02/28/2013 09:00 AM Senate STATE AFFAIRS

          SB 45-FEE/TAX EXEMPTION FOR CERTAIN VEHICLES                                                                      
                                                                                                                                
9:02:37 AM                                                                                                                    
CHAIR DYSON announced  that the first order of  business would be                                                               
SB 45                                                                                                                           
.                                                                                                                               
GENEVIEVE WOJTUSIK,  staff to  Senator Lesil  McGuire, introduced                                                               
SB 45 on behalf of the sponsor.                                                                                                 
                                                                                                                                
SENATOR GIESSEL  moved to  adopt SB  45, labeled  28-LS0411\A, as                                                               
the  working  document  before  the  committee.  There  being  no                                                               
objection, it was so ordered.                                                                                                   
                                                                                                                                
MS.  WOJTUSIK explained  the  SB  45 is  an  Act setting  special                                                               
registration  fees for  alternative fuel  vehicles and  providing                                                               
for an effective date. It  is a progressive approach to providing                                                               
incentives to  the public for  this new technology. It  will help                                                               
air  quality  issues  and promote  additional  jobs  through  the                                                               
application  of  this  new  technology   and  line  of  products.                                                               
Compressed natural gas (CNG) vehicles  will also help to displace                                                               
petroleum and  reduce emissions.  They can help  Alaska diversify                                                               
energy requirements  and help insulate  the state  from potential                                                               
shocks to the state's oil supply.                                                                                               
                                                                                                                                
She said promoting the sale  of CNG vehicles will lower operating                                                               
costs  for consumers  at  a  time when  fuel  costs represent  an                                                               
increasing portion of Alaskan family  and small business budgets.                                                               
This  bill reduces  registration costs  from $100  bi-annually to                                                               
$20 for  electric, CNG, liquid  natural gas,  liquefied petroleum                                                               
gas, and hydrogen vehicles.                                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI said he supports  the concept of alternative                                                               
fuel vehicles. He wondered if saving  $75 would have a big impact                                                               
on someone planning  to buy an electric car.   He asked about the                                                               
high programming costs found in  the fiscal note. It provides for                                                               
an  estimated 250  hours of  programming at  $143 per  hour, plus                                                               
$25,000 every year. He surmised that  the cost to the state would                                                               
be more than the savings incurred to the population.                                                                            
                                                                                                                                
MS.  WOJTUSIK deferred  to the  Department of  Motor Vehicles  to                                                               
answer.                                                                                                                         
                                                                                                                                
AMY  ERICKSON,  Director,  Division   of  Motor  Vehicles  (DMV),                                                               
Department of Administration, stated  that there were programming                                                               
costs in  the fiscal note due  to the need to  create several new                                                               
fields in DMV's  database. The initial cost for  the VIN decoding                                                               
software is  $75,000. The recurring subscription  is $25,000. She                                                               
explained that  DMV does not  currently track fuel types  and the                                                               
VIN decoder would be necessary to do so.                                                                                        
                                                                                                                                
9:06:22 AM                                                                                                                    
CHAIR  DYSON complimented  the DMV  on how  well they  administer                                                               
services to the public.                                                                                                         
                                                                                                                                
MS. ERICKSON said thank you.                                                                                                    
                                                                                                                                
CHAIR  DYSON stated  that  he  has been  following  the issue  of                                                               
alternative fuel  vehicles for a  long time. He thought  the bill                                                               
may be  a bit premature,  but it is part  of a plan  to encourage                                                               
the  use of  alternative fuel  vehicles. He  suggested there  may                                                               
need to be  more discussion if it triggers  continuing high costs                                                               
on the part of DMV.                                                                                                             
                                                                                                                                
9:07:41 AM                                                                                                                    
MS.  WOJTUSIK agreed.  She hoped  the costs  would even  out over                                                               
time.                                                                                                                           
                                                                                                                                
CHAIR DYSON  asked for more  information about the timing  of the                                                               
bill.                                                                                                                           
                                                                                                                                
MS. WOJTUSIK offered to find out.                                                                                               
                                                                                                                                
CHAIR  DYSON  said  he  plans  to  hold  the  bill  pending  that                                                               
information.                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL shared  a concern  about electric  cars and  the                                                               
need  for  batteries in  cold  climates  such as  Fairbanks.  She                                                               
wondered how realistic  the technology is for  Alaska. She termed                                                               
it a big expenditure for  something that may not be implementable                                                               
for a long time.                                                                                                                
                                                                                                                                
MS.   WOJTUSIK  noted   that  Juneau   is  currently   trying  an                                                               
experimental  program  through AEL&P  that  allows  ten users  to                                                               
drive electric cars with meter readers.                                                                                         
                                                                                                                                
SENATOR COGHILL  asked if dual fuel  would be in the  same coding                                                               
range.                                                                                                                          
                                                                                                                                
MS. ERICKSON said yes.                                                                                                          
                                                                                                                                
9:09:48 AM                                                                                                                    
CHAIR DYSON suggested a conceptual  amendment on page 1, line 14,                                                               
to  add  after (2)  "power  train  and  fuel  supply may  not  be                                                               
modified".  He did  not want  someone to  add modifications  that                                                               
negatively affect the efficiency of alternative fuels.                                                                          
                                                                                                                                
CHAIR DYSON held SB 45 in committee.