Legislature(2013 - 2014)SENATE FINANCE 532
04/09/2013 03:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB30 | |
| HB4 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 4 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 30 | ||
SENATE FINANCE COMMITTEE
April 9, 2013
3:34 p.m.
3:34:19 PM
CALL TO ORDER
Co-Chair Meyer called the Senate Finance Committee meeting
to order at 3:34 p.m.
MEMBERS PRESENT
Senator Pete Kelly, Co-Chair
Senator Kevin Meyer, Co-Chair
Senator Anna Fairclough, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
William Walker, Attorney, Walker Richards LLC; Craig
Richards, Attorney, Walker Richards LLC; Stewart Goering,
Assistant attorney General, Department of Law;
Representative Mike Hawker; Representative Mike Chenault
SUMMARY
CSSSHB 4(FIN)
ALASKA GASLINE DEVELOPMENT CORP; RCA
CSSSHB 4(FIN) was HEARD and HELD in committee for
further consideration.
CSHB 30(FIN)
STATE AGENCY PERFORMANCE AUDITS
CSHB 30(FIN) was REPORTED out of committee with a
"do pass" recommendation and two previously
published zero fiscal notes: FN1(GOV) and
FN2(LEG); and with previously published fiscal
impact note: FN3(LEG).
CS FOR HOUSE BILL NO. 30(FIN)
"An Act relating to performance reviews, audits, and
termination of executive and legislative branch
agencies, the University of Alaska, and the Alaska
Court System; and providing for an effective date."
3:35:53 PM
Vice-Chair Fairclough highlighted fiscal note #3. She
relayed that the legislation initiated annual performance
audits and reviews of Executive Branch agencies beginning
with calendar year 2014, continuing annually on a 10-year
cycle.
3:36:50 PM
Co-Chair Meyer stated that the note represented the basic
costs and expenses associated with performing the numerous
audits of state agencies.
3:37:03 PM
Vice-Chair Fairclough MOVED to REPORT HB 30 out of
committee with individual recommendations and the
accompanying fiscal note(s). There being NO OBJECTION, it
was so ordered.
3:37:18 PM
Co-Chair Meyer noted that Co-Chair Kelly had joined the
meeting.
CSHB 30(FIN) was REPORTED out of committee with a "do pass"
recommendation and two previously published zero fiscal
notes: FN1(GOV) and FN2(LEG); and with previously published
fiscal impact note: FN3(LEG).
3:37:26 PM
AT EASE
3:40:21 PM
RECONVENED
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 4(FIN)
"An Act relating to the Alaska Gasline Development
Corporation; establishing the Alaska Gasline
Development Corporation as an independent public
corporation of the state; establishing and relating to
the in-state natural gas pipeline fund; making certain
information provided to or by the Alaska Gasline
Development Corporation and its subsidiaries exempt
from inspection as a public record; relating to the
Joint In-State Gasline Development Team; relating to
the Alaska Housing Finance Corporation; relating to
judicial review of a right-of-way lease or an action
or decision related to the development or construction
of an oil or gas pipeline on state land; relating to
the lease of a right-of-way for a gas pipeline
transportation corridor, including a corridor for a
natural gas pipeline that is a contract carrier;
relating to the cost of natural resources, permits,
and leases provided to the Alaska Gasline Development
Corporation; relating to procurement by the Alaska
Gasline Development Corporation; relating to the
review by the Regulatory Commission of Alaska of
natural gas transportation contracts; relating to the
regulation by the Regulatory Commission of Alaska of
an in-state natural gas pipeline project developed by
the Alaska Gasline Development Corporation; relating
to the regulation by the Regulatory Commission of
Alaska of an in-state natural gas pipeline that
provides transportation by contract carriage;
repealing the statutes relating to the Alaska Natural
Gas Development Authority and making conforming
changes; exempting property of a project developed by
the Alaska Gasline Development Corporation from
property taxes before the commencement of commercial
operations; and providing for an effective date."
3:41:34 PM
WILLIAM WALKER, ATTORNEY, WALKER RICHARDS LLC, requested
permission to speak to the sponsor's response following the
presentation. He noted that he a supported pipeline
project; however, he could not support the project proposed
in HB 4.
3:42:52 PM
Mr. Walker began a presentation titled "City of Valdez-
Presentation on the In-State Gas Pipeline Bill (HB 4)"
(copy on file). He shared that in crafting the presentation
he had drawn upon his knowledge of TAPS. He discussed Slide
2, "Problems with HB 4 and AGDC Concept":
•Cheaper Alternatives Like LNG Import
•Unclear Whether AGIA Violated by H.B. 4
•Circumvents Existing Regulatory Structure
•FERC open season regulations
•RCA and not FERC regulated
•No common carriage in-state
•Just and reasonable rates not required
•Expansion costs on new entrants
•Cost Estimate Not Transparent
•Wrong Project Scope
•State Loses if H.B. 4 Structure Used for Big Project
3:44:41 PM
Mr. Walker addressed Slide 3, "Background - HB 369." He
related that HB 369 had been the predecessor to HB 4:
•HB 369 Sec. 4.
AS 38.34.099 to read:
"(1) 'in-state natural gas pipeline' means a
pipeline for transporting natural gas that runs
from the North Slope to tidewater in the state"
•HB 369 Sec. 9.
Amended AS 41.41.990(3)to read:
"'project' means the gas transmission pipeline,
together with all related property and
facilities, to extend from the North Slope of
Alaska or other regions of the state to a market
in the state, or be available to a market in the
state, and to tidewater at a point on Prince
William Sound or Cook Inlet, and includes
planning, design, and construction of the
pipeline and facilities as described in AS
41.41.010(a)(1)-(5)."
Mr. Walker stated that a direction of HB 369 had been for
the state to participate in an export process; to encourage
the application for a license, or to encourage those with a
license to get an extension. He said that with the passage
of HB 369 it had been anticipated that a large volume line
would be built that could provide for all of Alaska.
Additionally, the bill discussed adding an export piece,
should the increased volume lower the cost of energy to
Alaskan consumers.
3:46:45 PM
Mr. Walker spoke to Slides 4 and 5, "Potential Benefits to
Alaskans from a Large Volume State-Owned Gasline/LNG
Project by PDC Harris Group LLC (November 3, 2011)," which
highlighted the cost of energy to Alaskans outside of the
Rail belt:
vs
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2013-04-9 Presentation re HB4 (4).pdf |
SFIN 4/9/2013 3:30:00 PM |
HB 4 |
| HB 4 Import-Export-LNG Trade Flows Map.pdf |
SFIN 4/9/2013 3:30:00 PM |
HB 4 |
| HB 4 Opposition Letters Packet 2.pdf |
SFIN 4/9/2013 3:30:00 PM |
HB 4 |
| HB 4 Support Letter Packet 3.pdf |
SFIN 4/9/2013 3:30:00 PM |
HB 4 |