Section 43.90.110. Natural gas pipeline project construction inducement.

   (a) Subject to the limitations of this chapter, a license issued under this chapter entitles the licensee or its designated affiliate to receive
        (1) subject to appropriation, state matching contributions in the form of reimbursements in a total amount not to exceed $500,000,000, paid to the licensee during the seven-year period immediately following the date the license is awarded; the payment period may be extended by the commissioners under an amendment or modification of the project plan under AS 43.90.210; a payment under this paragraph shall be made according to the following:
             (A) on or before the close of the first binding open season, the state shall reimburse the licensee's qualified expenditures at the level specified in the license; however, the state's reimbursements may not exceed 50 percent of the qualified expenditures incurred before the close of the first binding open season;
             (B) after the close of the first binding open season, the state shall reimburse the licensee's qualified expenditures at the level specified in the license; however, the state's reimbursements may not exceed 90 percent of the qualified expenditures incurred after the close of the first binding open season;
             (C) a qualified expenditure is a cost that is incurred after the license is issued under this chapter by the licensee or the licensee's designated affiliate, and is directly and reasonably related to pursuing firm transportation commitments in a binding open season, to securing financing for the project, or to obtaining a certificate of public convenience and necessity from the Federal Energy Regulatory Commission or the Regulatory Commission of Alaska, as appropriate, or satisfying a requirement of an agency with jurisdiction over the project; in this subparagraph, "qualified expenditures" does not include overhead costs, lobbying costs, litigation costs, the cost of an asset or work product acquired or developed by the licensee before the license is issued, or civil or criminal penalties or fines; and
        (2) the benefit of an Alaska Gasline Inducement Act coordinator who has the authority prescribed in AS 43.90.250.
   (b) The commissioner of revenue in consultation with the commissioner of natural resources shall adopt regulations for determining whether an expenditure is a qualified expenditure for the purposes of (a) of this section.

Authorities

43.90.100;43.90.130;43.90.170;43.90.200;43.90.230;43.90.240;43.90.400;43.90.440

Notes

Implemented As

15 AAC 90.010
15 AAC 90.020
15 AAC 90.030
15 AAC 90.900

References

15 AAC 90.030
AS 43.90.100 Gas project.
AS 43.90.130 Application requirements.
AS 43.90.170 Application evaluation and ranking.
AS 43.90.200 Certification by regulatory authority and project sanction.
AS 43.90.230 License violations; damages.
AS 43.90.240 Abandonment of project.
AS 43.90.400 Alaska Gasline Inducement Act reimbursement fund; disbursements; audits.
AS 43.90.440 Licensed project assurances.

History

(Sec. 1 ch 22 SLA 2007)