Legislature(2007 - 2008)SENATE FINANCE 532
05/10/2007 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB162 | |
| SB104 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 104 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR SENATE BILL NO. 104(FIN)
"An Act relating to the Alaska Gasline Inducement Act;
providing inducements for the construction of a natural gas
pipeline and shippers that commit to use that pipeline;
establishing the Alaska Gasline Inducement Act matching
contribution fund; providing for an Alaska Gasline
Inducement Act coordinator; making conforming amendments;
and providing for an effective date."
This was the 20th hearing for this bill in the Senate Finance
Committee.
6:24:56 PM
Co-Chair Hoffman move to adopt the Finance committee substitute
Version 25-GS1060\T, Bullock, dated May 10, 2007, as the working
document.
Without objection, the Version "T" committee substitute was
ADOPTED as the working document.
6:25:24 PM
Chapter 90. Alaska Gasline Inducement Act.
STEVE PORTER, Staff to Senator Bert Stedman, discussed the
changes the Version "T" committee substitute would make to
provisions of Chapter 90, added to AS 43 by Section 1 of the
bill.
Article 2. Alaska Gasline Inducement Act License.
Section 43.90.110. Natural gas pipeline project
construction inducement.
Mr. Porter stated that the first change in Version "T", as
compared to the previous Finance committee substitute Version
25-GS1060\N, was in Article 2, Section 43.90.110 subsection
(a)(1). The words "in the form of reimbursements" was added
following "contributions" on page 2, line 17.
6:26:25 PM
MARCIA DAVIS, Deputy Commissioner, Department of Revenue,
informed the Committee that this "technical" change would
strengthen language pertaining to the $500 million grant
reimbursement monies provided by the State to the licensee. It
would require "adequate support and identification of the costs
before monies are provided for that particular expenditure".
Requesting "reimbursement monies for an expenditure that does
not meet the qualifications as a qualified expenditure" would be
a violation.
6:28:36 PM
Mr. Porter noted that the word "match" was replaced with
"reimburse" in two sections of Section 43.90.110: page 2 line 24
of subsection (a)(1)(A) and page 2 line 29 of subsection
(a)(1)(B). This change would further clarify provisions relating
to qualified expenditures.
Mr. Porter also noted that the language "pursuing firm
transportation commitments in a binding open season, to securing
financing for the project, or" was inserted following the phrase
"reasonably related to" in subsection (a)(1)(C), page 3 line 4
of this section, in order "to expand" the activities "the
licensee could actually perform during" the five year period
immediately following receipt of the license.
6:29:56 PM
Senator Dyson asked whether changing from a matching situation
to a reimbursement scenario, as specified by the revisions to
Section 43.90.110, subsections (a)(1)(A) and (B), would have
"the affect of cutting in half the amount of money for the work
that would be done during this period."
(1) subject to appropriation, state matching
contributions in the form of reimbursements in a total
amount not to exceed $500,000,000, paid to the licensee
during the five-year period immediately following the date
the license is awarded;…
Ms. Davis identified "the actual language change" as being in
subsection (a)(1), page 2 lines 17 through 19. She read the
language and expressed the following.
…the actual matching percentage is still in play. So, if
they say, I want a match prior to open season of 40
percent, it would be a reimbursement up to the 40 percent.
So the percentage level of match is still in play. The only
thing that the addition of the word reimburse does is
affect the timing, so that the State isn't paying the match
at the initial outlay of cash by that licensee but rather
its after they've outlaid, provided the documentary
support, then we provide the reimbursement that's still
subject to those caps of percentages.
Senator Dyson appreciated the clarification.
6:31:31 PM
Section 43.90.130. Application requirements.
Mr. Porter next directed attention to paragraph (1) of Section
43.90.130, page 3 beginning on line 26. The phrase "the
applicant shall file with the commissioners the number of copies
of the application, and any amended application, required by the
commissioners; at the same time the copies of the application or
an amended application are filed with the commissioners, the
applicant shall provide six copies of the application or amended
application to the presiding officer of each chamber of the
legislature" was added following "request for applications" in
paragraph (1), page 3 line 31.
6:32:21 PM
Section 43.90.160. Notice, review, and comment.
(c) After the commissioners determine that the
applications are complete under AS 43.90.140, ….
Mr. Porter advised that the change in subsection (c) of this
section was to pluralize "the application is complete" to read
"the applications are complete", as reflected on page 12 line 3.
Ms. Davis noted that this language had been pluralized in
previous versions of the bill. Changing it from the singular to
the plural recognized that all license applications would be
received at one time rather than at staggered times.
6:34:07 PM
Section 43.90.170. Application evaluation and ranking.
(b) When evaluating the net present value of
anticipated cash flow to the state from the applicant's
project proposal, the commissioners shall use an
undiscounted value and, at a minimum, discount rates of
two, five, six, and eight percent, and consider
Mr. Porter stated that the discount rate of six percent was
added to subsection (b) page 12 line 20.
6:34:49 PM
Section 43.90.200. Certification by regulatory authority
and project sanction.
(a) A licensee that is awarded a certificate of public
convenience and necessity from a regulatory agency with
jurisdiction over the project shall accept the certificate
on or before the date the order granting the certificate is
no longer subject to judicial review.
6:35:43 PM
Mr. Porter stated that, as a clarifying measure, the words "on
or before the date" were added following the first reference to
"the certificate" in subsection (a) page 15 line 4. The words
"or earlier at the licensee's discretion" were deleted following
"judicial review" at the end of the subsection, page 15 line 5.
Mr. Porter informed the Committee that the term "amended
certificate" was utilized throughout the previous version of the
bill. That term is deleted entirely from Version "T" by changing
the definition of certificate to include "both certificate and
language sufficient to cover amended certificate as well."
Further discussion on this change would be forthcoming.
(f) In this section, "effective date of the
certificate of public convenience and necessity" means the
earlier of the date the order granting the certificate is
not longer subject to judicial review or the date the
licensee accepts the certificate.
Mr. Porter advised that two changes were made to subsection (f)
of this section. The words "the earlier of" were inserted
following "means" on page 16 line 3 and the words "or the date
the licensee accepts the certificate" were added following
"review" on line 4.
6:37:30 PM
(e) The transfer and assignments under (d) of this
section as a result of failure to comply with (a) or (b) of
this section are at no cost to the state or the state's
designee. A transfer under (c) of this section shall be
subject to the state's payment to the licensee of the net
amount of expenditures incurred and paid by the licensee
that are qualified expenditures for the purposes of AS
43.90.110.
Ms. Davis advised that the phrase "is at the licensee's net
cost" were deleted and replaced with "shall be subject to the
state's payment to the licensee of the net amount of
expenditures incurred and paid by the licensee that are
qualified expenditures" following "A transfer under (c) of this
section" on page 15 line 30.
6:38:17 PM
Section 43.90.210. Amendment of or modification to the
project plan. Subject to the approval of the commissioners,
a licensee may amend or modify its project plan if the
amendments or modifications improve the net present value
of the project to the state, are necessary because of an
order or requirement by a regulatory agency with
jurisdiction over the project or by the Alaska Oil and Gas
Conservation Commission, or the amendment or modification
is necessary because of changed circumstances outside the
licensee's control and not reasonably foreseeable before
the license was issued. An amendment or modification
approved under this section must be consistent with the
requirements of AS 43.90.130 and, except for an amendment
or modification required because of an order or requirement
of a regulatory agency with jurisdiction over the project
or by the Alaska Oil and Gas Conservation Commission, may
not substantially diminish the value of the project to the
state or the project's likelihood of success.
Mr. Porter informed that the words "an order issued" were
deleted following "jurisdiction over the project or" on page 16
lines 9 and 15 of this section.
Ms Davis advised that the phrase "net present" was also deleted
following "may not substantially diminish the" on line 16. This
phrase was inadvertently included in the previous version of the
bill as the result of a technical drafting error.
6:39:33 PM
Section 43.90.220. Records, reports, conditions, and audit
requirements.
(2) receive all relevant notices when and as
issued and information when and as sent to the governing
body or bodies and equity holders;
Mr. Porter stated that the words "when and as" were inserted in
subsection (d)(2), page 17 line 4, of this section.
6:40:03 PM
Section 43.90.240. Abandonment of project.
(b) If the commissioners and the licensee do not agree
that the project is uneconomic, the disagreement shall be
settled by arbitration administered by…..
Mr. Porter stated that the phrase "or the licensee find that the
project is uneconomic and the other parties disagree" was
deleted and replaced with "and the licensee do not agree"
following "commissioners" on page 18 line 26 of subsection (b)
of this section in order to clarify that "commissioners and
licensees don't make findings, they disagree".
6:40:51 PM
Article 3. Resource Inducements.
Section 43.90.300. Qualification for resource inducements.
Mr. Porter stated that the word "inducement" was pluralized to
"inducements" on page 20, line 27 of the section title.
Section 43.90.310. Royalty inducement.
(c) To claim the inducement under (b) of this section,
a lessee or other person qualified under AS 43.90.300 shall
agree, on an application form provided by the Department of
Natural Resources, that the lessee or other person, and the
lessee's or other person's affiliates, successors, assigns,
and agents will not protest or appeal a filing by the
licensee to roll in expansion costs of the mainline up to a
level that is required in AS 43.90.130(7) if the Federal
Energy Regulatory Commission does not have a rebuttable
presumption in effect that rolled-in treatment applies to
the cost of the expansion of the project. The agreement not
to protest may not preclude the lessee or other person, or
the lessee's or other person's affiliates, successors,
assigns, and agents from protesting a filing to roll in
mainline expansion costs that licensee is not required to
propose and support under AS 43.90.130(7).
Section 43.90.320. Gas production tax exemption.
(c) The person claiming the exemption under this
section shall agree that the person, and the person's
affiliates, successors, assigns, and agents will not
protest or appeal a filing by the licensee to roll in
mainline expansion costs up to the level that the licensee
is required to propose an support under AS 43.90.130(7) if
the Federal Energy Regulatory Commission does not have a
rebuttable presumption in effect that rolled-in treatment
applies to the cost of the expansion of the project. The
agreement required under this subsection may not preclude
the person, or the person's affiliates, successors,
assigns, and agents, from protesting a filing to roll in
mainline expansion costs that licensee is not required to
propose and support under AS 43.90.130(7).
Section 43.90.330. Inducement vouchers.
(d) A person that receives a voucher under this
section and a gas producer that receives resource
inducements under a voucher shall agree that the person and
the gas producer and their respective affiliates,
successors, assigns, or agents will not protest or appeal a
filing by the licensee to roll-in mainline expansion costs
up to the level that the licensee is required to propose
and support under AS 43.90.130(7) if the Federal Energy
Regulatory Commission does not have a rebuttable
presumption in effect that rolled-in treatment applies to
the cost of the expansion of the project. The agreement
required under this subsection may not preclude the person
or gas producer or their respective affiliates, successors,
assigns, or agents from protesting a filing to roll-in
mainline expansion costs that the licensee is not required
to propose and support under AS 43.90.130(7).
Mr. Porter stated that the clause "if the Federal Energy
Regulatory Commission does not have a rebuttable presumption in
effect that rolled-in treatment applies to the cost of the
expansion of the project." has been inserted following the first
reference to "AS 43.90.130(7)" in three subsections of the bill:
Section 43.90.310. Royalty inducement., subsection (c), page 23
line 8; Section 43.90.320. Gas production tax exemption.,
subsection (c), page 24, line 9; and Section 43.90.330.
Inducement vouchers., subsection (d), page 25 line 9.
Article 4. Miscellaneous Provisions.
Section 43.90.400. Alaska Gasline Inducement Act matching
contribution fund; disbursements; audits.
(c) The commissioners shall adopt regulations that
provide for application to receive matching contributions
in the form of reimbursements for qualified expenditures as
provided under AS 43.90.110, and ……
Mr. Porter stated that the phase "in the form of reimbursements"
was inserted following "contributions" in subsection (c) page 25
line 30 of Section 43.90.400.
6:43:14 PM
Section 43.90.440. Licensed project assurances.
(a) Except as otherwise provided in this chapter, the
state grants a licensee assurances that the licensee has
exclusive enjoyment of the inducements provided under this
chapter before the commencement of commercial operations….
Mr. Porter pointed out that the word "operation" in Section
43.90.440, subsection (a) page 26 line 22 was pluralized to
"operations" in this version of the bill.
6:43:32 PM
Article 5. General Provisions.
Section 43.90.900. Definitions.
(4)"certificate of public convenience and
necessity" and "certificate" mean a certificate of public
convenience and necessity issued by the Federal Energy
Regulatory Commission or the Regulatory Commission of
Alaska, and a certificate of public convenience of
necessity issued by the Federal Energy Regulatory
Commission under 15 U.S.C. 719 et seq. (Alaska Natural Gas
Transportation Act of 1976) that is amended to comply with
the terms of the license;
Mr. Porter stated that, as mentioned earlier, the definitions of
"certificate of public convenience and necessity" and
"certificate" were changed to accommodate the deletion of the
term "amended certificate" from this version of the bill. This
definition is depicted in paragraph (4), page 28 line 31 through
page 29 line 5, of Section 43.90.900.
6:44:55 PM
(17) "open season" means the process that
complies with 18 C.F.R. Part 157, Subpart B (Open Seasons
for Alaska Natural Gas Transportation Projects) or similar
procedures for soliciting commitments for pipeline capacity
under the regulations, policies, rules or precedent of the
Regulatory Commission of Alaska;
Mr. Porter also advised that the language "or similar procedures
for soliciting commitments for pipeline capacity under the
regulations, policies, rules or precedent of the Regulatory
Commission of Alaska" was added to the definition of "open
season", as depicted in paragraph (17) of the Definitions
section, page 30 line 9.
6:45:35 PM
This concluded the overview of the changes included in the
Version "T" committee substitute.
AT EASE 6:46:34 PM / 6:50:31 PM
Amendment #1: This amendment inserts "lobbying costs," following
"overhead costs," in Section 43.90.110(a)(1)(C), page 3 line 10,
of Article 2. Chapter 90. Alaska Gasline Inducement Act
License., added to AS 43 by Section 1.
Co-Chair Stedman moved and objected for discussion.
Co-Chair Stedman explained that this amendment would disqualify
lobbying costs from being a qualified expenditure, as defined in
this subsection.
6:51:03 PM
PATRICK GALVIN, Commissioner, Department of Revenue,
communicated that the Department did not object to the
amendment.
Co-Chair Stedman removed his objection.
6:52:26 PM
There being no further objection, Amendment #1 was ADOPTED.
Amendment #2: This amendment increases the "five-year" time
period specified in Section 43.90.110(a)(1), page 2 line 19, of
Article 2. Chapter 90. Alaska Gasline Inducement Act License.,
added to AS 43 by Section 1, to a "seven-year" time period.
Co-Chair Stedman moved and objected for discussion.
6:53:26 PM
Commissioner Galvin advised that subsection (a)(1) addressed the
time period in which qualified expenditures would be matched by
the State. The amendment would increase that time period to
seven years after the issuance of the license.
Commissioner Galvin spoke as follows.
In response to testimony and information provided by
potential applicants, its been requested to provide more
flexibility in terms of both the time line and in the
ability of applicants to potentially have costs associated
with the actual FERC [Federal Energy Regulatory Commission]
determination timeframe, if there's additional costs while
FERC may be considering an application and also providing
potentially more time between an open season and when the
beginning … engineering and other field work would be
undertaken to pursue the FERC certificate that this would
provide more flexibility for applicants and potentially
increase our pool of applicants by providing this
flexibility.
6:54:42 PM
Senator Huggins stated he would "counter-intuitively" support
the amendment in spite of his concern that it might have "the
potential net effect of expanding the timeline."
6:55:13 PM
Co-Chair Stedman maintained his objection to the amendment.
A roll call was taken on the motion.
IN FAVOR: Senator Olson, Senator Huggins, Senator Thomas,
Senator Dyson, Senator Elton and Co-Chair Hoffman
OPPOSED: Co-Chair Stedman
The motion PASSED (6-1)
Amendment #2 was ADOPTED.
6:56:07 PM
Amendment #3: This amendment deletes "80" and inserts "90" in AS
43.90.110(a)(1)(B), page 2 line 30. The language would read, in
part, as follows.
(B) after the close of the first binding open
season, the state shall reimburse the licensee's qualified
expenditures at the level specified in the license;
however, the state's matching contribution may not exceed
90 percent of the qualified expenditures …
Co-Chair Stedman moved and objected for discussion.
6:56:46 PM
Commissioner Galvin explained that this amendment pertained to
the timeframe in which an applicant could establish the level of
the State's matching contribution rate after the initial open
season. The adoption of this amendment would increase that level
to no more than 90 percent of the qualified expenditures.
Commissioner Galvin continued as follows.
Again, it is something that the applicant will establish in
their proposal. This provides more flexibility for
applicants to potentially put more of the weight on the
State. It is being responsive to primarily concerns raised
by TransCanada in terms of recognizing the risk sharing
after an open season and concern with regard to the fact
that its primarily the State's desire and in the State's
interest to have the project continue to move forward,
whereas the company may see a different risk profile, and
allowing for the State to take on more of that weight may
again encourage more applications, which is the ultimate
goal, and recognizing, also, that the State's cap on
expenditures remains at $500 million.
Commissioner Galvin considered "it appropriate to be responsive
to the desire for flexibility in that area with the primary
desire to increase the potential pool of applicants."
6:58:24 PM
Co-Chair Stedman thought that changes, such as the one proposed
in this amendment, have been made to "attract more midstream
participants" such as potential pipeline builders like
TransCanada and Enbridge.
6:59:57 PM
Commissioner Galvin expressed that, over the past few weeks,
numerous changes have been made "to the bill to attract
additional applicants" in an effort "to eliminate potential
barriers" identified by producers and others. Concerns raised by
TransCanada and others about such things as upstream activities
have been addressed. More changes would be anticipated in the
endeavor to make the Alaska Gasline Inducement Act (AGIA) "more
flexible for all potential participants."
7:00:34 PM
Senator Huggins appreciated the Commissioner's "candor" and
hoped that the actions taken in the bill "would attract more
applicants." Nonetheless, he would be voting against the
amendment because he was uncomfortable being told by a company
that, the in order to get them to apply, the State must increase
its matching contribution level to 90 percent.
7:01:14 PM
Commissioner Galvin clarified that "neither TransCanada nor any
other applicant has stated if this changed from 80 to 90 that
they would come." The overall effort is to make AGIA "more
attractive" and "to be responsive to our applicant pool." The
issue addressed in this amendment "was identified as an area of
concern."
Senator Huggins appreciated the clarification. Nonetheless,
"when it comes to dollars and cents, I have a little different
value system. So I'm a no vote."
A roll call was taken on the motion.
IN FAVOR: Senator Olson, Senator Thomas, Senator Dyson, Senator
Elton and Co-Chair Hoffman
OPPOSED: Senator Huggins and Co-Chair Stedman
The motion PASSED (5-2)
Amendment #3 was ADOPTED.
7:03:01 PM
Amendment #4: This amendment deletes "and" following "AS
43.90.130(9);" on page 12 line 31 of Article 2, Section
43.90.170(b)(5) of Chapter 90, added to AS 43 by Section 1, and
adds a new paragraph that reads as follows.
(6) economic value resulting from payments
required to be made to the state under the terms of the
proposal;
Co-Chair Stedman moved and objected for discussion.
7:03:40 PM
Commissioner Galvin stated that this amendment would allow the
State to consider a variety of applicant payment options.
Further clarifying remarks were provided as follows.
If an applicant were to propose, as part of their proposal,
making payments to the State, either in the form of a
passive equity interest, where the payment would be made as
part of some profit sharing or payments based upon the
revenues generated by the project, or, as the port
authority has indicated, they would create a profit sharing
opportunity for the State, or if the applicant were to
propose some sort of repayment in a form of just a set
payment as opposed to something based upon revenues.
All of those would be something that could be considered
and evaluated as part of the net present value economic
evaluation criteria. And, we believe that this is the most
responsive way to capture some of those areas of interest
and also to provide flexibility from the applicants.
But, make it clear that within the bill the requirement
that any State contribution will reduce the rate base and
thereby reduce the tariff remains: that this is not a
substitute where the State contribution will become the
loan and will end up being paid by the shippers when they
make their tariff payments. This would be something that
would be offered by the licensee out of their proceeds from
the project and would be offered as a way of making their
proposal more attractive and more likely to potentially
succeed in the competitive bidding process.
7:06:03 PM
In response to a concern voiced by Senator Elton, Co-Chair
Stedman stated that any language issues associated with
inserting this new paragraph into the bill would be addressed by
the bill's drafters.
7:06:41 PM
Senator Olson asked whether the net affect of the amendment
would be to provide an opportunity "to have an increased bottom
line for the State."
Commissioner Galvin responded in the affirmative. "This would
anticipate that if the licensee were to propose making these
payments it would result in an increased bottom line for the
State. We would get more value out of the project."
7:07:08 PM
Senator Huggins complimented the Commissioner on developing
amendment language that would provide an opportunity for the
State to further benefit from the project.
Co-Chair Stedman removed his objection.
There being no further objection, Amendment #4 was ADOPTED.
7:07:53 PM
Amendment #5: This amendment inserts the word "maximum"
following "the" in Article 2, Section 43.90.130. Application
requirements, subparagraph (15) on page 9 line 21 of Chapter 90,
added to AS 43 by Section 1. The language would read, in part,
as follows.
(15) to the maximum extent permitted by law,
commit to…
Co-Chair Stedman moved Amendment #5.
There being no objection, Amendment #5 was ADOPTED.
7:09:22 PM
Commissioner Galvin addressed another area of concern in the
bill; specifically language added to paragraph (1) of Article 2,
Section 43.90.130. Application requirements., page 3 line 30
through page 4, line 4 that reads, in part, as follows.
…the applicant shall file with the commissioners the
number of copies of the application, and any amended
application, required by the commissioners; at the
same time the copies of the application or an amended
application are filed with the commissioners, the
applicant shall provide six copies of the application
or amended application to the presiding officer of
each chamber of the legislature;
Commissioner Galvin was particularly concerned about the
language requiring the applicant to provide copies of their
application to the presiding officer of each chamber of the
legislature. The concern is that this action could compromise
the integrity of the process. It is imperative that there be "no
opportunity for one of the applicants, who that point still has
the opportunity to amend their application, to have access to
information provided by a competing applicant."
Commissioner Galvin declared that the commissioners must be able
to keep the applications "secure" and "within their control".
Co-Chair Stedman advised that forthcoming Amendment #6 might
address this concern.
AT EASE 7:11:54 PM / 7:24:26 PM
Amendment #6: This amendment deletes the ";" following
"legislature" on page 4 line 4 of subsection (1) of Article 2,
Section 43.90.130 of Chapter 90 added to AS 43 by Section 1 and
inserts new language as follows.
in a sealed envelope, and such envelope shall not be
opened and the contents distributed until the receipt by
the presiding officers of each chamber of notice, that the
commissioners have determined the applications are complete
under AS 43.90.140 and the presiding officer may open the
envelop after signing a confidentiality agreement under AS
43.90.160(c).
Co-Chair Stedman moved and objected for discussion.
Co-Chair Stedman thought this language would address the
confidentially concern arising from providing copies of the
applications to the presiding officer of each chamber of the
Legislature.
7:25:26 PM
Commissioner Galvin advised that the issue "still causes us
concern." He elaborated as follows.
…the Executive Branch is still responsible for implementing
the laws. And, as part of that, we are responsible for
implementing the AGIA process. And, that process has
safeguards with regard to both the flow of the applications
and the retention of the confidential materials. What this
does, is it goes outside of the process and additional
language that, as far as I'm aware, is unprecedented
anywhere else in State procedure, to have the information
provided simultaneously to the Executive Branch and to the
presiding officers.
Now, there's no limitation in here on, once the presiding
officers open these, whether they are bound to not
distribute the confidential information as is provided in
other sections with regard to the commissioners. It states
that the commissioners can only provide the information to
others once those others within the Legislature have signed
a confidentially agreements provided by the commissioners.
This does not have those safeguards built into it. It's
coming in from a completely different angle. I cannot
understand the motivations given that this information will
basically be available to the Legislature at the exact same
time under this as under this other provision, as the
existing provision.
7:27:22 PM
Commissioner Galvin advised that the Department of Law
recommends the existing bill language and has "established that
it's got the safeguards necessary to ensure that the integrity
of the process remains. This is not worked out in that regard
and there are potential loopholes that I can already see."
Commissioner Galvin noted that, in addition to the question of
confidentiality, the inclusion of an amended application in the
requirement is troublesome because "no where in the bill do we
talk about them being able to submit an amended application."
Commissioner Galvin pointed out that the application process
currently involves the submittal of an application, with
additional information to be provided as requested by the
commissioners. "That information would then be made public, as
well as the correspondence, when the applications are deemed
complete. This just is basically additional process that's being
tacked on here late in the day without us being able to work
through the various pitfalls that may be associated with this
additional process that, again, I'm not aware of anywhere else"
in the bill.
Commissioner Galvin urged the Committee to return to the
language in the original version of the bill as it would provide
the Legislature "full access to the information once its been
complete, full access to the confidential information, and
ensures that there isn't any question after the fact about the
integrity of the information flow."
AT EASE 7:29:28 PM / 7:30:07 PM
Without objection, Co-Chair Stedman WITHDREW Amendment #6.
Conceptual Amendment #8: This amendment deletes "the applicant
shall file with the commissioners the number of copies of the
application, and any amended application, required by the
commissioners; at the same time the copies of the application or
an amended application are files with the commissioners, the
applicant shall provide six copies of the application or amended
application to the presiding officer of each chamber of the
legislature" following "applications;" on page 3 line 30 through
page 4 line 4 of paragraph (1) of Article 2, Section 43.90.130.
Application requirements. in Chapter 90 added to AS 43 by
Section 1
Co-Chair Stedman moved and objected for further discussion.
7:32:34 PM
No discussion forthcoming, Co-Chair Stedman removed his
objection.
There being no further objection, Conceptual Amendment #8 was
ADOPTED.
7:33:18 PM
Amendment #7: This amendment inserts "an amendment to" following
"and" in paragraph (4), page 29, line 2 of Section 1, Article 5,
Section 43.90.900. Definitions, of Chapter 90 added to AS 43 by
Section 1.
The amendment also deletes "that is amended to comply with the
terms of the license" following "(Alaska Natural Gas
Transportation Act of 1976)" on page 29, line 4 of that same
paragraph.
The changes proposed in the amendment would read as follows.
(4) "certificate of public convenience and
necessity" and "certificate" mean a certificate of public
convenience and necessity issued by the Federal Energy
Regulatory Commission or the Regulatory Commission of
Alaska, and an amendment to a certificate of public
convenience of necessity issued by the Federal Energy
Regulatory Commission under 15 U.S.C. 719 et seq. (Alaska
Natural Gas Transportation Act of 1976);
Co-Chair Stedman moved and objected for discussion.
7:33:27 PM
Commissioner Galvin explained that, as mentioned earlier, the
term "or amended certificate" accompanied all references made to
a FERC certificate in previous bill versions. A "global change"
was made in this committee substitute in that the term "or
amended certificate" was omitted, and the concept of that term
was added to the definition of "certificate".
Commissioner Galvin communicated, however, that the Department
has determined that the manner in which the amended certificate
is referenced in that definition could "be clarified further".
This is the purpose of the amendment.
In response to a question from Co-Chair Stedman, Commissioner
Galvin affirmed that the Department supported the amendment.
Co-Chair Stedman removed his objection.
There being no other objection, Amendment #7 was ADOPTED.
No further amendments were offered.
AT EASE 7:35:33 PM / 7:36:56 PM
7:37:24 PM
Senator Dyson was pleased with the Committee's bill and with the
cooperation provided by the Administration in the endeavor.
While he would have welcomed having the bill reviewed by
Legislative consultants, he was sympathetic to the time
constraint placed on Committee actions.
7:38:21 PM
Co-Chair Stedman appreciated Senator Dyson's remarks. The amount
of time he, Co-Chair Hoffman, and Senator Huggins spent "working
through the details" of the bill, with the assistance of the
Administration, is evidenced by the limited number and nature of
the amendments offered today.
7:39:06 PM
Co-Chair Hoffman moved to report the Version 25-GS1060\T
committee substitute, as amended, from Committee with individual
recommendations and accompanying fiscal notes.
7:39:27 PM
There being no objection, CS SB104(FIN) was REPORTED from
Committee with six previous fiscal notes: zero fiscal note #2
from the Division of Oil & Gas, Department of Natural Resources;
$2,226,000 fiscal note #3 from the Department of Revenue; zero
fiscal note #4 from the Department of Commerce, Community and
Economic Development; zero fiscal note #5 from the Department of
Administration; $302,100 fiscal note #6, from the Division of
Oil & Gas, Department of Natural Resources; and $6,500,000
capital expenditure fiscal note #7 from the Department of Labor
and Workforce Development.
| Document Name | Date/Time | Subjects |
|---|