Legislature(2011 - 2012)HOUSE FINANCE 519
04/05/2012 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB290 | |
| HB365 | |
| HB312 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 286 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 290 | TELECONFERENCED | |
| += | HB 312 | TELECONFERENCED | |
| += | HB 365 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 5, 2012
2:40 p.m.
2:40:46 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 2:40 p.m.
MEMBERS PRESENT
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Co-Chair
Representative Anna Fairclough, Vice-Chair
Representative Mia Costello
Representative Mike Doogan
Representative Bryce Edgmon
Representative Les Gara
Representative David Guttenberg
Representative Reggie Joule
Representative Tammie Wilson
MEMBERS ABSENT
Representative Mark Neuman
ALSO PRESENT
Erin Harrington, Staff, Representative Austerman;
Representative Alan Austerman, Sponsor; Joe Michel, Staff,
Representative Bill Stoltze; Representative Paul Seaton,
Sponsor; Ben Mulligan, Special Assistant, Department of
Fish and Game; Joe Michel, Staff, Representative Bill
Stoltze; John Anderson, Weatherization Project Officer,
Research and Rural Development, Alaska Housing Finance
Corporation, Department of Revenue.
SUMMARY
HB 290 ESTABLISH ENDOW ALASKA GRANT PROGRAM
CSHB 90(FIN) was REPORTED out of Committee with a
"do pass" recommendation and with one new zero
fiscal note from the Department of Commerce,
Community and Economic Development.
HB 312 NATURAL GAS CONVERSION PROGRAM/FUND
CSHB 312(FIN) was REPORTED out of Committee with
a "do pass" recommendation and previously
published indeterminate fiscal note: FN1 (DOR).
HB 365 AQUATIC INVASIVE SPECIES
CSHB 365(FIN) was REPORTED out of committee with
a "do pass" recommendation and with two new
fiscal impact notes from the Department of Fish
and Game and the Department of Natural Resources
and previously published zero fiscal notes: FN1
(DEC), FN2 (DEC), FN3 (DHSS).
2:42:40 PM
HOUSE BILL NO. 290
"An Act creating the endow Alaska grant program in the
Department of Commerce, Community, and Economic
Development to encourage community development."
Vice-chair Fairclough MOVED to ADOPT proposed committee
substitute for HB 290, Work Draft 27-LS1094\R
(Mischel/Kirsch, 4/3/12).
Co-Chair Stoltze OBJECTED for discussion.
ERIN HARRINGTON, STAFF, REPRESENTATIVE AUSTERMAN, explained
the changes in the committee substitute (CS). She observed
that alterations were made after feedback from the House
Finance Committee during the 3/29/12 hearing. She noted
that Representative Edgmon had raised a question regarding
the possible ambiguity of the term "community development."
The CS addressed the concern by replacing "development"
with "philanthropy" on Page 1, lines 2, 6 and 8.
Ms. Harrington spoke to a concern by Representative Doogan
and Vice-chair Fairclough that the order of the items in
the legislation could be perceived as a "ranking". To
address the concern, "ranking" was substituted with
"evaluating" on Page 2, line 10 and 11.
Ms. Harrington recalled discussions regarding the
restrictiveness of the list. Consideration was given to
changing "may" to "shall" on page 2, line 11. The change
was not made due to constitutional issues, which took
control away from the legislature and transferred it to a
third party.
Ms. Harrington observed that on Page 3, lines 8 and 9, a
new subsection (3) was added to AS 44.33.180 that read:
"state general funds may not be used as the matching funds
for this program." The new section was added to clarify
that a community could not use state funds as its match for
a project.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Work Draft 27-KS1094\R was ADOPTED.
2:45:17 PM
REPRESENTATIVE ALAN AUSTERMAN, SPONSOR, thanked the
committee.
Vice-chair Fairclough reviewed the new zero fiscal note for
the Department of Commerce, Community and Economic
Development.
Vice-chair Fairclough MOVED to report CSHB 290 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
Co-Chair Stoltze OBJECTED for purpose of discussion. He
noted philosophical hesitations regarding the legislation
but allowed the bill to move from committee. He WITHDREW
his OBJECTION.
There being NO further OBJECTION, CSHB 290(FIN) was
REPORTED out of committee with a "do pass" recommendation
and with one new zero fiscal note from the Department of
Commerce, Community and Economic Development.
2:47:02 PM
AT EASE
2:50:08
RECONVENED
HOUSE BILL NO. 365
"An Act relating to the rapid response to, and control
of, aquatic invasive species."
Vice-chair Fairclough MOVED to ADOPT proposed committee
substitute for HB 365, Work Draft 27-LS1439\B (Bullard,
4/5/12).
Co-Chair Stoltze OBJECTED for discussion.
JOE MICHEL, STAFF, REPRESENTATIVE BILL STOLTZE, explained
the changes included in the CS. The word "marine" was
removed from "marine aquatic invasive species" throughout
the legislation.
Mr. Michel observed that the committee substitute removed
the language in section (f) CSHB 365(RES):
In this section, "marine aquatic invasive species"
means an organism introduced to a marine ecosystem to
which it is not native and whose introduction causes,
or is likely to cause, economic or environmental harm
or harm to human health."
Mr. Michel explained that the above language was replaced
with the original section (f) as contained in HB 365:
(f) In this section, "aquatic invasive species" means
an organism introduced to a marine or freshwater
ecosystem to which it is not native and whose
introduction causes, or is likely to cause, economic
or environmental harm or harm to human health.
Mr. Michel noted that the committee substitute also added a
new section G:
In this section, "aquatic invasive species" means an
organism introduced to a marine or freshwater
ecosystem to which it is not native and whose
introduction causes, or is likely to cause, economic
or environmental harm or harm to human health.
Mr. Michel clarified that the changes were made in
consultation with the Department of Fish and Game.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Work Draft 27-LS1439\B was ADOPTED.
REPRESENTATIVE PAUL SEATON, SPONSOR, spoke in support of
the legislation and observed that HB 365 provided rapid
response to prevent infestations of invasive species from
spreading. The bill allowed the department to aggressively
target new invasive species.
2:53:27 PM
Co-Chair Stoltze expressed the committee's support for
expansion of the legislation reflected in the CS.
BEN MULLIGAN, SPECIAL ASSISTANT, DEPARTMENT OF FISH AND
GAME, explained that the inclusion of fresh water
ecosystems would not diminish the department's ability to
perform marine ecosystem mitigation.
Representative Gara asked for a letter from the Department
of Fish and Game (DFG) to address his concern. He cited
Page 2, Subsection (f) of the CS:
(f) In responding under (b) of this section to the
occurrence of freshwater aquatic invasive species, the
department shall respond in a manner determined to
cause the least harm to noninvasive resident fish
populations in that limited or isolated geographic
area that are used for recreational, personal use,
commercial, or subsistence purposes.
Representative Gara worried that the language "compelled"
the department's use of chemical eradication even if the
harm outweighed the benefit. Mr. Mulligan observed that the
section of the bill that related to the response plan [Page
1, Subsection (b)] used the word "may." He concluded that
the department was not forced into using chemicals. He
indicated that Subsection (f) directed the department to
consider the appropriate response. He exemplified Alexander
Creek; a location DFG was currently performing Pike
eradication. In an effort to rebound the resident Chinook
and Coho salmon population the department employed non-
chemical methods to eradicate the Pike.
Representative Gara understood the intent of the
legislation but wanted assurances that the department would
not feel "compelled" to employ chemical measures.
Representative Joule thought that the language allowed the
department to "scale back" use.
Representative Seaton clarified that Subsection (f) related
only to fresh water aquatic invasive species. He noted the
language directed DFG to employ the method that caused "the
least amount of harm." He cited Subsection (d):
(d) Rapid response to, and management of, an aquatic
invasive species in a limited or isolated geographic
area under (b) of this section shall be given priority
over activities regulated by the department in that
limited or isolated geographic area.
Representative Seaton further clarified that Subsection (d)
granted rapid response of invasive species a priority in
marine or freshwater ecosystems. He stated that
establishing the priority was the intent of the CS.
2:57:57 PM
Co-Chair Thomas asked whether the use of felt waders were
prohibited. Mr. Mulligan affirmed and reported that the
prohibition was in response to concerns of whirling disease
migrating to Alaska. He added that the department engaged
in outreach to notify the public.
Co-Chair Stoltze MOVED to ADOPT Amendment 1, sponsored by
all members of the House Finance Committee.
Amendment 1
Page 1 line 8 delete [in limited or isolated
geographic areas.] Page 1 line 13 &14 delete [in
limited or isolated area] Page 2 line 3 & 4 delete [in
a limited or isolated geographic area] Page 2 line 9 &
10 delete [in a limited or isolated geographic area]
Page 2 line 17 delete [in a limited or isolated
geographic area] Page 2 line 20 delete [resident]
Co-Chair Thomas OBJECTED for discussion.
Mr. Mulligan spoke to the amendment. He explained that the
amendment granted the department more leeway for future
planning. After discussions with DFG staff it was
determined that the language "in a limited or isolated
geographic area" was limiting. Sometimes invasive species
such as Pike, resided in drainages or other types of water
bodies. In developing a mitigation plan elimination of the
language allowed the department to broaden the scope to
include areas such as drainages. Planning would still occur
in geographically isolated areas, e.g., lakes.
Co-Chair Stoltze interjected that the deletion of the
language kept the possibilities open for future private
foundation funding, federal receipts, and money from other
sources that the department might qualify for with the
broader definition. Mr. Mulligan affirmed. In addition, he
confirmed with the attorney general that DFG and the
Department of Natural Resources (DNR) were held harmless
for rapid response occurrences in mariculture sites with
regard to the elimination of the language.
Mr. Mulligan related that the deletion of the word,
"resident" in Subsection (f), in amendment 1, left the
phrase "noninvasive fish population." The phrase included
the anadromous fish population e.g., salmon and steelhead
and broadened the provision.
Co-Chair Thomas WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 1 was adopted.
3:02:39 PM
Representative Seaton reiterated his support for the
amendment and the CS version of the legislation.
Vice-chair Fairclough discussed the fiscal notes. She
observed that there were two indeterminate fiscal notes.
Co-Chair Stoltze expressed support for supplemental funding
if necessary. He wanted the department to have the ability
to react to a crisis or avert a problem.
Representative Guttenberg compared the funding to forest
fire fighting and felt that indeterminate fiscal notes were
appropriate.
Mr. Mulligan noted that existing funds were used along with
outreach to the federal government (United States Fish and
Wildlife Service, $90,000) for mitigation of a previous
outbreak of Dvex [tunicate Didemnum vexillum]. Additionally,
the department requested $500,000 in the capital budget to
complete the Dvex eradication.
Vice-chair Fairclough noted that there were five fiscal
notes: three previously published zero fiscal notes: FN1
(DEC), FN2 (DEC), FN3 (DHSS) and two new fiscal impact
notes from the Department of Fish and Game in the amount of
$489.2 thousand for FY 2013 and $341.6 thousand in FY 2014
and the Department of Natural Resources in the amount of
$84.2 thousand for FY 2013 and indeterminate through 2018.
3:07:28 PM
Mr. Mulligan observed that the new DFG fiscal note total of
$830,800 saved the state money compared to the original
fiscal note costing $1.2 million.
Representative Doogan asked why the new DFG sport fisheries
fiscal note was indeterminate in the out years beginning in
FY 2015. Mr. Mulligan explained that the out years
expenditures were indeterminate due to the fact that it was
impossible to predict future occurrences and the costs to
mitigate them.
Representative Doogan surmised that the fiscal note funding
set up the development of the plan [Invasive Species Action
Plan] and did not fund a response to an outbreak. Mr.
Mulligan affirmed the statement.
Co-Chair Thomas MOVED to report CSHB 365(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 365(FIN) was REPORTED out of committee with a "do
pass" recommendation and with two new fiscal impact notes
from the Department of Fish and Game and the Department of
Natural Resources and previously published zero fiscal
notes: FN1 (DEC), FN2 (DEC), FN3 (DHSS).
3:10:13 PM
AT EASE
3:11:36 PM
RECONVENED
HOUSE BILL NO. 312
"An Act creating a low-interest loan program for
homeowners who convert their homes to natural gas-
fired heating; and creating the natural gas home
heating conversion loan fund."
Vice-chair Fairclough MOVED to ADOPT proposed committee
substitute for HB 312, Work Draft 27-LS1301\E (Nauman,
4/4/12).
Co-Chair Stoltze OBJECTED for discussion.
3:12:32 PM
JOE MICHEL, STAFF, REPRESENTATIVE BILL STOLTZE, explained
the changes included in the CS. He remarked that the CS was
"structurally different" from the original legislation.
Additional sections were rolled into Section 1. The word,
"inspection" replaced "energy audit" throughout the bill. A
registered mechanical contractor was authorized, along with
energy raters to perform inspections. All references to
"loan fund" were replaced with "loan program." On Page 3,
lines 3-4 were added: "…shall be deposited in the general
fund and may be appropriated for the loan program under
this section or for any other public purpose."
Representative Wilson introduced the legislation by reading
the following:
HB 312 will create a low-interest loan program,
administered by the Alaska Housing Finance Corporation
for homeowners who use oil, coal, or wood to heat
their homes so they can convert to a natural gas,
propane, electric, biomass, or district heat heating
appliance.
Originally, HB 312 would only provide loans for the
conversion to a natural gas-fired heating appliance.
However, through the committee process, HB 312 was
expanded to include propane, biomass, electric heat,
and district heat. The committee substitute for HB
312 now provides for a statewide approach for
homeowners to convert to a more affordable and
efficient heating method. Propane can be utilized in
Alaska's rural communities. Biomass heat in the form
of pellets is growing in popularity and could be
implemented in the Rural Interior and Southeast
portions of the State. Electric heat has now become
more affordable in Kodiak and the Southeast regions of
Alaska. Finally, district heat is available in
communities that have combined heat and power plants,
such as in Fairbanks' downtown coal plant where the
by-product steam and hot water are pumped through a
pipe system providing affordable and emission-free
heat to customers.
My office has worked carefully with AHFC to create a
statewide program offering loans up to $7,500, at a 1%
interest rate for a term of 10 years. The loans would
only cover the cost of the heating appliance, and not
the cost of materials and installation. Loans will be
offered to qualified applicants who use either heating
oil, coal, or wood as their primary heat source. The
heat sources which the homeowner wishes to convert to
must be readily accessible for use. HB 312 requires an
inspection by either an AHFC certified energy rater or
a registered mechanical contractor, who will confirm
the heating method the homeowner uses, and provide an
explanation of the potential energy savings the
homeowner could see if they converted to one of the
options available through the program.
HB 312 will have additional benefits to communities
who have been designated by the EPA to have
unacceptable air quality levels. Currently, the
Fairbanks North Star Borough has been designated by
the EPA as a PM 2.5 nonattainment area. The low-
interest loan program created by HB 312 would allow
for residents of the FNSB to afford conversions to
cleaner, more efficient heating methods to help abate
the high levels of particulates in our air.
Representative Wilson spoke to the energy rebate program.
She noted that the energy rebate program could be used to
recoup costs for a new gas fired appliance but
reimbursement was dependent on a weatherization rating.
Replacing doors, windows, and enhancing insulation recouped
more costs on the rating system than a new heating source.
She pointed out that the program provided loans and was not
a giveaway.
Co-Chair Thomas wondered whether the appliance loan must be
paid before the house title could be transferred in the
case of a sale.
3:17:34 PM
Representative Wilson assumed that the loan applicant would
repay the loan before the sale.
JOHN ANDERSON, WEATHERIZATION PROJECT OFFICER, RESEARCH AND
RURAL DEVELOPMENT, ALASKA HOUSING FINANCE CORPORATION,
DEPARTMENT OF REVENUE, agreed that the loan would be the
responsibility of the applicant.
Representative Guttenberg noted that the legislation
expanded inspectors to include mechanical contractors. He
questioned whether there were sufficient contractors
capable to do the work. Mr. Anderson affirmed and clarified
that the department would follow the same regulatory
process that already qualify the inspectors and follow the
regulations in place that qualified the state mechanical
administrator's license.
Vice-chair Fairclough noted the indeterminate FN 1 (DOR)
fiscal note. She wondered if the loan program was funded or
if the legislation developed the structure. Representative
Wilson affirmed that money for the loan fund was not
appropriated. The legislation set up a mechanism for the
loan fund.
Vice-chair Fairclough asked whether one percent of the fund
amount would adequately cover the administrative costs. Mr.
Anderson thought that one percent was an appropriate
estimate.
Vice-chair Fairclough wondered how many homes were in
Fairbanks and North Pole. Representative Wilson replied
that approximately 21,000 homes qualified as a single
family home.
Co-Chair Stoltze noted the need in the Mat-Su as well.
Representative Doogan discerned that the program provided
zero interest loans. Mr. Anderson affirmed and added that
the one percent interest would go back into the general
fund.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Work Draft 27-LS1301\E was ADOPTED.
3:23:27 PM
Co-Chair Stoltze OPENED public testimony.
Co-Chair Stoltze CLOSED public testimony.
Vice-chair Fairclough MOVED to report CSHB 312(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 312(FIN) was REPORTED out of Committee with a "do
pass" recommendation and previously published indeterminate
fiscal note: FN1 (DOR).
ADJOURNMENT
3:25:35 PM
The meeting was adjourned at 3:25 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB286 Port MacKenzieHFINapr5b2012.pdf |
HFIN 4/5/2012 1:30:00 PM |
HB 286 |
| CSHB_312_(FIN)_Sponsor_Statement.docx |
HFIN 4/5/2012 1:30:00 PM |
HB 312 |
| HB312 CS WORKDRAFT 27-LS1301-E.pdf |
HFIN 4/5/2012 1:30:00 PM |
HB 312 |
| HB 290 Changes from Version E to Version R.pdf |
HFIN 4/5/2012 1:30:00 PM |
HB 290 |
| HB290 CS WORKDRAFT 27-LS1094-R.pdf |
HFIN 4/5/2012 1:30:00 PM |
HB 290 |
| HB365 CS WORKDRAFT 27-LS1439-B.pdf |
HFIN 4/5/2012 1:30:00 PM |
HB 365 |
| HB365 AMENDMENT 1 NEW.pdf |
HFIN 4/5/2012 1:30:00 PM |
HB 365 |