[Senate Report 112-107]
[From the U.S. Government Publishing Office]
Calendar No. 269
112th Congress Report
SENATE
2d Session 112-107
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DENALI NATIONAL PARK AND PRESERVE NATURAL
GAS PIPELINE
_______
January 13, 2012.--Ordered to be printed
Filed, under authority of the order of the Senate of December 17, 2011
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Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 302]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 302) to authorize the Secretary of the
Interior to issue right-of-way permits for a natural gas
transmission pipeline in nonwilderness areas within the
boundary of Denali National Park, and for other purposes,
having considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
PURPOSE
The purpose of S. 302 is to authorize the Secretary of the
Interior to issue right-of-way permits for a natural gas
transmission pipeline in non-wilderness areas within the
boundary of Denali National Park.
BACKGROUND AND NEED
Currently, electricity in south-central Alaska is largely
generated by burning natural gas produced from the gas fields
in Cook Inlet, south of Anchorage, although production from
Cook Inlet has been declining. There are concerns regarding the
region's ability to produce sufficient gas to support the
area's population. Plans for a large-volume natural gas
pipeline to run from the Prudhoe Bay oil fields to the Lower 48
States may not be finished in time to provide needed gas to
south-central Alaska. Therefore, Alaska is considering
investing in a smaller pipeline to meet medium-term demand.
The in-state pipeline would run from Alaska's North Slope
region, past Fairbanks, through the Nenana River Canyon and
Denali National Park and Preserve following the existing
highway, 7 miles of which pass through the park. The proposed
pipeline makes use of the existing highway right-of-way, and
comes near, but does not cross the wilderness boundary in
Denali. The pipeline would provide for natural gas
transportation until a pipeline to the continental United
States.
S. 302 authorizes the Secretary of the Interior to permit
the pipeline to run through a small portion of the park, along
an existing highway right-of-way, subject to appropriate
analysis under the National Environmental Policy Act and
National Park System laws. Although gas pipelines rights-of-way
are not generally issued through units of the National Park
System (gas pipelines may only be issued through a national
park if authorized by an Act of Congress), the Park Service has
preliminarily indicated that running the pipeline along the
existing highway right-of-way would be better for the park than
constructing a new right-of-way through a scenic vista just
outside the park's boundary.
LEGISLATIVE HISTORY
S. 302 was introduced by Senators Murkowski and Begich on
February 8, 2011. The Subcommittee on National Parks held a
hearing on the bill on May 11, 2011 (S. Hrg. 112-124).
During the 111th Congress, the Committee considered similar
legislation introduced by Senator Murkowski, S. 302. The
measure was included in section 354 of S. 1462, the American
Clean Energy Leadership Act of 2009, which was reported
favorably by the Committee on Energy and Natural Resources on
July 16, 2009 (S. Rept. 111-48).
COMMITTEE RECOMMENDATION
The Committee on Energy and Natural Resources, in open
business session on November 10, 2011, by voice vote of a
quorum present, recommends that the Senate pass S. 302.
SECTION-BY-SECTION ANALYSIS
Section 1(a) defines key terms used in the bill.
Subsection (b) authorizes the Secretary of the Interior to
issue right-of-way permits for a high-pressure natural gas
transmission pipeline and appurtenances within non-wilderness
areas of Denali National Park, along the 7-mile segments of the
George Parks highway that runs through the park. The Secretary
would also be authorized to issue rights-of-way for
distribution and transmission pipelines and appurtenances, if
the Secretary determines they are necessary to provide a
natural gas supply to the park.
Subsection (c) provides that the Secretary may only issue a
permit authorized under subsection (b): if the permit is
consistent with the laws and regulations generally applicable
to utility rights-of-way within units of the National Park
System; if it is in accordance with section 1106 of the Alaska
National Interest Lands Conservation Act (16 U.S.C. 3166(a));
and if, following appropriate analysis under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), the
Secretary finds that the route of the right-of-way is the route
through the park with the least adverse environmental effects
for the park. The permit shall be subject to any other terms
and conditions the Secretary determines to be necessary.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
S. 302--A bill to authorize the Secretary of the Interior to issue
right-of-way permits for a natural gas transmission pipeline in
nonwilderness areas within the boundary of Denali National
Park, and for other purposes
S. 302 would authorize the National Park Service (NPS) to
issue permits to construct a natural gas pipeline in the Denali
National Park, Alaska. Based on information provided by the
NPS, CBO estimates that implementing the legislation would have
no significant impact on the federal budget. S. 302 could
increase offsetting receipts (from permit fees) and associated
direct spending; therefore, pay-as-you-go procedures apply.
However, CBO estimates that the net effect on direct spending
would be negligible. Enacting the legislation would not affect
revenues.
If potential owners or operators of a pipeline seek permits
from the NPS, the agency could collect a fee to recover any
costs associated with issuing such permits. Based on
information from the NPS, CBO estimates that receipts from
permits would total less than $5,000 over the 2012-2021 period.
Those amounts would be retained and spent by the agency, and
CBO estimates that the net effect on direct spending would be
negligible.
S. 302 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Jeff LaFave. The
estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 302.
The bill is not a regulatory measure in the sense of
imposing Government-established standards or significant
economic responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 302, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
S. 302, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
EXECUTIVE COMMUNICATIONS
The testimony provided by the National Park Service at the
May 11, 2011, Subcommittee on National Parks hearing on S. 302
follows.
Statement of Stephen E. Whitesell, Associate Director, Park Planning,
Facilities and Lands, National Park Service, Department of the Interior
Mr. Chairman, thank you for the opportunity to testify and
provide the views of the National Park Service (NPS) on S. 302,
a bill to authorize the Secretary of the Interior to issue
right-of-way permits for a natural gas transmission pipeline in
nonwilderness areas within the boundary of Denali National
Park, and for other purposes.
The Department has no objection to the bill as written.
The potential owners and operators of such a pipeline have
not, at this time, determined whether such a line carrying
natural gas to south-central Alaska is financially feasible,
nor have they determined the best route for a pipeline. This
legislation provides flexibility for the backers of a proposed
pipeline, and provides assurance to the NPS that the National
Environmental Policy Act analysis will be completed before any
permit for work in the park would be issued by the Secretary.
The legislation also provides authority for the Secretary
to permit distribution lines and related equipment within the
park for the purpose of providing a natural gas supply to the
park. We support this provision, but remind the committee that
at this time no decisions have been made about the financial or
engineering feasibility, nor the exact configuration of
equipment needed to facilitate tapping the larger line to allow
local use of natural gas in or near Denali National Park.
Thank you for the opportunity to testify and we would
welcome any questions you or other members may have.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the bill S. 302 as ordered
reported.