Legislature(2011 - 2012)BARNES 124
03/13/2012 03:00 PM House ENERGY
Audio | Topic |
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Start | |
HB294 | |
HB357 | |
HB336 | |
HB323 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | HB 323 | TELECONFERENCED | |
+ | HB 336 | TELECONFERENCED | |
+ | HB 357 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
+= | HB 294 | TELECONFERENCED | |
HB 336-ENERGY ASSISTANCE PROGRAM & VOUCHERS 3:19:50 PM CO-CHAIR FOSTER announced that the next order of business would be HOUSE BILL NO. 336, "An Act establishing an energy assistance program in the Department of Revenue to issue an energy voucher to Alaska permanent fund dividend recipients; and relating to the analysis and recommendation of an energy assistance program by the governor." 3:20:06 PM CO-CHAIR PRUITT moved to adopt HB 336, Version 27-LS1403\M, as the working document. There being no objection, Version M was adopted. CO-CHAIR PRUITT made a motion to adopt the fiscal notes identified as HB336-DOR-TAX-03-02-12; HB336-DOA-OAH-3-8-12; and HB336-DOR-PFD-03-02-12. 3:21:45 PM The committee took an at-ease from 3:21 p.m. to 3:25 p.m. 3:25:27 PM CO-CHAIR PRUITT made a motion to rescind the motion to adopt Version M as the working document. Co-Chair Pruitt moved to adopt HB 336, Version 27-LS1403\A, as the working document. There being no objection, Version A was adopted. The committee took an at-ease from 3:25 p.m. to 3:36 p.m. 3:26:17 PM CO-CHAIR FOSTER, for clarification, asked whether there was an objection to the motion to rescind. There being no objection, it was so ordered. 3:26:41 PM CO-CHAIR PRUITT restated his motion to adopt HB 336, Version 27- LS1403\A, as the working document. There being no objection, Version A was adopted. 3:26:55 PM JANE PIERSON, staff to Representative Steve Thompson, Alaska State Legislature, speaking on behalf of Representative Thompson, prime sponsor, said there are two fiscal notes attached to the bill. 3:27:19 PM CO-CHAIR PRUITT moved to adopt two fiscal notes identified as HB336-DOA-OAH-3-8-12 and HB336-DOR-PFD-03-02-12. There being no objection, the fiscal notes were adopted. 3:27:39 PM MS. PIERSON introduced HB 336, saying the bill is an act to establish an energy assistance program in the Department of Revenue to issue an energy voucher to Alaska permanent fund dividend (PFD) recipients; and relating to the analysis and recommendation of an energy assistance program by the governor. She related that Representative Thompson has heard from many constituents about the high cost of energy in Fairbanks, and has responded by introducing HB 336, an energy assistance program to issue energy vouchers to Alaskans who received a permanent fund dividend paid in 2012. The high cost of energy is stifling development and forcing residents of the Interior to move. Fairbanks, all of the Interior, and areas throughout the state, are suffering greatly. Representative Thompson is in favor of long-term energy solutions, but Alaskans need immediate relief and energy should be made available to all Alaskans as directed by the state constitution. The sponsor is continuing to work with agencies and departments to improve the bill; however, in its present form, HB 336 will provide adults with an energy voucher redeemable for 250 gallons of heating oil, the natural gas British thermal unit (Btu) equivalent of 250 gallons of heating oil, or 1,500 kilowatts of electricity. Although there are questions of equivalency, electricity is not a primary heating source for most residents. The Department of Revenue (DOR) shall maintain a list of qualified distributors of oil, natural gas, and electricity that accept the vouchers for payment from the state. A person who does not pay directly for energy may have replacement vouchers issued in the name of his or her landlord, and may negotiate with the landlord to have an amount taken off of their rent. A person may also redeem the voucher for $250. Section 2 of the bill directs the governor to analyze the energy assistance program, and alternatives, prior to 10/1/12. The governor will provide a report to the legislature, making recommendations for an energy assistance program to be implemented in fiscal year 2014, that: correlates to the local cost of residential heating; is based on state revenue; minimizes administrative costs; makes participation of fuel distributors voluntary; includes a hold-harmless provision; and includes a provision against fraud. 3:31:40 PM MS. PIERSON continued to explain the governor must analyze other options for an energy assistance program: a fuel price reduction program managed through heating fuel distributors, or an individual account program featuring applications for assistance by PFD, based on the local cost of energy, and with various guidelines. REPRESENTATIVE PETERSEN asked whether a household including six individuals eligible for a PFD would receive six vouchers. MS. PIERSON said the program only applies to adults, so six adult members of a household would receive vouchers. 3:34:31 PM REPRESENTATIVE TUCK asked for clarification on the time of residency required to be eligible for a PFD and a voucher. MS. PIERSON said the Department of Law (DOL) advised applicants for vouchers should include those who have been residents for 30 days to 60 days. REPRESENTATIVE TUCK surmised those who received a PFD in 2012 were Alaska residents in 2011. MS. PIERSON agreed. CO-CHAIR FOSTER expressed his belief that one who was incarcerated in the qualifying year, and whose PFD was garnished, would still be eligible for a voucher. MS. PIERSON indicated correct. 3:36:27 PM CO-CHAIR PRUITT asked whether residents would receive a check for the total amount. MS. PIERSON explained that those eligible would get a voucher to give to the fuel supplier for fuel; the fuel supplier would then turn the voucher into the state and get paid, except for those eligible who opt for the $250 payment. CO-CHAIR PRUITT asked for the legal ramifications of one voucher per household instead of one voucher per adult. MS. PIERSON said the sponsor has not looked at that option yet. CO-CHAIR PRUITT cautioned against a repeat of the situation in 2008, when a cash energy assistance payment was made to residents, and became "an economic stimulus for Taiwan." Even if a voucher goes to the energy distributor, he urged for a way to spread the cost over months, instead of a payment in one lump sum. 3:39:38 PM MS. PIERSON said this concern was part of the sponsor's intent in making the voucher redeemable to a fuel distributor, unless the resident elected to take $250 in cash. CO-CHAIR PRUITT pointed out if a resident does not have to pay his or her fuel bill, he or she has additional money. Moreover, this additional money would not come during the time of the highest energy demand in winter. MS. PIERSON acknowledged this was worth consideration. REPRESENTATIVE PETERSEN observed a distributor may opt out of the program, causing a problem to arise if the distributor is the sole source of fuel for a location. MS. PIERSON assured the committee the sponsor is working on that problem. REPRESENTATIVE PETERSEN agreed with Co-Chair Pruitt that 250 gallons of diesel fuel could be worth a lot of money in some parts of the state. 3:42:34 PM REPRESENTATIVE SADDLER said he appreciated the sponsor's intent to alleviate the high utility costs in Fairbanks, but he is concerned that the legislation assigns the state the responsibility to pay for an individual's heating bill: "a dangerous precedent that's an endless commitment." He was also concerned that the bill does not require residents to add insulation or upgrade to more efficient furnaces, and suggested that the money might be better spent on the Alaska Housing Finance Corporation (AHFC), Department of Revenue, weatherization program, or toward a gas pipeline or a dam. MS. PIERSON agreed this is a difficult policy call. REPRESENTATIVE TUCK asked whether the vouchers could be applied to a resident's back payments owed to a utility. MS. PIERSON said that situation is still being discussed without a conclusion. In further response to Representative Tuck, she confirmed the voucher is for the purchase of fuel in the future. REPRESENTATIVE TUCK surmised if a home is sold, the voucher is transferable to another location. 3:45:26 PM MS. PIERSON said yes, because the voucher is issued to a person, not a physical location. In further response to Representative Tuck, she said if someone moves out of state the voucher would be null and void. REPRESENTATIVE TUCK then asked whether the vouchers are transferable. MS. PIERSON said no, except a renter whose utilities are paid by his or her landlord can negotiate one time with the landlord to take the value of the voucher off of his or her rent, and then have the voucher reissued in the name of the landlord. 3:46:17 PM CO-CHAIR PRUITT asked how the vouchers would impact federal funds or certain benefit programs. MS. PIERSON expressed her belief the voucher would have an impact; for example, the Internal Revenue Service (IRS) would deem the value of the voucher as income. Although the bill contains a hold harmless clause for state assistance programs, the language would not affect federal assistance programs, and there will be an issue for veterans similar to the problem created by the "super dividend" [in 2008]. 3:47:16 PM CO-CHAIR FOSTER held over HB 336. 3:47:28 PM
Document Name | Date/Time | Subjects |
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1 HB 294 CS HB 294(ENE) version M.pdf |
HENE 3/13/2012 3:00:00 PM |
|
1a HB 294 version A.pdf |
HENE 3/13/2012 3:00:00 PM |
|
3 HB 294 fiscal note.pdf |
HENE 3/13/2012 3:00:00 PM |
|
5 HB 294 AVEC Testimony.doc |
HENE 3/13/2012 3:00:00 PM |
|
6 HB 294 R.Venables Testimony Feb 2012.doc |
HENE 3/13/2012 3:00:00 PM |
|
7 HB 294 APIAI Testimony.docx |
HENE 3/13/2012 3:00:00 PM |
|
1 HB 323 version M).pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
2 HB 323 sponsor statement.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
2 HB 336 Sponsor Statement.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 336 |
2 HB 294 Sponsor statement.pdf |
HENE 3/13/2012 3:00:00 PM |
|
3 HB 323 - Fiscal Note AHFC.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
4HB 323-DOR-AHFC-03-01-12.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
5 HB 323 - State Implementation Plan (SIP).pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
6 HB 323 standards.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
7 HB 323 - EPA Wood Stove Certification.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
8 HB 323 annual savings.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
9 HB 323 Supporting Map.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
10 HB 323 - Support Letter Fairbanks.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
1 HB 336 version A.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 336 |
3 HB336-DOR-TAX-03-02-12.pdf |
HENE 3/13/2012 3:00:00 PM |
HB 336 |
4 HB 336 Kawerak letter of support.pdf |
HENE 3/13/2012 3:00:00 PM |
HB 336 |
1 HB 357 version A.pdf |
HENE 3/13/2012 3:00:00 PM |
|
3 HB357-DCCED-AIDEA-03-02-12(a).pdf |
HENE 3/13/2012 3:00:00 PM |
|
4 HB357-DCCED-AIDEA-03-02-12(b).pdf |
HENE 3/13/2012 3:00:00 PM |
|
5 HB 357 Don Eller written testimony.pdf |
HENE 3/13/2012 3:00:00 PM |
|
11 HB 323 - Air Quality Highway Sanctions.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
12 HB 323 - Support Letter FNSB.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
13 HB 323 - Support Letter North Pole.pdf |
HENE 3/13/2012 3:00:00 PM HENE 3/22/2012 3:00:00 PM HENE 3/27/2012 3:00:00 PM |
HB 323 |
2 HB 357 Sponsor Statement.pdf |
HENE 3/13/2012 3:00:00 PM |