Legislature(2007 - 2008)HOUSE FINANCE 519
03/05/2008 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB336 | |
| HB359 | |
| HB373 | |
| HB344 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 344 | TELECONFERENCED | |
| + | HB 348 | TELECONFERENCED | |
| *+ | HB 373 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 336 | TELECONFERENCED | |
| += | HB 359 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
March 5, 2008
1:41 p.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:41:27 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Mary Nelson
Representative Bill Thomas Jr.
MEMBERS ABSENT
Representative Harry Crawford
Representative John Harris
ALSO PRESENT
Jean Ostnes, Staff, Representative Craig Johnson; Steve
Haagenson, Energy Coordinator, Alaska Energy Authority;
Representative Craig Johnson; Sara Fisher-Goad, Deputy
Director of Operations, Alaska Energy Authority; Emily
Beatley, Staff, Representative Jay Ramras; Doug Wooliver,
Administrative Attorney, Alaska Court System; Michael
Pawlowski, Staff, Co-Chair Meyer; Sam Kito, III, Facilities
Engineer, Department of Education and Early Development;
Jason Hooley, Special Assistant, Office of the Lieutenant
Governor.
PRESENT VIA TELECONFERENCE
Jim Hemsath, Deputy Director, Development, Alaska Energy
Authority; Eric Yould, Energy Consultant, Wood Canyon Group;
Mike Wright, Golden Valley Electric Association; Tom
Staudenmaier, Eagle River; Jerry McCutcheon, Anchorage; Brad
Evans, Acting Chief Executive Officer, Chugach Electric
Association, Inc.; Uwe Kalenka, Chugach Electric
Association, Inc.; Paul D. Kendall, Anchorage; Brigadier
General Thomas Katkus, Commander, Alaska National Guard;
Quinlan Steiner, Director, Public Defender Agency,
Department of Administration.
SUMMARY
HB 336 "An Act directing the Alaska Energy Authority to
conduct a study of and to prepare a proposal for
an appropriately sized Susitna River hydroelectric
power project; and providing for an effective
date."
HB 336 was HEARD and HELD in Committee for further
consideration.
HB 344 "An Act relating to distribution of the Alaska
Administrative Code and Alaska Administrative
Register; and providing for an effective date."
HB 344 was REPORTED out of Committee with a "do
pass" recommendation and with zero fiscal note by
the Office of the Governor.
HB 348 "An Act relating to the adoption of regulations by
the Board of Fisheries and the Board of Game."
HB 348 was SCHEDULED but not HEARD.
HB 359 "An Act relating to probation and the offense of
minor consuming or in possession or control of
alcohol."
HB 359 was HEARD and HELD in Committee for further
consideration.
HB 373 "An Act extending specified public school bond
debt reimbursement; and providing for an effective
date."
HB 373 was REPORTED out of Committee with a "do
pass" recommendation and with new indeterminate
fiscal note by the Department of Education and
Early Development.
HOUSE BILL NO. 336
"An Act directing the Alaska Energy Authority to
conduct a study of and to prepare a proposal for an
appropriately sized Susitna River hydroelectric power
project; and providing for an effective date."
Representative Kelly introduced Steve Haagenson, the newly
appointed Energy Coordinator for Alaska Energy Authority
(AEA).
JEAN OSTNES, STAFF, REPRESENTATIVE CRAIG JOHNSON (SPONSOR),
explained HB 336, which authorizes AEA to conduct a study of
the Susitna River hydroelectric power project. She referred
to previous studies done in 1982 and 1983. The current
fiscal note for $1 million is intended for the first phase
of the current study, Task Force 1.
1:46:39 PM
Co-Chair Meyer wanted to know if AEA was already using an
$880,000 allocation to study energy issues in the Railbelt
region. Ms. Ostnes thought that report would meld with the
study proposed by HB 336. There are engineers on contract
who can immediately go to work. Co-Chair Meyer asked if AEA
would still need $1 million in addition to the nearly $1
million already set aside. He asked if the intent was to
also use Railbelt energy fund money for the Susitna study.
Ms. Ostnes replied that the Sponsor wanted capital money but
the source was not yet identified.
Representative Joule supported energy projects for Alaska.
His concern about the Railbelt project is that there are
other parts of the state that need alternative energy. He
does not want the State to postpone looking at other regions
and would prefer to have AEA look at energy alternatives
that might impact places with higher energy costs.
1:49:27 PM
Ms. Ostnes believed that the Sponsor is interested in
looking at the issue state-wide and hoped that the project
would affect the rest of the state.
Representative Gara voiced concerns about building a
hydroelectric project only to find out later that online
energy was cheaper. He referred to the five-phase study
("Estimate for Susitna Hydro-electric Feasibility Study,"
Copy on File), anticipated to cost a total of $2,750.000.
Ms. Ostnes replied the Sponsor felt $1 million would help
the project move forward.
Vice-Chair Stoltze wondered how much of the work done
through past studies is still relevant. Ms. Ostnes referred
to a 1986 report by Gordon Harrison (Copy on File) that
addresses the financial plan and why it didn't work. She
referred to extensive work that had been done that needs
updating. Vice-Chair Stoltze had concerns about costs of the
study.
1:54:50 PM
STEVE HAAGENSON, ENERGY COORDINATOR, ALASKA ENERGY
AUTHORITY, spoke in support of HB 336. He defined
hydroelectric projects as stable-priced power. He said
sizing is critical and also having the right water resources
to run the project. He thought hydroelectric would be
cleaner and cheaper. The bill will allow the State to
evaluate the project to the next level in order to determine
whether to go further. He felt the people of Alaska deserve
to evaluate hydroelectric and compare it with other
available technologies.
Vice-Chair Stoltze asked what percentage of the population
would be affected by the project. Mr. Hagensom said a
significant portion of the population.
Representative Joule asserted the need to look at all
alternatives for energy in order to strategically develop
Alaska's resources. He wondered if there were alternatives
outside the Railbelt.
Mr. Haagenson anticipated that his general approach would be
to meet with all Alaskans and ask them what they think the
solutions are for technology and fuel source. He would try
to quantify the demand for power that would be used for
electricity, transportation and heating, and then determine
the best options for each area of the state.
REPRESENTATIVE CRAIG JOHNSON, SPONSOR, added that Susitna is
not the final answer, but one of the pieces of the puzzle.
He has been in contact with developers of mining projects
whose most glaring need is electricity. He cited examples of
plans the Susitna project would affect.
There was a discussion about energy rates and funding
options.
2:08:08 PM
Representative Gara suggested that the study include a
comparison of the price of power under the Susitna project
with the price of power under a gas line project. He asked
about the difference between the $1 million on the fiscal
note and the $2,750,000 cost for the total study.
Representative Johnson clarified that the study was meant to
be done in phases. The first phase, which would cost
approximately $1 million, would determine the feasibility of
continuing the project.
2:12:03 PM
SARA FISHER-GOAD, DEPUTY DIRECTOR OF OPERATIONS, ALASKA
ENERGY AUTHORITY, viewed HB 336 as a specific study of
Susitna and explained the costs of the phases of the study.
She referred to Co-Chair Meyer question about the earlier
$800,000 study. She mentioned alternative energy projects in
rural Alaska.
2:15:05 PM
Representative Gara restated his question about comparing
the prices of different types of power. Ms. Fisher-Goad
agreed those comparisons need to be done. She said the $1
million fiscal note responds to the structure of HB 336. A
Senate bill has a different approach. If the Committee chose
to amend to include a broader study, the fiscal note would
follow.
JIM HEMSATH, DEPUTY DIRECTOR, DEVELOPMENT, ALASKA ENERGY
AUTHORITY (Testified via teleconference), explained that the
$1 million for Task Force 1 would accomplish a review of
existing information, including an engineering analysis of
what has already been done. This stage of the study would
also look for flaws, update the estimates, and update the
costs in order to understand what the cost of power would
be. Task Force 1 will be able to determine if the Susitna
project is feasible. If the project is feasible, then a
comparative study of different forms of energy would be
done. The goal is to be as focused as possible to minimize
capital expenditure.
2:18:50 PM
Representative Gara asked if part of the goal of the study
is to update past estimates to today's dollars. Mr. Hemsath
answered in the affirmative, but added that the study would
also explore changes in technology and code over the last
twenty years, and take a critical look at the engineering
assumptions of the first studies.
Representative Hawker referred to the fiscal note and asked
for a budget analysis of who will be used in the study and
how much they would be paid.
2:22:18 PM
Mr. Hemsath responded that the million dollar figure is a
cap. His experience leads him to believe a lot can be
accomplished for that amount of money. At AEA there are a
number of term contracts put in place specifically for
analysis of energy needs, so they have the capacity to
efficiently develop the engineering estimate in-house. The
million dollars would evaluate what has been done and review
it for changes in technology and code that were not known in
1983, including seismic activity.
Ms. Fisher-Goad assured the Committee that in the past, AEA
has used appropriations appropriately and with fiscal
responsibility.
2:26:29 PM
Co-Chair Meyer also wanted a better breakdown of the
expenses and costs of the proposed project.
ERIC YOULD, ENERGY CONSULTANT, WOOD CANYON GROUP (Testified
via teleconference), spoke in support of HB 336. He had
worked on the Susitna project in the 1980s. He thought a new
cost estimate is important. In addition, the State needs to
look at other energy projects that could provide energy to
the Railbelt, specifically coal, natural gas, other
hydropower projects, geothermal, wind and tidal options. In
his opinion, the alternative assessment is critical to the
success of the Susitna project. He pointed out that the
Federal Energy Regulatory Commission will require a study of
alternatives in order to get a license. The National
Environmental Protection Act also requires a study of
alternatives. Susitna was withdrawn by the governor in 1985
because of the costs of oil, which undermined the economics
of Susitna and dried up excess revenue that could have come
to the State.
2:32:38 PM
Representative Gara wanted information on the fisheries
impact of the project. Mr. Yould replied that extensive
fisheries studies had been done.
2:34:00 PM
MIKE WRIGHT, GOLDEN VALLEY ELECTRIC ASSOCIATION (Testified
via teleconference), spoke in support of HB 336. Railbelt
utilities rely heavily on fossil fuels for electric
generation. The volatile price of oil has a significant
2
impact on the cost of electricity. COemissions from burning
fossil fuels are also a consideration.
TOM STAUDENMAIER, EAGLE RIVER (Testified via
teleconference), advised consolidating all the management
systems, tying the grid together, and eliminating debt.
2:39:24 PM
JERRY MCCUTCHEON, ANCHORAGE (Testified via teleconference),
spoke in opposition of HB 336. He listed some of the
problems with past projects. He thought the re-study should
be done by the Army Corps of Engineers.
2:45:10 PM
BRADLEY EVANS, ACTING CHIEF EXECUTIVE OFFICER, CHUGACH
ELECTRIC ASSOCIATION, INC. (Testified via teleconference),
testified in support of HB 336. He was concerned about
dependence on natural gas and thought the current system
could not continue to handle energy needs in the Railbelt.
He supported doing a study to find the right answers for
diverse energy sources. Chugach has conducted many studies
regarding alternative energy that they would be glad to
share with AEA.
2:49:13 PM
UWE KALENKA, CHUGACH ELECTRIC ASSOCIATION, INC. (Testified
via teleconference), testified in support of the bill. He
was concerned about heavy dependence on natural gas for
energy. He wanted the range of energy alternatives studied,
including the Susitna hydroelectric project. He maintained
that the project is overdue.
2:52:50 PM
PAUL D. KENDALL, ANCHORAGE (Testified via teleconference),
spoke in favor of the Susitna hydroelectric project. He
suggested holding a hearing to educate the public on energy
issues. Energy is a vitally important issue. Leadership sets
the tone. He recommended an incremental expansion design for
Susitna.
3:01:16 PM
PUBLIC TESTIMONY CLOSED.
HB 336 was HEARD and HELD for further consideration.
HOUSE BILL NO. 359
"An Act relating to probation and the offense of minor
consuming or in possession or control of alcohol."
3:02:07 PM
Co-Chair Chenault MOVED to ADOPT Work Draft for HB 359 (25-
LS1377\L, Luckhaupt, 2/22/08). There being NO OBJECTION, it
was so ordered.
EMILY BEATLEY, STAFF, REPRESENTATIVE JAY RAMRAS, (SPONSOR),
explained HB 359. Under current minor consuming statute, the
Court is required to put a convicted person on probation for
one year from the date of conviction, or until the person
reaches the age of 21, whichever is later. Probation in this
case is automatic. House Bill 359 adds a new section under
statute which gives the courts the authority to terminate
probation of those convicted of minor consuming under
certain conditions. Currently minors under probation are not
allowed to enter into the military, which has become the
largest issue connected with HB 359. Other individuals will
benefit from the proposal.
Representative Gara said the bill terminates probation early
but does not get rid of the conviction. He wanted more
information on how the military views probation. Ms. Beatley
said each branch of the military has different issues with
probation. A person can't enlist in the Marine Corps as an
alternative to probation, for example.
Representative Gara asked how long probation was for a minor
consuming. Ms. Beatley said minor consuming does not become
a class B misdemeanor until the third offense, when it is
considered habitual; at that time it falls under the
Division of Juvenile Justice. For first and second
consumers, the probation is mandatory and lasts until age
21, which could be a very long probation. The courts have no
authority to terminate that probation.
3:07:13 PM
Representative Hawker pointed out areas that he thought
needed amending in the bill. Of the criteria that could be
used to lift the probation, he had difficulty with page 2,
lines 14-15, "continuance of the probation which interfere
with the rehabilitation and growth of the person." He
thought the language too subjective and indefinable. Ms.
Beatley replied that the language intends to give discretion
to the court in determining what "rehabilitation and growth"
would be.
Representative Hawker thought the line preceding, "The
person has substantially complied with the other conditions
of probation," would be sufficient. If anything was added,
he thought it should be a positive statement, such as
"Continuance of probation would not be in the best interest
of the person."
Co-Chair Meyer agreed and asked for help drafting less
subjective language.
3:11:13 PM
Representative Gara asked if the bill applies to repeat or
also to first offense. Ms. Beatley replied that it applies
to first and second offenses. The third offense is a class B
misdemeanor and would fall under Juvenile Justice; the first
and second fall under district court.
Representative Gara stated that he also has a problem with
the language "rehabilitation" in the second to last line.
3:12:32 PM
Representative Thomas ruminated over how young soldiers
should be dealt with after coming home from a tour of duty.
He thought probation on top of their other difficulties was
too much. Ms. Beatley said that part of the reason the bill
came about was that good kids make mistakes. The bill offers
them a chance to apply for termination of probation.
3:14:28 PM
BRIGADIER GENERAL THOMAS KATKUS, COMMANDER, ALASKA NATIONAL
GUARD (Testified via teleconference), testified in favor of
HB 359. Without the bill there are no options for a person
with this history moving forward into the military. A person
on active probation cannot join. The bill gives options to
those who may have made a mistake early in life. There are
less people fully qualified to join the military because of
early issues.
3:17:43 PM
Representative Gara wondered why the military cares whether
someone is on probation for something that is not a crime,
since first and second offenses are not criminal offenses.
Gen. Katkus said a person cannot be on probation for a
crime; the military reads this violation as a crime.
Representative Gara wondered if the standard was the same
for all four branches of the military. Gen. Katkus said the
National Guard abides by Army standards. Representative Gara
asked if there was any flexibility. Gen. Katkus replied that
the military cannot waive regarding probation. There was a
discussion about conditions under which criminal conviction
could be waived.
3:21:45 PM
QUINLAN STEINER, DIRECTOR, PUBLIC DEFENDER AGENCY,
DEPARTMENT OF ADMINISTRATION (Testified via teleconference),
spoke in favor of HB 359. He thought it would have
significant impact.
Representative Thomas queried what the average probation
time was. Mr. Steiner responded that probation is automatic
until 21 on this particular offense. If it were a
misdemeanor for a juvenile for some other kind of offense,
the probation could vary. Co-Chair Meyer thought this was a
loophole that needed to be looked at. Representative Gara
was amazed that one drink could result in a mandatory five-
year probation.
3:24:11 PM
PUBLIC TESTIMONY CLOSED.
Representative Hawker said he would work on an amendment
with staff.
Co-Chair Chenault referred to the fiscal notes.
DOUG WOOLIVER, ADMINISTRATIVE ATTORNEY, ALASKA COURT SYSTEM,
said there was an error on one of the notes.
Co-Chair Chenault wondered if there should be a fiscal note
from Department of Health and Social Services or Department
of Corrections. Ms. Beatley said the bill specifically
targets first and second offenders, neither of which falls
under Corrections or Juvenile Justice. Co-Chair Chenault
wanted more information.
Co-Chair Meyer said fiscal note #1 by Judiciary could be
ignored.
3:27:26 PM
Representative Gara asked if Public Defenders represents
people with first and second minor consuming charges. Mr.
Steiner answered that they do not currently represent people
because the statute was set up that way. They do get
inquiries. Representative Gara queried whether any public
agency represents the kids if they do not have money. Mr.
Steiner was not aware of any.
Representative Gara questioned the legality of imposing
probation for something that is not a crime. Mr. Steiner
replied that it appears to be legal. He referred to a case
where mandatory probations had been challenged.
HB 359 was HEARD and HELD in Committee for further
consideration.
3:29:14 PM
HOUSE BILL NO. 348
"An Act relating to the adoption of regulations by the
Board of Fisheries and the Board of Game."
HB 348 was SCHEDULED but not HEARD.
HOUSE BILL NO. 373
"An Act extending specified public school bond debt
reimbursement; and providing for an effective date."
3:30:33 PM
MICHAEL PAWLOWSKI, STAFF, CO-CHAIR KEVIN MEYER, explained HB
373 as an extension of the existing school bond debt program
from November 2008 to November 2010.
Representative Hawker asked, regarding the indeterminate
fiscal note, if there are other bonds that might require a
similar extension. Mr. Pawlowski said several bonds are
being modified at the local level.
Co-Chair Meyer pointed out that Anchorage district is unique
in that their elections are in April, while most are in
October.
3:32:43 PM
SAM KITO, III, FACILITIES ENGINEER, DEPARTMENT OF EDUCATION
AND EARLY DEVELOPMENT, explained that currently there are no
pending issues impacted by not extending the deadline.
Anchorage is the only district that could potentially be
impacted if the current debt authorization extends through
November 2008. If it expired and wasn't renewed until the
next Legislature, an April bond issue might be affected.
Representative Thomas asked a question about a Juneau
school.
3:34:21 PM
Representative Hawker MOVED to report HB 373 out of
Committee with individual recommendations and attached new
indeterminate fiscal note by the Department of Education and
Early Development. There being NO OBJECTION, it was so
ordered.
HB 373 was REPORTED out of Committee with a "do pass"
recommendation and with new indeterminate fiscal note by the
Department of Education and Early Development.
HOUSE BILL NO. 344
"An Act relating to distribution of the Alaska
Administrative Code and Alaska Administrative Register;
and providing for an effective date."
JASON HOOLEY, SPECIAL ASSISTANT, OFFICE OF THE LIEUTENANT
GOVERNOR, explained HB 344 as an attempt to save the State
some money. The bill allows local governments to opt out of
receiving paper copies. All the material on the paper is
available online; that access is not impacted by the bill.
The Lt. Governor's Office currently spends over $22,000
annually to distribute the materials. The fiscal note
reflects uncertainty regarding how many municipalities will
opt out.
3:37:13 PM
Co-Chair Meyer referred to the fiscal note.
Co-Chair Chenault asked for clarity if SB 257 was the
companion bill. Mr. Hooley replied that it was.
PUBLIC TESTIMONY CLOSED.
Co-Chair Chenault Representative Hawker MOVED to report HB
344 out of Committee with individual recommendations and
with zero fiscal note by the Office of the Governor. There
being NO OBJECTION, it was so ordered.
HB 344 was REPORTED out of Committee with a "do pass"
recommendation and with zero fiscal note by the Office of
the Governor.
3:38:37 PM
ADJOURNMENT
The meeting was adjourned at 3:39 PM.
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