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." AT EASE 8:54 AM / 9:14 AM This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken stated that this legislation, HB 417, Version 23- LS1494\A, would change the responsibilities of the Alaska Natural Gas Development Authority (ANGDA) "to include a review of the economic viability of a gas line to tidewater at a point at or near Cook Inlet." REPRESENTATIVE MIKE CHENAULT, the bill's sponsor, stated that this bill would allow ANGDA to investigate the possibility of a gas line route to tidewater at a point at or near Cook Inlet. He noted that the citizens of the State voted in support of providing ANGDA with the authority to investigate the viability of developing a gas pipeline from Prudhoe Bay south to tidewater on Prince William Sound. He stated that enlarging that authority to encompass a route to the Cook Inlet area is important, and he noted that increasing the scope of the project would not negatively affect the original routing evaluation, and would in fact, "enhance it." HAROLD HEINZE, CEO, Alaska Natural Gas Development Authority, testified via teleconference from Anchorage in support of the bill. He attested that this legislation would expand the Authority's authority to analyze a direct route to Cook Inlet in addition to its original charge of getting gas to Cook Inlet via some method. Furthermore, he stated that the Authority's analytical "feasibility" study method would allow this study to be added to the Authority's mission in an economically sound manner. He informed the Committee that, "regardless of what happened here," the Authority would be considering this alternative, as it would fall within the scope of its work to consider direct and indirect routings. BILL POPP, Kenai Peninsula Borough Oil and Gas Liaison, testified via teleconference from Kenai, and stated that the Borough supports passage of this legislation as it is believed that it would enhance the responsibilities of ANGDA as an entity of the State by allowing ANGDA "to perform with due diligence" by investigating a direct route to Cook Inlet in addition of the line to a point on Prince William Sound and the Spur Line from Glennallen to a Southcentral Distribution Grid. He declared that a clear and detailed explanation of routing economics is important to the success of the project. He stated that the project is faced with numerous economic obstacles and that expanding the project would be beneficial in finding the most viable route to make this project "a realty if the economics support it. Senator Bunde understood that the project "would fall within the parameters" of ANGDA's mission as currently established, and as such, no additional funding would not be required. STEVER PORTER, Deputy Commissioner, Department of Revenue, agreed with Senator Bunde's comment. Co-Chair Green moved to report the bill from Committee with individual recommendations and accompanying fiscal note. There being no objection, HB 417 was REPORTED from Committee with zero fiscal note # 1, dated February 15, 2004 from the Department of Revenue. AT EASE 9:21 AM / 9:56 AM