STATE JURISDICTION OVER IN-STATE DELIVERY OF NATURAL GAS.

SEC. 108. [15 U.S.C. 720f] STATE JURISDICTION OVER IN-STATE DELIVERY OF NATURAL GAS. (a) Local Distribution.—Any facility receiving natural gas from an Alaska natural gas transportation project for delivery to consumers within the State— (1) shall be deemed to be a local distribution facility within the meaning of section 1(b) of the Natural Gas Act (15 U.S.C. 717(b)); and (2) shall not be subject to the jurisdiction of the Commission. (b) Additional Pipelines.—Except as provided in section 103(d), nothing in this division shall preclude or otherwise affect a future natural gas pipeline that may be constructed to deliver natural gas to Fairbanks, Anchorage, Matanuska-Susitna Valley, or the Kenai peninsula or Valdez or any other site in the State for consumption within or distribution outside the State. (c) Rate Coordination.— (1) In general.—In accordance with the Natural Gas Act (15 U.S.C. 717a et seq.), the Commission shall establish rates for the transportation of natural gas on any Alaska natural gas transportation project. (2) Consultation.—In carrying out paragraph (1), the Commission, in accordance with section 17(b) of the Natural Gas Act (15 U.S.C. 717p(b)), shall consult with the State regarding rates (including rate settlements) applicable to natural gas transported on and delivered from the Alaska natural gas transportation project for use within the State.