Legislature(2007 - 2008)HOUSE FINANCE 519
07/26/2008 10:00 AM House FINANCE
Audio | Topic |
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Start | |
HB4003 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | HB4002 | TELECONFERENCED | |
+ | HB4003 | TELECONFERENCED | |
+ | TELECONFERENCED |
HOUSE BILL NO. 4003 "An Act making supplemental appropriations to the Alaska Energy Authority for power cost equalization; making special appropriations to the Department of Revenue and to the Department of Health and Social Services for the Alaska resource rebate program; making a special appropriation to the Department of Revenue for the payment of certain shared taxes relating to aviation fuel; and providing for an effective date." Ms. Rehfeld explained the components of the bill, which include: · $8.0 million for the one time payment for resource rebate and associated administrative costs; · $10.7 million for hold harmless provisions; · Includes a request for supplemental funding for the Power Cost Equalization (PCE) program of $9.6 million based on rates needing adjustment or increase in the near future; and · A component concerning $150,000 to hold harmless, in the event of motor fuel tax suspension, for communities that operate their own airports. 11:33:52 AM Vice-Chair Stoltze asked if it equals $7 per person and would come out the original dividend. Mr. Burnett clarified that under the original bill $10.7 million dollars of hold harmless was a general fund appropriation that would not have come out of the dividend. Vice-Chair Stoltze asked if there is a list of airports that would receive the funding for lost revenues. Mr. Burnett related that Juneau, Ketchikan, Kenai, Anchorage, Kodiak, Soldotna, and Palmer qualify for the funding. 11:36:03 AM Co-Chair Chenault asked why these were the only ones included. Mr. Burnett reported that the bill addresses municipality- owned airports, not state-owned airports. 11:36:57 AM Representative Hawker requested the new fiscal note showing $400,000 hold harmless. 11:37:55 AM Representative Gara mentioned the Renewable Energy Fund adopted last year, with many new applications needing review. He asked about additional staff authorization. Co-Chair Meyer said that question would be answered on Monday. 11:39:10 AM HB 4003 was heard and HELD in Committee for further consideration. RECESS: 11:39:45 AM RECONVENE: 1:08:37 PM The following statewide testimony was taken in log note format. Handouts will be on file with the House Finance Committee through the 25th Legislative Session, contact 465- 6814. After the 25th Legislative Session they will be available through the Legislative Library at 465-3808. HB4002-RESOURCE REBATE PROGRAM FOR RESIDENTS HB4003-APPROP: ENERGY RELIEF/REBATE/FUEL TAX TIME SPEAKER DISCUSSION 1:08:37 PM JULIE KITKA, Provided members with written testimony PRESIDENT, (copy on file). She related that this ALASKA is a very historic period due to FEDERATION OF financial problems in the U.S. economy, NATIVES as well as to high energy costs. The state has a responsibility to provide affordable energy to Alaskans and to provide energy to the Lower 48. Every major institution in the Native community is concerned about the energy problem. The Native community is interested in having the solutions accountable, to incentivize communities, and expand the private sector. A new shift in thinking needs to take place. Energy relief is a first step. State resources must also be invested for the future. She cautioned that actions that are taken do not create a backlash. She spoke in favor of stabilizing energy costs, a cash rebate, and a multi-year approach to energy prices. She believed high energy costs are here to stay. Ms. Kitka looked at restructuring as an opportunity and the need for smart investing on behalf of state government. She stressed providing immediate relief. Ms. Kitka pointed out that all cost-of-living prices have increased. She spoke in support of funding for Power Cost Equalization (PCE). She recommended that rural utilities be stabilized. She spoke in behalf of the Denali Commission's energy needs. She testified in support of the family fuel subsidy and in favor of funding alternative energy projects in order to encourage economic development. She also stated support for funding higher education institutions so that they can proceed with research on energy issues. She thanked the committee for their work. 1:31:38 PM Co-Chair Meyer Asked if those opinions were from the Alaska Federation of Natives. 1:32:24 PM Ms. Kitka Explained where her statements came from the Alaska Federation of Natives (AFN) energy group. 1:32:46 PM Vice-Chair Talked about the need for an early Stoltze energy relief payment. 1:33:49 PM JERRY BURNETT, Explained the recommendations for DIRECTOR, payment of the rebate and the DIVISION OF possibility for an earlier payment. ADMINISTRATIVE SERVICES, DEPARTMENT OF REVENUE 1:35:04 PM Vice-Chair Thought there might be a way to Stoltze facilitate an earlier payment. 1:35:42 PM Mr. Burnett Observed that it may be possible to issue a separate resource rebate check a few weeks before the permanent fund dividend is issued. 1:35:58 PM Representative Thanked Ms. Kitka for her testimony and Gara invited her to return often. 1:36:22 PM Ms. Kitka Complimented the legislators for their accessibility. 1:37:05 PM ROBERT KEITH, Spoke to the "urban/rural divide" CHAIR, comment. He recalled past use of that KAWERAK, INC., term. He complimented the legislature NOME on their welcoming attitude. He described problems related to rising costs in his Native village of Elim. He noted a problem with the economic impact of a $1200 rebate. He suggested using excess funds to mitigate fuel costs. He described energy summits in his area, wind generators, the SITCO program, and federal grant programs. He suggested having a technical clearing house for energy issues. He spoke in favor of PCE. 1:49:18 PM Representative Inquired about the use of solar panels Joule in the region. 1:49:57 PM Mr. Keith Reported that Bering Strait Native Corporation has installed a large solar panel, as have several other corporations. 1:52:18 PM BARB NICKELS, Reported that the Bering Strait DIRECTOR, Development Council supports SB 4002 BERING STRAIT and SB 4003. She spoke of rising fuel DEVELOPMENT costs in the Bering Strait region and COUNCIL the hardships that creates for (ARDOR) community members. She referred to the relationship between fuel costs and migration out of villages and the resulting implications on educational systems. She spoke in favor of a state economic development plan. She concluded that rural Alaskans want to help themselves, yet need the state's immediate assistance. 1:59:48 PM Representative Thanked Ms. Nickels for her testimony. Gara 2:00:23 PM DAVID PELTO, Testified against the bills, as PALMER written. He maintained that long-term investments are needed and the state should help only those in need. He spoke against the sense of entitlement many Alaskans have. 2:03:03 PM JUDITH Testified against funds for individuals ANDEREGG, in the form of an energy assistance PALMER rebate using PFD qualifications to determine residency. 2:07:24 PM HOWARD DORSEY, Testified in support of the resource KENAI rebate program for residents. He spoke of ways that he could benefit from the rebate in home improvements and weatherization. He suggested that the money be dispersed sooner than later, as the fuel barges leave for remote villages in near future. 2:11:41 PM MARGARET Discussed documents she submitted on MANOUSOFF, behalf of Alaska Conservation Solutions ALASKA (copy on file.) She testified in CONSERVATION opposition to the resource rebate SOLUTIONS, program for several reasons; ANCHORAGE entitlement, tax, and equity issues, and social consequences. She maintained that common resources ought to be used for the common good. She suggested possible solutions to energy problems. She urged the state to make long- lasting investments. 2:21:50 PM Representative Asked for more information about Ms. Hawker Manousoff's organization. 2:22:53 PM Ms. Manousoff Explained her organization's history and focus on education about causes of global warming, including possible solutions. 2:24:02 PM JERRY Suggested using the energy assistance MCCUTCHEON, program qualifications (LIHEAP) to ANCHORAGE determine eligibility for energy relief. He requested that the money be paid to the individual rather than the vendor. He testified against fuel tax suspension. 2:27:34 PM PAUL D. Complimented Ms. Kitka's presentation. KENDALL, Testified against the Resource Rebate ANCHORAGE program for residents. He emphasized the need to stay focused on the issues. He suggested a daily television program by the Alaska Energy Authority. He stressed the need for clean air, alternative methods of electricity, and transportation. 2:40:19 PM BI JERREL, Testified in support of the Resource KENAI Rebate program for residents. 2:43:44 PM EUGENE Testified in support of the Resource BOBLETT, Rebate program for residents. He SOLDOTNA stressed his difficult economic situation as a senior with the rising cost of propane. 2:59:46 PM TOM LOKOSH Questioned the nexus between the rebate bill and the Governor's budget and how funds are allocated. He pointed out that none of the rebates allow for the person who rents. He thought that the LIHEAP formula should be used to determine qualification for the rebate. He suggested finding less expensive alternative energy sources rather than subsidizing in the form of PCE. 3:13:18 PM Representative Clarified a previous conversation with Nelson Representative Gara regarding the resource rebate. 3:14:40 PM Mr. Lakosh Commented on dispersing natural resources in the state. 3:15:32 PM Representative Explained the purpose of the special Nelson session and the allowable topics of discussion. 3:16:28 PM GEORGIA Shared her personal experience with WESTFALL high fuel costs "off the grid". She testified in favor of the resource rebate. 3:20:58 PM LAURA Testified in favor of the resource SCHAEVITZ, rebate. She spoke of the high cost of ANCHORAGE living. She opposed using the rebate to garnish wages. 3:28:28 PM JUDITH MAGNUS, Shared her experiences with higher cost ANCHORAGE of living expenses. She testified in favor of the resource rebate. ADJOURNMENT The meeting was adjourned at 3:34 PM
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