Legislature(2023 - 2024)GRUENBERG 120

03/11/2024 01:00 PM House JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 15 Minutes Following Session --
+= HB 227 ELECTRIC UTILITY LIABILITY TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 238 CRIMINAL MISCHIEF 3RD DEGREE TELECONFERENCED
Moved CSHB 238(JUD) Out of Committee
-- Public Testimony --
               HB 227-ELECTRIC UTILITY LIABILITY                                                                            
                                                                                                                                
1:50:17 PM                                                                                                                    
                                                                                                                                
CHAIR VANCE announced  that the first order of  business would be                                                               
HOUSE BILL NO. 227, "An Act  relating to liability of an electric                                                               
utility  for   contact  between  vegetation  and   the  utility's                                                               
facilities."                                                                                                                    
                                                                                                                                
1:50:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARPENTER  moved to adopt  Amendment 1 to  HB 227,                                                               
labeled 33-LS0969\B.3, A. Radford, 3/8/24, which read:                                                                          
                                                                                                                                
     Page 1, line 2, following "facilities":                                                                                  
          Insert "; relating to a vegetation management                                                                       
     plan  for an  electric  utility; and  providing for  an                                                                  
     effective date"                                                                                                          
                                                                                                                                
     Page 1, line 12, following "right-of-way":                                                                                 
          Insert "and the utility was in compliance with a                                                                      
     vegetation management plan under AS 42.05.141(g)"                                                                          
                                                                                                                                
     Page 2, following line 6:                                                                                                  
          Insert a new bill section to read:                                                                                    
        "* Sec. 2.  AS 42.05.141 is amended by  adding a new                                                                
     subsection to read:                                                                                                        
          (g)  The commission shall adopt regulations                                                                           
               (1)  requiring an electric utility to                                                                            
     establish a  procedure in writing by  which the utility                                                                    
     will manage  vegetation to protect the  reliability and                                                                    
     safety of the utility's facilities; and                                                                                    
               (2)  establishing standards for vegetation                                                                       
     management   plans   required   under   (1)   of   this                                                                    
     subsection;  the  standards must  incorporate  industry                                                                    
     standards  and provide  for regional,  topographic, and                                                                    
     community differences in the state."                                                                                       
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 2, line 9:                                                                                                            
          Delete "This Act"                                                                                                     
          Insert "AS 09.65.086, added by sec. 1 of this                                                                         
     Act,"                                                                                                                      
                                                                                                                                
     Page 2, line 10, following "of":                                                                                           
          Insert "sec. 1 of"                                                                                                    
                                                                                                                                
     Page 2, following line 10:                                                                                                 
          Insert new bill sections to read:                                                                                     
        "*  Sec.  4. The  uncodified  law  of the  State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
          TRANSITION:     REGULATIONS.    The     Regulatory                                                                    
     Commission  of Alaska  may adopt  regulations necessary                                                                    
     to  implement  the  changes  made   by  this  Act.  The                                                                    
     regulations take effect  under AS 44.62 (Administrative                                                                    
     Procedure Act),  but not before  the effective  date of                                                                    
     the law implemented by the regulation.                                                                                     
        *  Sec.  5.  Section  4 of  this  Act  takes  effect                                                                  
     immediately under AS 01.10.070(c).                                                                                         
        *  Sec.  6.  Section  1 of  this  Act  takes  effect                                                                  
     July 1, 2025."                                                                                                             
                                                                                                                                
REPRESENTATIVE SUMNER objected.                                                                                                 
                                                                                                                                
1:51:14 PM                                                                                                                    
                                                                                                                                
BOB BALLINGER,  Staff, Representative  Sarah Vance,  Alaska State                                                               
Legislature,  on   behalf  of  Representative   Vance,  explained                                                               
Amendment 1.   He  stated that  to be  eligible for  the immunity                                                               
provided  under HB  227, the  amendment  would require  regulated                                                               
utilities  to  establish  a  vegetation   management  plan.    In                                                               
addition,  the  commission   shall  adopt  regulations  requiring                                                               
electric utilities to establish said vegetation management plan.                                                                
                                                                                                                                
1:55:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER  expressed concern  that Amendment  1 would                                                               
expand  the liability  for utilities  because there  would be  no                                                               
acknowledgment of compliance once  the vegetation management plan                                                               
is implemented.                                                                                                                 
                                                                                                                                
MR.   BALLINGER   indicated   that  an   established   vegetation                                                               
management  plan  would  allow  utilities to  file  a  motion  to                                                               
dismiss if a lawsuit were filed.                                                                                                
                                                                                                                                
REPRESENTATIVE SUMNER  questioned the bill sponsor's  position on                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
1:58:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GEORGE  RAUSCHER, Alaska State  Legislature, prime                                                               
sponsor  of  HB 227,  requested  a  moment  to properly  vet  the                                                               
proposed amendment.                                                                                                             
                                                                                                                                
1:58:54 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:58 p.m. to 2:00 p.m.                                                                       
                                                                                                                                
2:00:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER deferred to  the Regulatory Commission of                                                               
Alaska (RCA) for comment on Amendment 1.                                                                                        
                                                                                                                                
2:00:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY shared  his  understanding  that a  previous                                                               
version of  the bill included  a vegetation management  plan, but                                                               
utilities found it to be too onerous.                                                                                           
                                                                                                                                
2:01:30 PM                                                                                                                    
                                                                                                                                
KERI-ANN   BAKER,   Chief   Strategy  Officer,   Homer   Electric                                                               
Association  (HEA),  stated  that  preparing,  implementing,  and                                                               
overseeing a  vegetation plan is  not too onerous for  a utility.                                                               
She suggested  inviting someone  from the RCA  to speak  to their                                                               
responsibilities and work level, and  the impact that Amendment 1                                                               
might  have.    She  opined  that  regulatory  oversight  of  the                                                               
vegetation  management  plan  would  be  onerous,  not  the  plan                                                               
itself.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  GRAY shared  his understanding  that Utah  is the                                                               
only  other  state  to implement  similar  legislation  with  the                                                               
inclusion of a vegetation management plan.                                                                                      
                                                                                                                                
2:04:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARPENTER   asked,  from  a   legal  perspective,                                                               
whether  the utility  would have  to  be in  compliance with  the                                                               
vegetation management  plan if it  covered a large area  of land.                                                               
He moved to table Amendment 1.   There being no objection, it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
2:06:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GROH said he would  not be offering Amendment 2 at                                                               
this time.                                                                                                                      
                                                                                                                                
2:06:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY  moved  to  adopt Amendment  3  to  HB  227,                                                               
labeled 33-LS0969\B.2, A. Radford, 3/8/24, which read:                                                                          
                                                                                                                                
     Page 1, line 11, following "originated":                                                                                   
          Insert "entirely"                                                                                                     
                                                                                                                                
     Page 1, line 14:                                                                                                           
          Delete "of the trunk"                                                                                                 
                                                                                                                                
REPRESENTATIVE SUMNER objected.                                                                                                 
                                                                                                                                
2:06:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY explained  that Amendment 3 would  make it so                                                               
the  liability  shield  only  applies   when  all  parts  of  the                                                               
vegetation in  question are outside  the utility's right  of way.                                                               
In  addition, by  removing the  words  "of the  trunk," it  would                                                               
allow utilities to  cut or remove vegetation within  its right of                                                               
way as  long as any part  of that vegetation is  within the right                                                               
of way.                                                                                                                         
                                                                                                                                
2:07:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER removed his objection.                                                                                    
                                                                                                                                
REPRESENTATIVE CARPENTER  objected.   He asked whether  Ms. Baker                                                               
had reviewed the proposed amendment  and the effect that it would                                                               
have on the legislation.                                                                                                        
                                                                                                                                
MS.  BAKER  explained  that HEA  already  takes  everything  that                                                               
encroaches  on its  right of  way.   She shared  her belief  that                                                               
Amendment 3 may be interpreted differently than intended.                                                                       
                                                                                                                                
2:09:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY shared his understanding  that HEA is already                                                               
following the directive of Amendment 3.                                                                                         
                                                                                                                                
REPRESENTATIVE ALLARD  said she liked the  proposed amendment and                                                               
reasoned that there would be no  harm in putting it in statute if                                                               
the  utilities are  already doing  it.   She questioned  the bill                                                               
sponsor's position on Amendment 3.                                                                                              
                                                                                                                                
REPRESENTATIVE RAUSCHER  opined that  Amendment 3  is unnecessary                                                               
and  confusing.   Further,  he  conveyed  that the  Alaska  Power                                                               
Association (APA) shares that opinion.                                                                                          
                                                                                                                                
2:10:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SUMNER  said  he   would  be  supportive  of  the                                                               
proposed  amendment because  to  his reading,  it  would allow  a                                                               
utility to take down  a tree that is in its right  of way and not                                                               
be held liable for trees entirely outside the right of way.                                                                     
                                                                                                                                
2:11:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE C. JOHNSON  sought to confirm that if  any part of                                                               
a tree  extends into the right  of way, the utility  can cut down                                                               
the whole  tree.   He asked whether  that would  effectually give                                                               
utilities an extra 10 feet of right of way.                                                                                     
                                                                                                                                
REPRESENTATIVE  RAUSCHER shared  his  understanding  that if  the                                                               
majority  of a  tree is  outside the  right of  way, the  utility                                                               
would have to  be on private property  to cut it down.   For that                                                               
reason, he believed  that Amendment 3 was confusing  and not good                                                               
for the bill.                                                                                                                   
                                                                                                                                
REPRESENTATIVE   ALLARD  asked   Representative  C.   Johnson  to                                                               
elaborate on his prior question.                                                                                                
                                                                                                                                
REPRESENTATIVE  C.   JOHNSON  expressed  concern   about  private                                                               
property  rights and  allowing a  utility to  cut down  an entire                                                               
tree that may partially extend into a right of way.                                                                             
                                                                                                                                
2:14:43 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:14 p.m. to 2:18 p.m.                                                                       
                                                                                                                                
2:18:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER  sought to verify  that if any part  of the                                                               
tree  is inside  the right  of way,  the utility  could take  the                                                               
entire  tree.   In  addition,  he  asked  whether that  would  be                                                               
considered a taking.                                                                                                            
                                                                                                                                
IAN  WALSH,  Attorney,  Legislative Legal  Services,  Legislative                                                               
Affairs Agency (LAA),  said that is a  possible interpretation of                                                               
Amendment  3   and  offered  to   follow  up  on   the  requested                                                               
information.                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER  moved to table  Amendment 3.   There being                                                               
no objection, it was so ordered.                                                                                                
                                                                                                                                
2:20:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER  asked Legislative  Legal Services  to give                                                               
an opinion  on what  would constitute  a taking  in regard  to HB
227.                                                                                                                            
                                                                                                                                
MR.  WALSH  stated that  as  drafted,  if  a tree  straddles  the                                                               
boundary, it would be treated as  if it were owned by both sides.                                                               
He added that he would need  to follow up with governing case law                                                               
or statutes to confirm.                                                                                                         
                                                                                                                                
REPRESENTATIVE SUMNER asked Mr. Walsh  to analyze the legality of                                                               
a  tree that  is entirely  rooted on  a neighboring  property and                                                               
leans into the utility's easement.                                                                                              
                                                                                                                                
2:23:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY  said  by   deleting  "of  the  trunk,"  his                                                               
intention  was  to give  utility's  immunity  from liability  for                                                               
killing a tree by  protecting the right of way.   He asked how to                                                               
properly word the language in Amendment 3.                                                                                      
                                                                                                                                
MR.  WALSH said  he would  be happy  to draft  an amendment  that                                                               
captures that intent.                                                                                                           
                                                                                                                                
CHAIR VANCE announced that HB 227 would be held over.                                                                           

Document Name Date/Time Subjects
HB 227 - Amendment #2 (B.4) by Rep. Groh.pdf HJUD 3/11/2024 1:00:00 PM
HB 227
HB 227 - Amendment #3 (B.2) by Rep. Gray.pdf HJUD 3/11/2024 1:00:00 PM
HB 227
HB 238 - Amendment #1 (A.4) by Rep. Vance.pdf HJUD 3/11/2024 1:00:00 PM
HB 238
HB 227 - Amendment #1 (B.5) by Rep. Vance.pdf HJUD 3/11/2024 1:00:00 PM
HB 227