second occurrence of "and" Page 13, line 1, following "carrier": Insert "; and (4) the person that submits the application for the right- of-way lease commits to hire residents of the state and to contract with businesses in the state to the maximum extent allowed by law for the construction and operation of a natural gas pipeline" Senator Wielechowski moved for the adoption of Amendment No. 5. Senator McGuire objected. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: 2013-04-12 Senate Journal Page 1195 SCS CSSSHB 4(FIN) Second Reading Amendment No. 5 YEAS: 8 NAYS: 12 EXCUSED: 0 ABSENT: 0 Yeas: Bishop, Egan, Ellis, French, Gardner, Hoffman, Micciche, Wielechowski Nays: Coghill, Dunleavy, Dyson, Fairclough, Giessel, Huggins, Kelly, McGuire, Meyer, Olson, Stedman, Stevens and so, Amendment No. 5 failed. SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) was automatically in third reading. Senator Gardner moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 6. Without objection, the bill was returned to second reading. Senator Gardner offered Amendment No. 6 : Page 46, lines 12 - 14: Delete all material and insert: "(d) A contract carriage certificate issued by the commission (1) shall require that a public utility in the state have priority over other shippers if the transportation capacity of an in-state natural gas pipeline is reduced; and (2) may include other reasonable terms and conditions that are consistent with this chapter and that are for the mutual benefit of the in-state natural gas pipeline and the public." Senator Gardner moved for the adoption of Amendment No. 6. Senator Fairclough objected. The question being: "Shall Amendment No. 6 be adopted?" The roll was taken with the following result: 2013-04-12 Senate Journal Page 1196 SCS CSSSHB 4(FIN) Second Reading Amendment No. 6 YEAS: 4 NAYS: 16 EXCUSED: 0 ABSENT: 0 Yeas: Ellis, French, Gardner, Wielechowski Nays: Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel, Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stedman, Stevens and so, Amendment No. 6 failed. SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) was automatically in third reading. Senator Gardner moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 7. Without objection, the bill was returned to second reading. Senator Gardner offered Amendment No. 7 : Page 7, line 20: Delete "personnel" Insert "president, vice-president, director of administrative services, and controller" Page 33, line 30, through page 34, line 1: Delete all material and insert: "* Sec. 14. AS 39.25.110 is amended by adding a new paragraph to read: (44) the president, vice-president, director of administrative services, and controller of the Alaska Gasline Development Corporation." Senator Gardner moved for the adoption of Amendment No. 7. Senator McGuire objected. The question being: "Shall Amendment No. 7 be adopted?" The roll was taken with the following result: 2013-04-12 Senate Journal Page 1197 SCS CSSSHB 4(FIN) Second Reading Amendment No. 7 YEAS: 5 NAYS: 15 EXCUSED: 0 ABSENT: 0 Yeas: Egan, Ellis, French, Gardner, Wielechowski Nays: Bishop, Coghill, Dunleavy, Dyson, Fairclough, Giessel, Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stedman, Stevens and so, Amendment No. 7 failed. SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) was automatically in third reading. Senator Gardner moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 8. Without objection, the bill was returned to second reading. Senator Gardner offered Amendment No. 8 : Page 1, line 3, following "fund;": Insert "requiring legislative approval for the transfer of certain interests in an in-state natural gas pipeline project;" Page 8, line 14, following "may": Insert ", subject to (g) of this section," Page 9, line 4, following "(6)": Insert "subject to (g) of this section," Page 11, following line 26: Insert a new subsection to read: "(g) The corporation may not enter into an agreement with another person for joint ownership of an in-state natural gas pipeline developed by the corporation or transfer or otherwise dispose of all or part of an in-state natural gas pipeline project developed by the corporation without legislative approval." 2013-04-12 Senate Journal Page 1198 Page 46, lines 19 - 20: Delete "The commission shall summarily approve a transfer not involving a substantial change in ownership." Senator Gardner moved for the adoption of Amendment No. 8. Senator McGuire objected. The question being: "Shall Amendment No. 8 be adopted?" The roll was taken with the following result: SCS CSSSHB 4(FIN) Second Reading Amendment No. 8 YEAS: 5 NAYS: 15 EXCUSED: 0 ABSENT: 0 Yeas: Ellis, French, Gardner, Olson, Wielechowski Nays: Bishop, Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel, Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Stedman, Stevens and so, Amendment No. 8 failed. SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) was automatically in third reading. Senator Micciche moved and asked unanimous consent to abstain from voting due to a conflict of interest. Objections were heard and Senator Micciche was required to vote. Senator Meyer moved and asked unanimous consent to abstain from voting due to a conflict of interest. Objections were heard and Senator Meyer was required to vote. The question being: "Shall SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) "An Act relating to the Alaska Gasline Development Corporation; establishing the Alaska Gasline Development Corporation as 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 and its subsidiaries exempt 2013-04-12 Senate Journal Page 1199 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; repealing the statutes relating to the Alaska Natural Gas Development Authority and making conforming changes; 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" pass the Senate?" The roll was taken with the following result: SCS CSSSHB 4(FIN) Third Reading - Final Passage Effective Date YEAS: 15 NAYS: 5 EXCUSED: 0 ABSENT: 0 Yeas: Coghill, Dunleavy, Dyson, Egan, Fairclough, Giessel, Hoffman, Huggins, Kelly, McGuire, Meyer, Micciche, Olson, Stedman, Stevens Nays: Bishop, Ellis, French, Gardner, Wielechowski and so, SENATE CS FOR CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN) passed the Senate. Senator Coghill moved and asked unanimous consent that the vote on the passage of the bill be considered the vote on the effective date clause. Without objection, it was so ordered and the bill was referred to the Secretary for engrossment.