Legislature(2019 - 2020)CAPITOL 17

03/21/2019 11:00 AM ENERGY

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Audio Topic
11:02:45 AM Start
11:03:11 AM HB87
11:42:00 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
*+ HB 87 LIQUEFIED NATURAL GAS STORAGE TAX CREDIT TELECONFERENCED
Moved HB 87 Out of Committee
-- Public Testimony --
Invited testimony by Dan Britton, CEO, Interior
Gas Utility
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                         March 21, 2019                                                                                         
                           11:02 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Grier Hopkins, Chair                                                                                             
Representative Zack Fields, Vice Chair                                                                                          
Representative John Lincoln                                                                                                     
Representative Ivy Spohnholz                                                                                                    
Representative Tiffany Zulkosky                                                                                                 
Representative Lance Pruitt                                                                                                     
Representative George Rauscher                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 87                                                                                                               
"An Act extending the liquefied natural gas storage facility tax                                                                
credit; and providing for an effective date."                                                                                   
                                                                                                                                
     - MOVED HB 87 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  87                                                                                                                  
SHORT TITLE: LIQUEFIED NATURAL GAS STORAGE TAX CREDIT                                                                           
SPONSOR(s): REPRESENTATIVE(s) THOMPSON                                                                                          
                                                                                                                                
03/08/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/08/19       (H)       ENE, FIN                                                                                               
03/21/19       (H)       ENE AT 11:00 AM CAPITOL 17                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE STEVE THOMPSON                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 87 as the prime sponsor of the                                                              
bill.                                                                                                                           
                                                                                                                                
DAN BRITTON, General Manager                                                                                                    
Interior Gas Utility (IGU)                                                                                                      
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Presented a PowerPoint by  the Interior Gas                                                             
Utility.                                                                                                                        
                                                                                                                                
MICHAEL MEEKS, Chief of Staff                                                                                                   
Mayor Jim Matherly                                                                                                              
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 87.                                                                           
                                                                                                                                
BRYCE WARD, Mayor                                                                                                               
Fairbanks North Star Borough                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 87.                                                                           
                                                                                                                                
JOMO STEWART                                                                                                                    
Fairbanks Economic Development Corporation                                                                                      
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 87.                                                                           
                                                                                                                                
VIKKI JO KENNEDY                                                                                                                
Grandma Brigade                                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of HB 87.                                                                    
                                                                                                                                
PATRICE LEE, Director                                                                                                           
Interior Gas Utility                                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 87.                                                                           
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
11:02:45 AM                                                                                                                   
                                                                                                                                
CHAIR GRIER HOPKINS called the  House Special Committee on Energy                                                             
meeting  to  order  at  11:02  a.m.    Representatives  Rauscher,                                                               
Lincoln, Spohnholz,  Zulkosky, Fields,  and Hopkins  were present                                                               
at  the call  to order.    Representative Pruitt  arrived as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
         HB 87-LIQUEFIED NATURAL GAS STORAGE TAX CREDIT                                                                     
                                                                                                                                
11:03:11 AM                                                                                                                   
                                                                                                                                
CHAIR HOPKINS announced that the  only order of business would be                                                               
HOUSE BILL  NO. 87  "An Act extending  the liquefied  natural gas                                                               
storage  facility  tax credit;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
11:03:57 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   STEVE   THOMPSON,  Alaska   State   Legislature,                                                               
paraphrased from a prepared statement, which read:                                                                              
                                                                                                                                
     HB   87   came   about   through   conversations   with                                                                    
     stakeholders  in the  Interior  about  our progress  on                                                                    
     efforts to  mitigate high energy costs  and improve our                                                                    
     air  quality. A  key theme  in these  conversations has                                                                    
     been  the  importance  of  ensuring  that  we're  doing                                                                    
     everything we  can to stay  on track with  the Interior                                                                    
     Energy  Project.   In 2015,  the Legislature  passed HB                                                                    
     105 to  renew and advance the  Interior Energy Project,                                                                    
     a project designed to bring  low cost energy to as many                                                                    
     residents and businesses of  Interior Alaska as quickly                                                                    
     as possible.  It has  resulted in  the creation  of the                                                                    
     Interior  Gas Utility  a not-for-profit  public utility                                                                    
     serving the Interior.                                                                                                      
                                                                                                                                
     In   2012,  the   Legislature  passed   legislation  to                                                                    
     incentivize  the  development  of  liquid  natural  gas                                                                    
     storage, a  key component  in achieving the  economy of                                                                    
     scale that  will enable widespread  use of  natural gas                                                                    
     in Fairbanks and North  Pole. This legislation provided                                                                    
     credits  for  the  construction  of  above  ground  LNG                                                                    
     storage facilities  with a  capacity of  25,000 gallons                                                                    
     or more. There are currently  2 projects underway, 1 in                                                                    
     Fairbanks and 1  in North Pole, that  will benefit from                                                                    
     these credits.                                                                                                             
                                                                                                                                
     HB87  will  extend  the sunset  date  of  the  original                                                                    
     legislation by  18 months in  order to ensure  that the                                                                    
     projects  underway will  be able  to capitalize  on the                                                                    
     existing  credits. This  is  a bill  that  can help  to                                                                    
     lower energy costs  and improve air quality  in an area                                                                    
     of the State that desperately needs to do both.                                                                            
                                                                                                                                
REPRESENTATIVE  THOMPSON  reported   that  Southeast  Alaska  had                                                               
benefited  from  low  energy   costs  through  subsidized  hydro-                                                               
electric systems  and Southcentral Alaska had  benefited from low                                                               
energy costs due to  the proximity of the gas in  Cook Inlet.  He                                                               
stated that  the Interior of  Alaska had  a "PM 2.5  problem that                                                               
we're trying  to mitigate because we  burn wood to heat  up there                                                               
and high  cost diesel fuel."   He pointed  out that PM  2.5 could                                                               
have  a big  effect  if  something was  not  done  to reduce  the                                                               
pollution   as  both   the  federal   government   and  the   EPA                                                               
(Environmental  Protection Agency)  were threatening  to withhold                                                               
federal highway  funds and  stopping future  economic development                                                               
projects.  He  shared a concern for the military.   He emphasized                                                               
that the proposed bill would  ensure storage facilities and lower                                                               
energy costs.                                                                                                                   
                                                                                                                                
11:07:56 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE RAUSCHER  asked about  the federal  withholding of                                                               
highway funds.                                                                                                                  
                                                                                                                                
11:08:13 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  THOMPSON  explained  that through  the  EPA,  the                                                               
federal government had  the ability to declare that,  as the city                                                               
was  not  in  compliance  with air  quality,  it  could  withhold                                                               
federal highway funds.  He  reported that there was the potential                                                               
loss of $30 million of highway funds.                                                                                           
                                                                                                                                
11:08:36 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  RAUSCHER  asked  if   these  highway  funds  were                                                               
directed to the local area or the entire state.                                                                                 
                                                                                                                                
REPRESENTATIVE  THOMPSON replied  that these  funds were  for the                                                               
northern region, and not the entire state.                                                                                      
                                                                                                                                
REPRESENTATIVE RAUSCHER asked if this had been threatened.                                                                      
                                                                                                                                
REPRESENTATIVE THOMPSON replied, "yes, they have."                                                                              
                                                                                                                                
11:09:40 AM                                                                                                                   
                                                                                                                                
DAN  BRITTON,  General  Manager,   Interior  Gas  Utility  (IGU),                                                               
presented  a  PowerPoint  titled   "Fueling  the  Future  of  the                                                               
Fairbanks  North Star  Borough.   He  paraphrased  from slide  2,                                                               
titled "Interior Energy Project PURPOSE AND GOALS," which read:                                                                 
                                                                                                                                
       to bring low-cost energy to as many residents and                                                                        
     businesses of Interior Alaska as possible, as quickly                                                                      
     as possible ...                                                                                                            
     Stabilize the Economy                                                                                                      
     Help Improve Air Quality                                                                                                   
                                                                                                                                
MR. BRITTON moved on and paraphrased slide 3, titled "History,"                                                                 
which read:                                                                                                                     
                                                                                                                                
     Fairbanks  Natural  Gas,  LLC(FNG) began  operating  in                                                                    
     Fairbanks in  Spring of 1998 giving  Interior residents                                                                    
     a  natural gas  heating option.  Over 1100  residential                                                                    
     and commercial  customers are  currently able  to enjoy                                                                    
     the benefits of natural gas.                                                                                               
                                                                                                                                
     In   November   2012,    the   Fairbanks   North   Star                                                                    
     Borough(FNSB)  acquired its  natural gas  utility power                                                                    
     via transfers from  the City of Fairbanks  and the City                                                                    
     of  North  Pole  and established  the  Interior  Alaska                                                                    
     Natural Gas Utility(IGU).                                                                                                  
                                                                                                                                
     June  2018,  the  IGU consolidated  with  FNG  and  now                                                                    
     operates  as   an  integrated,   not-for-profit  public                                                                    
     utility.                                                                                                                   
                                                                                                                                
11:11:04 AM                                                                                                                   
                                                                                                                                
MR BRITTON shared slide 4, "Energy Costs & Air Quality," and                                                                    
paraphrased the slide, which read:                                                                                              
                                                                                                                                
     According  to the  Council for  Community and  Economic                                                                    
     Research, the  FNSB typically  has the  highest utility                                                                    
     costs  in  the  nation  for the  300-plus  urban  areas                                                                    
     regularly surveyed.                                                                                                        
                                                                                                                                
     In  September  2006,  the   EPA  lowered  the  National                                                                    
     Ambient  Air  Quality  Standards for  fine  particulate                                                                    
     matter less than 2.5 micrometer  in diameter (PM 2.5) a                                                                    
     human health hazard.                                                                                                       
                                                                                                                                
     In  2009,   the  EPA  designated  the   more  populated                                                                    
     portions of the FNSB  as a non-attainment area relating                                                                    
     to  PM2.5. The  eastern  portion  of the  nonattainment                                                                    
     area (North  Pole) has the  worst air pollution  in the                                                                    
     nation,  three and  a half  times the  legal limit  and                                                                    
     almost two times worse than  the next worse area in the                                                                    
     U.S.                                                                                                                       
                                                                                                                                
     The FNSB's long-term efforts for  clean air are focused                                                                    
     on  bringing  clean,  affordable  natural  gas  to  the                                                                    
     Fairbanks area for space heating.                                                                                          
                                                                                                                                
11:12:29 AM                                                                                                                   
                                                                                                                                
MR. BRITTON presented slide 5, titled "Fairbanks Large LNG                                                                      
Storage Tank," and paraphrased the slide, which read:                                                                           
                                                                                                                                
     5.25 Million gallon capacity                                                                                               
                                                                                                                                
     Full-Containment, double wall design                                                                                       
                                                                                                                                
     Construction commenced January 2018                                                                                        
                                                                                                                                
     Advancing On-schedule                                                                                                      
                                                                                                                                
     Completion date estimated Fall 2019                                                                                        
                                                                                                                                
     Construction Costs $58.4 Million                                                                                           
                                                                                                                                
11:13:35 AM                                                                                                                   
                                                                                                                                
MR. BRITTON  addressed slide 6,  titled "9th (Last)  Row Welding"                                                               
and explained that  the inner tank pictured was  9 percent nickel                                                               
steel with  an aluminum ceiling.   He reported that the  tank was                                                               
almost complete.                                                                                                                
                                                                                                                                
11:14:11 AM                                                                                                                   
                                                                                                                                
MR. BRITTON addressed slide 7, titled "Outer Tank Stairs," which                                                                
depicted the tank from outdoors.                                                                                                
                                                                                                                                
11:14:38 AM                                                                                                                   
                                                                                                                                
MR. BRITTON addressed slide 8, titled "North Pole Storage."  He                                                                 
paraphrased the slide, which read:                                                                                              
                                                                                                                                
     Design  of the  $12.1 Million  LNG storage  facility in                                                                    
     North Pole is complete and  a Request for Proposals was                                                                    
     issued February  14, 2019. Proposals are  due March 21,                                                                    
     2019.                                                                                                                      
                                                                                                                                
     The  targeted completion  of  construction is  November                                                                    
     15, 2019 with operational  startup and commissioning by                                                                    
     December 31, 2019.                                                                                                         
                                                                                                                                
     The  storage  facility  will  have  two  75,000  Gallon                                                                    
     storage tanks  and a multi  purpose building,  and will                                                                    
     be connected to the  previously constructed 73 miles of                                                                    
     pipe infrastructure in the North Pole area.                                                                                
                                                                                                                                
11:16:18 AM                                                                                                                   
                                                                                                                                
MR. BRITTON addressed slide 9,  "North Pole Storage - Site Plan,"                                                               
which  depicted  the  ground  plan for  the  North  Pole  storage                                                               
facility.  He  shared that it would be located  across the street                                                               
from the  former Flint Hills  Refinery, and near a  Golden Valley                                                               
Electric  Association  (GVEA)  power  generation  facility.    He                                                               
reported  that  this  facility   included  storage,  natural  gas                                                               
vaporization,  and unloading  structures  which  allowed them  to                                                               
take the  LNG from  a truck  or a  container into  the stationary                                                               
tanks.  He  pointed out that LNG was stored  at minus 260 degrees                                                               
Fahrenheit, and to make it usable  by consumers, it was heated to                                                               
between 50 and 100 degrees  Fahrenheit and then injected into the                                                               
underground  piping  system.   Once  it  leaves the  LNG  storage                                                               
facility, IGU  was considered a conventional  natural gas utility                                                               
and could  provide gas service  to customers.  He  explained that                                                               
the added cost for the service  was due to the LNG infrastructure                                                               
and the need  to liquefy, transport, and store the  gas, and then                                                               
put it in the pipe network for customers.                                                                                       
                                                                                                                                
11:17:43 AM                                                                                                                   
                                                                                                                                
MR.  BRITTON paraphrased  from slide  10, "Benefits  of Storage,"                                                               
which read:                                                                                                                     
                                                                                                                                
     The development  of expanded LNG storage  facilities in                                                                    
     the  Fairbanks  and  North Pole  areas  is  a  critical                                                                    
     component  of  the  IEP  as   they  will  increase  the                                                                    
     security  of supply  and provide  capacity  to serve  a                                                                    
     greater number of new customers.                                                                                           
                                                                                                                                
     These  storage  facilities, with  current  liquefaction                                                                    
     infrastructure,  enable   IGU  the  ability   to  serve                                                                    
     approximately 3000 new  residential customers beginning                                                                    
     the summer 2020.                                                                                                           
                                                                                                                                
     The  state's  LNG  storage tax  credits  are  vital  in                                                                    
     helping  to bring  down the  cost of  providing natural                                                                    
     gas to Interior residents.                                                                                                 
                                                                                                                                
     All money from  tax credits for tanked  storage will be                                                                    
     under  the oversight  of the  Regulatory Commission  of                                                                    
     Alaska, the IGU  Board and the FNSB  Assembly to ensure                                                                    
     these savings are passed along to the rate payers.                                                                         
                                                                                                                                
11:19:06 AM                                                                                                                   
                                                                                                                                
MR. BRITTON  reported that,  as they were  a public  gas utility,                                                               
any savings  were always passed  on to the  consumer.  IGU  was a                                                               
not-for-profit  and  they did  not  return  any earnings  to  the                                                               
Borough, as  it all  stayed within  the utility  for reinvestment                                                               
toward expansion of  gas service for more customers.   He relayed                                                               
that the storage credit benefit to  IGU rates was estimated to be                                                               
$15 million  for Fairbanks  and $6  million for  North Pole.   He                                                               
noted that  the current price was  about $2 per MCF  per thousand                                                               
cubic feet  of gas and,  with the  increase of demand,  the price                                                               
would go down to about $0.72.   He projected that the price would                                                               
go down in the future to about $0.35.                                                                                           
                                                                                                                                
MR. BRITTON addressed slide 11,  "Estimated Impact on Rates," and                                                               
paraphrased the slide, which read:                                                                                              
                                                                                                                                
     Without storage credits, IGU will  incur $21 million in                                                                    
     additional  debt  with  an  estimated  rate  impact  of                                                                    
     $1.93/MCF at existing demand to  $0.72/MCF at Base Case                                                                    
     demand  (in  2022).  Actual   rate  impact  depends  on                                                                    
     customer conversions and associated demand.                                                                                
                                                                                                                                
11:20:17 AM                                                                                                                   
                                                                                                                                
MR.  BRITTON addressed  slide 12,  "Installed Piping  Fairbanks,"                                                               
which  depicted   a  map   showing  140   miles  of   the  piping                                                               
distribution  network  for  gas  access.   He  stated  that  more                                                               
conversions  were  now just  contingent  on  the availability  of                                                               
additional gas supply.                                                                                                          
                                                                                                                                
MR. BRITTON,  in response to  Representative Rauscher,  said that                                                               
the colors represented  different pipe size:   red equals 8-inch,                                                               
blue equals  6-inch, green  equals 4-inch,  and yellow  equals 2-                                                               
inch pipe.                                                                                                                      
                                                                                                                                
MR. BRITTON,  in response to  Representative Rauscher,  said that                                                               
there were a  few options for third-party damages.   He said that                                                               
there could be a  shut off for valving.  He  noted that, as there                                                               
was not  any steel in the  system, the pipe could  be squeezed to                                                               
shut  off flow  close  to  the damage.    He  reported that  each                                                               
emergency was  evaluated slightly differently dependent  on where                                                               
the gas was escaping and the proximity of structures.                                                                           
                                                                                                                                
REPRESENTATIVE RAUSCHER asked about the response time.                                                                          
                                                                                                                                
MR. BRITTON  replied that  the response  time was  generally less                                                               
than 30 minutes,  and often, the gas flow was  shut off within 15                                                               
minutes after that.   He shared that the longest  potential for a                                                               
challenging  situation with  remote excavation  would be  an hour                                                               
from the time of arrival to the gas shut off.                                                                                   
                                                                                                                                
REPRESENTATIVE  FIELDS asked  if the  downtown core  of Fairbanks                                                               
also had this infrastructure.                                                                                                   
                                                                                                                                
MR.  BRITTON  replied  that  completion   of  the  downtown  core                                                               
installation  had  started  during recent  sidewalk  projects  to                                                               
reduce impact  on the roadways.   He  pointed out that,  as other                                                               
areas  had  access   to  steam  and  hot  water   service  as  an                                                               
alternative to  wood and oil heat,  these had not yet  been fully                                                               
completed with gas service but would be in the next few years.                                                                  
                                                                                                                                
11:24:17 AM                                                                                                                   
                                                                                                                                
MR. BRITTON moved on to  slide 13, "Installed Piping North Pole,"                                                               
and explained  the construction of  Phase 1 of the  expansion, in                                                               
three distinct zones for contracting  purposes.  He reported that                                                               
about 72  miles of gas  piping had been  completed in one  of the                                                               
areas.  He added that there were six phases planned.                                                                            
                                                                                                                                
MR. BRITTON,  in response  to Representative  Rauscher, explained                                                               
that the  LNG storage facility  would be  the two red  squares on                                                               
the south portion of the map on  slide 12.  He pointed to the red                                                               
square on  the south-west  portion of the  map and  reported that                                                               
this  where the  new  large storage  tank  was being  constructed                                                               
adjacent to the operating facility.                                                                                             
                                                                                                                                
11:26:17 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE PRUITT  asked if the two  75-thousand-gallon tanks                                                               
would be sufficient for the six phases in North Pole.                                                                           
                                                                                                                                
MR. BRITTON said that the initial  design for these two tanks had                                                               
enough capacity  for Phases 1  - 3, although the  overall project                                                               
design  was  set up  for  the  full six  phases.    He said  that                                                               
additional  tankage would  be necessary  for the  remaining three                                                               
phases.  He  added that the vaporization capacity  and the design                                                               
of  the  systems was  set  up  to allow  for  the  addition of  a                                                               
vaporizer and additional boilers to meet the needs.                                                                             
                                                                                                                                
REPRESENTATIVE  PRUITT asked  if  the committee  should expect  a                                                               
visit when it was time for Phases 4 - 6.                                                                                        
                                                                                                                                
MR.  BRITTON   replied  that  the  additional   phases  were  not                                                               
anticipated  for five  to ten  years.   He stated  that, at  that                                                               
point, the  utility would be established  with substantially more                                                               
customers, with  an expectation that  the future  financial needs                                                               
would be  provided through  utility revenues  versus a  return to                                                               
the State of  Alaska for assistance.  He said  that, although the                                                               
utility   would   always  be   open   to   the  opportunity   for                                                               
contributions  that  could  reduce  the cost  to  consumers,  the                                                               
intention was  for that work to  be "borne by rate  payers in the                                                               
future."                                                                                                                        
                                                                                                                                
11:28:31 AM                                                                                                                   
                                                                                                                                
CHAIR  HOPKINS   opened  public   testimony  [Due   to  technical                                                               
difficulties,  the   following  testimonies  were   difficult  to                                                               
understand].                                                                                                                    
                                                                                                                                
11:28:57 AM                                                                                                                   
                                                                                                                                
MICHAEL MEEKS, Chief  of Staff, Mayor Jim Matherly,  said that he                                                               
had been  an original  board member to  the Interior  Gas Utility                                                               
and had been chairman of the  board for three years.  He declared                                                               
that the  Interior needed  to have tax  and credit  exemption for                                                               
LNG storage  facilities.  Without  this extension, the  price per                                                               
meter  would increase  and  the number  of  customers making  the                                                               
choice  to  convert  from  fuel  oil to  gas  would  most  likely                                                               
decrease.                                                                                                                       
                                                                                                                                
11:30:31 AM                                                                                                                   
                                                                                                                                
BRYCE WARD, Mayor, Fairbanks North  Star Borough, stated that the                                                               
project would reduce  the cost and would address  the air quality                                                               
issue by converting to a cleaner source of energy for heating.                                                                  
                                                                                                                                
11:32:09 AM                                                                                                                   
                                                                                                                                
JOMO STEWART, Fairbanks  Economic Development Corporation, stated                                                               
support  for HB  87 and  referenced the  letter [dated  March 11,                                                               
2019]  from   the  Fairbanks  Economic   Development  Corporation                                                               
[Included in members'  packets].  He said that  the proposed bill                                                               
was crucial  to the success  of the construction of  the facility                                                               
as it would help drive down costs.                                                                                              
                                                                                                                                
11:34:15 AM                                                                                                                   
                                                                                                                                
VIKKI JO KENNEDY,  Grandma Brigade, said that she  was honored to                                                               
address friends  in Fairbanks.   She declared that,  although she                                                               
was  proud of  the gas  line, she  had concern  for the  funding,                                                               
emphasizing that the state could not afford to continue this.                                                                   
                                                                                                                                
REPRESENTATIVE  RAUSCHER  asked if  she  was  in support  of  the                                                               
proposed bill.                                                                                                                  
                                                                                                                                
MS. KENNEDY replied, "yes."                                                                                                     
                                                                                                                                
11:36:52 AM                                                                                                                   
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
11:37:14 AM                                                                                                                   
                                                                                                                                
PATRICE LEE,  Director, Interior Gas Utility,  stated her support                                                               
for HB 87.   She stressed the importance for  addressing the poor                                                               
air  quality  and  that  an   answer  to  the  problem  would  be                                                               
affordable energy.  This would  also provide a necessary economic                                                               
boom.                                                                                                                           
                                                                                                                                
11:38:52 AM                                                                                                                   
                                                                                                                                
CHAIR HOPKINS closed public testimony.                                                                                          
                                                                                                                                
11:39:02 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ moved  to report HB 87  out of committee                                                               
with individual recommendations and  the accompanying zero fiscal                                                               
note.  There  being no objection, HB 87 was  moved from the House                                                               
Special Committee on Energy.                                                                                                    
                                                                                                                                
11:39:30 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 11:39 a.m. to 11:42 a.m.                                                                     
                                                                                                                                
11:42:00 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special Committee on Energy meeting was adjourned at 11:42 a.m.                                                                 

Document Name Date/Time Subjects
HB 87 - Bill Packet.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Sponsor Statement.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Supporting Document-FEDC Letter of Support.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Supporting Document-IGU Letter of Support.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Supporting Document-City of Fairbanks Resolution 4869.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Supporting Document-FNSB Letter of Support.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 ver A.PDF HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Supporting Document-Heating Cost Comparison_Heating Fuel v Natural Gas Equivalent.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Supporting Document-Heating Cost Comparison_USvANCHvFAI.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Supporting Document-IGU Presentation_3.21.19.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Supporting Document-Interior Energy Project Q1 2018 Report to the Alaska State Legislature.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Fiscal Note.pdf HENE 3/21/2019 11:00:00 AM
HB 87
HB87 Supporting Document-Fairbanks Chamber of Commerce Resolution of Support.pdf HENE 3/21/2019 11:00:00 AM
HB 87