Legislature(2009 - 2010)CAPITOL 120
04/14/2010 09:00 AM House RULES
| Audio | Topic |
|---|---|
| Start | |
| HR16 | |
| HR17 | |
| SB301 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| * | HR 16 | ||
| * | HR 17 | ||
| SB 301 | |||
ALASKA STATE LEGISLATURE
HOUSE RULES STANDING COMMITTEE
April 14, 2010
9:05 a.m.
MEMBERS PRESENT
Representative Nancy Dahlstrom, Chair
Representative Charisse Millett
Representative Mark Neuman
Representative Kurt Olson
Representative Berta Gardner
Representative Beth Kerttula
MEMBERS ABSENT
Representative Bob Herron, Vice Chair
COMMITTEE CALENDAR
HOUSE RESOLUTION NO. 16
Relating to the mining and processing of rare earth elements in
Alaska and to the stockpiling of rare earth elements; and urging
the United States Congress to pass H.R. 4866.
- MOVED HR 16 OUT OF COMMITTEE
HOUSE RESOLUTION NO. 17
Urging the United States Department of Energy to expeditiously
approve a two-year extension of the export license for the Kenai
liquid natural gas plant.
- MOVED CSHR 17(RLS) OUT OF COMMITTEE
SENATE BILL NO. 301
"An Act relating to the power project fund; authorizing the
Alaska Energy Authority to charge and collect fees relating to
the power project fund; authorizing the Alaska Energy Authority
to sell and authorizing the Alaska Industrial Development and
Export Authority to purchase loans of the power project fund;
providing legislative approval for the sale and purchase of
loans of the power project fund under the memorandum of
understanding dated February 17, 2010; and providing for an
effective date."
- MOVED HCS SB 301(RLS) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HR 16
SHORT TITLE: MINING/PROCESSING OF RARE EARTH ELEMENTS
SPONSOR(s): RESOURCES
04/09/10 (H) READ THE FIRST TIME - REFERRALS
04/09/10 (H) RLS
04/14/10 (H) RLS AT 9:00 AM CAPITOL 120
BILL: HR 17
SHORT TITLE: EXPORT LICENSE EXT. FOR KENAI LNG PLANT
SPONSOR(s): RULES BY REQUEST
04/10/10 (H) READ THE FIRST TIME - REFERRALS
04/10/10 (H) RLS
04/14/10 (H) RLS AT 9:00 AM CAPITOL 120
BILL: SB 301
SHORT TITLE: POWER PROJECT FUND
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/26/10 (S) READ THE FIRST TIME - REFERRALS
02/26/10 (S) RES, FIN
03/15/10 (S) RES AT 3:30 PM BUTROVICH 205
03/15/10 (S) Heard & Held
03/15/10 (S) MINUTE(RES)
03/17/10 (S) RES AT 3:30 PM BUTROVICH 205
03/17/10 (S) Moved SB 301 Out of Committee
03/17/10 (S) MINUTE(RES)
03/22/10 (S) RES RPT 2DP 5NR
03/22/10 (S) DP: MCGUIRE, WIELECHOWSKI
03/22/10 (S) NR: HUGGINS, STEVENS, STEDMAN, WAGONER,
FRENCH
04/05/10 (S) FIN AT 10:00 AM SENATE FINANCE 532
04/05/10 (S) Heard & Held
04/05/10 (S) MINUTE(FIN)
04/07/10 (S) FIN RPT 3DP 3NR
04/07/10 (S) DP: HOFFMAN, HUGGINS, THOMAS
04/07/10 (S) NR: STEDMAN, OLSON, ELLIS
04/07/10 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/07/10 (S) Moved SB 301 Out of Committee
04/07/10 (S) MINUTE(FIN)
04/08/10 (S) TRANSMITTED TO (H)
04/08/10 (S) VERSION: SB 301
04/09/10 (H) READ THE FIRST TIME - REFERRALS
04/09/10 (H) RES, FIN
04/10/10 (H) RES AT 10:00 AM BARNES 124
04/10/10 (H) Scheduled But Not Heard
04/11/10 (H) RES AT 12:00 AM BARNES 124
04/11/10 (H) Scheduled But Not Heard
04/12/10 (H) RES RPT 5DP 3NR
04/12/10 (H) DP: EDGMON, P.WILSON, SEATON, NEUMAN,
JOHNSON
04/12/10 (H) NR: OLSON, GUTTENBERG, KAWASAKI
04/12/10 (H) FIN AT 8:00 AM HOUSE FINANCE 519
04/12/10 (H) Scheduled But Not Heard
04/12/10 (H) RES AT 1:00 PM BARNES 124
04/12/10 (H) Moved Out of Committee
04/12/10 (H) MINUTE(RES)
04/13/10 (H) FIN RPT HCS(FIN) NT 6DP 4NR
04/13/10 (H) DP: THOMAS, KELLY, GARA, SALMON,
STOLTZE, HAWKER
04/13/10 (H) NR: N.FOSTER, DOOGAN, AUSTERMAN,
FAIRCLOUGH
04/13/10 (H) FIN AT 8:00 AM HOUSE FINANCE 519
04/13/10 (H) Moved HCS SB 301(FIN) Out of Committee
04/13/10 (H) MINUTE(FIN)
04/14/10 (H) RLS AT 9:00 AM CAPITOL 120
WITNESS REGISTER
REPRESENTATIVE CRAIG JOHNSON
Alaska State Legislature
POSITION STATEMENT: Spoke as the sponsor of HR 16.
TOM WRIGHT, Staff
Representative Mike Chenault
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HR 17 on behalf of the sponsor,
Representative Chenault.
PORTIA BABCOCK, Director
State Government Affairs
ConocoPhillips
POSITION STATEMENT: During hearing of HR 17, answered
questions.
ACTION NARRATIVE
9:05:43 AM
CHAIR NANCY DAHLSTROM called the House Rules Standing Committee
meeting to order at 9:05 a.m. Representatives Dahlstrom,
Millett, Neuman, Olson, Kerttula, and Gardner were present at
the call to order.
9:06:04 AM
HR 16-MINING/PROCESSING OF RARE EARTH ELEMENTS
9:06:13 AM
CHAIR DAHLSTROM announced that the first order of business would
be HOUSE RESOLUTION NO. 16, Relating to the mining and
processing of rare earth elements in Alaska and to the
stockpiling of rare earth elements; and urging the United States
Congress to pass H.R. 4866.
9:06:32 AM
REPRESENTATIVE CRAIG JOHNSON, Alaska State Legislature, speaking
as the sponsor of HR 16, explained that HR 16 requests support
for the U.S. Congress to pass H.R. 4866, which encourages the
U.S. to become independent of foreign powers in terms of rare
earth elements. He noted that these rare earth elements are
essential and are used in defense and light bulbs. Currently,
about 97 percent of rare earth minerals are imported from China.
He noted that Alaska is blessed with these rare earth minerals.
In fact, a mine is being constructed in Bokan Mountain, which is
located in southern Alaska. He encouraged the committee to
forward HR 16 in order to forward Alaska's message that it's
prepared to stand on its own and develop its own resources.
9:08:55 AM
REPRESENTATIVE GARDNER said that she finds this very exciting.
She then inquired as to whether H.R. 4866 is necessary to move
forward with the mine located at Bokan Mountain. With regard to
the processing, refining, and purification part of this
industry, Representative Gardner asked if the minerals are
extracted in small enough quantities to have value-added
activities in Alaska, without increasing the shipping cost.
REPRESENTATIVE JOHNSON responded that now there is only one
processing facility in the U.S., located in California, and it
can't handle the minerals that would be mined. This resolution
would call for Alaska to develop [this technology for rare
elements]. The minerals are very low radioactive level
minerals. He explained that the mines for these rare earth
minerals are narrow shaft mines because the minerals, which are
in small quantities, are located in very narrow veins with high
concentrates. Therefore, it's practical to have the processing
plants in Alaska, although it's more practical to adapt the
California facility immediately. Representative Johnson noted
that he has asked the Department of Natural Resources (DNR),
when performing its aerial mapping of Alaska, to include
equipment that would seek [and identify] these minerals.
9:11:38 AM
REPRESENTATIVE GARDNER expressed hope that one would find a way
to have a situation in which the rare ore is [processed] within
the state.
REPRESENTATIVE JOHNSON agreed with trying to add value by
processing these rare elements in the state.
9:12:10 AM
REPRESENTATIVE NEUMAN pointed out that processing any minerals
will take energy, which will require a gas pipeline. He related
his excitement with regard to the value-added aspect of mining
and processing these rare earth elements in Alaska.
REPRESENTATIVE JOHNSON added that these minerals are present in
water found in oil fields and in geothermal waters throughout
the world. Therefore, he has requested that the waters across
the inlet from Anchorage be tested for rare earth elements. He
then noted that the largest rare earth mine is in Australia. In
closing, Representative Johnson pointed out that Alaska can be
on the cutting edge with rare earth elements because these
minerals aren't sold on the market.
9:15:47 AM
REPRESENTATIVE KERTTULA thanked the sponsor and Chair Dahlstrom
with regard to how they handled this resolution.
9:16:04 AM
REPRESENTATIVE OLSON moved to report HR 16 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, it was so ordered.
9:16:30 AM
The committee took a brief at-ease.
HR 17-EXPORT LICENSE EXT. FOR KENAI LNG PLANT
9:17:53 AM
CHAIR DAHLSTROM announced that the next order of business would
be HOUSE RESOLUTION NO. 17, Urging the United States Department
of Energy to expeditiously approve a two-year extension of the
export license for the Kenai liquid natural gas plant.
CHAIR DAHLSTROM then announced that before the committee is CSHR
17, Version 26-LS1670\R, Wayne, 4/13/10.
9:17:58 AM
TOM WRIGHT, Staff, Representative Mike Chenault, Alaska State
Legislature, speaking on behalf of the sponsor of HR 17,
Representative Chenault, explained that HR 17 supports the
extension of the export license of the Kenai liquefied natural
gas (LNG) facility. The facility has been operating for over 40
years. Currently, the Kenai LNG facility is the only
significant industrial user of natural gas in Southcentral
Alaska. The facility received a two-year extension to its
export license in March 2009 and thus will expire in 2011. The
facility, he related, is owned by the Kenai LNG Corporation with
ConocoPhillips owning 70 percent and Marathon owning 30 percent.
Both parties have agreed to seek an extension of the export
license. The application would extend the export authorization
through March 2013. He noted that the extension request will be
for existing volumes of natural gas and no increase in volume
for export will be requested for the 99 trillion British thermal
units (Btus) that was authorized by the U.S. Department of
Energy in 2009. Mr. Wright highlighted that the Kenai LNG
facility contributes heavily, $130 million per year, to state
and local economies and supports 60 direct jobs and 50 indirect
jobs, which account for $17 million annually in personal income.
Furthermore, production of gas for feedstock to the facility and
the sale of LNG generate approximately $60 million in royalties
and taxes for the state and the Kenai Peninsula Borough. In
conclusion, Mr. Wright pointed out that this resolution is of
importance to the sponsor's district as well as the state.
9:20:01 AM
REPRESENTATIVE GARDNER noted her strong support of the proposed
extension as it serves an important function for the Railbelt
energy. She then recalled that the Kenai LNG facility has an
agreement that it would reduce its gas consumption in a
circumstance in which the Anchorage area utilities are in a
crisis situation.
MR. WRIGHT deferred to the representative from ConocoPhillips.
9:20:46 AM
PORTIA BABCOCK, Director, State Government Affairs,
ConocoPhillips, confirmed that the Kenai LNG facility does
divert gas from the Kenai LNG facility to the local markets
during emergencies and when there are critical deliverability
events, as they arise. She said that the aforementioned will
continue to be the case. In further response to Representative
Gardner, Ms. Babcock clarified that there isn't a formal
agreement to that effect; rather it's just an understanding.
9:21:33 AM
REPRESENTATIVE OLSON moved to report CSHR 17, Version 26-
LS1670\R, Wayne, 4/13/10, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSHR 17(RLS) was reported from the House Rules
Standing Committee.
9:21:46 AM
The committee took an at-ease from 9:21 a.m. to 9:24 a.m.
SB 301-POWER PROJECT FUND
9:24:24 AM
CHAIR DAHLSTROM announced that the final order of business would
be SENATE BILL NO. 301, "An Act relating to the power project
fund; authorizing the Alaska Energy Authority to charge and
collect fees relating to the power project fund; authorizing the
Alaska Energy Authority to sell and authorizing the Alaska
Industrial Development and Export Authority to purchase loans of
the power project fund; providing legislative approval for the
sale and purchase of loans of the power project fund under the
memorandum of understanding dated February 17, 2010; and
providing for an effective date."
[Before the committee is HCS SB 301(FIN).]
CHAIR DAHLSTROM related her understanding that the Alaska Energy
Authority (AEA) views Amendment 1 as acceptable. She noted that
Sara Fisher-Goade, AEA, nodded to confirm that is the case.
9:25:17 AM
REPRESENTATIVE OLSON moved to adopt Amendment 1, labeled 26-
GS2974\R, Kane, 4/13/10, which read:
Page 2, line 1, following "loans":
Insert "appropriated by the legislature"
There being no objection, Amendment 1 was adopted.
9:25:32 AM
REPRESENTATIVE OLSON moved to report HCS SB 301(FIN), as
amended, out of committee with individual recommendations and
the accompanying fiscal notes. There being no objection, HCS SB
301(RLS) was reported from the House Rules Standing Committee.
9:25:49 AM
ADJOURNMENT
There being no further business before the committee, the House
Rules Standing Committee meeting was adjourned at 9:25 a.m.
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