Legislature(2003 - 2004)
05/16/2003 02:37 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE CONCURRENT RESOLUTION NO. 21(FIN)
Relating to establishing the Alaska Energy Policy Task Force.
This was the first hearing for this bill in the Senate Finance
Committee.
TOM WRIGHT, Staff to Representative John Harris, the bill's
sponsor, informed the Committee that this bill would establish a
nine-member energy policy task force to develop long-term energy
plans for the State. He continued that the nine member task force
would be comprised of one member from the Alaska Energy Authority
Board of Directors, the Commissioner of the Department of Revenue,
two persons chosen by the Governor, two persons chosen by the
Speaker of the House of Representatives, and three persons chosen
by the Senate President, one of whom would be appointed from a list
provided to the Senate President by the House and Senate Minority.
Additionally, he noted that task force members would select the
task force's chairperson.
Mr. Wright explained that the task force would be charged with
developing two long-term energy plans: one specifically for the
Railbelt area of the State and the other being a statewide energy
plan. Reports for these plans, he continued, must be submitted to
the Legislature by December 31, 2003 and March 31, 2004,
respectfully.
Amendment #1: This amendment allows the Commissioner of the
Department of Revenue to select a designee to represent the
Commissioner on the task force.
Senator B. Stevens moved for the adoption of Amendment #1. He
explained that the numerous obligations of the Commissioner of the
Department of Revenue might prevent regular attendance at task
force meetings; therefore, he continued, this amendment would allow
the Commissioner to appoint a representative "if and when"
necessary.
LANDA BAILY, Legislative Liaison and Special Assistant, Office of
the Commissioner, Department of Revenue affirmed that, while the
Commissioner wishes to serve on this board, his current obligations
to the Board of Trustees of the Alaska Permanent Fund, the Alaska
Pension Investment Board, the Alaska Energy Authority, and numerous
other boards and commissions might prohibit regular attendance. She
assured that the Department supports this amendment.
ERIC YOULD, Executive Director, ARECA, testified via teleconference
from Mat-Su that ARECA, the trade association for the electric
utility industry in the State and whose membership generates
approximately 90 percent of the electricity in the State, supports
the merit of this legislation. He commented that the potential for
large electric energy field projects exist; however, he noted, that
the development of these projects exceeds the abilities of the
various individual electric entities. He asserted that the
development of these projects would benefit the overall
infrastructure of the State and stimulate the economy. He stated
that this resolution is strongly supported, as it would provide a
means to further these potential projects.
Co-Chair Green asked for examples of these projects.
Mr. Yould responded that a strong power intertie project from
Fairbanks to Kenai or a transmission line from Nenana to the Donlin
Creek Gold Mine and continuing to Bethel and the Illiamna area are
being discussed. He listed another potential project as a
transmission line from Delta to Tok to Glenallen to Palmer, which
might eventually integrate with transmission lines from Valdez. He
expressed that, were the natural gas pipeline to come to fruition
and terminate in Valdez, the process of liquefying the natural gas
for export purposes would generate sufficient waste heat to
generate power that would otherwise be stranded. He continued that
other projects could include a Southeast intertie system.
Additionally, he noted that the task force could address
alternative energy projects as well.
Co-Chair Green asked whether these alternative energy projects are
ongoing or in the experimental stage of development.
Mr. Yould responded that these alternate energy projects are both
ongoing and experimental. He informed that these projects might
include such things as the wind projects that are currently being
researched in the Fairbanks area or tapping the tremendous
hydropower potential in the State. He noted that small projects
could involve fuel cell research as well as a large coal-fired
generation plant project being considered in the Healy area.
Co-Chair Green asked whether the coal-fired generation plant is
separate from the current Healy clean-coal plant project.
Mr. Yould responded yes. He noted that the power utilities
anticipate a resolution to the Healy clean-coal project that would
enable it to come online and feed into the power system in the
near-term. He continued that the coal-fired generation plant is a
separate project, and because it is in a conceptual stage, it might
be ten years before it becomes a reality.
Co-Chair Green ordered the bill SET ASIDE.
[Note: HCR 21 is readdressed later in the meeting.]
CS FOR HOUSE CONCURRENT RESOLUTION NO. 21(FIN)
Relating to establishing the Alaska Energy Policy Task Force.
This bill was again before the Committee.
Senator Taylor moved to report the bill from Committee with
individual recommendations and attached fiscal note.
There being no objections, SCS CS HCR 21 (FIN) was REPORTED from
Committee with previous fiscal note #1 from the Legislative Affairs
Agency.
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