H. R. 4837—37
(8) STATE.—The term ‘‘State’’ means the State of Alaska.
SEC. 103. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND
NECESSITY.
(a) AUTHORITY
OF
THE
COMMISSION.—Notwithstanding the
Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719
et seq.), the Commission may, in accordance with section 7(c) of
the Natural Gas Act (15 U.S.C. 717f(c)), consider and act on an
application for the issuance of a certificate of public convenience
and necessity authorizing the construction and operation of an
Alaska natural gas transportation project other than the Alaska
natural gas transportation system.
(b) ISSUANCE OF CERTIFICATE.—
(1) IN GENERAL.—The Commission shall issue a certificate
of public convenience and necessity authorizing the construction
and operation of an Alaska natural gas transportation project
under this section if the applicant has satisfied the require-
ments of section 7(e) of the Natural Gas Act (15 U.S.C. 717f(e)).
(2) CONSIDERATIONS.—In considering an application under
this section, the Commission shall presume that—
(A) a public need exists to construct and operate the
proposed Alaska natural gas transportation project; and
(B) sufficient downstream capacity will exist to trans-
port the Alaska natural gas moving through the project
to markets in the contiguous United States.
(c) EXPEDITED APPROVAL PROCESS.—Not later than 60 days
after the date of issuance of the final environmental impact state-
ment under section 104 for an Alaska natural gas transportation
project, the Commission shall issue a final order granting or denying
any application for a certificate of public convenience and necessity
for the project under section 7(c) of the Natural Gas Act (15 U.S.C.
717f(c)) and this section.
(d) PROHIBITION
OF CERTAIN PIPELINE ROUTE.—No license,
permit, lease, right-of-way, authorization, or other approval
required under Federal law for the construction of any pipeline
to transport natural gas from land within the Prudhoe Bay oil
and gas lease area may be granted for any pipeline that follows
a route that—
(1) traverses land beneath navigable waters (as defined
in section 2 of the Submerged Lands Act (43 U.S.C. 1301))
beneath, or the adjacent shoreline of, the Beaufort Sea; and
(2) enters Canada at any point north of 68 degrees north
latitude.
(e) OPEN SEASON.—
(1) IN GENERAL.—Not later than 120 days after the date
of enactment of this Act, the Commission shall issue regulations
governing the conduct of open seasons for Alaska natural gas
transportation projects (including procedures for the allocation
of capacity).
(2) REGULATIONS.—The regulations referred to in para-
graph (1) shall—
(A) include the criteria for and timing of any open
seasons;
(B) promote competition in the exploration, develop-
ment, and production of Alaska natural gas; and
H. R. 4837—38
(C) for any open season for capacity exceeding the
initial capacity, provide the opportunity for the transpor-
tation of natural gas other than from the Prudhoe Bay
and Point Thomson units.
(3) APPLICABILITY.—Except in a case in which an expansion
is ordered in accordance with section 105, initial or expansion
capacity on any Alaska natural gas transportation project shall
be allocated in accordance with procedures to be established
by the Commission in regulations issued under paragraph (1).
(f) PROJECTS IN THE CONTIGUOUS UNITED STATES.—
(1) IN GENERAL.—An application for additional or expanded
pipeline facilities that may be required to transport Alaska
natural gas from Canada to markets in the contiguous United
States may be made in accordance with the Natural Gas Act
(15 U.S.C. 717a et seq.).
(2) EXPANSION.—To the extent that a pipeline facility
described in paragraph (1) includes the expansion of any facility
constructed in accordance with the Alaska Natural Gas
Transportation Act of 1976 (15 U.S.C. 719 et seq.), that Act
shall continue to apply.
(g) STUDY OF IN-STATE NEEDS.—The holder of the certificate
of public convenience and necessity issued, modified, or amended
by the Commission for an Alaska natural gas transportation project
shall demonstrate that the holder has conducted a study of Alaska
in-State needs, including tie-in points along the Alaska natural
gas transportation project for in-State access.
(h) ALASKA ROYALTY GAS.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
Commission, on a request by the State and after a hearing,
may provide for reasonable access to the Alaska natural gas
transportation project by the State (or State designee) for the
transportation of royalty gas of the State for the purpose of
meeting local consumption needs within the State.
(2) EXCEPTION.—The rates of shippers of subscribed
capacity on an Alaska natural gas transportation project
described in paragraph (1), as in effect as of the date on
which access under that paragraph is granted, shall not be
increased as a result of such access.
(i) REGULATIONS.—The Commission may issue such regulations
as are necessary to carry out this section.
SEC. 104. ENVIRONMENTAL REVIEWS.
(a) COMPLIANCE WITH NEPA.—The issuance of a certificate
of public convenience and necessity authorizing the construction
and operation of any Alaska natural gas transportation project
under section 103 shall be treated as a major Federal action signifi-
cantly affecting the quality of the human environment within the
meaning of section 102(2)(C) of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332(2)(C)).
(b) DESIGNATION OF LEAD AGENCY.—
(1) IN GENERAL.—The Commission—
(A) shall be the lead agency for purposes of complying
with the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.); and
(B) shall be responsible for preparing the environ-
mental impact statement required by section 102(2)(c) of