Legislature(2007 - 2008)
08/04/2008 07:48 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| HB4005 | |
| HB4001 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 4005
An Act amending the power cost equalization program,
repealing the exclusion from eligibility for power cost
equalization for certain power projects that take their
power from hydroelectric facilities, and amending the
definition of 'eligible electric utility' as it applies
to the power cost equalization program and the grant
program for small power projects for utility
improvements; and providing for an effective date.
Vice-Chair Stoltze MOVED to ADOPT work draft 25-LS1757\L,
Kane, 8/4/08, as the version of the bill before the
Committee. Representative Nelson OBJECTED.
7:53:11 PM
Representative Nelson expressed more comfort with the
previous version of the bill. She felt that the previous
version struck a better balance in terms of region and
helping people than the current version does. She took pride
in the work that had been done.
Representative Gara noted that the changes in the bill were
all topics that the committee had favored. The heating
provision and the electrical utility assistance were
removed.
7:54:40 PM
SUZANNE ARMSTRONG, STAFF, REPRESENTATIVE KEVIN MEYER,
explained the major changes to the work draft. The Power
Cost Equalization (PCE) provisions were removed, as were the
provisions pertaining to the Low Income Heating Assistance
Program (LIHEAP) and the provision relating to the State
Heating Assistance Program. Remaining were the changes made
to the bulk fuel loan fund and the revolving loan fund with
limits increasing the loan amounts from $500,000 to
$750,000. The resource rebate section was left intact with
only one change; the dollar amount was increased from $1000
to $1200 per person. The suspension of motor fuel tax was
left intact.
Co-Chair Meyer reverted back to the Governor's original call
of the $1200 for the resource rebate and the eight cent fuel
tax suspension.
7:56:04 PM
A roll call vote was taken on the motion.
IN FAVOR: Hawker, Kelly, Stoltze, Thomas, Meyer, Chenault
OPPOSED: Foster, Gara, Nelson, Crawford
THE MOTION PASSED 6-4
7:57:13 PM
Co-Chair Meyer MOVED to ADOPT Amendment #1, Page 3, Line 7,
deleting "$1,000" and inserting "$1,200". Vice-Chair Stoltze
OBJECTED.
Co-Chair Meyer explained the drafting error on Page 3, Line
7 where the $1000 should read "$1200."
Representative Hawker WITHDREW the OBJECTION.
7:57:41 PM
Representative Kelly MOVED to ADOPT Amendment #2, #25-
LS1757\M.4, Bullard\Kane, 8/4/08. Representative Thomas
OBJECTED.
7:57:55 PM
Representative Kelly explained that the amendment would be
withdrawn. He asked to speak to the amendment. The amendment
would allow a rebate or a low interest loan if an individual
wanted to use a different heating method than oil, such as
wood, wood chips, or pellets. These alternative fuel sources
allow people to help themselves and reduce their dependence
on oil.
Amendment #2 was WITHDRAWN.
7:59:52 PM
Representative Crawford stated that the amendment was good
and should not be withdrawn and he encouraged Representative
Kelly to offer it.
8:01:02 PM
Representative Hawker MOVED to ADOPT conceptual Amendment
#3, Line 29, Page 3. He explained that it was a provision
repealing the suspension of the motor fuel tax on June 30,
2011 as written. It repeals section 5A only. The conceptual
amendment was to change 5A to section 5 in its entirety.
Representative Crawford OBJECTED for discussion purposes.
Co-Chair Meyer explained the drafting error that was noticed
by Representative Hawker.
8:03:06 PM
Representative Crawford WITHDREW the OBJECTION. There being
NO further OBJECTION, it was adopted. Representative Hawker
pointed out that the credit should go to the Department of
Law for the error's discovery.
Representative Kelly mentioned the included penalty
provision. He did not agree with the notion. He regretted
the hassle of unhappy phone calls in the event of public
upset.
8:05:19 PM
Co-Chair Meyer reviewed the fiscal notes. He pointed out the
resource rebate of $1,200 dollars for Alaska residents. The
rebate could be used for heating and fuel assistance this
winter. He recalled that the PFD comes out in early October,
which is important to Alaskans preparing for winter heating
costs. He wondered if there was potential that the PFD might
be administered earlier than October.
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, explained that the bill was
initially introduced in August. The Governor had reviewed it
and hoped to move it back, but there are a number of
concerns to be addressed. There are scheduling items to
guarantee that the appropriate warrant stock is in place.
The Department of Revenue will attempt to get the checks out
as soon as possible.
8:08:56 PM
Representative Hawker requested the difference between an
energy rebate and a resource rebate. Mr. Burnett explained
that the rebate consists of a distribution of excess tax
revenue that the state had received and will distribute to
dividend eligible persons. It is not aimed at a specific
use.
Representative Hawker pointed out that there was not
language in the bill requiring that the resource rebate was
spent on energy related issues. Mr. Burnett affirmed that
there was not language specifying a requirement regarding
how the rebate is spent. He supposed that people would use
the rebate money to pay heating bills, given the cost of
energy this year.
8:10:55 PM
Representative Gara did not accept the terminology
concerning the equitability of the proposed distribution.
The prior version of the bill recognized the inequity, and
attempted to address it by helping those with the greatest
need. He did not accept the line of reasoning that there is
equity based on a change of the terminology. The bill is not
equitable.
Representative Gara asked if all of the individuals eligible
for the hold harmless provision would have the money count
as income and possibly have it garnished. Mr. Burnett
replied that the rebate would not be garnished in the
mentioned situation.
Representative Gara could not find the hold harmless
provision in the bill before the Committee. Mr. Burnett
advised that the hold harmless clause is in the PFD statute
and it applies to subsidized housing because it is a one-
time payment. It would not be treated as part of the PFD.
The clause is identified as a separate part of the PFD. The
hold harmless that applies to PFD will apply to the hold
harmless provision. There is a specific hold harmless
section in the bill for veterans.
8:15:29 PM
Representative Gara asked if hold harmless language was in
the appropriations bill. Mr. Burnett responded that there is
an appropriation for an additional hold harmless for Health
and Social Services and the Veterans in the appropriation
bill.
Representative Hawker asked to clarify that in the
appropriations bill there is specifically a paragraph
earmarking funding to address those purposes.
Representative Gara asked for a letter from the department
addressing the hold harmless provision for low income
housing and the Pioneer's Home issue. Mr. Burnett affirmed.
8:16:36 PM
Co-Chair Meyer noted that the bill would be HELD until the
Senate version arrives to Committee.
8:18:15 PM
Representative Thomas stated that he originally believed
that sufficient legislation would include a resource rebate
of $1,500 and include the repealing of the fuel tax. He
remembered speaking about an energy rebate since last
session. He hoped the resource rebate would be increased to
$1,400 dollars, because of the other aspects of the bill
that were left out. He proposed that it occur on the House
Floor.
Representative Nelson pointed out that there are six
different regions in the State of Alaska. Each region was
initially represented with one piece of legislation;
however, an individual living alone does not have their
needs adequately addressed. She listed the items that were
in the original version that helped ease the disparity. She
suggested that the Committee had taken a step backward. She
expressed hope that a "middle ground" could still be
reached.
8:21:26 PM
Representative Crawford wondered how many people would use
the funding as a moving allowance to move from the Bush into
the cities. He thought it was too little too late to help
the rural areas.
Co-Chair Meyer noted that HB 4005 would be HELD.
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