Legislature(1999 - 2000)
05/12/1999 02:20 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 12, 1999
2:20 P.M.
TAPE HFC 99 - 130, Side 1.
TAPE HFC 99 - 130, Side 2.
CALL TO ORDER
Co-Chair Therriault called the House Finance Committee
meeting to order at 2:20 P.M.
PRESENT
Co-Chair Therriault Representative Foster
Co-Chair Mulder Representative Grussendorf
Vice Chair Bunde Representative Kohring
Representative Austerman Representative Moses
Representative J. Davies Representative Williams
Representative G. Davis
ALSO PRESENT
Mike Tibbles, Staff, Representative Gene Therriault; Wilda
Rodman, Staff, Representative Gene Therriault; Pat Carter,
Staff, Senator Drue Pearce; Representative Joe Green;
Representative Jim Whitaker.
TESTIFIED VIA TELECONFERENCE
Robin Brena, TESORO, Anchorage; Jimmy Jackson, GCI,
Anchorage; Robert Mintz, Assistant Attorney General,
Department of Law, Anchorage.
SUMMARY
HB 62 An Act relating to the Alaska Public Utilities
Commission; and providing for an effective date.
HB 62 was not heard and was HELD in Committee
until further notice.
HB 183 An Act relating to the powers and duties of the
chair of the Alaska Public Utilities Commission;
relating to membership on the Alaska Public
Utilities Commission; and relating to the annual
report of the Alaska Public Utilities Commission.
HB 183 was not heard and was HELD in Committee
until further notice.
SB 133 An Act creating and providing for the Alaska
Energy Conservation Commission and transferring to
it the powers and duties of the Alaska Public
Utilities Commission and the Alaska Oil and Gas
Conservation Commission; repealing the Alaska
Public Utilities Commission and the Alaska Oil and
Gas Conservation Commission; relating to
regulation of waste collection and disposal;
relating to the powers of the chair of the Alaska
Energy Conservation Commission; relating to the
appellate procedures of the Alaska Energy
Conservation Commission; and providing for an
effective date.
SB 133 was HELD in Committee for further
consideration.
SB 134 An Act authorizing the Alaska Oil and Gas
Conservation Commission to determine the amount of
and to collect a charge for operating wells
subject to the commission's jurisdiction, and to
allocate expenses of investigation and hearing,
and repealing the oil and gas conservation tax;
and providing for an effective date."
SB 134 was HELD in Committee for further
consideration.
SB133
SENATE BILL NO. 133
An Act creating and providing for the Alaska Energy
Conservation Commission and transferring to it the
powers and duties of the Alaska Public Utilities
Commission and the Alaska Oil and Gas Conservation
Commission; repealing the Alaska Public Utilities
Commission and the Alaska Oil and Gas Conservation
Commission; relating to regulation of waste collection
and disposal; relating to the powers of the chair of
the Alaska Energy Conservation Commission; relating to
the appellate procedures of the Alaska Energy
Conservation Commission; and providing for an effective
date.
Co-Chair Therriault advised that the version before
Committee members addressed concerns brought forward in the
previous committee hearings.
Representative J. Davies MOVED to adopt work draft version
1-LS077\T, Cramer, 5/12/99, as the version before the
Committee. There being NO OBJECTION, it was adopted.
WILDA RODMAN, STAFF, REPRESENTATIVE GENE THERRIAULT,
explained the changes made to the committee substitute.
Representative Williams questioned how the commission would
understand that there was public interest. Co-Chair
Therriault explained that the Commission would establish a
mechanism to determine public interest and then would direct
the Chair to request public participation when appropriate.
PATRICK CARTER, STAFF, SENATOR DRUE PEARCE, added,
currently, the Commissioners on the Alaska Public Utilities
Commission (APUC) determine when it is in public interest
and they then represent the public before the Commission.
He suggested that be a separate section.
Representative J. Davies questioned if the present appeal
process would be dealt with through the Courts. Ms. Rodman
replied that in current regulation, there is an appeal
process established by industry. Senator Pearce and
Representative Therriault acknowledge that there should be
adequate recourse for appeal.
Representative J. Davies asked the process. Mr. Carter
explained it would consist of petitioning for
reconsideration and that the Commission at this time does
not have the ability to act as a three-commission panel.
That was an effort brought forward by Senator Pearce to
streamline the process. The intent is that the Chairman
assigns the appropriate number of commissioners to the panel
based by the magnitude of the case. Representative J.
Davies cautioned that following the process, it would go to
Court. Co-Chair Therriault pointed out that current
regulations allow the appeal of the five-members. The
regulations need to be updated for the interim.
Representative J. Davies advised that in current statute, a
three commissioner hearing is not allowed, however, it is
being proposed in the legislation. He asked if a matter was
heard by three commissioners and then requested
reconsideration, would that occur by the original
commissioners or by the entire Commission. Mr. Carter
explained that under current regulation, the full commission
makes the reconsideration. As currently written, it would
go to the full commission.
Co-Chair Therriault mentioned his intent that the Committee
should consider a two-year sunset. He understood that some
changes would not be fully implemented until that time,
although, it would be prudent to revisit them.
Representative J. Davies inquired if the proposed
legislation intended to have Legislative Budget and Audit
Committee (LBA) consider the issues next year. Co-Chair
Therriault replied that the legislation would request LBA to
check out AOGCC and present a report of possible merging the
two. That would be separate legislation.
Representative Austerman inquired if the proposed
legislation retained any of HB 183. Ms. Rodman replied that
it does, the language for removal for cause. Current APUC
has a different removal clause, and that language was kept.
Mr. Carter pointed out that additional language had been
added, "inability to serve" to Page 2. Ms. Rodman advised
that HB 183 had substantially changed the powers of the
chair, and with the exception of two points, SB 133 assumed
those changes.
Ms. Rodman continued, HB 183 mandated that APUC incorporate
a management information system, which SB 133 kept. An
important aspect was the addition of arbitrators, and that
industry had noted that they wanted settlement techniques
and arbitrators to be added.
Representative Bunde understood that HB 183 removed the
qualification listed on Page 2, Lines 9-14, which limited
the talent pool of available commissioners. He asked why
the language was put back in SB 133. Co-Chair Therriault
explained that there had been a lot of discussion in the
House Labor and Commerce Committee regarding qualifications,
at which time, Senator Pearce objected to the
qualifications. However, now she indicated reconsideration
on how the qualification should read. Nothing has been
received to date. Co-Chair Therriault urged that some
qualifications are needed.
Representative J. Davies commented that there had been
discussion on the utility meeting concern. He concurred
with the proposed changes and the removal of the category
restriction. He applauded removal of the political party
affliction.
Co-Chair Therriault MOVED to adopt Amendment #1. [Copy on
File]. Mr. Carter explained that the amendment would
include the interest of a public utility or a pipeline
carrier. Representative Bunde noted that was an area of
concern. He questioned if other areas should be limited.
He urged that a conflict of interest should address everyone
or at least provide a broader prohibition. Mr. Carter
replied that language is in current statute.
Representative Bunde MOVED an amendment to the amendment,
which would excise language on Page 4, Line 4 (a) through
Line 9. Representative G. Davis stated that would address
unrelated information to the amendment. Co-Chair Therriault
explained to Representative Bunde that he would like to
adopt Amendment #1 as a technical cleanup and requested that
his amendment be handled separately. Representative Bunde
WITHDREW the Amendment to the Amendment.
Representative Austerman asked if the language of the
amendment was in current statute. Mr. Carter stated it is.
There being NO OBJECTION, it was adopted.
Co-Chair Therriault MOVED to adopt Amendment #2. [Copy on
File]. Mr. Carter indicated that the amendment would delete
redundant language within the bill. Representative J.
Davies advised that funding had been included in the budget,
however, instruction to hire a hearing officer was not
included. He argued that the language be left as a signal
of intent.
Co-Chair Therriault voiced his preference of not including
that language in statute. However, intent language could be
included within the operating budget. Representative J.
Davies disagreed, noting that the language would be stronger
left in.
Co-Chair Therriault WITHDREW Amendment #2. There being NO
OBJECTION, it was withdrawn.
Representative J. Davies asked what would happen if HB 40
was not adopted. Co-Chair Therriault considered the
possibility if HB 40 was passed and the Committee decided to
keep the old departmental names, language would be
conformed.
MIKE TIBBLES, STAFF, REPRESENTIVE GENE THERRIAULT, explained
that a reviser note had been included in HB 40 to catch all
references.
Co-Chair Therriault MOVED to adopt Amendment #3. [Copy on
File].
REPRESENTATIVE JIM WHITAKER stated that the Amendment would
establish that the State has the right to basic information
and that the State is an equal partner with industry in
relationship to State resources. Additionally, the
amendment provides for a method to resolve intergovernmental
disputes.
He pointed out that one argument against the amendment
originated from the industry. They have indicated that time
and effort have been brought forward addressing the issue.
He noted he was particularly interested in the argument of
sharing information. Representative Whitaker requested that
Amendment #3 be withdrawn until further discussion occurs
with industry. Co-Chair Therriault MOVED to WITHDRAW
Amendment #3. There being NO OBJECTION, it was withdrawn.
ROBIN BRENA, (TESTIFIED VIA TELECONFERENCE), TESORO,
ANCHORAGE, spoke in support of a portion of SB 133 which
separates staff advocacy and advisory roles.
(Tape Change HFC 99 - 130, Side 2).
Mr. Brena pointed out that the concern for changing staff is
more important than ever, as the work of the Commission will
be fundamentally restructuring several industries. He
emphasized that this is not a good time to confuse the roles
of staffing. Additionally, TESORO believes that there needs
to be a proper public advocacy section. Currently, there is
no policy and it does not flow well. He reiterated that
section should be properly funded and staffed.
Representative J. Davies asked if Mr. Brena supports the
proposed committee substitute. Mr. Brena stated that he
preferred the previous version, however, does agree with
downloading the commission issue and the need to allocate
staff resources. Co-Chair Therriault advised that he had
recommended that the prime sponsor offer intent language to
adequately address staffing.
JIMMY JACKSON, (TESTIFIED VIA TELECONFERENCE), GCI,
ANCHORAGE, commented that GCI would withdraw the request
that to keep staffing the way it currently exists.
SB 133 was HELD in Committee for further consideration.
SENATE BILL NO. 134
An Act authorizing the Alaska Oil and Gas Conservation
Commission to determine the amount of and to collect a
charge for operating wells subject to the commission's
jurisdiction, and to allocate expenses of investigation
and hearing, and repealing the oil and gas conservation
tax; and providing for an effective date.
Co-Chair Therriault MOVED to adopt Amendment #1. [Copy on
File].
ROBERT MINTZ, (TESTIFIED VIA TELECONFERENCE), ASSISTANT
ATTORNEY GENERAL, DEPARTMENT OF LAW, commented that the
amendment addresses program receipts. The bill guarantees
that regulatory cost charge receipts would be treated as
program receipts. He added, that there are other receipts
addressed in Section 1, which should also be addressed with
this formula.
There being NO OBJECTION, Amendment #1 was adopted.
Co-Chair Therriault MOVED to adopt Amendment #2. [Copy on
File].
Mr. Mintz explained that Amendment #2 would clarify cost
charge related to regulatory wells. Each charge is based on
guaranteeing that the well is properly accounted for.
He continued, current language in Subsection A describes
only wells with reference to one criterion. As currently
written, the second criteria describes a person, not a well.
To avoid confusion, the Department is suggesting that the
language be written so that the criteria describes a well.
There being NO OBJECTION, Amendment #2 was adopted.
Co-Chair Therriault MOVED to adopt Amendment #3. [Copy on
File]. Mr. Carter explained that language was added in the
"spirit of compromise" with industry. The amendment would
obligate AOGCC to attend to all ratepayers within 30 days of
their budget.
Representative J. Davies questioned the estimated time,
voicing concern that this element of the budget would be
made public prior to the Governor submitting it.
Representative G. Davis questioned the number of other
statutory receipts, which could begin to "snow-ball". Mr.
Carter pointed out that making the change would be "up to
the will of the Committee".
A roll call vote was taken on the motion.
IN FAVOR: Therriault
OPPOSED: Austerman, Bunde, J. Davies, G. Davis,
Foster, Grussendorf, Moses, Williams, Mulder
Representative Kohring was not present for the vote.
The MOTION FAILED (1-9).
SB 133 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 3:35 P.M.
H.F.C. 8 5/12/99 p.m.
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