Legislature(2015 - 2016)SENATE FINANCE 532

04/18/2015 09:00 AM FINANCE

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Audio Topic
09:10:45 AM Start
09:11:47 AM HB105
09:19:00 AM HB41
09:51:24 AM Committee Contract: Bill Streur
09:54:21 AM HB41
01:36:30 PM HB105
01:45:08 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 105 Presentation: Overview FY17 Operating Budget TELECONFERENCED
Moved SCS CSHB 105(FIN) Out of Committee
Committee Contracts: Bill Streur
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 41 SPORT FISHING SERVICES TELECONFERENCED
Heard & Held
+= HB 178 WORKERS' COMP MEDICAL FEES; DELAY TELECONFERENCED
Scheduled but Not Heard
CS FOR HOUSE BILL NO. 105(FIN)                                                                                                
                                                                                                                                
     "An  Act relating  to  the programs  and  bonds of  the                                                                    
     Alaska  Industrial  Development and  Export  Authority;                                                                    
     relating  to  the  Alaska  Industrial  Development  and                                                                    
     Export  Authority sustainable  energy transmission  and                                                                    
     supply   development   fund;   requiring   the   Alaska                                                                    
     Industrial Development and  Export Authority to deliver                                                                    
     to  the legislature  reports relating  to the  Interior                                                                    
     energy    project;    relating   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;    authorizing    the   Alaska    Industrial                                                                    
     Development  and Export  Authority  to  issue bonds  to                                                                    
     finance  the infrastructure  and construction  costs of                                                                    
     the Sweetheart Lake  hydroelectric project; authorizing                                                                    
     the Alaska Industrial  Development and Export Authority                                                                    
     to  issue  bonds  to  finance  the  infrastructure  and                                                                    
     construction costs  of rebuilding  transmission between                                                                    
     the   Hope    substation   and    Portage,   rebuilding                                                                    
     transmission between Powerline Pass  to Indian, and the                                                                    
     Eklutna   hydroelectric  transmission   system  upgrade                                                                    
     project;  relating to  legislative  approval for  loans                                                                    
     from the power  project fund to the City  of King Cove;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
9:11:47 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  MOVED to  ADOPT the  proposed committee                                                                    
substitute  for   CSHB  105(FIN),  Work   Draft  29-GH1019\F                                                                    
(Shutts,   4/17/15).   Co-Chair   MacKinnon   OBJECTED   for                                                                    
discussion.                                                                                                                     
                                                                                                                                
ERIN SHINE,  STAFF, SENATOR  ANNA MACKINNON,  explained that                                                                    
the committee  substitute incorporated  components of  SB 50                                                                    
and HB 105.  She stated that there was an  expanded title on                                                                    
page  one.  Section  1  was intent  language  that  had  not                                                                    
changed  from the  root version.  She looked  at Section  2,                                                                    
which  raised the  limitations on  amounts  that the  Alaska                                                                    
Industrial  Development and  Export Authority  (AIDEA) could                                                                    
bond without legislative approval.  She looked at Section 3,                                                                    
which  would raise  the bonding  level.  She furthered  that                                                                    
there  was an  amendment  on page  3, line  4  and 5,  which                                                                    
changed  the word,  "law" to  "the  legislature." Section  4                                                                    
raised the bonding  level for AIDEA from $20  million to $25                                                                    
million. Section 5  was the beginning of  many sections that                                                                    
placed  sideboards  on  the  EIP  project.  She  noted  that                                                                    
Sections 6, 7, and 8  incorporated most of the language from                                                                    
the  House version  of the  bill. Section  9 included  added                                                                    
language from  the House version. Section  10 incorporated a                                                                    
bonding amendment, which reduced  the funds from $85 million                                                                    
to $28  million. Section  11 was  a repealer  section, which                                                                    
was  original   language  from  the   governor's  introduced                                                                    
legislation. Section 12 was the  report language that was in                                                                    
each version of the bill.                                                                                                       
                                                                                                                                
Co-Chair  MacKinnon REMOVED  her objection.  There being  NO                                                                    
OBJECTION, Work Draft 29-GH1019\F was ADOPTED.                                                                                  
                                                                                                                                
GENE  THERRIAULT, DEPUTY  DIRECTOR, STATEWIDE  ENERGY POLICY                                                                    
DEVELOPMENT,   ALASKA   ENERGY  AUTHORITY,   DEPARTMENT   OF                                                                    
COMMERCE,  COMMUNITY AND  ECONOMIC DEVELOPMENT,  thanked the                                                                    
committee for their efforts. He  believed that the committee                                                                    
substitute contain all the critical language for the IEP.                                                                       
                                                                                                                                
Co-Chair  MacKinnon  asked  that Mr.  Therriault  study  the                                                                    
bill, and be available later in the day for questions.                                                                          
                                                                                                                                
Co-Chair   MacKinnon  wondered   if  Mr.   Parady  had   any                                                                    
additional comments.                                                                                                            
                                                                                                                                
FRED  PARADY, DEPUTY  COMMISSIONER, DEPARTMENT  OF COMMERCE,                                                                    
COMMUNITY, AND  ECONOMIC DEVELOPMENT, stated that  he had no                                                                    
additional comments.                                                                                                            
                                                                                                                                
Vice-Chair Micciche  wondered where  in the  legislation the                                                                    
phrase, "propane  air mixture" was included.  Mr. Therriault                                                                    
replied that propane delivered in  a pipe system there was a                                                                    
mixture of  air to lower  the BPU content to  an appropriate                                                                    
level for the appliances.                                                                                                       
                                                                                                                                
CSHB 105(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 105(FIN)                                                                                                
                                                                                                                                
     "An  Act relating  to  the programs  and  bonds of  the                                                                    
     Alaska  Industrial  Development and  Export  Authority;                                                                    
     relating  to  the  Alaska  Industrial  Development  and                                                                    
     Export  Authority sustainable  energy transmission  and                                                                    
     supply   development   fund;   requiring   the   Alaska                                                                    
     Industrial Development and  Export Authority to deliver                                                                    
     to  the legislature  reports relating  to the  Interior                                                                    
     energy    project;    relating   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;    authorizing    the   Alaska    Industrial                                                                    
     Development  and Export  Authority  to  issue bonds  to                                                                    
     finance  the infrastructure  and construction  costs of                                                                    
     the Sweetheart Lake  hydroelectric project; authorizing                                                                    
     the Alaska Industrial  Development and Export Authority                                                                    
     to  issue  bonds  to  finance  the  infrastructure  and                                                                    
     construction costs  of rebuilding  transmission between                                                                    
     the   Hope    substation   and    Portage,   rebuilding                                                                    
     transmission between Powerline Pass  to Indian, and the                                                                    
     Eklutna   hydroelectric  transmission   system  upgrade                                                                    
     project;  relating to  legislative  approval for  loans                                                                    
     from the power  project fund to the City  of King Cove;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
1:36:30 PM                                                                                                                    
                                                                                                                                
GENE  THERRIAULT, DEPUTY  DIRECTOR, STATEWIDE  ENERGY POLICY                                                                    
DEVELOPMENT,   ALASKA   ENERGY  AUTHORITY,   DEPARTMENT   OF                                                                    
COMMERCE, COMMUNITY AND ECONOMIC  DEVELOPMENT, felt that the                                                                    
intended language was appropriately incorporated.                                                                               
                                                                                                                                
Co-Chair MacKinnon looked  at page 6, line  22, and remarked                                                                    
that the word, "propane" was not included.                                                                                      
                                                                                                                                
Co-Chair   Kelly  queried   the   draft  version.   Co-Chair                                                                    
MacKinnon stated that the bill version was F.                                                                                   
                                                                                                                                
Mr. Therriault  deferred to Mr. Parady,  regarding the word,                                                                    
"propane."                                                                                                                      
                                                                                                                                
FRED  PARADY, DEPUTY  COMMISSIONER, DEPARTMENT  OF COMMERCE,                                                                    
COMMUNITY,  AND  ECONOMIC  DEVELOPMENT, explained  that  the                                                                    
deletion of the  word "propane" was due to  the feeling that                                                                    
the phrase "natural gas" would cover the word.                                                                                  
                                                                                                                                
Vice-Chair   Micciche   stated   that   technically   liquid                                                                    
petroleum  gas  was  considered "propane."  He  stated  that                                                                    
adding the  word, "propane"  at the end  of the  sentence on                                                                    
line 22 and  after the words "natural gas" on  line 24 would                                                                    
be more appropriate, and expand the potential.                                                                                  
                                                                                                                                
Mr. Parady agreed.                                                                                                              
                                                                                                                                
1:38:53 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:39:00 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair  Micciche   moved  Conceptual  Amendment   1.  He                                                                    
explained the amendment:                                                                                                        
                                                                                                                                
     Add "or propane" after the words "natural gas" on line                                                                     
     24.                                                                                                                        
                                                                                                                                
Co-Chair MacKinnon restated the amendment.                                                                                      
                                                                                                                                
Vice-Chair Micciche explained the fiscal note.                                                                                  
                                                                                                                                
Vice-Chair  Micciche  felt that  the  concept  was a  simple                                                                    
concept, and would result in generational low energy costs.                                                                     
                                                                                                                                
Vice-Chair Micciche  MOVED to REPORT  SCS CSHB  105(FIN) out                                                                    
of  committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
SCS CSHB 105(FIN)  was REPORTED out of committee  with a "do                                                                    
pass" recommendation and with one  new zero fiscal note from                                                                    
the   Department  of   Commerce,  Community,   and  Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
1:42:04 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:44:17 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon discussed housekeeping.                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 105 Work Draft Version F.pdf SFIN 4/18/2015 9:00:00 AM
HB 105