Legislature(2007 - 2008)SENATE FINANCE 532
07/23/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB4001 | |
| SB4004 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | TELECONFERENCED | ||
| = | SB4001 | ||
| = | SB4004 | ||
SENATE FINANCE COMMITTEE
July 23, 2008
9:12 a.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 9:17:26 AM
MEMBERS PRESENT
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
Senator Lyman Hoffman, Co-Chair
ALSO PRESENT
Senator Lyda Green; Senator Tom Wagoner; Leo von Scheben,
Commissioner, Department of Transportation; Frank Richards,
Deputy Commissioner of Highways & Public Facilities,
Department of Transportation and Public Facilities; Karen
Rehfeld, Director, Office of Management and Budget; Harold
C. Heinze, Chief Executive Officer, Alaska Natural Gas
Pipeline Authority; Randall Ruaro, Special Assistant, Office
of the Governor
PRESENT VIA TELECONFERENCE
Senator Donny Olson
SUMMARY
SB 4001 "An Act making supplemental appropriations,
capital appropriations, reappropriations, and
other appropriations; making appropriations to
capitalize a fund; and providing for an effective
date."
SB 4001 was HEARD and HELD.
SB 4004 "An Act suspending the motor fuel tax; and
providing for an effective date."
SB 4004 was HEARD and HELD.
SENATE BILL NO. 4001
"An Act making supplemental appropriations, capital
appropriations, reappropriations, and other
appropriations; making appropriations to capitalize a
fund; and providing for an effective date."
9:22:13 AM
Department of Transportation and Public Facilities
LEO VON SCHEBEN, COMMISSIONER, DEPARTMENT OF TRANSPORTATION
read from prepared written testimony.
I am here today to present to you our initial $129.9
million appropriation request to address Gas Pipeline
Infrastructure needs.
During the recent Legislative hearings in Fairbanks,
Deputy Commissioner Frank Richards presented a detailed
overview on what we see is needed to improve our
highways and bridges BEFORE the pipeline construction
begins. That presentation identified $2 Billion worth
of needs to rehabilitate and upgrade the highways,
bridges, airports and public facilities along the route
from Prudhoe Bay to the Canadian border. The bill in
front of you provides the initial allocation to address
these large issues.
We bring this appropriation request to you now because
we have a looming deadline to reach - completion of all
infrastructure work BEFORE the start of the pipeline
construction in 2015 or 2016. That's only 6
construction seasons away. We have a tremendous amount
of work to do in a very short period of time. We must
start immediately to prevent a significant challenge -
that of having highway construction still underway when
the pipeline work begins. Imagine pipeline construction
having to work around and through road construction.
Our goal is to prevent this from happening!
Alaska must get our highways and bridges and other
infrastructure in good condition to support the large
amount of freight, heavy pipe hauls, construction
equipment, and large modules that will be transiting
the network during construction. We have focused our
attention on the state assets, but do realize that
there are many others including ports, railroads, and
docks that must also be addressed. Over the next few
months we will be working with other infrastructure
owners to catalog the statewide needs and present those
to the Legislature in the next session.
Our bridges on the Alaska Highway are over 50 years
old, some would consider then historic. Many of them
are truss bridges that limit the loads that can use
them due to the height of the overhead truss. They are
also load limited and cannot support the large loads
that will pass over them during pipeline construction,
especially the compressor modules that will be built
and hauled overland to the numerous compressor stations
along the pipeline. It is time to replace these
bridges and construct new ones capable of handling
these loads during construction and in the future.
You may ask "Why are we asking for General Funds to
address these needs rather than relying on our Federal
Highway Program"? The answer is two-fold:
1. Use of federal funds comes with an obligation to
follow the FHWA prescribed processes. This means
that Environmental work must be complete before
Design work, which must be completed before we can
start Right of Way work. This sequential
requirement adds years of process to a typical
project. A federal project now takes 7 years or
more from inception to completion.
2. The Federal Highway program is in trouble.
Congress is voting today to fill the $8 billion
hole in the highway trust fund for federal fiscal
year 2009. Alaska's heavy reliance on federal
highway funds means our ability to meet the
state's transportation infrastructure needs is
already severely challenged. We are being told to
brace for a 30% reduction in funds this year
unless Congress supplements the trust with today's
vote. And the outlook for the next Re-
authorization is not promising. Alaska will most
likely not continue to receive our present
allocation of $6 for every $1 we contribute to the
trust. Emphasis on Green House Gas emissions and
urban transit will shift funds away from Alaska
with our small population.
Suffice it to say - We do not have the time or Federal
funds to accomplish the immediate task ahead of us in
the timeframe we must meet!
To meet this challenge, we must begin NOW. We need to
get contracts let and get design work initiated. We
need to locate and permit new hard rock and gravel
material sites. And we need to put Alaskans, trained
under the Workforce Development initiatives presented
by Commissioner Bishop yesterday, to work to hone their
newly acquired skills. Our infrastructure improvement
program over the next few years will provide these
workers a continuum of work leading to the pipeline
construction commencing in 2015.
I look forward to working with this committee as we
move towards achieving the goal of rebuilding our
infrastructure and having it ready to support, not
hamper, the construction of OUR Natural Gas Pipeline.
I cannot stress enough the importance of getting this
work started immediately so we do not create a
bottleneck of activity that impedes pipeline
construction. There are only 6 construction seasons
left.
9:27:58 AM
Co-Chair Stedman asked why funding requests for these
projects were being made now when they could have been
included in the previous 2008 capital budget in anticipation
of the gasline. Commissioner Von Scheben explained that he
had been behind on receiving information about all of the
repairs necessary to the overall infrastructure of the
state.
Co-Chair Stedman asked in what context the Senate Finance
Committee should examine the request knowing that there are
other projects around the state that are in need.
Commissioner von Scheben assured the committee that the
other needs throughout the state would not be neglected.
9:31:08 AM
Senator Elton expressed concern that AGIA related capital
spending would affect the schedule for other capital
projects on the Statewide Transportation Improvement Program
(STIP). Commissioner von Scheben answered that the
Department of Transportation and Public Facilities (DOT) has
worked with a $1 billion capital budget for the last six
years and can continue to do so if necessary. He
acknowledged that there will be conflicts, but stressed that
DOT is prepared to take them on. Senator Elton asked if DOT
would continue to budget $1 billion for capital projects
despite the additional dollars allocated to AGIA projects.
Commissioner von Scheben said that was correct. Senator
Elton questioned why infrastructure needs on ports and
railroads had yet to be assessed before the request for
funding of the AGIA related infrastructure projects.
Commissioner von Scheben said he would bring representatives
from railroad, ports and harbors together with the
department to discuss a plan of needs for the entire
infrastructure system to present during the 2009 legislative
session.
9:35:48 AM
Senator Elton stated that if that was the plan he would be
more comfortable waiting to see the whole picture before
allocating state funds. Commissioner von Scheben answered
that the Dalton Highway is the beginning of these projects.
He stressed that time was a factor.
9:37:30 AM
FRANK RICHARDS, DEPUTY COMMISSIONER OF HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, interjected regarding Senator Elton's questions
about projects on the STIP. He pointed out that some of the
projects they propose will relieve pressure on the STIP in
the long term. He explained these projects were designed
using STIP dollars, but had been on hold waiting for
construction funds. Using general funds will provide relief
for federal STIP funding. Having these projects move forward
quickly will lock in construction costs now, as opposed to
unknown future funding.
Senator Huggins asked if the needs of the STIP had been
compared to the logistical demands of the gasline and if so
do those needs support each other. He stated that if a
comparison has yet to be made he would like to see it done.
Deputy Richards answered that he had looked at the overall
highway needs and looked within the STIP to see if there
were projects envisioned that would meet those needs. He
cautioned that using federal STIP dollars to meet gasline
needs would be unsuccessful. The general funds requested
would be less limited in meeting AGIA specific
transportation needs.
9:41:22 AM
Deputy Richards stated that general fund support of these
tasks is useful because it takes it out of the federal
process. He pointed out that STIP projects are federal
projects and not state projects. He said the next step would
be meeting with partners and determining their needs. He
stressed that STIP was limited and posed challenges in
meeting the needs of AGIA specific transportation needs.
9:44:10 AM
Senator Huggins remarked that funding was being requested
for a phase of a non-existent plan. He asked for a more
specific plan for repairing the Dalton Highway.
Senator Thomas asked if the Dalton, Richardson and, Elliott
Highway repairs were the most critical to beginning the
pipeline. Commissioner Von Scheben answered that there were
many roads that would need repair; the Dalton is the first
priority.
9:47:45 AM
Senator Dyson asked how do we decide which project is more
important. Senator Dyson stated that an objective criteria
is necessary when deciding how to distribute monies.
9:49:52 AM
Co-Chair Stedman responded that he did not know the layout
of the next capital budget and continued that one of the
main concerns this fiscal year has been maintenance dollars.
He asked if there was a need for DOT to have supplemental
money for maintenance. Commissioner Von Scheben answered
that there is always a need for more money for maintenance
and DOT is given a budget each fiscal year and that is what
they work with.
9:52:53 AM
Co-Chair Stedman asked how a statewide view can be taken on
allocating state capital. Commissioner Von Scheben responded
that the Dalton was a project that is very viable and
therefore worthy of funding.
Co-Chair Stedman stated he was concerned that there was not
forward momentum with existing 20-30 year transportation
system projects. He voiced concern that these projects would
fall in the shadow of AGIA projects and wondered what DOT
was doing to ensure that these projects are completed.
Commissioner von Scheben replied that he would like to see
all of the DOT projects completed and that one of the main
obstacles is funding.
9:55:38 AM
Senator Elton asked for an assurance from the department
that the Dalton Highway be open to the general public during
construction. Commissioner Von Scheben offered assurances.
Senator Elton asked if civilian cars would share the highway
with construction vehicles.
9:57:29 AM
Commissioner von Scheben discussed the need for a highway
system that would provide a safe environment for the
traveling public and construction vehicles on the Dalton
Highway. Construction would occur in the winter, which may
limit the number traveling public.
Senator Elton asked the chair to consider a past request
from the governor to meet with her with to discuss the
committee priorities on spending. He suggested it would be
helpful for DOT to submit their spending priorities to the
committee.
Senator Olson asked if the DOT had been in contact with
people in the North Slope Borough. Commissioner von Scheben
answered that there had been discussions about airport work
in that area, but there had been no discussion on the Dalton
Highway at this time. Senator Olson asked that DOT keep the
mayor of North Slope Borough and his planning division
involved in the process of this project.
Co-Chair Stedman asked why the committee would allocate $130
million for the Dalton project after the governor vetoed a
DOT request for $141 million in the last capital budget.
Commissioner von Scheben said that the governor was on board
with this particular request.
***KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
stated that several of the Governor's budget veto's involved
plans with incomplete design work. She qualified that design
work on this project is complete and being resubmitted to
the committee for funding at this time.
Senator Huggins stated that the people of Alaska will
support infrastructure development for the pipeline, but not
at the expense of fixing the road that leads to their house.
Commissioner von Scheben answered that DOT would not be
hindered in performing its regular duties.
10:03:46 AM
Co-Chair Stedman noted that in this instance general funds
were being requested in order to avoid the federal fund
matching requirements, to speed up the process and avoid
additional costs. He expressed concern that in the past the
legislature had met with more opposition than the
administration when requesting money from the general fund.
He declared that the imbalance did not go unnoticed.
10:05:06 AM
Deputy Richards discussed the Gas Pipeline Infrastructure
Preparation or Project 7 (copy on File). He also discussed
the Preconstruction- Dalton, Elliot, Richardson, Alaska and
Haines Highways or Project 8 (copy on File).
10:09:21 AM
Co-Chair Stedman asked Commissioner von Scheben for
clarification regarding spending out of house verses in
house spending. Commissioner von Scheben surmised it would
be about half and half.
Senator Elton asked Commissioner von Scheben to discuss how
Haines was chosen over Skagway as the point of entry in this
design. Commissioner von Scheben replied that there had not
been a specific reason he knew of for choosing Haines over
Skagway. Deputy Richards added that the constructors
involved had decided that Haines would be the preferred
point of entry. Senator Elton asked if the decision to
choose Haines had cost the state money.
Co-Chair Stedman cited a study done several years ago on
several ports to examine access issues for the pipeline. He
recalled the study favoring Haines.
Senator Huggins wanted to know where Deputy Richards was
getting his information on the Haines preference issue.
Deputy Richards informed that through the years he'd had
discussions with British Petroleum (BP) and ConocoPhillips,
and more recently with the Denali Project and, with
TransCanada.
Co-Chair Stedman commented on the challenge the high price
of oil will be on locking in reasonable prices for paving
contracts or any work that uses a lot of fuel. He wondered
if DOT was working on a clause in their future contracts to
keep prices reasonable.
10:16:13 AM
Commissioner von Scheben answered that DOT was working on
that issue, but they were having a hard time sorting through
old projects that now need coverage because of price
escalation.
Co-Chair Stedman spoke of a plan in Florida in which a
clause is included in the business contract to cushion
fluctuating costs over the projects time. He suggested DOT
solve the problem in a similar fashion.
Deputy Richards talked about allowing an asphalt escalator
in the federal highway program standards and specifications
within the last year. He stated other states in the nation
have an escalator clause in place. Alaska working with the
Associated General Contractors(AGC) specifically on
highways, put the clause into play. He would like to expand
the clause to the federal aviation programs and to use
general funds to work with contractors that are experiencing
cost overrides. He stated he did not want to put his
partners in jeopardy. He stressed that in the past, price
quotes were good for 60-90 days, but that this is not the
case anymore. He felt that the contractors should have help
in bearing the burden of possible cost escalations.
Senator Huggins recalled that money was available in past
budget for bridges and wondered if there was redundancy in
the request. Deputy Richards answered that there was $20
million dollars available through the GO bond package, which
would only cover a portion of one of the long-span bridges.
He did not envision using the $20 million GO funds for the
long-span bridges.
AT EASE: 10:20:22 AM
RECONVENED: 10:29:43 AM
Deputy Richards referred to the Dalton Highway Project
Status (Copy on File). He noted that federal and legislative
support was included. He stated that he would provide
similar information on the Richardson and Alaska highways
and other routes across the state.
10:32:25 AM
Commissioner Von Scheben said there was nothing else to
present at this time. Co-Chair Stedman commented that
gasline issues can be addressed as they arise in future
years. He emphasized that the entire state's needs, outside
of gasline issues, would also need to be addressed in the
2009 session.
Co-Chair Stedman asked if the construction cost request for
the Chilkat River Bridge could wait to be included in the
2009 capital budget. Mr. Richards said that item was brought
forward because the project could be done immediately with
current money in hand.
10:34:54 AM
Senator Elton thought moving ahead with the funding request
without an assessment of port needs was unwise at this time.
He asserted that it would be better to know the total need
of the AGIA request rather than the highway part only.
Commissioner Von Scheben commented that discussions would be
on-going. He opined that the Dalton Highway was a good
starting place. He felt the Dalton will always be the first
priority because it is the only road out of Fairbanks that
leads north.
Co-Chair Stedman asked how much has been spent in the last
three years for maintenance on the Dalton Highway.
Commissioner Von Scheben said about $27 million. Co-Chair
Stedman inquired about capital funds already available for
the Dalton Highway. Mr. Richard granted that there had been
money available for heavy maintenance, to replace lost
materials to address drainage problems and to raise the
grade to deal with snow drift. Co-Chair Stedman thought a
full layout of the project should have been requested last
year.
10:38:32 AM
Senator Elton asked if there was money for the Haines
Highway in the budget that had been vetoed in the past 3
years. Ms. Rehfeld did not recall anything specific to the
Haines Highway.
Senator Elton brought up the inflation costs of highway
projects. He wondered what inflation factor was used to
project expenses in the next five years. Commissioner Von
Scheben said 4 percent. Senator Elton asked what the
inflation factor was over the last five years. Commissioner
Von Scheben offered to provide that information.
Co-Chair Stedman requested further information on historic
costs and inflation factors. Commissioner Von Scheben
explained that a cost index study was recently finished and
he offered to provide it to the committee. He invited the
committee to participate in a statewide infrastructure needs
forum.
10:44:56 AM
HAROLD C. HEINZE, CHIEF EXECUTIVE OFFICER, ALASKA NATURAL
GAS PIPELINE DEVELOPMENT AUTHORITY (ANGDA), testified via
teleconference. He read a prepared statement to the
committee:
The ANGDA gas spur line project links Delta Junction to
the Cook Inlet area through Glennallen. It is integral
to the delivery of North Slope gas for in-state utility
use from either the AGIA licensee TransCanada Alaska or
the producer sponsored Denali pipeline projects.
Strong legislative support and funding has allowed
ANGDA to: (1) acquire a conditional state right-of-way
between Palmer & Glennallen, (2) conduct field wetland
delineation between Beluga & Delta Junction, and (3)
publish a myriad of focused studies on in-state gas
issues.
ANGDA's strategy has focused on an aggressive time line
of activities to assure that the in-state gas needs
will be understood and that local utilities will have
the best opportunity to participate in the FERC open
season of the "big pipeline". In the first quarter of
2009, ANGDA will have the information to conduct a
negotiated in-state open season to allow early
interaction with the design and contract terms of
either of the "big pipeline" project proposals.
Alaska's gas needs will only represent 5% of the bigger
project and the local utilities are greatly advantaged
by being considered up-front as one of the anchor
tenants.
With the passage of AGIA the competitive pressure will
accelerate the pace of preparations for the FERC open
season. Legislative action now on the ANGDA
appropriation request of $25 million will maintain a
leadership position to get North Slope gas to Alaskans
under the best fiscal terms and under the most
favorable timeline.
The requested $25 million appropriation funds
contractor efforts to complete the pre-build
preparations related to:
· Route survey and options for rights-of-way
acquisition
· Design of access roads & field preparation
· Preliminary pipeline and facility design
· Project management to include a finalized Project
Execution Plan
· Logistics planning to include preparation of pipe
yards & port improvements
· Materials specifications, materials take-off list,
and options on long-lead items
· Finalization of financing and bonding for the
project
10:48:35 AM
Mr. Heinze continued regarding Past ANGDA funding:
Past ANGDA funding includes:
Total operating budget expenditures of $1.6 million
total over 5 years
Total capital appropriations of $11.5 million (includes
$4 million just available)
With $4.5 million capital appropriation spent or
committed at this time
Remaining $7.0 million capital appropriation is
authorized, but not committed at this time is planned
for contracting over the next year:
· TAPS proximity design
· Feasibility of high-density plastic pipe as an
interim link between Delta Junction and Fairbanks
· Recalibration of cost estimates and project
schedule
· LDIR data acquisition
· Preparation of spur line project EIS
· Identification of & engagement with value added
industrial companies
· Gas purchase agreements
· Contract and bonding documents for aggregation of
utility gas needs
· Local gas take-off point design and preliminary
NGL "straddle plant" designs
· Joint venture partnership documents, initial
financing plan, request for Certificate of
Necessity (demonstrate fit, willing, and able),
and letter agreement with shippers
· Design of feeder pipelines from Gubik, Nenana,
Point Thomson, Yukon Flats, and Copper River
basins
· Propane Distribution Project - Propane purchase
on North Slope for "pilot" project & tank rental
· Public outreach
10:50:19 AM
Mr. Heinze addressed the differences between the need of the
plan as it stands now compared to April 2008. He related
that at the time of the 2008 legislative session the full
implications of the TransCanada proposal were not wholly
understood. He also pointed out that only recently had the
timeline and scheduling needs of the Denali Pipeline been
clarified. He stated that the timeline is aggressive.
10:52:07 AM
Mr. Heinze commented on the question as to what happens if
AGIA is not approved. He pointed out the advantages of AGIA
in terms of in state use. He discussed the ramifications of
a funding delay. He addressed the construction of a spur
line as a pre-build.
Mr. Heinze said it is his perception that the approval of
AGIA will set up a competition to get to an open season.
The state operates under procurement rules and it is
important to be in a strong position in 2009.
10:55:40 AM
Co-Chair Stedman asked what the number could be if the
funding were scaled back. Mr. Heinze said $50 million in
order to retain two key contracts. He spoke of timing
advantages.
10:56:59 AM
Senator Elton noted a $25 million request for funds. He
recalled the governor's conference with ENSTAR where there
was no financial request from the state. He questioned why
the state should fund ANGDA.
Mr. Heinze explained that the funding would be for a spur
line, not a bullet line. He maintained that the spur line
between Cook Inlet and Delta Basin should be built first,
and then on an interim basis, the one to Fairbanks. He
contrasted that plan with ENSTAR's. The monetary request
from ANGDA is in order to consider building the spur line
off of the big pipeline. He termed it an appropriate
expenditure.
11:02:19 AM
Senator Elton continued to question the logic of having a
spur line. Mr. Heinze suggested further conversations.
Senator Thomas noted a problem with competition due to
having so many projects. There is a problem of not moving
projects forward because of a lack of planning and design.
He inquired what would happen if ANGDA's project does not go
forward. Mr. Heinze said he did not intend to preclude any
other options. The focus is on a spur line with the hope of
being prepared to participate in an open season. He
commented on possibilities with the North Slope gas. He
confirmed that there are many issues on the table. The key
to instate gas is to be prepared for open season because
ANGDA is only 5 percent of the total cost of the pipeline
proposals.
11:11:40 AM
Senator Thomas summarized that, regardless of what happens
with the spur line, the state may want to go ahead with this
project. Mr. Heinze thought the spur line would cost
between $1.5 billion to $1 billion. He admitted that the
conditions and the commitments to make the pipeline work
were tricky. He made a case for helping Fairbanks by
building the spur line and then linking with a larger
pipeline at a later date resulting in cost savings.
Mr. Heinze surmised that the best training for future "big
pipeline" workers would be first working on a spur line.
11:15:08 AM
Senator Huggins recalled a Senate resolution to promote in
state gas. He asked if moving Cook Inlet gas north had a
high probability in 2013, 2014, and 2015. Mr. Heinze
believed there was a very high probability of that
happening. Senator Huggins requested a number from 1-10.
Mr. Heinze said "eight". He stated that money would need to
be spent and work would need to be done in order to move gas
north to Cook Inlet.
Senator Huggins asked about the plastic pipe from Delta
Junction to Fairbanks. Mr. Heinze detailed the specifics
and benefits of high density plastic pipe.
Senator Huggins believed that in state gas would be a
reality within six years. Mr. Heinze said the focus is on a
spur line connecting to a larger pipeline. He detailed
several options.
11:21:51 AM
Ms. Rehfeld offered to provide requested material pertaining
to the macro concerns of the committee.
Senator Elton requested information about the Governor's
priorities regarding appropriation requests.
SB 4001 was heard and HELD in Committee for further
consideration.
AT-EASE: 11:24:39 AM
RECONVENE: 11:29:18 AM
SENATE BILL NO. 4004
"An Act suspending the motor fuel tax; and providing
for an effective date."
RANDALL RUARO, SPECIAL ASSISTANT, OFFICE OF THE GOVERNOR
stated that the main benefits of the suspension of the
state's motor fuel tax apply to the general public and the
fishing industry. They are also a part of a tool box at the
federal level to provide relief to commercial fishermen. He
mentioned benefits to regional air carriers. He spoke of
communities losing air carrier service due to gas taxes. He
specifically sited the community of Kake, Alaska. He stated
that the suspension would provide relief to the trucking and
barging industry as well.
11:33:56 AM
Co-Chair Stedman observed that the suspension would be from
stst
August 1 2008 to July 31 2009. He asked for data on who
holds fishing permits in state and where they were held out
of state. He wondered if non Alaskans were fueling up at the
Dutch Harbor port. He asked if the majority of marine
vehicles fueling up at Dutch Harbor were non Alaskan owned.
He felt that Dutch Harbor was the dominant port for marine
fuel. Mr. Ruaro stated that he would provide that
information as soon as he could.
Co-Chair Stedman clarified that the proposed bill if enacted
would repeal the marine fuel tax for anyone buying marine
fuel. Mr. Ruaro answered that it suspends the tax for a year
and applies on a statewide basis to all payers of the tax.
11:35:43 AM
Co-Chair Stedman asked the administration's plan to back
fill the $36.7 million. Mr. Ruaro said there was no formal
plan at this time. The assumption is that there would be
that amount less general funds.
Senator Thomas asked if the bill had been broken down by
what the motor fuels do in specific situations. He stated
that more clarity was needed between heating fuel and the
fuel that powers vehicles.
Senator Huggins asked how many vehicles in the state fleet
were sport utility vehicles (SUVs). He asked how the state
could reduce overall consumption and suggested that Alaska
should set the example for the country.
Senator Huggins voiced his concerns maintaining a robust
maintenance fund for highways given the tax suspension. He
also wondered about re-imposing the tax after suspension.
Co-Chair Stedman asked for a geographical distribution of
the tax cut. Mr. Ruaro said he would work on that.
SB 4004 was heard and HELD in Committee for further
consideration.
AT EASE: 11:43:03 AM
RECONVENED: 11:43:28 AM
ADJOURNMENT
The meeting was adjourned at 11:44 AM.
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