Legislature(2007 - 2008)SENATE FINANCE 532
08/06/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB4001 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB4001 | TELECONFERENCED | |
| + | HB4001 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
August 6, 2008
9:28 a.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 9:28:53 AM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
None
ALSO PRESENT
Miles Baker, Staff, Co-Chair Stedman
PRESENT VIA TELECONFERENCE
None
SUMMARY
SB 4001 "An Act making supplemental appropriations,
capital appropriations, reappropriations, and
other appropriations; making appropriations to
capitalize a fund; and providing for an effective
date."
CSSB 4001(FIN) was heard and HELD in Committee for
further consideration.
Senate Bill No. 4001
"An Act making supplemental appropriations, capital
appropriations, reappropriations, and other
appropriations; making appropriations to capitalize a
fund; and providing for an effective date."
Co-Chair Hoffman MOVED to ADOPT CSSB 4001, labeled 25-
GS3056\O, Kane, 8/5/08, as the working document.
Co-Chair Stedman OBJECTED for discussion purposes.
9:31:00 AM
MILES BAKER, STAFF, CO-CHAIR STEDMAN, went over the CS for
SB 4001. He cited two worksheets breaking down the new
numbers pertaining to the bill: Senate Home Energy Rebate
Analysis (copy on file), and the Senate Finance Working
Numbers (copy on file). The CS contains the Alaska Gasline
Inducement Act (AGIA) appropriations as well as elements of
SB 4003, which was the Governor's appropriation bill that
dealt with energy-related items such as the energy rebate
and the Power Cost Equalization (PCE) program. The
intention is to have one appropriation bill that covers both
areas.
Mr. Baker explained that Section 1 of the bill is a $30
million general fund appropriation to the gas pipeline
development fund, which was part of SB 4002. Language in
Section 9 adds this fund to those funds that, the balance of
which, are overseen by the Legislative Budget and Audit
Committee (LB&A). Of the $30 million, $10 million will be
immediately transferred to the AGIA reimbursement fund. The
testimony from Mr. Palmer from TransCanada included an
expectation to expend $54 million through the end of June
30, 2009. Fifty percent of that would be the state's share,
which is $27 million. The appropriation of $10 million now
will be followed by another appropriation in FY 10. LB&A
has the ability to release the remaining funds prior to the
end of the fiscal year.
9:33:56 AM
Co-Chair Hoffman asked how long the $30 million would last,
in months. Co-Chair Stedman explained that it would last
for this November and December and into the first quarter of
the next calendar year. Co-Chair Hoffman concluded that it
would last through March. Co-Chair Stedman reported that
the billings for April, May, and June would be billed to the
state in July, which would provide time for the regular
budget appropriation cycle to fund the entire next year.
Mr. Baker moved on to Section 2 of the bill, or the PCE
section. The administration had asked for a $600,000
supplemental for PCE payments for FY 08, and a $9 million
supplemental for FY 09, prior to changes made to the PCE
program. Legislative Finance estimated that the $9 million
request was potentially $5 million low. This bill provides
for a supplemental appropriation in subsections (a) and (b)
for the current PCE program for FY 08 and FY 09. Subsection
(c) on page 2 is the FY 09 appropriation if the Senate's
proposed PCE changes are adopted. Subsection (a) is not
contingent upon legislation passing; subsection (c) is
contingent on the passage of SB 4002.
Mr. Baker then moved on to Section 3 - the appropriation to
the Department of Revenue for distribution and
administration of the $500 per person resource rebate. It
is estimated to be $310,100,000.
Mr. Baker related that Section 4 is the $2.1 million
appropriation to the Department of Health and Social
Services for the hold harmless provisions of the resource
rebate and also the amount of money that would allow the
veterans' who have not applied for the PFD to apply for the
rebate.
Mr. Baker explained that Section 5 is a $360 million
appropriation to the Alaska Energy Authority to make
emergency energy relief payments and administer the new
program. The breakout of that amount is depicted on the
spreadsheet entitled "Senate Home Energy Rebate Analysis".
Mr. Baker highlighted Section 6, which is a $50 million
supplemental appropriation to the Alaska Housing Financing
Corporation (AHFC) for the Alaska energy efficient home
grant fund.
9:40:09 AM
Mr. Baker continued to explain that Section 7 is an
appropriation for the ceiling changes that the Committee and
Senate passed in SB 4002 for the bulk fuel revolving loan
program and the bulk fuel bridge loan program. He detailed
the subsections of Section 7.
Mr. Baker related that Section 8 includes a $147,600
appropriation to the Department of Commerce, Community and
Economic Development to recalculate PCE levels for FY 09,
and $1,550,000 to the Department of Commerce, Community and
Economic Development to offset the cost of fuel to the North
Slope Borough for FY 09.
Mr. Baker detailed Section 9, which is the language section
required to add the Alaska gas pipeline development fund to
the program receipts reviewed by LB&A.
Mr. Baker described Section 10 as a $50 million
appropriation to the renewable energy grant fund as a result
of an amendment made to SB 4002.
Senator Elton asked if Section 10 would increase the
renewable energy fund by $50 million for alternative energy.
He concluded that it would simply increase the fund by $50
million, not necessarily designated for alternative energy.
Mr. Baker said that was correct.
9:45:03 AM
Mr. Baker related that Section 11 ensures that certain
appropriations do not lapse. Section 12 refers to the
$600,000 PCE supplemental for FY 08. Section 13 is the
contingency language that states that all appropriations
related to the energy relief program are contingent upon the
passage of HB 4002. It also ensures that the PCE
supplemental goes into effect.
Senator Olson asked if the appropriations were for one year.
Mr. Baker said yes.
9:46:37 AM
Senator Huggins inquired if there would be an opportunity to
insert language from the commissioner's report to LB&A on
AGIA.
Co-Chair Stedman noted the concern about the required
report.
Senator Thomas asked about the qualifications necessary to
receive the $500 rebate. Co-Chair Stedman said that a
person who qualifies for a PFD would qualify for the rebate.
A veteran could qualify for the rebate even if they did not
receive a PFD.
Co-Chair Hoffman commented that this legislation reflects
what the Senate has already passed.
At Ease: 9:48:42 AM
Reconvene: 5:42:58 PM
CSSB 4001(FIN) was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 5:43 PM.
| Document Name | Date/Time | Subjects |
|---|