HCR 18 Summary

• Requests the governor, commissioners of natural resources and revenue, and TransCanada Alaska/Foothills Pipe Lines (joint licensee) to develop a memorandum of understanding clarifying the state's potential liability under the Alaska Gasline Inducement Act (AGIA).

• Identifies the state's obligation to pay matching contributions up to $500 million for qualified expenditures and potential treble damages (three times qualified expenditures) if the state provides preferential treatment or grants to competing pipeline projects before the licensee's commercial operations begin.

• Directs the memorandum to address three specific questions: whether qualified expenditures are calculated net of state reimbursements, whether a 24-inch intrastate pipeline capable of transporting over 500 million cubic feet daily would trigger liability, and whether general tax modifications under AS 43.55 would trigger liability.

• Requires the state to report to the legislature on negotiation progress within 60 days of passage and every 30 days thereafter until the agreement is signed.

• Cites state budget deficit concerns and the need for transparency about liability risks before the state pursues intrastate natural gas pipeline development.