Legislature(1993 - 1994)

05/08/1993 05:00 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  SENATE BILL NO. 126                                                          
                                                                               
       "An Act making  special appropriations  for design  and                 
       construction  of  power transmission  interties between                 
       Anchorage  and the Kenai  Peninsula, between  Healy and                 
       Fairbanks,  and  between the  Swan  Lake and  Tyee Lake                 
       hydroelectric projects; and  providing for an effective                 
       date."                                                                  
                                                                               
  Ms.  Kronseng  pointed out  that the  appropriation includes                 
  funding for the Department of Community and Regional Affairs                 
  to cover expenses of  the functions being transferred.   She                 
  expected that a portion of the appropriation will lapse.                     
                                                                               
  Co-Chair  Larson   provided   members   with   AMENDMENT   1                 
  (Attachment 1).   Ms. Kronseng explained that  the Amendment                 
  was requested by bond  counsel to make AIDEA partner  to the                 
  contracts.  She  clarified that the language  is specific to                 
  the Northern and Southern intertie grants.   Co-Chair Larson                 
  MOVED to ADOPT  AMENDMENT 1.   There being NO OBJECTION,  it                 
  was so ordered.                                                              
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  2                 
  (Attachment 2).  The Amendment was offered by Representative                 
  Brown on behalf of Representative  Finkelstein.  Amendment 2                 
  would  appropriate  $8.0   thousand  dollars  for   "ongoing                 
  residential  and  business  energy   efficiency  improvement                 
  programs."                                                                   
                                                                               
  REPRESENTATIVE  DAVID FINKELSTEIN  provided  members with  a                 
  memorandum,   dated   5/08/93,   explaining    Amendment   2                 
  (Attachment 3).   He reviewed  Attachment 3.   He  concluded                 
  that energy conserved  is the same  as energy produced.   He                 
  emphasized that  retrofitted and energy  efficient buildings                 
  would result in  lower operating costs  by 20 to 30  percent                 
  annually.   He maintained  that costs  would be  recouped in                 
  approximately three years.                                                   
                                                                               
  Representative   Brown   MOVED   to   ADOPT   AMENDMENT   2.                 
  Representative Martin OBJECTED.  Co-Chair MacLean noted that                 
  there is a $17  million dollar capital appropriation  to the                 
                                                                               
                                3                                              
                                                                               
                                                                               
  Alaska   Housing   Finance  Corporation   (AHFC)   for  home                 
  improvements.  Representative Finkelstein stressed that  the                 
  demand for the low income weatherization program in AHFC far                 
  exceeds the amount of  money available.  He stated  that the                 
  Department of  Transportation and  Public Facilities  cannot                 
  afford to retrofit state buildings.                                          
                                                                               
  A roll call vote was taken on the motion to  adopt Amendment                 
  2.                                                                           
                                                                               
  IN FAVOR: Brown                                                              
  OPPOSED:  Grussendorf,  Navarre,  Foster,   Hanley,  Martin,                 
                 Parnell, Therriault, MacLean, Larson                          
                                                                               
  Representative Hoffman was not present for the vote.                         
                                                                               
  The MOTION FAILED (1-9).                                                     
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  3                 
  (Attachment 4).  Amendment 3 would appropriate $15.0 million                 
  dollars  to  the  Department  of Transportation  and  Public                 
  Facilities   for   institutional    facilities   demand-side                 
  management programs.  Representative Navarre spoke  in favor                 
  of Amendment 3.                                                              
                                                                               
  SHELBY STASTNY,  DIRECTOR, OFFICE  OF MANAGEMENT  AND BUDGET                 
  agreed that expenditures on energy efficiencies would result                 
  in savings.   He acknowledged the legislature's  prerogative                 
  to decide how the state's money is spent.                                    
                                                                               
  Representative Navarre asked Mr.  Shelby to investigate cost                 
  savings  which  would  be  generated  by  retrofitting state                 
  facilitates for energy efficiency.                                           
                                                                               
  Representative Martin asked Mr. Shelby to develop a  list of                 
  priorities  for  state  facilities.   Representative  Hanley                 
  recommended  that a comprehensive  plan for increased energy                 
  efficiency   be   developed.     Representative  Grussendorf                 
  suggested that a deferred maintenance list be included.                      
                                                                               
  A roll call vote was taken on the motion to  adopt Amendment                 
  3.                                                                           
                                                                               
  IN FAVOR: Brown, Grussendorf, Navarre                                        
  OPPOSED:  Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
                                                                               
  Representative Hoffman was not present for the vote.                         
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  4                 
                                                                               
                                4                                              
                                                                               
                                                                               
  (Attachment 5).  Amendment  4 would delete section 15.   She                 
  stated that the  intent is  to allow the  separation of  HCS                 
  CSSB 106(FIN) and CSSB 126(RLS) am(efd fld).  Representative                 
  Navarre spoke  in support of Amendment  4.  He  felt that it                 
  would be bad  policy to  base the passage  of CSSB  126(RLS)                 
  am(efd fld) on HCS CSSB 106(FIN).                                            
                                                                               
  Ms. Kronseng  stressed that authorization language is needed                 
  to execute the bonding package.                                              
                                                                               
  Representative   Brown   MOVED   to   ADOPT   AMENDMENT   4.                 
  Representative Hanley OBJECTED.  A roll call  vote was taken                 
  on the motion.                                                               
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Therriault                   
  OPPOSED:  Foster, Hanley, Martin, Parnell, MacLean, Larson                   
                                                                               
  The MOTION FAILED (5-6).                                                     
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  5                 
  (Attachment 6).  She explained that Amendment 5 incorporates                 
  suggestions made by residents in the Sutton/Glennallen area.                 
  The  amendment   mandates  that   feasibility  studies   are                 
  completed prior to the dispersion  of funds.  Representative                 
  Martin  objected  to  the  amendment.    He  felt  that  the                 
  restrictions placed by the amendment would be costly.                        
                                                                               
  Representative Brown WITHDREW AMENDMENT 5.   Co-Chair Larson                 
  noted  that  Amendment  5  reflects  the  concerns  of  area                 
  residents.                                                                   
                                                                               
  Representative   Navarre   asked  for   further  information                 
  regarding  the Tazimina  River hydroelectric  power project.                 
  Co-Chair  Larson  pointed  out  that  the  project  is  also                 
  contained in the capital budget.                                             
                                                                               
  Ms. Kronseng explained that  the intent is to build  a small                 
  generator at the base  of a waterfall located on  the River.                 
  She observed  that feasibility studies  have been  completed                 
  and  the project  is  ready  for  construction.   The  total                 
  project cost is estimated at $10.0 million dollars.  It will                 
  serve NewHalen and Nondalton.   She added that six  or seven                 
  other communities could be served.                                           
                                                                               
  Representative Brown asked  who would pay for  the interties                 
  to connect other  communities.   Mr. Stastny explained  that                 
  three  or  four communities  would  be connected  without an                 
  additional intertie.   There  are two  or three  communities                 
  that would  be connected with the addition  of one intertie.                 
  Co-Chair MacLean  noted that the project is on AEA's project                 
  list.                                                                        
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  Representative Brown stressed that projects contained in HCS                 
  CSSB 126  (FIN) are not  economically efficient uses  of the                 
  state's money.                                                               
                                                                               
  Representative Hoffman  expressed concern that AEA  is being                 
  "dismantled".  He stated that money would be better spent on                 
  solving fuel storage tank problems in Western Alaska.                        
                                                                               
  Representative Therriault MOVED to report HCS CSSB 126 (FIN)                 
  out of Committee with individual recommendations.                            
                                                                               
  HCS CSSB 126  (FIN) was reported  out of Committee with  "no                 
  recommendation".                                                             

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