03/01/2007 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

HB  56-HYDROGEN ENERGY RESEARCH PROGRAM                                                                                       
                                                                                                                                
8:10:51 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced  that the only order  of business would                                                               
be HOUSE  BILL NO. 56,  "An Act establishing the  Hydrogen Energy                                                               
Partnership  in  the  Department   of  Commerce,  Community,  and                                                               
Economic  Development; requiring  the  commissioner of  commerce,                                                               
community, and  economic development  to seek public  and private                                                               
funding for the partnership; providing  for the contingent repeal                                                               
of an effective date; and providing for an effective date."                                                                     
                                                                                                                                
8:11:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN   moved  to  adopt  CSHB 56,  Version  25-                                                               
LS0291\C, Kane,  2/23/07, as the  working document.   There being                                                               
no objection, Version C was before the committee.                                                                               
                                                                                                                                
8:11:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HARRY   CRAWFORD,  Alaska   State   Legislature,                                                               
explained that only  a couple of the changes  embodied in Version                                                               
C  were substantive.   One  substantive  change was  to have  the                                                               
funds go  to the  Alaska Energy  Authority (AEA)  directly rather                                                               
than through  the Department of  Commerce, Community,  & Economic                                                               
Development.                                                                                                                    
                                                                                                                                
8:12:53 AM                                                                                                                    
                                                                                                                                
MARY SADDLER,  Legislative Liaison,  Office of  the Commissioner,                                                               
Department  of  Commerce,   Community,  &  Economic  Development,                                                               
explained that originally the legislation  called for the work to                                                               
be performed within DCCED, and  therefore the funds would have to                                                               
be  passed  to AEA  through  a  fiscal  note and  a  reimbursable                                                               
services   agreement.     Therefore,   Version   C  removes   one                                                               
administrative step while still  following the intent and purpose                                                               
of the law and getting the  funds to those best suited to perform                                                               
the work.                                                                                                                       
                                                                                                                                
8:13:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD  continued by  pointing out that  on page                                                               
2, line  31, the  board membership was  changed by  replacing the                                                               
language "a political  subdivision of the state"  with "an Alaska                                                               
regional  development  organization".     Any  other  changes  in                                                               
Version  C   were  modifications   to  make  the   language  more                                                               
scientifically correct.   Representative  Crawford then  showed a                                                               
one-minute video from  Toyota that illustrated wind  power use at                                                               
a small island in Norway.                                                                                                       
                                                                                                                                
8:17:42 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH inquired as to  the capital investment on the                                                               
project in Norway.                                                                                                              
                                                                                                                                
REPRESENTATIVE CRAWFORD  replied that  he didn't know,  but added                                                               
that it's  a custom-made project.   He opined that  as technology                                                               
comes  along with  these alternative  energy sources,  the prices                                                               
will decrease.                                                                                                                  
                                                                                                                                
CO-CHAIR FAIRCLOUGH said she was  thinking about a community such                                                               
as  Bethel where  there is  so much  wind and  wondered what  the                                                               
capital cost of such a project  would be versus the cost of power                                                               
cost equalization on an annual basis.                                                                                           
                                                                                                                                
REPRESENTATIVE  CRAWFORD  opined, "That  would  be  a reason  for                                                               
having the hydrogen partnership."                                                                                               
                                                                                                                                
8:18:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  related  that   she  spoke  with  someone                                                               
regarding whether the  wind system in Kotzebue who  said that due                                                               
to careful  planning prior to implementation,  about one-third of                                                               
[the  community's]  power is  generated  by  wind and  there  are                                                               
virtually no  large problems at  all.  Although wind  energy will                                                               
never be the  total answer, it saves the community  a great deal,                                                               
she said.                                                                                                                       
                                                                                                                                
8:20:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   NEUMAN  asked   if  any   large  companies   are                                                               
interested in putting money into a hydrogen energy partnership.                                                                 
                                                                                                                                
REPRESENTATIVE CRAWFORD  opined that  the video  illustrates that                                                               
large  companies   are  interested.    In   further  response  to                                                               
Representative  Neuman, Representative  Crawford  said that  this                                                               
legislation is necessary to attract these companies to Alaska.                                                                  
                                                                                                                                
8:22:44 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH  moved  to   report  CSHB  56,  Version  25-                                                               
LS0291\C,  Kane,  2/23/07,  out   of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, CSHB 56(CRA) was  reported from the House Community                                                               
and Regional Affairs Standing Committee.