Legislature(2009 - 2010)

2009-03-02 House Journal

Full Journal pdf

2009-03-02                     House Journal                      Page 0372
HB 163                                                                                                                        
HOUSE BILL NO. 163 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
     "An Act clarifying the purpose of the Alaska Natural Gas                                                                   
     Development Authority; and relating to definitions of certain                                                              
     terms in AS 41.41."                                                                                                        
was read the first time and referred to the House Special Committee on                                                          
Energy and the Resources and Finance Committees.                                                                                
The following fiscal note(s) apply:                                                                                             
1.  Zero, Dept. of Natural Resources                                                                                            
2.  Zero, Dept. of Revenue                                                                                                      
The Governor's transmittal letter dated February 27, 2009, follows:                                                             
"Dear Speaker Chenault:                                                                                                         
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill clarifying the purpose of the                                                            
Alaska Natural Gas Development Authority; and relating to definitions                                                           
of certain terms in AS 41.41.                                                                                                   
The Alaska Natural Gas Development Authority (ANGDA) is a                                                                       
corporation that was established in 2003 through a 2002 ballot                                                                  
initiative.  The authority was created with the intent of "developing,                                                          
constructing, managing, and operating a gas pipeline from the North                                                             
Slope of Alaska and a spur line to the Southcentral Alaska natural gas                                                          
distribution grid"  (Section 1, 2002 Ballot Measure No. 3).                                                                     

2009-03-02                     House Journal                      Page 0373
The current law could be interpreted to limit ANGDA's primary                                                                   
mission to a pipeline from Prudhoe Bay to serve overseas export                                                                 
markets, with the possibility of a spur line to service Southcentral                                                            
Alaska.  Given Alaska's energy needs, the bill would clarify ANGDA's                                                            
mission to include providing for natural gas from sources anywhere                                                              
within the state to markets within Alaska.  Amendments to the                                                                   
definition of "project" and the addition of a definition for "North                                                             
Slope" would make it clear that a pipeline can extend from recent finds                                                         
in the Brooks Range foothills and other regions within the state and                                                            
that the gas may broadly serve Alaskan markets.                                                                                 
With more flexibility regarding a pipeline's source of natural gas and                                                          
the markets for the gas, ANGDA will be in a better position to fulfill                                                          
its mission of developing an in-state gas line that best serves the                                                             
people of Alaska.  This proposed legislation, together with a separate                                                          
submittal today proposing to amend how rights-of-way for oil and gas                                                            
pipelines are regulated, will form the initial statutory framework for                                                          
the development of in state gasline for use by Alaskans.  Additionally,                                                         
the key action to bring a long term stable supply of Alaska gas to                                                              
Alaska consumers will be an action plan, and the people that                                                                    
implement that plan to jump start work immediately on an instate gas                                                            
The action plan will include evaluation of options for routes, gas                                                              
resources and potential industrial and residential users;                                                                       
commencement of right-of-way and permitting work; preliminary                                                                   
engineering; and a firm timetable for accomplishing this work.  We                                                              
will provide details of this action plan in the next week.                                                                      
I urge your prompt and favorable action on the bill.                                                                            
                                Sarah Palin