[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

                                _______
                                

   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.

                                  
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