03/03/1993 05:00 PM House ECO

                                                                               
                    HOUSE ECONOMIC TASK FORCE                                  
                          March 3, 1993                                        
                            5:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Jeannette James, Acting Chair                                 
  Representative Al Vezey                                                      
  Representative Joe Green                                                     
  Representative Bill Williams                                                 
  Representative Bettye David                                                  
  Representative Eileen MacLean                                                
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Bill Hudson                                                   
  Representative Jerry Mackie                                                  
  Representative Carl Moses                                                    
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  Presentations by Alaska Coal Association and Western Arctic                  
  Coal Project                                                                 
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Mr. R.B. Stiles, President                                                   
  Alaska Coal Association                                                      
  1227 West 9th #201                                                           
  Anchorage, AK  99507                                                         
  (907) 276-6868                                                               
  POSITION STATEMENT:  Provide information to the Task Force                   
                                                                               
  Governor Bill Sheffield                                                      
  ASRC - Western Arctic Coal Project                                           
  2504 Loussac Drive                                                           
  Anchorage, AK  99517                                                         
  (907) 243-1942                                                               
  POSITION STATEMENT:  Provide information to the Task Force                   
                                                                               
  Teresa Imm, Public Relations                                                 
  ASRC - Western Arctic Coal Project                                           
  301 Arctic Slope Avenue                                                      
  Anchorage, AK  99516                                                         
  (907) 349-5148                                                               
  POSITION STATEMENT:  Provide information to the Task Force                   
                                                                               
  John Sims, Marketing                                                         
  Usibelli Coal                                                                
  122 First Avenue                                                             
  Fairbanks, AK  99701                                                         
  (907) 452-2625                                                               
  POSITION STATEMENT:  Provide information to the Task Force                   
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  (NOTE: MEETING WAS NOT TAPED)                                                
                                                                               
  REPRESENTATIVE JEANNETTE JAMES, ACTING CHAIR, called the                     
  meeting of the House Economic Task Force to order at 5:00                    
  p.m. on March 3, 1993, in the Governor's Conference Room.                    
                                                                               
  BOB STILES, PRESIDENT, ALASKA COAL ASSOCIATION, handed out a                 
  draft of the Alaska Coal Policy.  He explained that Alaska                   
  had to compete against other countries in the coal market                    
  and thus needed a policy which he hoped the legislature                      
  would pass as a resolution.                                                  
                                                                               
  BILL SHEFFIELD, FORMER GOVERNOR, STATE OF ALASKA,                            
  representing the Arctic Slope Regional Corporation,                          
  introduced the Western Arctic Coal Project.  He stated the                   
  project was 10 years old and could deliver coal in two more                  
  years.                                                                       
                                                                               
  TERESA IMM, PUBLIC RELATIONS, ASRC - WESTERN ARCTIC COAL                     
  PROJECT, presented slides and pictures regarding the Western                 
  Arctic Coal Project.  She reported that $14 million had been                 
  spent to date, the project was entirely on private land, and                 
  the coal being produced had low sulfur, low moisture, and                    
  was very clean burning.  Regarding target markets, she                       
  stated the project focused on Western Alaska, North Slope                    
  villages, Hawaii, and Pacific Rim countries.  Among the                      
  project's benefits to Alaska, she mentioned the creation of                  
  300 jobs, a stable energy source, new tax base, diversified                  
  economy, and reduction in Alaska's dependence on oil.                        
                                                                               
  MS. IMM stated the Power Cost Equivalent, or the generating                  
  cost of power minus the consumer cost, would be reduced                      
  considerably by using coal instead of diesel.  She explained                 
  the United States had 20.8% of the world's coal reserves,                    
  these being mostly in Alaska, and added Asia's coal use                      
  showed the highest rate of increase and Alaska's location                    
  was perfect for supplying Asia's coal needs.  She reported                   
  that the Project already had all the needed permits.                         
                                                                               
  MR. STILES was asked to again review the Alaska Coal Policy,                 
  and he added that Montana's high severance tax had                           
  discouraged coal producers and consumers to the extent that                  
  Montana's share of the coal market was still very low; thus                  
  government must be careful to send a positive message,                       
  especially in the international market.  He expanded on the                  
  Jones Act as referred to in the draft of the Alaska Coal                     
  Policy, stating that there were currently no U.S. coal                       
  carriers so Hawaii bought all its coal from Indonesia; thus                  
  the Alaska Coal Association was seeking a waiver of the                      
  Jones Act for low-bulk commodities like coal, for shipment                   
  between Alaska and Hawaii, and Alaska and the Western United                 
  States.                                                                      
                                                                               
  JOHN SIMS of USIBELLI COAL, was asked for an update on this                  
  waiver and stated the United States Congress was currently                   
  drafting the 1993 Marine Policy Act to seek this exemption.                  
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at 5:45 p.m.