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House bill 208 would repeal LNG import exemption to confirm RCA jurisdiction, sponsors say
Summary
Representative Donna Mears presented House Bill 208 on May 7, a one‑section measure to repeal AS 42.05.711(b) so the Regulatory Commission of Alaska clearly retains jurisdiction to review gas‑supply and terminal‑use agreements tied to liquefied natural gas import facilities.
Representative Donna Mears (R-Anchorage) and her staff presented House Bill 208 to the House Resources Committee on May 7, which would repeal AS 42.05.711(b), a statutory line that currently reads in part that “a liquefied natural gas import facility under the jurisdiction of the Federal Energy Regulatory Commission is exempt from this chapter.” The sponsor said repeal would clarify that the Regulatory Commission of Alaska has the same authority to review gas-supply agreements for imported LNG as it does for other gas-supply contracts.
Ariel Svetlick, staff to Representative Mears, summarized the bill as a one‑section repeal intended to “ensure and clarify that the RCA’s jurisdiction over gas supply agreements between a regulated utility and an LNG import facility is the same as it would have over any other gas supply agreement between a utility and a supplier of in‑state natural gas.” Svetlick noted that FERC’s Alaska authority under section 3 of the Natural Gas Act relates to siting, construction, expansion and operation of facilities, and that FERC’s rate‑setting authority under section 7 applies to interstate commerce — a condition Alaska lacks at present.
John Espindola, representing the Regulatory Commission of Alaska (RCA), told the committee the RCA did not request the legislation but that repealing AS 42.05.711(b) “would eliminate any uncertainty regarding the RCA’s jurisdiction over the review of gas supply agreements or terminal use agreements.” Espindola pointed committee members to the RCA’s recent order (U25‑004, cited in the hearing) where the commission discussed jurisdictional issues (the order’s pertinent discussion was referenced at pages 29–35).
Commissioner Stephen DeVries reiterated that FERC’s authority in Alaska is generally limited to siting and facility operations, and that “contracts with local distribution companies… are not within FERC’s jurisdiction, but instead are within the jurisdiction of local, state regulatory authorities such as the Regulatory Commission of Alaska.” Committee members asked whether repeal is necessary, whether it risks duplicative regulation, and whether repeal would reduce the prospect of litigation; RCA representatives said the statute’s existence creates an argument that could be used to challenge the commission’s authority and that repeal would reduce that uncertainty and the attendant risk of delay.
No committee vote was taken; the hearing was informational. Committee members requested the RCA order cited by staff and asked for continued coordination as utilities and commercial actors consider LNG import arrangements. The sponsor said a companion measure exists in the Senate and that the bill aims to make it easier for the RCA to “protect consumers” by removing statutory ambiguity.
