Legislature(2015 - 2016)CAPITOL 17
02/24/2015 10:15 AM ENERGY
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|Presentation: Copper River Valley Regional Energy Planning|
* first hearing in first committee of referral
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HB 105-AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT 11:30:28 AM CO-CHAIR COLVER announced that the final order of business would be HOUSE BILL NO. 105, "An Act relating to the programs and bonds of the Alaska Industrial Development and Export Authority; related to the financing authorization through the Alaska Industrial Development and Export Authority of a liquefied natural gas production plant and natural gas energy projects and distribution systems in the state; amending and repealing bond authorizations granted to the Alaska Industrial Development and Export Authority; and providing for an effective date." CO-CHAIR VAZQUEZ disclosed that her husband, Mark Davis, is an employee of AIDEA. 11:31:06 AM REPRESENTATIVE TILTON moved to adopt the proposed committee substitute (CS) for HB 105, labeled 29-GH1019\W, Shutts, 2/23/15, as the working draft. There being no objection, Version W was before the committee. CO-CHAIR COLVER directed attention to the change to HB 105 in [Version W] as follows: On page 4, line 21, after "terminal" Delete: "The terminal may be located anywhere within Cook Inlet" Insert: "to be located at Point MacKenzie" CO-CHAIR COLVER explained this change reauthorizes $50 million [of bonding] authority to AIDEA for a port facility to be located at Point MacKenzie, and noted that AIDEA seeks to have legislative reauthorization within five years of a project. Other changes in [Version W] are as follows: On page 5, line 1, after "infrastructure" Delete: "on the North Slope" Insert: "in the state that will provide natural gas to Interior Alaska" On page 5, line 3, after "distribution" Delete: "system" Insert: "systems" On page 5, line 3, after "infrastructure" Delete: "in" Insert: "that will provide natural gas to" CO-CHAIR COLVER said these changes relate to the bill's previous authorization for a project sited on the North Slope. The new language changes the intent of the bill to deliver energy to the Interior. 11:33:32 AM REPRESENTATIVE TILTON moved to adopt Amendment 1 as follows: On page 4, line 20, before "equipment" Delete: "loading and conveyer" There being no objection, it was so ordered. 11:34:51 AM REPRESENTATIVE CLAMAN moved to adopt Amendment 2 as follows: On page 4, line 19, after "and" Delete: "related" There being no objection, it was so ordered. REPRESENTATIVE CLAMAN expressed his understanding that HB 105 provides direction consistent with the intent of the governor related to AIDEA's investment in projects. 11:35:43 AM FRED PARADY, Acting Commissioner, Department of Commerce, Community & Economic Development, said yes; specifically the bill is needed to authorize the consideration of natural gas sourced from areas not located on the North Slope for the Interior Energy Project. CO-CHAIR COLVER pointed out there are private sector proposals for liquefied natural gas (LNG) facilities at Point MacKenzie. The intent of the rail spur to the port at Point MacKenzie is to move products more competitively, as requested by the Matanuska- Susitna (Mat-Su) Borough, but not to compete with the Port of Anchorage because that port is situated to cargo and container shipping. CO-CHAIR VAZQUEZ advised HB 105 increases AIDEA's bonding authority from $6 million to $10 million in section 1, from $10 million to $25 million in section 2, and from $20 million to $25 million in section 3. CO-CHAIR COLVER said his constituents in Delta Junction are looking for leadership on providing affordable energy to the Interior which would strengthen the regional economy and support military installations. He expressed his hope that providing affordable energy to Alaskans becomes a common goal. REPRESENTATIVE WOOL agreed. 11:39:30 AM The committee took an at ease from 11:39 a.m. to 11:41 a.m. 11:41:27 AM REPRESENTATIVE TILTON moved to report CSHB 105, Version 29- GH1019\W, Shutts, 2/23/15, as amended, with individual recommendations and the accompanying zero fiscal note. There being no objection, CSHB 105(ENE) was reported out of the House Special Committee on Energy.