Legislature(2021 - 2022)
04/22/2022 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB170 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 170 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 22, 2022
10:02 a.m.
10:02:26 AM
CALL TO ORDER
Co-Chair Merrick called the House Finance Committee meeting
to order at 10:02 a.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Kelly Merrick, Co-Chair
Representative Dan Ortiz, Vice-Chair
Representative Ben Carpenter
Representative Bryce Edgmon
Representative Andy Josephson
Representative Bart LeBon via Teleconference
Representative Sara Rasmussen via Teleconference
Representative Steve Thompson
MEMBERS ABSENT
Representative DeLena Johnson
Representative Adam Wool
ALSO PRESENT
John Sonin, Self, Douglas.
PRESENT VIA TELECONFERENCE
Morgan Neff, Chief Investment Officer, Alaska Industrial
Development and Export Authority; Andrea Feniger, Self,
Anchorage; Phillip Moser, Self, Juneau; Margi Dashevsky,
Fairbanks Climate Action Coalition, Anchorage; Curtis
Thayer, Executive Director, Alaska Energy Authority.
SUMMARY
HB 170 ENERGY INDEPENDENCE PROGRAM & FUND: AIDEA
HB 170 was HEARD and HELD in committee for
further consideration.
Co-Chair Merrick reviewed the agenda for the meeting.
HOUSE BILL NO. 170
"An Act establishing the Alaska energy independence
program and the Alaska energy independence fund in the
Alaska Industrial Development and Export Authority;
and providing for an effective date."
10:02:44 AM
Co-Chair Merrick indicated the bill had been heard
previously on April 8, 2022. She invited Mr. Neff to make
opening comments.
MORGAN NEFF, CHIEF INVESTMENT OFFICER, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY (AIDEA) (via
teleconference), indicated he would be following-up with
the information requested at the previous meeting in short
order.
10:03:54 AM
Co-Chair Merrick OPENED public testimony.
ANDREA FENIGER, SELF, ANCHORAGE (via teleconference),
opposed HB 170 as currently written. Although she liked the
idea of a green bank, she did not think AIDEA was the best
entity to house the fund. The entity had not reached out to
the community for input resulting in a lack of public
trust. She appreciated the opportunity to testify.
10:05:02 AM
PHILLIP MOSER, SELF, JUNEAU (via teleconference), spoke in
opposition of HB 170 because of the sole source contract
awarded. He agreed with the idea of a green bank but did
not feel heard by AIDEA. He mentioned a public testimony
session with the board in which the board chair had
dismissed a person's testimony. He opposed the bill.
10:07:27 AM
MARGI DASHEVSKY, FAIRBANKS CLIMATE ACTION COALITION,
ANCHORAGE (via teleconference), opposed HB 170 as it was
currently posed because the AIDEA board lacked the in-house
expertise, public trust, accountability, and transparency
necessary to oversee the administration of the green bank
that Alaska needed. She mentioned recently submitting a
letter signed by 7 organizations and 17 individuals. The
parties supported the 35 percent allocation to rural areas.
She also spoke of HB 271, the AIDEA reform bill proposing
many needed updates to AIDEA including increased
legislative oversight. She was dismayed that no one from
AIDEA attended the hearing which reiterated the blatant
disregard for public process. She was encouraged to hear
that AIDEA was in attendance presently.
Ms. Dashevsky emphasized that in order for a green bank to
succeed in Alaska, there needed to be officers well versed
in interfacing with individuals and businesses. It was her
understanding that AIDEA had not reached out to agencies
with expertise such as the Alaska banking community, credit
unions, and others. She thought it would be important for
such entities like local bank branches to be the ones
interfacing with public loan applicants for loans
administered by the green bank. Furthermore, the bill
needed substantial amendments to remove loopholes that
could undermine its legislative intent. The primary purpose
of any project funded by a green bank must be used to
reduce greenhouse gas emissions and/or increase energy
efficiency. She also argued that decision makers should
include state and tribal experts with backgrounds in
traditional ecological knowledge, clean energy, and green
economies.
Ms. Dashevsky hoped the legislature would take the time to
amend the bill to ensure a transparent and public process.
She also suggested making sure to include prior and
informed consent for all affected tribes. She thanked the
committee.
10:10:34 AM
JOHN SONIN, SELF, DOUGLAS, spoke in opposition of HB 170.
He agreed with the previous testifier's testimony. He spoke
of things other than the bill. He did not want to see the
funds utilized for personal gain.
10:14:17 AM
Co-Chair Merrick CLOSED public testimony.
Co-Chair Merrick indicated the fiscal notes would be
reviewed. The first fiscal note was by the Alaska Energy
Authority with a control code UROxV. She invited Mr. Thayer
to review the note.
10:14:41 AM
CURTIS THAYER, EXECUTIVE DIRECTOR, ALASKA ENERGY AUTHORITY
(AEA) (via teleconference), reported that the fiscal note
provided for one analyst to be housed within AEA to assist
in doing the analysis with AIDEA's program. The position
would augment what AEA did not currently have in internal
resources as it did the evaluation, particularly in rural
Alaska, to identify possible green bank loan selections.
Co-Chair Merrick invited Mr. Neff from AIDEA to review the
second fiscal note with control code jrjZd.
10:16:06 AM
Mr. Neff wanted to make sure he was referencing the correct
fiscal note, as there were 2 from AIDEA. He asked Co-Chair
Merrick to specify which fiscal note he was supposed to
review.
Co-Chair Merrick referenced the fiscal note with an OMB
component number of 1234.
Mr. Neff reported that it was an operating budget fiscal
note and was based on additional position control numbers
that would be needed to facilitate the administration and
management of the Alaska Energy Independence Fund. It
included a project manager, port folio analyst, loan
servicing officer, administrative assistant, and the
analyst that was in the fiscal note just described by Mr.
Thayer. Travel costs, service costs, and commodities were
also incorporated in the note. In the first year, FY 23,
there was an offset for a 6 month start-up process. It was
annualized at the full operating expense amount thereafter.
It was important to note that the fund was designed to be
self-sufficient to cover the costs so that no additional
UGF appropriations would be needed from the state. The
monies would come out of the receipts from the returns from
the Energy Independence Fund.
10:17:37 AM
AT EASE
10:18:50 AM
RECONVENED
Co-Chair Merrick indicated that the fund capitalization
fiscal note was being revised and included the fund
capitalization of $30 million by the House Labor and
Commerce Committee. It would be reviewed at a future
meeting.
Representative Thompson asked a clarifying question
regarding the number of added positions. He suggested it
appeared that 5 people would be added each year.
Mr. Neff responded that it was 5 positions on an ongoing
basis.
Representative Thompson thought the fiscal note was
confusing.
Representative Josephson asked about receipts since they
were relative to the fiscal note.
Mr. Neff responded that the receipts were outlined just as
AIDEA's operating budget was capitalized. Alaska Industrial
Development and Export Authority was a public corporation
and a self-sustaining organization within the State of
Alaska. Receipts were provided through the returns of
AIDEA's programs including the Energy Independence Fund
program if the legislation were to pass.
Co-Chair Merrick reviewed the agenda for the afternoon.
ADJOURNMENT
10:21:53 AM
The meeting was adjourned at 10:21 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 170 Public Testimony Rec'd by 042122.pdf |
HFIN 4/22/2022 9:00:00 AM |
HB 170 |