Legislature(2009 - 2010)

04/18/2010 05:16 PM Senate FIN

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05:16:00 PM Start
05:19:10 PM HB280
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 369(FIN) am                                                                                             
     "An Act  relating to an in-state  natural gas pipeline,                                                                    
     the  office of  in-state gasline  project manager,  and                                                                    
     the Joint In-State  Gasline Development Team; requiring                                                                    
     the  development of  an in-state  natural gas  pipeline                                                                    
     plan, to  be delivered  to the  legislature by  July 1,                                                                    
     2011, that  provides for a gasline  that is operational                                                                    
     by  December 31,  2015;  directing  the Joint  In-State                                                                    
     Gasline  Development  Team to  assume  responsibilities                                                                    
     under sec.  19, ch.  14, SLA 2009;  requiring expedited                                                                    
     review  and  action  by   state  agencies  or  entities                                                                    
     relating to the in-state  natural gas pipeline project;                                                                    
     and providing for an effective date."                                                                                      
5:34:19 PM                                                                                                                    
Co-Chair   Hoffman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute, work draft #26-LS152\K, Cook, 4/17/10.                                                                              
DARWIN  PETERSON, STAFF,  BERT STEDMAN  referred to  Page 5,                                                                    
Line  8. He  stated that  the previous  version allowed  the                                                                    
Alaska Railroad chairman of the  board to appoint a designee                                                                    
to the  joint instate  gas development  team created  in the                                                                    
legislation. The reference to  the chair's designee has been                                                                    
deleted specifying  that the board  chairman is part  of the                                                                    
team versus a  designee.  He continued that Page  7, Line 28                                                                    
through Page  8, Line  7 includes the  instate hire  and job                                                                    
training  language  inserted  at   the  request  of  Senator                                                                    
Thomas,  which  instructs  the  project  developer  to  hire                                                                    
Alaskans and  contract with Alaskan  businesses and  use job                                                                    
centers operated  by the Department  of Labor  and Workforce                                                                    
Development. He  described another  change on Page  8, Lines                                                                    
12   and   13   including   new   language   regarding   the                                                                    
confidentiality of proprietary  information available to the                                                                    
joint  instate   gasline  development  team.   The  previous                                                                    
language  was broad  and caused  concern among  the industry                                                                    
that proprietary  information not directly related  to a gas                                                                    
pipeline would  be available to  the team. The  new language                                                                    
states  that  the  team   can  access  information  directly                                                                    
related to the planning  design construction or operation of                                                                    
the instate natural gas pipeline.  He explained that Page 9,                                                                    
Section 5 allows for the  exemption of Enstar's Anchor Point                                                                    
pipeline from  the right  of way leasing  act since  it does                                                                    
not provide  transportation services  as defined in  the act                                                                    
and  is  an  expansion   of  Enstar's  existing  system  and                                                                    
therefore exempt  as it existed  prior to 1972 when  the act                                                                    
was adopted. Next change on page  11 and subsection 1 of the                                                                    
transitional  provisions required  the  team  to define  the                                                                    
project  parameters  by  February  15,  2011.  Subsection  2                                                                    
states that  between November  15, 2010  and March  15, 2011                                                                    
the  team was  required  to seek  letters  of interest  from                                                                    
private companies willing to develop  the project. The dates                                                                    
were  removed and  the responsibilities  of the  team remain                                                                    
unchanged. Finally,  section 11 in the  previous version was                                                                    
deleted and  would have  provided legislative  authority for                                                                    
the Alaska Natural Gas Development  Authority to issue up to                                                                    
$250 million in  bonds for the project. The  deletion of the                                                                    
section required a  title change reflected on  Page 1, Lines                                                                    
10 and 11.                                                                                                                      
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
Senator Thomas  MOVED Amendment 1  26-LS1527\M.3, Chenoweth,                                                                    
     Page 7, line 27:                                                                                                           
          Delete "and"                                                                                                          
          Following "state"                                                                                                     
               Insert", and facilitating the project                                                                            
          developer's  commitment   to  negotiate,   to  the                                                                    
          maximum   extent   permitted    by   law,   before                                                                    
          construction  of  the  project begins,  a  project                                                                    
          labor   agreement;   if,   in   consideration   of                                                                    
          complying  with the  project labor  agreement, the                                                                    
          development team  determines that the  project may                                                                    
          be constructed by  a private pipeline construction                                                                    
          company or  companies, the development  team shall                                                                    
          direct that this  requirement be incorporated into                                                                    
          any construction  contract agreement as  a binding                                                                    
          commitment   applicable   to   the   corporation's                                                                    
          contractors;  for  this  purpose,  "project  labor                                                                    
          agreement"   means   a  comprehensive   collective                                                                    
          bargaining    agreement   between    the   project                                                                    
          developer or, if construction  is to be undertaken                                                                    
          by  one  or  more  private  pipeline  construction                                                                    
          companies, the  project developer's  contractor or                                                                    
          contractors    and     the    appropriate    labor                                                                    
          representatives  to ensure  expedited construction                                                                    
          with labor stability for  the project by qualified                                                                    
          residents of the state.                                                                                               
5:40:47 PM                                                                                                                    
Senator Ellis stated appreciation  for the amendment and the                                                                    
expertise of  Senator Thomas. He  explained that  local hire                                                                    
and  state hire  and  project labor  agreements are  Senator                                                                    
Thomas' specialty.   He commented that the  subject of local                                                                    
hire  and Alaska  hire is  a  difficult legal  area and  the                                                                    
legislature has been disappointed  and stymied by the courts                                                                    
in the  past. He thought  that serious consideration  of the                                                                    
amendment  would  allow for  the  movement  of this  project                                                                    
without  regret.  He  considered that  the  amendment  would                                                                    
allow protection  for Alaskan  workers. He  stressed support                                                                    
of the amendment.                                                                                                               
Senator Olson asked  how the amendment changes  the bill. He                                                                    
supposed   that  the   changes  would   necessitate  further                                                                    
conference  committee.  Co-Chair  Stedman responded  that  a                                                                    
conference committee  would be  necessary if the  other body                                                                    
was  not supportive  of the  changes. Senator  Thomas stated                                                                    
that  he   understood  that  the  issue   was  difficult  to                                                                    
understand and  he hoped that  consideration would  be given                                                                    
to the changes.                                                                                                                 
Senator Thomas WITHDREW Amendment 1.                                                                                            
Co-Chair Stedman described the two fiscal notes.                                                                                
5:44:40 PM     AT EASE                                                                                                        
5:46:54 PM     RECONVENE                                                                                                      
Co-Chair Stedman  noted that a  new fiscal note  matches the                                                                    
$15,640,000 in general funds.                                                                                                   
Co-Chair  Hoffman MOVED  to  report  SCS CS  HB  369 out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
SCS  CS HB  369 was  REPORTED out  of Committee  with a  "do                                                                    
pass"  recommendation  and  with  one  previously  published                                                                    
fiscal impact  note: FN  4 (GOV) and  one new  fiscal impact                                                                    
note from the Department of Revenue.                                                                                            
5:47:29 PM                                                                                                                    

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