SB 180-LNG IMPORT FACILITIES  3:37:27 PM CHAIR GIESSEL announced the consideration of SENATE BILL NO. 180 "An Act relating to the regulation of liquefied natural gas import facilities by the Regulatory Commission of Alaska." 3:40:18 PM CHAIR GIESSEL said that SB 180 repeals AS 42.05.711(v). She explained that this would return the authority to regulate the import of liquified natural gas (LNG) to the Regulatory Commission of Alaska (RCA). She stated that the legislature repealed this authority during the previous legislative session. She presented the sectional analysis for SB 180: [Original punctuation provided.] Senate Bill 180 (version A)  Sectional Analysis Section 1: Repeals AS 42.05.711(v) AS 42.05.711(v) a liquefied natural gas import facility under the jurisdiction of the Federal Energy Regulatory Commission is exempt from this chapter. CHAIR GIESSEL explained that AS 42.05 addresses the RCA. She said that SB 180 is necessary to ensure consumer protection. She stated that RCA regulates the rates that energy utilities can charge. SB 180 does not expand the jurisdiction of RCA to a privately held import terminal; rather, it clarifies RCA jurisdiction over certificated utilities' gas-supply contracts from an LNG import terminal. SB 180 would treat those gas supply contracts the same as supply contracts from any Cook Inlet producer. She said that prior to the addition of AS 42.05.711(v) (which gives the Federal Energy Regulatory Commission (FERC) jurisdiction), RCA had the authority to regulate the import of LNG. She clarified that FERC has authorization to regulate the facilities, not the price of the commodity. Therefore, the addition of AS 42.05.711(v) has created confusion. 3:40:37 PM INTIMAYO HARBISON, Staff, Senator Cathy Giessel, Alaska State Legislature, Juneau, Alaska, introduced himself. 3:40:52 PM SENATOR CLAMAN sought confirmation of his understanding that RCA would not regulate LNG import facilities; however, RCA would regulate the sale of LNG supplied through those import facilities to energy utilities throughout the state. 3:41:25 PM MR. HARBISON confirmed this understanding. 3:41:31 PM CHAIR GIESSEL shared that RCA recently oversaw -and denied- a request from Enstar Natural Gas (Enstar) that would have increased the price on imported LNG. She emphasized that consumer protection is the function of RCA. She explained that FERC already has jurisdiction over the facilities and the insertion of AS 42.05.711(v) at the end of the previous legislative session created confusion about RCA's jurisdiction over the cost of the commodity. 3:42:43 PM SENATOR DUNBAR asked for confirmation that the legislature approved this provision during the previous legislative session. SENATOR GIESSEL confirmed this understanding. SENATOR DUNBAR stated that he could not recall legislation that dealt with this specific issue and surmised that it was part of a broader package. He wondered why the legislature made the change and asked for additional information. 3:43:20 PM CHAIR GIESSEL explained that the Senate Finance Committee added the provision to House Bill 50, which related to carbon sequestration. She noted that the Senate Finance Committee did not hold discussion on the provision. 3:43:56 PM CHAIR GIESSEL held SB 180 in committee.