AK HB164

Establishes additional covenants for noncompetitive leases of state land for natural gas pipelines valued at $1,000,000 or more that originate and terminate within Alaska, including requirements for biennial market assessments and expansion solicitations.

Requires pipeline operators to assess expansion capacity every two years through public nonbinding solicitations with 30 days' notice, and to conduct binding open seasons if market demand meets or exceeds the next reasonable engineering increment.

Mandates proposals for rolled-in rate recovery for expansion costs to all system users, with rate increases capped at 15 percent for existing customers, and prohibits requiring prospective shippers to agree to rates other than regulated tariff rates.

Adds provisions allowing the Regulatory Commission of Alaska to issue conditional certificates for new natural gas pipelines lacking committed financing or firm transportation commitments if construction is in the public interest.

Defines "common carrier" to include pipelines offering both firm and interruptible transportation service, and specifies firm transportation service cannot be reduced unless the pipeline's overall capacity is diminished; act takes effect immediately.