HOUSE BILL NO. 417 An Act amending the definition of 'project' in the Act establishing the Alaska Natural Gas Development Authority; and providing for an effective date. REPRESENTATIVE MIKE CHENAULT explained that HB 417 amends the definition of "project" to include all options for a terminus for the Alaska natural gas pipeline, and it specifically identifies Cook Inlet as one terminus. The voters gave the Alaska Natural Gas Development Authority (ANGDA) the power to study the Prudhoe Bay to Prince William Sound route with a spur run to the Southcentral gas distribution grid. This bill would allow ANGDA to also consider Cook Inlet as a potential and possibly more advantageous terminus. Representative Fate noted that 3 months ago ANGDA made a unanimous decision to expand its purview and do what this bill addresses, and he asked if HB 417 is necessary. Representative Chenault replied that he couldn't speak to the Board's decision. He argued for not limiting ANGDA to one option but allowing it to look at all viable options by June 30. Representative Fate expressed support for the concept. Representative Joule thought that the title limits the scope to ANGDA and not the Stranded Gas Act. He also questioned the impact of this language on proposals that have been submitted. Representative Chenault clarified that ANGDA's only current authority is to study a Prudhoe Bay/North Slope route to Prince William Sound with a spur line to the Southcentral gas distribution grid. He reiterated that this bill amends their authority to include Cook Inlet as a viable option. Co-Chair Harris expressed support for providing gas where it makes the most economic sense for the benefit of all Alaskans. The initiative authorizing ANGDA was project- specific, and this bill would give ANGDA additional authority. He pointed out that major industries on the Kenai Peninsula depend on natural gas and he spoke for protection of those jobs. HAROLD C. HEINZE, CHIEF EXECUTIVE OFFICER, ALASKA NATURAL GAS DEVELOPMENT AUTHORITY, VIA TELECONFERENCE, ANCHORAGE, explained that the Board considered this and other legislation changing the scope of ANGDA. He clarified that this bill does not relate to the Stranded Gas Act, and ANGDA itself is outside the limits of the Stranded Gas Act. He made three points. The charge for ANGDA in the initiative was to study the route from Prudhoe Bay to Prince William Sound, with a spur line from Glenallen to the Cook Inlet area. The current feasibility level of study makes it difficult to determine the difference between any of the specific routes to Cook Inlet without a lot more detail and a lot more funding. He urged the funding of ANGDA. Mr. Heinze continued explaining that ANGDA is working on three projects: the Liquefied Natural Gas (LNG) project to export gas, use of ANGDA's financing and tax advantage for the highway project, and the Cook Inlet spur line and utility concept to be a gas aggregate and transporter to the commercial entities in that area. BOB FAVRETTO, BOARD MEMBER, ALASKA NATURAL GAS DEVELOPMENT AUTHORITY (ANGDA), VIA TELECONFERENCE, KENAI, spoke as a board member and a resident of Kenai Peninsula Borough. He explained that the industries in the area have a shortfall of natural gas at a sustainable price for operation. He noted that gas projects in Alaska are changing weekly. This legislation is a companion bill to Senator Wagoner's SB 247. It is an issue of timing, and he spoke for funding ANGDA to study alternative gas routes. He expressed that he wholeheartedly supports the bill. Co-Chair Williams asked if the title is a little broad. Representative Chenault replied that he didn't see a problem with the title and he noted that SB 247, which is moving through the Senate, has the same title. He said that there has not been discussion of tightening the title.   At Ease: 3:34 P.M.  Reconvene: 3:36 P.M. Representative Chenault MOVED to report HB 417 out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HB 417 was REPORTED out of Committee with a "do pass" recommendation and with a previously published indeterminate fiscal note.