[Senate Report 115-109]
[From the U.S. Government Publishing Office]
Calendar No. 146
115th Congress } { Report
SENATE
1st Session } { 115-109
======================================================================
AMENDING THE DENALI NATIONAL PARK IMPROVEMENT ACT TO CLARIFY CERTAIN
PROVISIONS RELATING TO THE NATURAL GAS PIPELINE AUTHORIZED IN THE
DENALI NATIONAL PARK AND PRESERVE
_______
June 14, 2017.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Energy and Natural
Resources, submitted the following
R E P O R T
[To accompany S. 217]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 217) to amend the Denali Park Improvement
Act to clarify certain provisions relating to the natural gas
pipeline authorized in the Denali National Park and Preserve,
having considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
Purpose
The purpose of S. 217 is to amend the Denali National Park
Improvement Act to clarify certain provisions relating to the
natural gas pipeline authorized in the Denali National Park and
Preserve.
Background and Need
Electricity in south-central Alaska is largely generated by
burning natural gas produced from the gas fields in Cook Inlet,
just south of Anchorage, although production in Cook Inlet is
declining. There are concerns regarding the region's ability to
produce sufficient gas to support the area's population in the
future. Plans for a large-volume natural gas pipeline to run
from the Prudhoe Bay oil fields to the Lower 48 States is
underway, along with a smaller-diameter pipeline, to provide
natural gas to south-central Alaska to meet medium-term demand.
The Denali National Park Improvement Act (Public Law 113-
33) authorized the Secretary of the Interior to issue right-of-
way permits for the natural gas pipeline to run through a small
non-wilderness portion of Denali National Park, generally along
an approximately seven-mile stretch near the Parks Highway.
Under the statute, the permits could only be issued if
consistent with National Park System laws applicable to utility
rights-of-way, approved in accordance with title XI of the
Alaska National Interest Lands Conservation Act of 1980
(ANILCA, 16 U.S.C. 3161 et seq.), and analyzed under the
National Environmental Policy Act (42 U.S.C. 4321 et seq.).
Based on studies over the last four years, the Alaska LNG
Project, working with the National Park Service (NPS), has
found that the route for the pipeline through the park needs to
be slightly altered to accommodate a seismic hazard: a fault
line near Lynx Creek south of the Park's headquarters complex.
In addition, it was discovered that applying the additional
regulatory process under ANILCA to the gas pipeline was
duplicative and impracticable, as it would require simultaneous
permitting for all federal authorizations for the entire
project.
S. 217 would amend the Denali National Park Improvement Act
to provide flexibility to reroute the pipeline through the Park
to avoid the seismic hazard, provided the route remains out of
wilderness and provides other benefits to the Park. The change
in route is expected to provide the ability to construct a gas
offtake point to allow for gas deliveries in the area,
including to the NPS, to heat park buildings, and for operation
of park vehicles. The change in route may also facilitate
construction of a bicycle-walking path through the Park. S. 217
would also remove the additional regulatory process under
ANILCA for the gas pipeline. This change would allow project
developers to request permits for either the small-diameter
pipeline or the large volume pipeline at a different time than
when any pipeline project applies for all of its right-of-way
permits for the roughly 800-mile transmission system.
Legislative History
Senators Murkowski and Sullivan introduced S. 217 on
January 24, 2017.
In the 114th Congress, a similar measure was included in
Amendment No. 3308, which the Senate agreed to on April 19,
2016, as an amendment to S. 2012, the Energy Policy
Modernization Act of 2016, which the Senate passed, as amended,
on April 20, 2016.
The Committee on Energy and Natural Resources met in open
business session, on March 30, 2017, and ordered S. 217
favorably reported.
Committee Recommendation
The Senate Committee on Energy and Natural Resources, in
open business session on March 30, 2017, by a majority voice
vote of a quorum present, recommends that the Senate pass S.
217.
Section-by-Section Analysis
Section 1 (a) amends section 3(b)(1) of the Denali National
Park Improvement Act (Public Law 113-33) by striking the
limitation that any pipeline through the Park must be located
``within, along, or near'' the George Parks Highway, thus
allowing the route to deviate from the highway corridor where
needed.
Subsection (b) makes technical changes to section 3(c)(1)
of the Denali National Park Improvement Act.
Subsection (c) amends section 3 of the Denali National Park
Improvement Act to exempt a high pressure gas transmission
pipeline, including appurtenances, located in a non-wilderness
area of the Park, from the terms of title XI of ANILCA (16
U.S.C. 3161 et seq.).
S. 217 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office.
Based on information provided by the National Park Service
(NPS), CBO estimates that implementing S. 217 would have no
significant effect on the federal budget. The bill would:
Expand the area in Denali National Park in
Alaska where the NPS may issue right-of-way permits for
the development of natural gas and utility pipelines;
and
Exempt applications for right-of-way permits
from certain provisions of the Alaska National Interest
Lands Conservation Act that require multiple federal
agencies to review such projects.
If pipeline operators seek additional right-of-way permits
from the NPS as a result of S.217's enactment, the agency could
collect and spend additional fees to recover costs associated
with issuing permits. CBO estimates that total collections
under the bill would be insignificant over the 2018-2027
period, and the net effect on direct spending would be
negligible. Because enacting S. 217 would affect direct
spending, pay-as-you-go procedures apply. Enacting the bill
would not affect revenues.
CBO estimates that enacting S. 217 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2028.
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. 217.
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 provision. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 217, as ordered reported.
Congressionally Directed Spending
S. 217, 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
Executive Communications on S. 217 were not requested by
the Committee on Energy and Natural Resources in the 115th
Congress.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
S. 217, as ordered reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law is which no change is
proposed is shown in roman):
DENALI NATIONAL PARK IMPROVEMENT ACT
PUBLIC LAW 113-33
* * * * * * *
SEC. 3. DENALI NATIONAL PARK AND PRESERVE NATURAL GAS PIPELINE.
* * * * * * *
(b) Permit.--The Secretary may issue right-of-way permits
for--
(1) a high-pressure natural gas transmission pipeline
(including appurtenances) in nonwilderness areas within
the boundary of Denali National Park [within, along, or
near the approximately 7-mile segment of the George
Parks Highway that runs through the Park]; and
(2) any distribution and transmission pipelines and
appurtenances that the Secretary determines to be
necessary to provide natural gas supply to the Park.
(c) Terms and Conditions.--A permit authorized under
subsection (b)--
(1) may be issued only--
(A) if the permit is consistent with the laws
(including regulations) generally applicable to
utility rights-of-way within units of the
National Park System; and
[(B) in accordance with section 1106(a) of
the Alaska National Interest Lands Conservation
Act (16 U.S.C. 3166(a)); and]
[(C)] (B) if, following an appropriate
analysis prepared in compliance with the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.), the route of the right-
of-way is the route through the Park with the
least adverse environmental effects for the
Park; and
(2) shall be subject to such terms and conditions as
the Secretary determines to be necessary.
(d) Applicable Law.--A high pressure gas transmission
pipeline (including appurtenances) in a nonwilderness area
within the boundary of the Park, shall not be subject to title
XI of the Alaska National Interest Lands Conservation Act (16
U.S.C. 3161 et seq.).
* * * * * * *
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