Legislature(2005 - 2006)HOUSE FINANCE 519
04/28/2005 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB103 | |
| HB218 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 218 | TELECONFERENCED | |
| += | HB 243 | TELECONFERENCED | |
| += | SB 103 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 28, 2005
8:52 a.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 8:52:47 AM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Reggie Joule
Representative Mike Kelly
Representative Carl Moses
MEMBERS ABSENT
Representative Bill Stoltze, Vice-Chair
Representative Bruce Weyhrauch
Representative Eric Croft
ALSO PRESENT
Ian Fisk, Staff, Representative Bill Thomas
PRESENT VIA TELECONFERENCE
Daniel T. Seamount, Jr., Commissioner, Alaska Oil and Gas
Conservation Commission, Department of Administration;
Steven Daugherty, Assistant Attorney General, Natural
Resource Section, Department of Law
SUMMARY
HB 218 "An Act relating to cost recovery fisheries for
private nonprofit hatchery facilities."
CSHB 218 (FIN) was REPORTED out of Committee with
a "no recommendation" recommendation and with the
following fiscal impact notes: zero note #1 by the
Department of Commerce, Community and Economic
Development, zero note #2 by the Department of
Fish and Game, zero note #3 by the Department of
Public Safety, and with indeterminate note #4 by
the Department of Revenue.
SB 103 "An Act relating to regulation of underground
injection under the federal Safe Drinking Water
Act; and providing for an effective date."
SB 103 was REPORTED out of Committee with a "no
recommendation" recommendation and with fiscal
impact note #1 by the Department of
Administration, and with zero note #2 by the
Department of Natural Resources.
8:53:45 AM
SENATE BILL NO. 103
"An Act relating to regulation of underground injection
under the federal Safe Drinking Water Act; and
providing for an effective date."
DANIEL T. SEAMOUNT, JR., COMMISSIONER, ALASKA OIL AND GAS
CONSERVATION COMMISSION (AOGCC), DEPARTMENT OF
ADMINISTRATION, (via teleconference) testified in support of
SB 103. The bill allows AOGCC to take over primacy for a
small number of waste disposal wells now overseen by EPA.
He explained that these are seven Class I wells on the North
Slope. He spoke of AOGCC's primacy over 1,155 Class II
injection wells. He said it is complicated trying to sort
out which wells apply. He spoke of redundant processes and
opined that there would be considerable time and money saved
because of this bill. AOGCC has a more streamlined process.
8:58:06 AM
Representative Holm inquired about the duplication of
efforts by the State of Alaska and EPA. Mr. Seamount
responded that AOGCC's process for evaluating and approving
Class II programs are very similar to EPA's. The state has
full-time inspectors and geological staff. EPA requests the
state's help on Class I well applications. Representative
Holm asked if permit fees support the work. Mr. Seamount
explained that a grant funds Class II wells.
9:00:12 AM
Representative Holm asked if there is a charge to the oil
companies for injection permits. Mr. Seamount replied that
EPA and the state do not charge; they pay a charge for the
injection based on how much gas is produced. Representative
Holm said that the fiscal note does not reflect the costs of
the permits. Mr. Seamount reported that there would be no
cost, but savings.
9:02:05 AM
Co-Chair Chenault asked if there is $127,000 for federal
funding for Class II, but no federal funding for Class I.
Mr. Seamount said that is correct. Co-Chair Chenault asked
where the money comes from. Mr. Seamount replied it comes
from regulatory cost charge, which is a direct charge to the
operators. He explained the budgeting process. Co-Chair
Chenault noted that they are paying for the services for the
injection of the waste. Mr. Seamount agreed.
9:03:37 AM
Co-Chair Chenault inquired about the presence of underground
drinking water. Mr. Seamount replied that there are no
underground supplies for drinking water and all of the water
is frozen by permafrost.
9:04:59 AM
Representative Foster MOVED to report SB 103 out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SB 103 was REPORTED out of Committee with a "no
recommendation" recommendation and with fiscal impact note
#1 by the Department of Administration, and with zero note
#2 by the Department of Natural Resources.
Representative Hawker MOVED to ADOPT the letter of intent
for SB 103. There being NO OBJECTION, it was so ordered.
9:07:00 AM
HOUSE BILL NO. 218
"An Act relating to cost recovery fisheries for private
nonprofit hatchery facilities."
STEVEN DAUGHERTY, ASSISTANT ATTORNEY GENERAL, NATURAL
RESOURCE SECTION, DEPARTMENT OF LAW, (via teleconference)
noted problems with subsection(d) of Section 1 in the bill.
There are potential taxing authority issues. The Department
of Law has been working to try to develop clearer criteria
so that it is the legislature that is imposing the tax, not
the hatchery operator. He noted concerns with some of the
potential amendments.
9:09:54 AM
Co-Chair Chenault took up Conceptual Amendment 1, which was
moved and objected to during the meeting on April 27, 2005.
[Amendment 1 deleted Section 1 of the Version X Committee
Substitute to HB 218.] Co-Chair Chenault asked if there
were any objections to the motion to adopt Conceptual
Amendment 1. There being NO OBJECTION, it was so ordered.
Representative Hawker MOVED to ADOPT the new CS for HB 218,
labeled 24-LS0544\P, Utermohle, 4/27/05. There being NO
OBJECTION, it was so ordered.
IAN FISK, STAFF, REPRESENTATIVE BILL THOMAS, explained a
change in the new CS. In Version P, on page 1, language was
eliminated about the commissioner consulting with other
interested parties. Language about affected commercial
fishermen and "organizations of affected commercial
fishermen" was added. Other suggestions of Mr. Esquiro from
an earlier meeting were not incorporated.
9:13:22 AM
Mr. Daugherty commented on the changes in the new CS and
said there are no problems with the new language in
subsection (d). He explained that the legislature would
apply a formula that would be defensible regarding the
amounts that have to be collected each year.
9:14:24 AM
Representative Hawker clarified that the legislature sets
taxes and fees in the context of this bill only.
Representative Kelly said he assumes that subsection (d) is
corrected. Mr. Fisk replied that it was discussed with the
Attorney General's office.
9:15:43 AM
Representative Foster MOVED to report CSHB 218 out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 218 (FIN) was REPORTED out of Committee with a "no
recommendation" recommendation and with the following fiscal
impact notes: zero note #1 by the Department of Commerce,
Community and Economic Development, zero note #2 by the
Department of Fish and Game, zero note #3 by the Department
of Public Safety, and with indeterminate note #4 by the
Department of Revenue.
ADJOURNMENT
The meeting was adjourned at 9:16 AM.
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