Legislature(2009 - 2010)HOUSE FINANCE 519

03/12/2010 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ HB 73 LICENSE PLATES TELECONFERENCED
Moved CSHB 73(FIN) Out of Committee
*+ HB 339 AK HOUSING FIN CORP DIVIDEND TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ HJR 45 OPPOSE FEDERAL CAP AND TRADE LEGISLATION TELECONFERENCED
Moved CSHJR 45(FIN) Out of Committee
<Bill Held Over from 3/11/10>
HOUSE JOINT RESOLUTION NO. 45                                                                                                 
                                                                                                                                
     Urging the United States Congress not to enact Cap and                                                                     
     Trade legislation.                                                                                                         
                                                                                                                                
9:10:38 AM                                                                                                                    
                                                                                                                                
JOHN  COAN,  STAFF,  REPRESENTATIVE BILL  STOLTZE,  SPONSOR,                                                                    
explained  that  the  resolution  was  intended  to  send  a                                                                    
message to  Congress and to  the President on an  issue that                                                                    
would  deeply affect  Alaska and  all Alaskans.  He stressed                                                                    
that  the Cap  and Trade  legislation in  Congress would  be                                                                    
detrimental across all industries.                                                                                              
                                                                                                                                
Mr. Coan  reported that Representative Stoltze's  office had                                                                    
worked  closely with  the governor's  office and  members of                                                                    
the  Alaska  delegation  to   craft  the  resolution  urging                                                                    
Congress  not  to  enact  the   measure.  He  described  the                                                                    
resolution  as  a  straightforward  expression  of  concerns                                                                    
regarding  cap  and  trade legislation  and  its  impact  on                                                                    
average working families and economic growth in the state.                                                                      
                                                                                                                                
RICK WILLIAMS,  PETERSBURG (via teleconference), spoke  as a                                                                    
commercial fisherman in support of the resolution:                                                                              
                                                                                                                                
     Thank   you    for   recognizing    the   geographical,                                                                    
     disproportionate  impacts of  mandatory greenhouse  gas                                                                    
     reductions  on  the  state   of  Alaska.  In  Southeast                                                                    
     Alaska,  the  cap  and  trade  bill  will  cripple  our                                                                    
     tourism,   fishing   industry    and   barge   service.                                                                    
     Everything we buy  and do will cost  more. The cost-of-                                                                    
     living increases will force many  families to leave. We                                                                    
     ordinary people are  learning the goal of  this cap and                                                                    
     trade  bill is  to  make carbon  dioxide  a number  one                                                                    
     commodity on the planet. Quoting  the February issue of                                                                    
     Harper's  Magazine:  "Unlike  traditional  commodities,                                                                    
     which  sometime  during  the  course  of  their  market                                                                    
     exchange  must  be  delivered to  someone  in  physical                                                                    
     form, the carbon market is  based on the delivery of an                                                                    
     invisible  substance  to  no  one.  Its  value  resides                                                                    
     entirely in the promise of its absence."                                                                                   
                                                                                                                                
     Big banks and big  multinationals love the trillions of                                                                    
     dollars tied to this bill.  They can work both ends and                                                                    
     it is  ripe for  abuse. China and  India love  it; they                                                                    
     have made it  absolutely clear that they  are not going                                                                    
     to perpetuate  their poverty by  initiating unrealistic                                                                    
     regulations, and will inherit  our wealth. This cap and                                                                    
     trade bill has  nothing to do with  the environment and                                                                    
     everything  to do  with power  and greed.  Furthermore,                                                                    
     there  is no  scientific consensus  on climate  change.                                                                    
     There is,  however, a petition  to the  U.S. government                                                                    
     signed by  31,478 American scientists,  including 9,029                                                                    
     with PhDs,  urging our government  to reject  the Kyoto                                                                    
     Protocol  and any  similar proposals.  Additionally, it                                                                    
     may be good to send a  copy of HJR 45 to Senators Boxer                                                                    
     and Inhofe,  the ranking members  of the  [U.S.] Senate                                                                    
     Committee on Environment and Public Works.                                                                                 
                                                                                                                                
9:15:10 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze   stated  that  the  resolution   was  not                                                                    
intended to disregard environmental  concerns and the issues                                                                    
of climate  change, but a major  philosophical and practical                                                                    
disagreement that cap  and trade is a vehicle to  fix it. He                                                                    
thought  there  clearly  is climate  change  and  there  are                                                                    
environmental    concerns   and    worldwide   environmental                                                                    
degradation  issues.  He  referred  to  testimony  by  Meera                                                                    
Kohler  [President of  Alaska Village  Electric Cooperative,                                                                    
Inc.]  regarding the  impact on  the delivery  of electrical                                                                    
services to  rural Alaska; she projected  an additional cost                                                                    
of $0.04/kWh if the cap and trade bill were implemented.                                                                        
                                                                                                                                
Co-Chair Stoltze MOVED Conceptual Amendment 1:                                                                                  
                                                                                                                                
     Page 3, line 26: Insert:                                                                                                   
     Senator Barbara Boxer, Chair,  U.S. Senate Committee on                                                                    
     the  Environment and  Public Works;  and Senator  James                                                                    
     Inhofe, Ranking  Member, U.S.  Senate Committee  on the                                                                    
     Environment and Public Works;                                                                                              
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Gara  spoke in opposition to  the resolution.                                                                    
He noted  that there  were various versions  of the  cap and                                                                    
trade legislation pending in Congress;  he thought some were                                                                    
better  and  some worse.  He  stated  he might  support  the                                                                    
resolution if it were amended.                                                                                                  
                                                                                                                                
Representative Gara  relayed that there are  versions of the                                                                    
legislation   that  people   believe   will  encourage   the                                                                    
expansion of natural gas production  and other versions that                                                                    
people  believe will  harm natural  gas pipeline  prospects.                                                                    
He was  working on an  amendment that would  clarify support                                                                    
of versions that would expand  the use and demand for Alaska                                                                    
natural gas.                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze put  aside  the bill  until  later in  the                                                                    
meeting.                                                                                                                        
                                                                                                                                
9:19:39 AM                                                                                                                    
                                                                                                                                
Co-Chair Hawker  commented that although there  were various                                                                    
versions of the bill in Congress,  HJR 45 did not target any                                                                    
particular  version but  took  a  stand against  legislation                                                                    
that would negatively impact Alaskans.                                                                                          
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 45                                                                                                 
                                                                                                                                
     Urging the United States Congress not to enact Cap and                                                                     
     Trade legislation.                                                                                                         
                                                                                                                                
9:45:03 AM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze returned to HJR 45.                                                                                            
                                                                                                                                
Representative Gara MOVED to ADOPT Conceptual Amendment 2:                                                                      
                                                                                                                                
     Insert page 3, line 12:                                                                                                    
     Whereas there are proposals to amend the pending                                                                           
     legislation that would expand the demand for Alaska                                                                        
     natural gas, and that would benefit Alaska; and                                                                            
                                                                                                                                
     Page 3, line 16:                                                                                                           
     Insert after "enact", insert "any version of"                                                                              
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Representative  Gara explained  the  amendment. He  believed                                                                    
there  were versions  of the  cap and  trade legislation  in                                                                    
Congress that would discriminate  against the use of natural                                                                    
gas and therefore  be harmful to Alaska, and  that there are                                                                    
proposals  that  may  not  technically   be  cap  and  trade                                                                    
provisions  that would  encourage  the use  of natural  gas,                                                                    
which would be beneficial to  the state. The amendment first                                                                    
acknowledges the  existence of  proposals that  would expand                                                                    
the  use of  natural  gas. Secondly,  the Alaska  delegation                                                                    
might  work  against   provisions  that  would  discriminate                                                                    
against natural gas and work  for provisions that would move                                                                    
a natural gas pipeline  forward. Inserting the language "any                                                                    
version  of"   would  address   the  intent   to  discourage                                                                    
detrimental versions.                                                                                                           
                                                                                                                                
Co-Chair  Stoltze MOVED  to divide  the  amendment into  two                                                                    
parts. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment 2a:                                                                                
                                                                                                                                
     Insert page 3, line 12:                                                                                                    
     Whereas there are proposals to amend the pending                                                                           
     legislation that would expand the demand for Alaska                                                                        
     natural gas, and that would benefit Alaska; and                                                                            
                                                                                                                                
Representative  Gara  explained  Amendment 2a.  He  noted  a                                                                    
number of  factual statements in  the "Whereas"  section; he                                                                    
regarded the amendment as factual as well.                                                                                      
                                                                                                                                
9:49:28 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  expressed  concerns  that  the  amendment                                                                    
would clutter the issue.                                                                                                        
                                                                                                                                
Representative  Gara responded  that  the "Whereas"  section                                                                    
made  factual  statements,  not   whether  the  issues  were                                                                    
supported  or   not.  He  believed  the   statement  in  the                                                                    
amendment was bipartisan.                                                                                                       
                                                                                                                                
Representative Kelly  spoke against Amendment 2a.  He stated                                                                    
concerns about secondary effects and about climate change.                                                                      
                                                                                                                                
Co-Chair Stoltze MAINAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Salmon, Doogan, Foster                                                                                          
OPPOSED:  Joule,   Kelly,  Thomas,   Austerman,  Fairclough,                                                                    
Stoltze, Hawker.                                                                                                                
                                                                                                                                
The MOTION FAILED (4/7).                                                                                                        
                                                                                                                                
9:52:42 AM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment 2b:                                                                                
                                                                                                                                
     Page 3, line 16:                                                                                                           
     Insert after "enact", insert "any version of"                                                                              
                                                                                                                                
Co-Chair Stoltze believed the  amendment to be technical and                                                                    
did not  object to it.  There being NO  OBJECTION, Amendment                                                                    
2b was adopted.                                                                                                                 
                                                                                                                                
Co-Chair Hawker  clarified the amendment numbers.  There was                                                                    
a discussion about language in the amendment.                                                                                   
                                                                                                                                
9:55:11 AM                                                                                                                    
                                                                                                                                
Representative  Gara  maintained  that a  "Whereas"  section                                                                    
beginning with line 5 on  page 3 was inaccurate. The section                                                                    
says that  cap and  trade will harm  the demand  for natural                                                                    
gas, which he claimed was not  true for some versions of the                                                                    
legislation. He wanted to distinguish between proposals.                                                                        
                                                                                                                                
Co-Chair Stoltze disagreed.                                                                                                     
                                                                                                                                
Representative Gara  proposed inserting language  to clarify                                                                    
that  certain versions  of cap  and trade  legislation would                                                                    
harm demand for natural gas.                                                                                                    
                                                                                                                                
9:58:12 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze suggested  changing "would"  on line  6 to                                                                    
"may".                                                                                                                          
                                                                                                                                
Representative  Gara reiterated  his  concerns that  certain                                                                    
versions would be bad for Alaska.                                                                                               
                                                                                                                                
Co-Chair Hawker MOVED conceptual Amendment 3:                                                                                   
                                                                                                                                
     Page 3, line 6:                                                                                                            
     Replace "would" with "may"                                                                                                 
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Hawker  MOVED to  report HJR 45  as amended  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.  There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHJR  45(FIN) was  REPORTED  out of  Committee  with a  "do                                                                    
pass" recommendation and with attached  new zero note by the                                                                    
Legislative Affairs Agency.                                                                                                     
                                                                                                                                
9:59:54 AM                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
04 Changes from Version A to Version P HB 73.pdf HFIN 3/12/2010 9:00:00 AM
HB 73
04__HB_73_Firefighter_EMS_Support_Letter-emails.pdf HFIN 3/12/2010 9:00:00 AM
HB 73
05_Add'l_support_HB_73.pdf HFIN 3/12/2010 9:00:00 AM
HB 73
05_Add'l_support_HB_73.pdf HFIN 3/12/2010 9:00:00 AM
HB 73
06 Sponsor Statement HB 73.pdf HFIN 3/12/2010 9:00:00 AM
HB 73
07 HB073CS-DOA-DMV-02-01-10UPDATEDFY11.pdf HFIN 3/12/2010 9:00:00 AM
HB 73
13 2009 Petition for plates - 238 signatures.pdf HFIN 3/12/2010 9:00:00 AM
HB 339 AHFC Transfer Plan Sectional Analysis.pdf HFIN 3/12/2010 9:00:00 AM
HB 339
HB 339 AHFC transfer plan Sponsor Statement.pdf HFIN 3/12/2010 9:00:00 AM
HB 339
02 CS for HB 73 Version P.pdf HFIN 3/12/2010 9:00:00 AM
HB 73