Legislature(1993 - 1994)

05/08/1993 11:15 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  SENATE BILL NO. 106                                                          
                                                                               
       "An  Act  authorizing   power  transmission   interties                 
       between  Anchorage  and  the  Kenai Peninsula,  between                 
       Healy and Fairbanks, and between the Swan Lake and Tyee                 
       Lake hydroelectric  projects, and approving  the design                 
       and construction costs of  the interties; and providing                 
       for an effective date."                                                 
                                                                               
  BRENT PETRIE, ALASKA  ENERGY AUTHORITY (AEA)  testified from                 
  Anchorage via teleconference.   He stated that  full funding                 
  for the Power  Cost Equalization Program (PCE),  as provided                 
  for in CSSB  106(FIN) am(efd fld)  and CSSB 126(RLS)  am(efd                 
  fld), will last for  only 4 to 5 years.  He commented on the                 
  Tyee-Swan Lake allocation.   He noted that if  the Southeast                 
  Energy  Fund is used primarily  for payment of the Tyee-Swan                 
  Lake  intertie   that  debt   service   payments  would   be                 
  approximately $3.2 million dollars.   The initial allocation                 
  to the Southeast Energy Fund is $4.2 million dollars.                        
                                                                               
  Mr. Petrie  stressed that Alaska Industrial  Development and                 
  Export Authority  (AIDEA) statutes may  require amendment in                 
  order  to  achieve  comparable  financing  capability.    He                 
  asserted that without such amendment, revenue bond financing                 
  for projects such as interties may be more costly.                           
                                                                               
  Mr. Petrie clarified, in response to a  question by Co-Chair                 
  MacLean,  that  the   legislation  provides  the   following                 
  allocations from the AEA's Power Development Revolving  Loan                 
  Fund (PDRLF):                                                                
                                                                               
       *    30 percent ($3.1 million dollars) to the PCE/Rural                 
            Cap Fund;                                                          
                                                                               
       *    30 percent ($3.1 million dollars) to Power Project                 
            Fund loans; and                                                    
                                                                               
       *    40 percent ($4.2 million dollars) to the Southeast                 
            Energy Fund.                                                       
                                                                               
  He noted that the cities of  Wrangell and Ketchikan would be                 
  the  major  beneficiaries  of  the  Southeast  Energy  Fund.                 
  Representative Grussendorf later  clarified that  Petersburg                 
  would also benefit.                                                          
                                                                               
  Co-Chair MacLean asked  the rate of  decline for PCE over  a                 
  ten year period.  Mr Petrie  explained that if $17 million a                 
  year is appropriated to PCE for grants, the body of the fund                 
  would be consumed  by the year  2000.  After  that time,  30                 
                                                                               
                                2                                              
                                                                               
                                                                               
  percent funding for PCE is expected.                                         
                                                                               
  MEL  KRONSENG,  LEGISLATIVE  STAFF,   REPRESENTATIVE  BARNES                 
  explained that AEA will remain intact as a corporation.  The                 
  Alaska  Energy  Authority  will  be  moved under  AIDEA  for                 
  management.  The  AIDEA Board of Directors  will function as                 
  the  Board  of  Directors   for  AEA.    The   transfer  was                 
  recommended by bond counsel.                                                 
                                                                               
  Ms. Kronseng referred to a letter  from Mr. Don Grimes, J.C.                 
  Bradford and Company (Attachment 1).   She asserted that the                 
  current version of  CSSB 106(FIN) am(efd fld)  has addressed                 
  his concerns.  She noted that  AEA remains a separate entity                 
  and  that  there is  a  six  month transition  period.   She                 
  pointed  out  that  the  rural  functions  of  AEA  will  be                 
  transferred to  the  Department of  Community  and  Regional                 
  Affairs.  She provided members with a memorandum from AEA to                 
  the Department of Community and Regional Affairs (Attachment                 
  2).   She noted  that AEA  will have  $19.8 million  dollars                 
  available for transfer  to the  Department of Community  and                 
  Regional Affairs.                                                            
                                                                               
  Ms. Kronseng pointed out  that $90.0 million dollars of  the                 
  Railbelt Intertie Reserve  will be  allocated as grants  for                 
  the Northern and Southern interties.   The remainder will be                 
  bonded through AIDEA.                                                        
                                                                               
  Ms.  Kronseng  provided  members  with   a  chart  detailing                 
  appropriations made in  CSSB 106(FIN)  am(efd fld) and  CSSB
  126(RLS)   am(efd  fld)  (Attachment   3).     She  reviewed                 
  appropriations  contained in  CSSB 126(RLS)  am(efd fld)  as                 
  shown by Attachment 3:                                                       
                                                                               
       *    Tyee/Swan Lake  loan, $20  million  dollars at  3%                 
            over 15 years to be repaid to the  Railbelt Energy                 
            Fund;                                                              
                                                                               
       *    Sutton-Glennallen, $35 million dollars at 0%  over                 
            50 years to be repaid to the Railbelt Energy Fund;                 
                                                                               
       *    $3 million  dollar general fund  appropriation for                 
            the Seward-Lawing Substation intertie to be repaid                 
            in to the Power Project Fund;                                      
                                                                               
  Ms.  Kronseng explained  that Four  Dam  Pool money  will be                 
  divided:                                                                     
                                                                               
       *    30   percent  ($3.1   million  dollars)   for  the                 
            PCE/Rural Cap Fund;                                                
                                                                               
  Ms. Kronseng clarified that the intent was to fund PCE for a                 
  minimum of ten years.                                                        
                                                                               
                                3                                              
                                                                               
                                                                               
       *    30  percent  ($3.1  million  dollars)  for   Power                 
            Project Fund loans; and                                            
                                                                               
       *    40  percnet   ($4.2  million   dollars)  for   the                 
            Southeast Energy Fund.                                             
                                                                               
  Ms. Kronseng noted  that $13.2 million general  fund dollars                 
  will  be  appropriated  to  complete  the  Sutton/Glennallen                 
  intertie.                                                                    
                                                                               
  Ms. Kronseng  referred  to the  Railbelt Energy  Fund.   She                 
  noted that interest from the fund has not been appropriated.                 
  The interest earnings of the  Railbelt Energy Fund contained                 
  within  the  General  Fund  is $85  million  dollars.    The                 
  legislation proposes  to  appropriate the  interest  to  the                 
  PCE/Rural Cap Fund.   She  agreed with Mr.  Petrie that  the                 
  Fund will be  depleted by the  year 2000.  Co-Chair  MacLean                 
  provided members with  a spread sheet showing the decline of                 
  the PCE/Rural Cap Endowment (Attachment  4).  She reiterated                 
  that the intent was to provide funding for 10 years.                         
                                                                               
  Ms. Kronseng  continued  to outline  appropriations made  by                 
  CSSB 126(RLS) am(efd fld):                                                   
                                                                               
       *    $5.0  million  dollars   for  Iliamna-New   Halen-                 
            Nondalton hydroelectric power project; and                         
                                                                               
       *    $3.9  million   for  operating  expenses   in  the                 
            Department of Community and Regional Affairs.                      
                                                                               
  Ms. Kronseng stated that Representative Barnes would favor a                 
  10  percent  decrease  to  the Power  Project  Fund  and  an                 
  accompanying increase in the PCE/Rural Cap Fund.                             
                                                                               
  Co-Chair MacLean noted  that Mr.  Petrie indicated that  the                 
  bonding  capability  of AIDEA  would  be in  question.   Ms.                 
  Kronseng  replied that  bond counsel  signified that,  since                 
  bonds will not  be issued for a year of  more, amendments to                 
  bonding statutes could be delayed.                                           
                                                                               
  Representative Martin questioned the 0 percent interest rate                 
  loan  to  complete  the  Sutton-Glennallen  intertie.    Ms.                 
  Kronseng stressed that the 0 percent  loan is needed to make                 
  the project feasible.                                                        
                                                                               
  Representative    Grussendorf    expressed    concern   that                 
  legislative overview  will  be  diminished.    Ms.  Kronseng                 
  assured him that  the legislative  overview process will  be                 
  improved.                                                                    
                                                                               
  Representative Brown  referred to CSSB 106(FIN)  am(efd fld)                 
                                                                               
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  page 37, section 36.   She noted that the state  will retain                 
  ownership of power projects.                                                 
                                                                               
  Co-Chair Larson  discussed the  FY  94 spending  plan.   Ms.                 
  Kronseng reviewed  fund transfers.   Co-Chair  MacLean asked                 
  where AEA umbrella projects will be addressed.  Ms. Kronseng                 
  noted that projects will be addressed in the capital budget.                 
                                                                               
  Co-Chair Larson  relayed constituent concerns  regarding the                 
  Sutton/Glennallen intertie.   Ms. Kronseng stressed  that an                 
  intertie needs to be built  in the Sutton/Glennallen area to                 
  complete the power grid  system between Fairbanks, Anchorage                 
  and the surrounding areas.                                                   
                                                                               
  Co-Chair  Larson asked  if right-of-way  rights, feasibility                 
  studies and permits  are in place for  the Sutton/Glennallen                 
  intertie.                                                                    
                                                                               
  (Tape Change, HFC 93-133, Side 1)                                            
                                                                               
  Ms.  Kronseng  assured  Co-Chair  Larson  that  right-of-way                 
  rights have not been purchased.  She stated that alternative                 
  routes are being  researched.   She emphasized that  further                 
  public testimony will  be taken.   She stated  that "if  the                 
  line is not feasible, it will not be built."                                 
                                                                               
  Representative   Brown  asked  why  the  project  should  be                 
  authorized  and committed to prior  to the completion of the                 
  feasibility study.  She noted that there is local opposition                 
  to the project.                                                              
                                                                               
  Ms. Kronseng  observed that the  Solomon Gulch hydroelectric                 
  project near Valdez is at peak demand.  She pointed out that                 
  there are a variety of economic  development projects in the                 
  area  waiting  for  sufficient  electrical  power  to  begin                 
  operations.                                                                  
                                                                               
  Ms.  Kronseng  clarified,  in  response  to  a  question  by                 
  Representative  Therriault,  that  the administration  could                 
  delay   appropriations   to   projects   contained  in   the                 
  legislation until the  end of  the fiscal year.   She  noted                 
  that the effective date clause failed in the Senate.                         
                                                                               
  Representative  Parnell  suggested  that  a  legal   written                 
  opinion be obtained  to confirm  that outstanding AEA  bonds                 
  will not be affected.                                                        
                                                                               
  JIM BALDWIN, ASSISTANT  ATTORNEY GENERAL, DEPARTMENT  OF LAW                 
  stated that the Department of Law would like to see language                 
  added to  allow moral  obligation debt.    He observed  that                 
  AIDEA does  not have the  ability to issue  moral obligation                 
  debt.    He indicated  that  bond counsel  feels  that moral                 
                                                                               
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  obligation bonds would  be needed  for issuance of  intertie                 
  projects.  He pointed out that AEA does have  the ability to                 
  issue moral  obligation bonds.   He  agreed that  it is  not                 
  essential  that AIDEA  be given the  ability to  issue moral                 
  obligation  bonds at  this  time, since  bonds  will not  be                 
  issued for a year or more.                                                   
                                                                               
  Co-Chair  MacLean  asked  how the  legislation  will address                 
  concerns regarding the comparative bond capabilities  of AEA                 
  and AIDEA.   Mr.  Baldwin emphasized  that moral  obligation                 
  bonding is a significant marketing factor.                                   
                                                                               
  Mr. Baldwin discussed areas of concern  to bond counsel.  He                 
  mentioned  jurisdiction   of  the   Alaska  Public   Utility                 
  Commission (APUC).  He noted that under existing law AEA has                 
  APUC exemptions.  He  pointed out that AIDEA does not have a                 
  similar exemption.                                                           
                                                                               
  Mr. Baldwin maintained  that in  order to assure  investment                 
  bankers AIDEA should be a signatory to the grant agreements.                 
                                                                               
                                                                               
  Representative Parnell reiterated  concerns regarding  AEA's                 
  outstanding bonds.   Mr. Baldwin pointed out  that there are                 
  project specific  bonds and  general obligation  bonds.   He                 
  stressed that AEA will retain  its framework with sufficient                 
  power to fulfill bond covenants.                                             
                                                                               
  Representative Brown asked what  authority AEA will  retain.                 
  Ms. Kronseng clarified  that AEA  will retain all  functions                 
  except the initiation and construction of new projects.                      
                                                                               
  Co-Chair Larson  provided members with resolutions  from the                 
  Matanuska-Susitna  Borough  regarding  the Sutton/Glennallen                 
  intertie  (Attachment  5).   The resolutions  recommend that                 
  alternatives  be  studied and  that  a feasibility  study be                 
  completed.                                                                   
                                                                               
  Representative   Brown   discussed  the   classification  of                 
  employees  transferred to  the Department  of Community  and                 
  Regional Affairs.   She noted  that AIDEA and  AEA employees                 
  are exempt.   Employees of  the Department of  Community and                 
  Regional Affairs are not exempt.                                             
                                                                               
  Representative Brown asked  if AEA's investigation authority                 
  will be  repealed.   Mr. Petrie  noted that  in section  27,                 
  AEA's ability  to  conduct  reconnaissance  and  feasibility                 
  studies  is repealed  (AS 44.83.170).   Representative Brown                 
  asked  how ongoing  projects will be  affected.   Mr. Petrie                 
  stated that the  major feasibility study being  conducted by                 
  AEA is the Sutton/Glennallen intertie feasibility study.  He                 
  stated that AEA would  try to complete the study  before the                 
                                                                               
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  statute is repealed.   He noted  that the preliminary  study                 
  showed that there  might be a  cost savings in down  scaling                 
  the project.                                                                 
                                                                               
  Ms. Kronseng stated that  AIDEA would determine the fate  of                 
  AEA's employees.   Representative Brown asked if  there will                 
  be  a change in  how AEA's  budget will  be reviewed  by the                 
  Legislature.  She asked if  AIDEA has independent authority.                 
  She asked if legislative oversight will be lessened.                         
                                                                               
  Mr.  Baldwin noted  that the  operating budget  of AIDEA  is                 
  subject  to  the  Executive Budget  Act.    The nonoperating                 
  portion  of  AIDEA's  budget  is   not  scrutinized  by  the                 
  Legislature.  There  must be  legislative approval for  bond                 
  issuances    of   more    than   $10.0    million   dollars.                 
  Representative Brown  noted  that AIDEA  could  allow  small                 
  energy projects without legislative  scrutiny.  Ms. Kronseng                 
  stated  that  it  is  her  understanding  that   legislative                 
  oversight would not be altered.  She emphasized that AIDEA's                 
  Board of Directors becomes the Board of Directors for AEA.                   
                                                                               
  KRISTINA ERHART, VOLUNTEER, ALASKA ENVIRONMENTAL LOBBY asked                 
  that the Committee  consider least cost planning  and energy                 
  efficiency  as  state policy.    She  supported the  use  of                 
  integrated  resource  management   planning  (IRMP).     She                 
  emphasized that IRMP would result in net long  term savings.                 
  She  stressed  that a  1989  AEA  study  concluded that  the                 
  proposed interties are only marginally  cost effective.  She                 
  noted  that  the  study found  that  demand  side efficiency                 
  investments provide a higher cost benefit ratio.                             
                                                                               
  Ms.  Erhart asserted  that  subsidized power  utilities have                 
  little incentive to  look for more cost  effective measures.                 
  She noted  that other  state  industries emphasizing  energy                 
  efficiencies are adversely affected.                                         
                                                                               
  Ms. Erhart  stated  she had  spoken  with  Sutton/Glennallen                 
  residents.  She discussed  concerns of the Sutton/Glennallen                 
  residents.  She  noted that conversations with  AEA indicate                 
  the feasibility study will be completed by December 1, 1993.                 
  She noted that public  testimony is being compiled and  will                 
  not be available  until December  1, 1993.   She asked  that                 
  authorization  for  the  intertie be  postponed  until after                 
  completion of the feasibility study.                                         
                                                                               
  BILL LEEDY,  ALASKA APPLIED SCIENCES  INCORPORATED spoke  on                 
  behalf of renewable  energy interests.   He emphasized  that                 
  the intertie concept is a poor investment relative to demand                 
  side management.                                                             
                                                                               
  (Tape Change, HFC 93-133, Side 2)                                            
                                                                               
                                                                               
                                7                                              
                                                                               
                                                                               
  Representative    Brown    requested   that    a   statewide                 
  teleconference be held  for public comment on  CSSB 106(FIN)                 
  am(efd fld) and CSSB 126(RLS) am(efd fld).                                   
                                                                               
  Co-Chair   MacLean  provided   members   with  AMENDMENT   1                 
  (Attachment 6).   She  noted that  it is  the intent  of the                 
  legislature to fund  the PCE program  at a least 17  million                 
  annually.   She observed that this  will provide funding for                 
  only  80  percent  of PCE  needs.    She  asserted that  the                 
  allocation from  the PDRLF  Fund plus  the initial grant  of                 
  $66.9 million dollars will not be enough to continue funding                 
  for PCE at the $17 million dollar  level.  Amendment 1 would                 
  state that it is  the intent of the legislature  to continue                 
  support for PCE at the $17.0  million dollar level until the                 
  year 2013.                                                                   
                                                                               
  Representative  Martin expressed  concern with  the cost  of                 
  assuring equality.                                                           
                                                                               
  Representative Grussendorf established that rural areas  pay                 
  between .34 to  .54 cents  a kilowatt hour.   Anchorage  and                 
  other urban areas pay approximately  .095 cents per kilowatt                 
  hour.                                                                        
                                                                               
  Ms.  Kronseng  clarified,  in  response  to  a  question  by                 
  Representative  Brown, that  the  legislature  must make  an                 
  annual appropriation  from the  PCE Rural Cap  Fund for  PCE                 
  reimbursements.  To continue the program past the year 2000,                 
  additional legislative appropriations would have to be made.                 
                                                                               
  Co-Chair MacLean MOVED to ADOPT AMENDMENT 1.  Representative                 
  Martin OBJECTED.  A roll call vote was taken on the motion.                  
                                                                               
  IN FAVOR: Brown,  Grussendorf,  Hoffman,   Navarre,  Foster,                 
                 Therriault, MacLean, Larson                                   
  OPPOSED:  Martin, Parnell                                                    
                                                                               
  Representative Hanley was not present for the vote.                          
                                                                               
  The MOTION PASSED (8-2).                                                     
                                                                               
  Co-Chair   Larson   provided   members  with   AMENDMENT   2                 
  (Attachment  7).   Mr.  Baldwin  explained that  Amendment 2                 
  would allow the issuance of moral obligation debt solely for                 
  a power  transmission intertie.   Co-Chair  Larson MOVED  to                 
  ADOPT  AMENDMENT 2.  Representative  Brown OBJECTED.  A roll                 
  call vote was taken on the motion.                                           
                                                                               
  IN FAVOR: Foster, Martin, Parnell,  Therriault, Grussendorf,                 
                 Hoffman, Navarre, MacLean, Larson                             
  OPPOSED:  Brown                                                              
                                                                               
                                                                               
                                8                                              
                                                                               
                                                                               
  Representative Hanley was not present for the vote.                          
                                                                               
  The MOTION PASSED (9-1).                                                     
                                                                               
  Representative  Brown  provided  members  with  AMENDMENT  3                 
  (Attachment 8).  Representative Brown  noted that section 39                 
  should  not  have been  added to  page  six of  Amendment 3.                 
  There  being NO OBJECTION, section 39  was deleted from page                 
  six of Amendment 3.  She  explained that the Amendment would                 
  require railbelt  utilities to  develop integrated  resource                 
  plans prior to  participation in  the projects contained  in                 
  CSSB 106(FIN)  am(efd fld)  and CSSB  126(RLS) am(efd  fld).                 
  She maintained the  need to  assure that utilities  consider                 
  the most cost effective alternatives.                                        
                                                                               
  Ms.  Kronseng replied that  utilities operating under REAA's                 
  are  required to  provide an  integrated management  system.                 
  She emphasized that larger utilities are already  performing                 
  integrated  management  plans.   She  felt that  Amendment 3                 
  would be redundant.   She asserted that  the Amendment would                 
  allow  APUC  to  tell  utilities   how  to  construct  their                 
  projects.   Representative Brown stressed that the Amendment                 
  would only affect  large railbelt  utilities.  She  observed                 
  that  projects executed  by AIDEA  will be  subject to  APUC                 
  jurisdiction.  Ms. Kronseng  replied that AIDEA will  not be                 
  constructing  the   interties.     The  interties   will  be                 
  constructed by the utilities.                                                
                                                                               
  DAVE  HUTCHENS,  ALASKA  RURAL  ELECTRIC  COOP   ASSOCIATION                 
  (ARECA)   stated  that   utilities  are   already  providing                 
  planning.   He asserted  that the  Amendment would  transfer                 
  responsibility for  the planning process  from utilities  to                 
  APUC.  He noted that ARECA is opposed to the Amendment.                      
                                                                               
  Representative   Brown   MOVED   to   ADOPT   AMENDMENT   3.                 
  Representative Therriault OBJECTED.   A  roll call vote  was                 
  taken on the motion.                                                         
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre                               
  OPPOSED:  Foster,  Martin,  Parnell,   Therriault,  MacLean,                 
                 Larson                                                        
                                                                               
  Representative Hanley was not present for the vote.                          
                                                                               
  The MOTION FAILED (4-6).                                                     
                                                                               
  Co-Chair   MacLean  provided   members   with  AMENDMENT   4                 
  (Attachment  9).    She  explained  that Amendment  4  would                 
  increase the   allocation percentage to  the PCE Rural  Fund                 
  from 30 to  40 percent and  decrease the allocation for  the                 
  Power Project Fund to 20 percent.  She  asserted that the 30                 
  percent allocation does not come close to providing adequate                 
                                                                               
                                9                                              
                                                                               
                                                                               
  funding  for  capital  projects administered  by  AEA.   Ms.                 
  Kronseng   stated   that   Representative  Barnes   supports                 
  Amendment 4.  She noted that funding  for statewide projects                 
  will be reduced.                                                             
                                                                               
  Members  discussed uses  for the  Power Project  Fund.   Mr.                 
  Petrie noted that  repairs are needed  on a section  between                 
  Wrangell and Petersburg.  Repair costs are estimated  at $12                 
  million dollars.                                                             
                                                                               
  Representative  Navarre  asked  how  long  revenues  will be                 
  received from  the  Four Dam  Pool  agreement.   Mr.  Petrie                 
  stated that revenues  will continue until  the year 2030  at                 
  approximately $12 million dollars a year.                                    
                                                                               
  Representative Navarre questioned the ability to finance the                 
  Tyee/Swan Lake  intertie based  on an  annual appropriation.                 
  Mr. Petrie agreed  that obtaining financing based  on annual                 
  legislative  appropriation will  be  difficult.   The  total                 
  project cost is $60 million dollars.                                         
                                                                               
  Representative   Navarre   suggested  that   varying  energy                 
  policies are being set up for different areas of the state.                  
                                                                               
  Members discussed financing for the Tyee/Swan Lake intertie.                 
  Representative Navarre noted that the city of Ketchikan will                 
  need to guarantee financing.                                                 
                                                                               
  Co-Chair MacLean MOVED to ADOPT AMENDMENT 4.  Representative                 
  Navarre OBJECTED.  A roll call vote was taken on the motion.                 
                                                                               
  IN FAVOR: Foster,  Hoffman,  Martin,   Parnell,  Therriault,                 
                 MacLean, Larson                                               
  OPPOSED:  Martin, Navarre, Grussendorf                                       
                                                                               
  Representatives Brown and  Hanley were  not present for  the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (6-3).                                                     
                                                                               
  Mr. Hutchens, in  response to  a question by  Representative                 
  Foster,  stressed  that AEA's  existing  programs  for rural                 
  energy can be  administered by  the Department of  Community                 
  and  Regional Affairs.    He noted  that  the Department  of                 
  Community and Regional Affairs would  need to gain expertise                 
  and surmised that personnel from AEA would be transferred to                 
  the Department.                                                              
                                                                               
  (Tape Change, HFC 93-134, Side 1)                                            
                                                                               
  Ms. Kronseng  explained how  the dissolution  of AEA  became                 
  incorporated into CSSB  106(FIN) am(efd fld).   She asserted                 
                                                                               
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  that it is  appropriate that the  rural functions of AEA  be                 
  performed  by  the  Department  of  Community  and  Regional                 
  Affairs.  She noted that  AEA was originally established  to                 
  oversee large energy  projects.  She emphasized  that except                 
  for  the interties  there  are  no  major  projects  on  the                 
  horizon.                                                                     
                                                                               
  Representative  Hoffman   asked   if   there   is   adequate                 
  representation on the AIDEA Board to address rural concerns.                 
  The Board consists of the commissioners of the Department of                 
  Community  and  Regional  Affairs,  Department  of  Revenue,                 
  Department  of Commerce  and  Economic  Development and  two                 
  public members.   The two public  members are not  currently                 
  from rural Alaska.                                                           
                                                                               
  Representative  Grussendorf  expressed   concern  that   the                 
  legislation goes to far.                                                     
                                                                               
  Representative Therriault MOVED to  report HCS CSSB 106(FIN)                 
  out  of Committee  with individual recommendations  and with                 
  the   accompanying  fiscal   note.     Representative  Brown                 
  OBJECTED.   She  noted that there  are fifteen  fiscal notes                 
  associated with the  legislation.  Mr. Petrie  observed that                 
  the existing  fiscal notes  did not  apply to  the HCS  CSSB
  106(FIN) version.   Representative Brown  suggested that the                 
  bill be held until the Committee could obtain updated fiscal                 
  notes.                                                                       
                                                                               
  HCS CSSB 106(FIN) was was HELD in Committee.                                 

Document Name Date/Time Subjects