Legislature(2015 - 2016)HOUSE FINANCE 519

04/13/2015 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 190 MEDICAID REFORM/FRAUD/ER USE/STUDIES TELECONFERENCED
Heard & Held
+ HB 105 AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT TELECONFERENCED
Heard & Held
+ HB 154 CIVIL LEGAL SERVICES FUND TELECONFERENCED
Moved HB 154 Out of Committee
+= HB 123 ESTABLISH MARIJUANA CONTROL BOARD TELECONFERENCED
Moved CSHB 123(JUD) Out of Committee
+ SB 26 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 105                                                                                                            
                                                                                                                                
     "An  Act relating  to  the programs  and  bonds of  the                                                                    
     Alaska  Industrial  Development and  Export  Authority;                                                                    
     related  to  the  financing authorization  through  the                                                                    
     Alaska Industrial  Development and Export  Authority of                                                                    
     a liquefied  natural gas  production plant  and natural                                                                    
     gas  energy projects  and distribution  systems in  the                                                                    
     state;  amending  and   repealing  bond  authorizations                                                                    
     granted  to  the   Alaska  Industrial  Development  and                                                                    
     Export  Authority;  and   providing  for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
3:02:03 PM                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to ADOPT the proposed committee                                                                     
substitute for HB 105, Work Draft 29-GH1019\N (Shutts,                                                                          
4/12/15). There being NO OBJECTION, it was so ordered.                                                                          
                                                                                                                                
JANE PIERSON, STAFF, REPRESENTATIVE STEVE THOMPSON,                                                                             
explained the changes in the Committee Substitute (CS). She                                                                     
read from an explanation of changes:                                                                                            
                                                                                                                                
     Sec 1: No change                                                                                                           
     Sec 2:  Inserts new language into  allowing an Interior                                                                    
     Alaska  utility  that  is  owned   and  operated  by  a                                                                    
     political  subdivision   of  the  state   and  receives                                                                    
     financing from the  sustainable energy transmission and                                                                    
     supply  development fund  to  exempt  the utility  from                                                                    
    rate regulation, under AS 44.88.660, by resolution.                                                                         
     Sec 3: No change                                                                                                           
     Sec 4: No change                                                                                                           
     Sec 5: No change                                                                                                           
     Sec 6: No change                                                                                                           
     Sec  7:  Removes  subsection (1)  regarding  the  AIDEA                                                                    
     acquisition  of  gas   reserves  (discussion  moved  to                                                                    
     section 8). Language in  subsection (2) is incorporated                                                                    
     into  (c) and  modified. The  words "negotiate  or" are                                                                    
     removed.  Language  "to  provide  natural  gas  to  the                                                                    
     Interior Alaska as a primary  market" are added on page                                                                    
     6, lines 29-30.  The words "uses to  serve customers in                                                                    
     Interior Alaska" are added on page 7, lines 2-3.                                                                           
     Sec   8:   Inserts   new   Section   8,   amending   AS                                                                    
     44.88.690(a),  regarding the  AIDEA sustainable  energy                                                                    
     transmission  and supply  development fund,  to require                                                                    
     AIDEA to  obtain legislative approval before  using the                                                                    
     fund  to purchase  or  acquire gas  reserves  or a  gas                                                                    
     lease or become  a working interest owner  of a natural                                                                    
     gas lease.                                                                                                                 
     Sec 9: Version  E Section 8 renumbered as  Section 9 in                                                                    
     Version N.                                                                                                                 
     Sec  10:  New  Section  10  inserted,  providing  AIDEA                                                                    
     bonding authorization up to  $50,000,000 to finance the                                                                    
     acquisition,  design,   and  construction  of   a  port                                                                    
     facility and  equipment related to the  development and                                                                    
     operation  of a  bulk  commodity  loading and  shipping                                                                    
     terminal, to be located at Point MacKenzie.                                                                                
     Sec 11:  Version E Section  9 renumbered as  Section 11                                                                    
     in Version N and "prepares  a project plan and receives                                                                    
     legislative  approval of  the  plan"  is replaced  with                                                                    
     "approves a project plan" on page 7, line 16.                                                                              
     Sec 12: Version  E Section 10 renumbered  as Section 12                                                                    
     in Version N.                                                                                                              
                                                                                                                                
     Sec 13: Version  E Section 11 renumbered  as Section 13                                                                    
     in  Version  N is  modified  to  remove the  repeal  of                                                                    
     "Section 2,  ch. 27, SLA  1993, as amended by  sec. 19,                                                                    
     ch.  111" pertaining  to  the  Point MacKenzie  bonding                                                                    
     authorization.                                                                                                             
     Sec 14: Inserts a  new Section 14 providing legislative                                                                    
     authority  for AIDEA  to issue  up  to $120,000,000  of                                                                    
     bonds  to finance  the infrastructure  and construction                                                                    
     costs of Sweetheart Lake hydroelectric project.                                                                            
     Sec 15: Inserts a  new Section 15 providing legislative                                                                    
     authority for  the Alaska Energy  Authority to  loan an                                                                    
     amount up to $3,000,000 from  the power project fund to                                                                    
     the  City   of  King  Cove  for   the  Waterfall  Creek                                                                    
     hydroelectric project.                                                                                                     
     Sec 16: Version  E Section 12 renumbered  as Section 16                                                                    
     in Version N.                                                                                                              
     Sec 17:  Inserts new Section  17 repealing  Sections 14                                                                    
     and 15 of this act June 30, 2019.                                                                                          
     Sec 18: Version  E Section 13 renumbered  as Section 18                                                                    
     in Version N.                                                                                                              
                                                                                                                                
FRED  PARADY, DEPUTY  COMMISSIONER, DEPARTMENT  OF COMMERCE,                                                                    
COMMUNITY, AND  ECONOMIC DEVELOPMENT, provided  a PowerPoint                                                                    
presentation  titled "Interior  Energy Project"  dated April                                                                    
13, 2015 (copy on file). He addressed slide 2:                                                                                  
                                                                                                                                
     IEP: GOALS UNDER SB23                                                                                                      
                                                                                                                                
     Supply natural gas to Interior Alaska:                                                                                     
     -At the lowest cost possible                                                                                               
     -As many Alaska customers as possible                                                                                      
     -As soon as possible                                                                                                       
     IEP  investments  compliment  eventual sources  of  gas                                                                    
     supply from a natural gas pipe line                                                                                        
     Lower PM2.5 in nonattainment areas of Interior                                                                             
                                                                                                                                
Mr.  Parady  emphasized  that the  Interior  Energy  Project                                                                    
(IEP)  lowered  the  PM2.5 in  nonattainment  areas  of  the                                                                    
Interior, which was among the  highest level of pollution in                                                                    
the United States. He reviewed slides 3:                                                                                        
                                                                                                                                
     IEP: OVERVIEW                                                                                                              
                                                                                                                                
     Meet  the  goals  set  by  the  legislature  to  supply                                                                    
     affordable energy to Interior Alaska                                                                                       
                                                                                                                                
     Project is  complex, which is why  the legislature took                                                                    
     action                                                                                                                     
                                                                                                                                
     Now  evaluating infrastructure  to deliver  natural gas                                                                    
     from any source, including Cook Inlet                                                                                      
                                                                                                                                
     AIDEA   financing   the   buildout   of   natural   gas                                                                    
     distribution in Fairbanks and North Pole                                                                                   
                                                                                                                                
Mr. Parady moved to slide 4:                                                                                                    
                                                                                                                                
     IEP: HB 105                                                                                                                
                                                                                                                                
     HB 105 gives  AIDEA flexibility to use  SB 23 financing                                                                    
    tools with a non-North Slope liquefaction location                                                                          
                                                                                                                                
     -Current version of HB 105 also authorizes financing                                                                       
     propane and small diameter pipeline (under 12"                                                                             
     diameter) projects to meet the goals of the IEP                                                                            
                                                                                                                                
Mr. Parady  highlighted slide 5,  "North Slope  Project Map"                                                                    
and slide  6, "Cook  Inlet Project  Map." He  explained that                                                                    
the  only  project  authorized   under  SB  23  (AIDEA:  LNG                                                                    
PROJECT; DIVIDENDS;  FINANCING) [Adopted  May 30,  2013] was                                                                    
the  North Slope  Natural Gas  Supply and  Liquefied Natural                                                                    
Gas  (LNG) Production  plant.  The  legislation allowed  the                                                                    
project  to  "flip"  from  north to  south  and  consider  a                                                                    
natural  gas supply  from Cook  Inlet instead  of the  North                                                                    
Slope.  He turned  to the  chart  on slide  7, "Cook  Inlet,                                                                    
North  Slope,  And  Other Alternatives"  that  outlined  the                                                                    
options  for the  project. He  reviewed that  the supply  of                                                                    
natural  gas from  Cook Inlet  was  currently uncertain  but                                                                    
indications  for increased  supply were  'positive." On  the                                                                    
North Slope,  where some existing  contracts were  in place,                                                                    
natural  gas   was  "abundant"  and   at  low   cost.  Other                                                                    
alternatives  that  were  considered for  the  project  were                                                                    
propane from  Canada or  a small  pipeline from  Cook Inlet,                                                                    
which might  be preferred  over a rail  or truck  option. He                                                                    
relayed that  in consideration  of LNG  plant costs,  a Cook                                                                    
Inlet plant was cheaper to  construct and operate as opposed                                                                    
to  designing and  constructing an  LNG plant  on the  North                                                                    
Slope, which was expensive due  to conditions. He added that                                                                    
construction  and   operation  of  an  LNG   plant  was  not                                                                    
necessary  for Canadian  Propane  or a  small pipeline  from                                                                    
Cook Inlet.                                                                                                                     
                                                                                                                                
Mr.  Parady examined  the LNG  "transportation logistics  of                                                                    
trucking and  rail and concluded  that Cook Inlet  had lower                                                                    
trucking costs,  large trailer  potential, and  rail options                                                                    
as opposed to  the North Slope where  trucking was feasible,                                                                    
but more expensive. He pointed  to the recent closure of the                                                                    
Dalton Highway due to an ice  jam as a drawback. He reported                                                                    
that  a combination  of "marine,  rail,  and trucking"  were                                                                    
possible  for   propane.  He  indicated  that   storage  and                                                                    
distribution  was  inherent  to  either  Cook  Inlet,  North                                                                    
Slope, or alternative options.                                                                                                  
                                                                                                                                
NICK SZYMONIAK, FINANCE  OFFICER, ENERGY DEVELOPMENT, ALASKA                                                                    
INDUSTRIAL  DEVELOPMENT  AND   EXPORT  AUTHORITY,  addressed                                                                    
slide 8,  "North Slope LNG  Project" and slide  9,"Cook Inlet                                                                   
LNG Alternative" and  explained that  the  graphics on  each                                                                    
slide compared  the "value  chain" for  each option  and the                                                                    
evaluative approach  employed by the IEP  team. He discussed                                                                    
slide 8 and delineated that  the North Slope project (SB 23)                                                                    
began  with two  existing gas  supply agreements  with North                                                                    
Slope producers  and interior utilities. The  LNG production                                                                    
plant   third  party   developer  had   not  been   selected                                                                    
(subsequently  a Concession  Agreement with  MWH Global  was                                                                    
chosen) and a  plan was in place to contract  with a private                                                                    
trucking company  for transportation needs. The  LNG storage                                                                    
and   regasification   distribution   systems   were   being                                                                    
negotiated  with   the  Interior   Gas  Utility   (IGU)  and                                                                    
Fairbanks  Natural  Gas  (FNG)  entities  with  talks  still                                                                    
continuing.  He remarked  that  the LNG  costs  for a  North                                                                    
Slope project under the concession  agreement was deemed too                                                                    
high  and subsequently  terminated. The  current legislation                                                                    
authorized the flexibility  for consideration of alternative                                                                    
options.                                                                                                                        
                                                                                                                                
Mr. Syzmoniak discussed  slide 9 relating to  the Cook Inlet                                                                    
alternative. He  relayed that the  difference in  gas supply                                                                    
between both projects was an  absence of existing agreements                                                                    
between Interior utility companies  and Cook Inlet producers                                                                    
other  than an  existing .95/bcf  agreement between  FNG and                                                                    
Hilcorp.  An   LNG  developer  had  not   been  chosen.  The                                                                    
transportation plan  remained the  same but the  project was                                                                    
also exploring Alaska Railroad  options. The current version                                                                    
of HB 105 also allowed  for a small diameter pipeline, which                                                                    
eliminated   the   need   for   an  LNG   plant   or   other                                                                    
transportation  needs.  A  propane  option  was  also  under                                                                    
examination.                                                                                                                    
                                                                                                                                
He moved to slide 10:                                                                                                           
                                                                                                                                
     Project Execution Plan                                                                                                     
                                                                                                                                
     Natural Gas supply: Facilitate commercial discussions                                                                      
     between producers and utilities                                                                                            
                                                                                                                                
     Liquefaction: Competitive solicitation to select                                                                           
     private partner to develop LNG capacity                                                                                    
                                                                                                                                
     Transportation: Private trucking, Alaska railroad,                                                                         
     small diameter pipeline, propane                                                                                           
                                                                                                                                
     Storage, Regasification, and Distribution: Buildout of                                                                     
     system continues Summer 2015PROJECT                                                                                        
                                                                                                                                
Mr.  Syzmoniak indicated  that the  Department of  Commerce,                                                                    
Community  and Economic  Development DCCED)  was taking  the                                                                    
lead  on discussions  between  producers  and utilities.  He                                                                    
added   that  Alaska   Industrial  Development   and  Export                                                                    
Authority  (AIDEA)   would  not  sign  any   contracts,  buy                                                                    
reserves or retain  any interests in a natural  gas field in                                                                    
Cook Inlet nor enter into  a contractual relationship in the                                                                    
LNG  plant. He  conveyed  that  the team  was  "open to  and                                                                    
encouraging" alternatives to Cook Inlet.                                                                                        
                                                                                                                                
3:16:20 PM                                                                                                                    
                                                                                                                                
GENE  THERRIAULT, DEPUTY  DIRECTOR, STATEWIDE  ENERGY POLICY                                                                    
DEVELOPMENT,   ALASKA   ENERGY  AUTHORITY,   DEPARTMENT   OF                                                                    
COMMERCE,  COMMUNITY  AND  ECONOMIC  DEVELOPMENT,  spoke  to                                                                    
slide 11:                                                                                                                       
                                                                                                                                
     IEP SUMMARY                                                                                                                
                                                                                                                                
          The goals remain as established by SB23                                                                               
                                                                                                                                
          HB 105 authorizes the tool kit to best achieve                                                                        
          goals of IEP                                                                                                          
                                                                                                                                
          Market driven process                                                                                                 
                                                                                                                                
               -Accomplishing IEP goals requires adaptation                                                                     
               to current market and operating realities                                                                        
                                                                                                                                
Representative Gara  related that he supported  the original                                                                    
plan  established   in  SB  23.  He   wondered  whether  the                                                                    
legislation  allowed the  IEP  to revert  to  a North  Slope                                                                    
natural  gas supply  if the  supply became  cheaper or  more                                                                    
abundant than a Cook Inlet option.                                                                                              
                                                                                                                                
Mr. Therriault  answered that the  language in the  bill did                                                                    
not  preclude  a  North Slope  producer  from  submitting  a                                                                    
completive  bid and  might even  entice a  bid from  a North                                                                    
Slope entity.                                                                                                                   
                                                                                                                                
Vice-Chair Saddler  asked whether  AIDEA would become  a gas                                                                    
utility under the IEP.                                                                                                          
                                                                                                                                
Mr. Therriault replied that  currently AIDEA was considering                                                                    
a  purchase  of  Pentex  [FNG parent  company]  assets  that                                                                    
included  a  FNG  distribution system.  He  elaborated  that                                                                    
AIDEA  intended to  contractually  operate the  distribution                                                                    
system. Ownership  by AIDEA  facilitated the  integration of                                                                    
FNG  and the  developing IGU  distribution systems  with the                                                                    
future  possibility of  morphing into  one system.  The goal                                                                    
was to  ultimately sell the  asset to  the IGU or  a private                                                                    
utility.                                                                                                                        
                                                                                                                                
Vice-Chair Saddler referred  to the use of  the term "market                                                                    
driven  solution" related  to the  project. He  deduced that                                                                    
the AIDEA involvement made the  project a less market driven                                                                    
and more government driven solution.                                                                                            
                                                                                                                                
Representative Munoz wondered what  the fiscal note had been                                                                    
for the original gas trucking  proposal [SB 23] and what the                                                                    
remaining balance of the fund was.                                                                                              
                                                                                                                                
Mr.  Parady answered  that  the  original funding  contained                                                                    
approximately  $150 million  in bonds,  $125 million  in the                                                                    
Sustainable  Energy  Transmission  and  Supply  Fund  (SETS)                                                                    
loans  and   $57.5  million  in   grants.  He   shared  that                                                                    
approximately  $55   million  from  the  loan   program  was                                                                    
committed to the distribution systems.                                                                                          
                                                                                                                                
Mr.  Therriault interjected  that the  $150 million  bonding                                                                    
authorization  and   $125  million   in  SETS   funding  was                                                                    
designated for loans expected to be "ultimately" repaid.                                                                        
                                                                                                                                
Representative Munoz requested further clarification.                                                                           
                                                                                                                                
Mr. Parady reported that out  of the $57.5 million in grants                                                                    
$12.4  million  was  expended  for  the  North  Slope  plant                                                                    
construction,  design, engineering,  and  storage study.  He                                                                    
added that $52.78  million of the SETS  funds were committed                                                                    
to  two loans  for the  distribution system;  a $15  million                                                                    
loan to FNG and a $37.78  million loan to IGU. He noted that                                                                    
$72.2 million remained in the SETS fund.                                                                                        
                                                                                                                                
Representative  Pruitt  asked  what the  project's  expected                                                                    
daily volume of gas was.                                                                                                        
                                                                                                                                
Mr.  Parady answered  that at  peak build  out the  Interior                                                                    
Alaska demand was  expected to be 9.5/bcf per year  and on a                                                                    
daily average was 26 million cubic feet (mcf) per day.                                                                          
                                                                                                                                
Representative  Pruitt asked  what impact  the amount  would                                                                    
have on the overall reserves in Cook Inlet.                                                                                     
                                                                                                                                
Mr. Parady answered that demand  was approximately less than                                                                    
10 percent of Cook Inlet  reserves. He shared that ten years                                                                    
of  Interior  demand  amounted  to  80/bcf  and  Cook  Inlet                                                                    
reserves were estimated in trillion board feet.                                                                                 
                                                                                                                                
Representative Pruitt observed that  there was a complex web                                                                    
of ownership throughout Cook Inlet  and wondered whether the                                                                    
amount   of   Cook   Inlet  reserves   were   "realistically                                                                    
recoverable."                                                                                                                   
                                                                                                                                
Mr.  Szymoniak replied  in the  affirmative. He  assured the                                                                    
committee that the figure represented developed reserves.                                                                       
                                                                                                                                
Representative  Pruitt  asked   for  verification  that  the                                                                    
agency felt comfortable going forward  with a Cook Inlet gas                                                                    
supply. He maintained  that the Cook Inlet  gas supply until                                                                    
recently, was thought  to be dwindling. He  alluded to other                                                                    
demands  on the  Cook  Inlet  supply. He  did  not want  the                                                                    
Southcentral energy  crisis to turn into  a Fairbanks crisis                                                                    
if Cook Inlet gas supply  was not sustainable over the long-                                                                    
term.                                                                                                                           
                                                                                                                                
Mr. Parady believed the question  was germane and the amount                                                                    
of  available Cook  Inlet gas  reserves were  being assessed                                                                    
further  by the  Department of  Natural Resources  (DNR) and                                                                    
the IEP gas  supply team. He expounded  that the indications                                                                    
were  favorable and  pointed to  "ample reserves."  However,                                                                    
more analysis was needed. He  engaged in a conversation with                                                                    
Enstar, who  reported that its  gas supply was  firm through                                                                    
the  first   quarter  of   2018.  Enstar   serviced  134,000                                                                    
customers  in   Southcentral,  Alaska.  He   disclosed  that                                                                    
current data  from DNR reported .4tcf  [trillion cubic feet]                                                                    
increase in gas supply in Cook Inlet since 2009.                                                                                
                                                                                                                                
3:28:06 PM                                                                                                                    
                                                                                                                                
Representative Pruitt queried whether  HB 105 maintained the                                                                    
legislature's  approval authority  over AIDEA's  decision on                                                                    
which gas supply to move the project forward with.                                                                              
                                                                                                                                
Mr. Therriault  cited the  CS, on page  7, lines  18 through                                                                    
20:                                                                                                                             
                                                                                                                                
     (1) identify the source of the natural gas or propane;                                                                     
     2 (2) include the estimated cost of the project; and                                                                       
     3 (3) include the estimated price of natural gas                                                                           
     supplied to natural gas utilities…                                                                                         
                                                                                                                                
Mr.  Therriault  communicated  that the  bill  required  the                                                                    
AIDEA board  to approve  a plan  that included  the required                                                                    
information.  He  voiced  that   the  AIDEA  board  had  the                                                                    
authority to  make the determination like  any other project                                                                    
AIDEA undertook.                                                                                                                
                                                                                                                                
Representative Pruitt  asked for verification  that approval                                                                    
authority was "out of the legislature's hands."                                                                                 
                                                                                                                                
Mr. Therriault replied in the affirmative.                                                                                      
                                                                                                                                
Representative  Pruitt worried  that  the legislature  would                                                                    
lose control over a "policy decision."                                                                                          
                                                                                                                                
Vice-Chair  Saddler  asked  what the  Cook  Inlet  estimated                                                                    
reserve figure was based on.                                                                                                    
                                                                                                                                
Mr.  Parady answered  that the  figure  was based  on a  DNR                                                                    
evaluation and was "proven plus probable."                                                                                      
                                                                                                                                
Vice-Chair  Saddler  asked how  recent  the  figure was.  He                                                                    
requested a copy of the report.                                                                                                 
                                                                                                                                
Mr. Parady responded that the data was from February 2015.                                                                      
                                                                                                                                
Mr.   Therriault  noted   that   the   CS  contained   other                                                                    
hydroelectric projects.  He delineated that a  hydro project                                                                    
through  AIDEA was  subjected to  the  same "due  diligence"                                                                    
process as  the process  the supply of  natural gas  will be                                                                    
based on.  When AIDEA was  "empowered" to make  the decision                                                                    
it was  based on whether  the project had a  sales agreement                                                                    
that "supported or "underpinned the financing.                                                                                  
                                                                                                                                
PATRICE LEE, SELF, FAIRBANKS  (via teleconference), spoke in                                                                    
favor of the legislation.  She thanked AIDEA for recognizing                                                                    
the severity of the air  pollution problem in Fairbanks. She                                                                    
shared two  concerns on the  CS version of  the legislation.                                                                    
She believed  that Section  8 restricted  the options  for a                                                                    
"free market" source  of gas. She worried that  the price of                                                                    
gas seemed  high. She hoped  the project would  be expedited                                                                    
to  serve the  100,000 citizens  of the  Interior. She  felt                                                                    
that the project could be an  asset to the Anchorage area if                                                                    
the Cook  Inlet option was  chosen by increasing  the market                                                                    
share and bargaining power.                                                                                                     
                                                                                                                                
MERRICK  PEIRCE,   SELF,  FAIRBANKS   (via  teleconference),                                                                    
supported  the  legislation.  He stated  concerns  over  the                                                                    
health risks of the high  particulate matter leading to poor                                                                    
air quality  of Fairbanks.  He referenced  a study  from the                                                                    
British  Medical Journal  that  concluded  exposure to  high                                                                    
particulate matter was linked  to mortality from strokes. He                                                                    
appreciated  the   various  options  being   considered  and                                                                    
thought  a  "phased  approach"  might   be  a  part  of  the                                                                    
solution. He  stated that propane  had many  advantages over                                                                    
LNG and  stored well.  He wanted  affordable energy  for the                                                                    
Interior  for  residential  purposes   and  to  attract  new                                                                    
industry  and job  creation. He  was troubled  by Section  8                                                                    
that prohibited AIDEA from  directly entering into contracts                                                                    
with Cook Inlet suppliers.                                                                                                      
                                                                                                                                
PAMELA   THROOP,  SELF,   FAIRBANKS  (via   teleconference),                                                                    
supported the legislation. She related  that she worked as a                                                                    
commercial real  estate broker and  her biggest  concern was                                                                    
the cost of living and  doing business in Fairbanks directly                                                                    
related to  high utility  costs. She  discerned that  in the                                                                    
event the IEP initially utilized  a Cook Inlet Source of gas                                                                    
via pipeline to Fairbanks  and subsequently consumed natural                                                                    
gas  via pipeline  from the  North Slope  the two  pipelines                                                                    
could be connected and natural  gas could flow to Anchorage.                                                                    
She  urged AIDEA  and IEP  to  consider any  kind of  energy                                                                    
source for Fairbanks.                                                                                                           
                                                                                                                                
JIM  DODSON,  FAIRBANKS  ECONOMIC  DEVELOPMENT  CORPORATION,                                                                    
FAIRBANKS  (via teleconference),  spoke  in  support of  the                                                                    
legislation. He  stressed that  clean air  was vital  to the                                                                    
health of the community's children.  He spoke to the need to                                                                    
build  a  "road map"  starting  in  Fairbanks, to  providing                                                                    
affordable  energy  to  the  entire   state.  He  urged  the                                                                    
legislature to support the legislation.                                                                                         
                                                                                                                                
JOMO  STEWART, FAIRBANKS  ECONOMIC DEVELOPMENT  CORPORATION,                                                                    
FAIRBANKS  (via teleconference),  echoed the  testimony from                                                                    
Mr. Dodson. He urged  the legislature to act "expeditiously"                                                                    
with passage of the bill to move the project forward.                                                                           
                                                                                                                                
3:42:01 PM                                                                                                                    
                                                                                                                                
LISA HERBERT, EXECUTIVE  DIRECTOR, GREATER FAIRBANKS CHAMBER                                                                    
OF COMMERCE, FAIRBANKS (via  teleconference), spoke in favor                                                                    
of  the  legislation.   She  represented  approximately  700                                                                    
businesses  as   executive  director  and   maintained  that                                                                    
reducing the  high cost of  energy was the  chambers highest                                                                    
priority. She  specifically supported the CS.  She supported                                                                    
the goals of the IEP to  serve the greatest number of people                                                                    
as possible,  as affordable as  possible, and as  quickly as                                                                    
possible.   She  encouraged   the   legislature  to   remain                                                                    
committed to the goals.                                                                                                         
                                                                                                                                
DEREK MILLER, FAIRBANKS CHAMBER  OF COMMERCE, FAIRBANKS (via                                                                    
teleconference),  spoke in  support of  the legislation.  He                                                                    
noted his  previous work as  a legislative aide and  for the                                                                    
University of  Alaska, Fairbanks. He stated  his support for                                                                    
the  original  bill,  SB  23   and  the  three  major  goals                                                                    
previously  stated. He  was opposed  to various  restrictive                                                                    
provisions  in the  House  Resources  Committee version.  He                                                                    
appreciated the concerns raised  about the Cook Inlet supply                                                                    
and expressed confidence that the  CS accomplished the goals                                                                    
of the IEP.                                                                                                                     
                                                                                                                                
LUKE  HOPKINS,  MAYOR,   FAIRBANKS  NORTHSTAR  BOROUGH  (via                                                                    
teleconference),  favored the  legislation. He  believed the                                                                    
amendments  in  the  CS  addressed  the  three  area  mayors                                                                    
concerns  and  advanced   the  project  without  restricting                                                                    
AIDEA's  decision   making  authority.  He  felt   that  the                                                                    
greatest  issues  were providing  low  cost  energy for  the                                                                    
community and businesses as quickly as possible.                                                                                
                                                                                                                                
Co-Chair Thompson CLOSED public testimony.                                                                                      
                                                                                                                                
Representative Wilson  reminded the  committee that  the gas                                                                    
industry  in  Cook  Inlet   received  generous  credits  and                                                                    
subsidies  from  the state  and  that  the gas  belonged  to                                                                    
everyone.                                                                                                                       
                                                                                                                                
HB  105  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  Thompson addressed  the agenda  for the  following                                                                    
day.                                                                                                                            
                                                                                                                                

Document Name Date/Time Subjects
HB 154 Additional Documentation--ALSC Restrictions Clarification.pdf HFIN 4/13/2015 1:30:00 PM
HB 154
HB 154 Support for Senate Companion Legislation--Alaska Childrens Trust.pdf HFIN 4/13/2015 1:30:00 PM
HB 154
HB 154 Additional Documentation--Civil Legal Services Fact Sheet.pdf HFIN 4/13/2015 1:30:00 PM
HB 154
HB 154 Support for Senate Companion Legislation--Alaska Coalition on Housing.pdf HFIN 4/13/2015 1:30:00 PM
HB 154
HB 154 Support for Senate Companion Legislation--Alaska Mental Health Board.pdf HFIN 4/13/2015 1:30:00 PM
HB 154
HB 154 Support for Senate Companion Legislation--ANDVSA.pdf HFIN 4/13/2015 1:30:00 PM
HB 154
HB 154 Support for Senate Companion Legislation--Facing Foster Care in Alaska.pdf HFIN 4/13/2015 1:30:00 PM
HB 154
HB 154 Support for Senate Companion Legislation--Governor's Council on Disabilities.pdf HFIN 4/13/2015 1:30:00 PM
HB 154
HB 154 Support for Senate Companion Legislation--VCI.jpg HFIN 4/13/2015 1:30:00 PM
HB 154
HB 154 Support Letter ACoA.pdf HFIN 4/13/2015 1:30:00 PM
HB 154
CS for proposed CS HB 105 H-Fin ver N Sectional Analysis AIDEA 4-13-15.pdf HFIN 4/13/2015 1:30:00 PM
HB 105
Explaination of changes HB 105 version E to version N.pdf HFIN 4/13/2015 1:30:00 PM
HB 105
Explaination of changes HB 105 version H to version E.pdf HFIN 4/13/2015 1:30:00 PM
HB 105
HB 105 CS WORKDRAFT FIN.pdf HFIN 4/13/2015 1:30:00 PM
HB 105
HB 105 HFIN AIDEA IEP.pdf HFIN 4/13/2015 1:30:00 PM
HB 105
Waterfall Creek-King Cove HB143.pdf HFIN 4/13/2015 1:30:00 PM
HB 143
HB 105 Juneau Hydropower.pdf HFIN 4/13/2015 1:30:00 PM
HB 105
HB 190 Sponsor Statement.pdf HFIN 4/13/2015 1:30:00 PM
HB 190
HB 190 Sectional.pdf HFIN 4/13/2015 1:30:00 PM
HB 190