Legislature(2015 - 2016)BUTROVICH 205

03/20/2015 03:30 PM RESOURCES

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 8 INDUSTRIAL HEMP PRODUCTION LICENSES TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HJR 4 OFFSHORE OIL & GAS REVENUE SHARING TELECONFERENCED
Moved SCS HJR 4(RES) Out of Committee
+= SB 57 CLEAN AIR ACT PLAN TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                         March 20, 2015                                                                                         
                           3:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Cathy Giessel, Chair                                                                                                    
Senator Mia Costello, Vice Chair                                                                                                
Senator John Coghill                                                                                                            
Senator Peter Micciche                                                                                                          
Senator Bert Stedman                                                                                                            
Senator Bill Stoltze                                                                                                            
Senator Bill Wielechowski                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 8                                                                                                               
"An Act relating  to the regulation and  production of industrial                                                               
hemp."                                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 4                                                                                                    
Urging  the  United  States  Congress  to  provide  a  means  for                                                               
consistently  and   equitably  sharing  with  all   oil  and  gas                                                               
producing  states adjacent  to  federal  outer continental  shelf                                                               
areas  a   portion  of  revenue   generated  from  oil   and  gas                                                               
development on the  outer continental shelf to  ensure that those                                                               
states   develop  necessary   infrastructure  to   support  outer                                                               
continental   shelf   development  and   preserve   environmental                                                               
integrity.                                                                                                                      
                                                                                                                                
     - MOVED SCS HJR 4(RES) OUT OF COMMITTEE                                                                                    
                                                                                                                                
SENATE BILL NO. 57                                                                                                              
"An Act relating  to the development of  state emission standards                                                               
in accordance with the federal Clean Air Act."                                                                                  
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB   8                                                                                                                  
SHORT TITLE: INDUSTRIAL HEMP PRODUCTION LICENSES                                                                                
SPONSOR(s): SENATOR(s) ELLIS                                                                                                    
                                                                                                                                
01/21/15       (S)       PREFILE RELEASED 1/9/15                                                                                
01/21/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/15       (S)       RES, JUD, FIN                                                                                          
03/20/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: HJR  4                                                                                                                  
SHORT TITLE: OFFSHORE OIL & GAS REVENUE SHARING                                                                                 
SPONSOR(s): REPRESENTATIVE(s) SADDLER                                                                                           
                                                                                                                                
01/21/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/15       (H)       RES                                                                                                    
02/27/15       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/27/15       (H)       Moved  HJR 4 Out of Committee                                                                          
02/27/15       (H)       MINUTE(RES)                                                                                            
03/02/15       (H)       RES RPT 6DP                                                                                            
03/02/15       (H)       DP: JOSEPHSON, SEATON, TARR, OLSON,                                                                    
                        HAWKER, TALERICO                                                                                        
03/04/15       (H)       TRANSMITTED TO (S)                                                                                     
03/04/15       (H)       VERSION: HJR  4                                                                                        
03/06/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/06/15       (S)       RES                                                                                                    
03/16/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/16/15       (S)       Heard & Held                                                                                           
03/16/15       (S)       MINUTE(RES)                                                                                            
                                                                                                                                
BILL: SB  57                                                                                                                  
SHORT TITLE: CLEAN AIR ACT PLAN                                                                                                 
SPONSOR(s): SENATOR(s) GIESSEL                                                                                                  
                                                                                                                                
02/20/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/20/15       (S)       NRG, RES                                                                                               
03/17/15       (S)       NRG AT 1:00 PM BUTROVICH 205                                                                           
03/17/15       (S)       Moved  CSSB 57(NRG) Out of Committee                                                                   
03/17/15       (S)       MINUTE(NRG)                                                                                            
03/18/15       (S)       NRG RPT CS  3DP 1NR  NEW TITLE                                                                         
03/18/15       (S)       DP: MICCICHE, BISHOP, EGAN                                                                             
03/18/15       (S)       NR: HOFFMAN                                                                                            
03/18/15       (S)       FIN REFERRAL ADDED AFTER RES                                                                           
03/18/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/18/15       (S)       Heard & Held                                                                                           
03/18/15       (S)       MINUTE(RES)                                                                                            
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MATT MOSER, staff to Senator Ellis                                                                                              
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Commented on SB 8 for the sponsor.                                                                       
                                                                                                                                
SCOTT HENDRICK, Program Director                                                                                                
National Conference of State Legislature (NCSL)                                                                                 
Denver, Colorado                                                                                                                
POSITION STATEMENT:  Commented on SB 8.                                                                                       
                                                                                                                                
LARRY DEVILBISS, Mayor                                                                                                          
Mat-Su Borough                                                                                                                  
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Provided supporting information for SB 8.                                                                
                                                                                                                                
BRYCE WRIGLEY, President                                                                                                        
Alaska Farm Bureau (AFB)                                                                                                        
Delta Junction, Alaska                                                                                                          
POSITION STATEMENT:  Supported SB 8.                                                                                          
                                                                                                                                
JIM SYKES, representing himself                                                                                                 
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Supported SB 8.                                                                                          
                                                                                                                                
FRANK TURNEY, representing himself                                                                                              
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Supported SB 8.                                                                                          
                                                                                                                                
FRANCI HAVEMEISTER, Director                                                                                                    
Division of Agriculture                                                                                                         
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions on SB 8.                                                                              
                                                                                                                                
CHAD HUTCHISON, staff to Senator Coghill                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Commented on Amendment 1 for HJR 4 for the                                                               
sponsor.                                                                                                                        
                                                                                                                                
REPRESENTATIVE SADDLER                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    Sponsor  of  HJR  4;  said  he  supported                                                             
Amendment 1.                                                                                                                    
                                                                                                                                
NORMAN ROKEBERG, representing himself                                                                                           
Commissioner, Regulatory Commission of Alaska (RCA)                                                                             
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Opposed  SB  57  (not  the  official  RCA                                                             
opinion).                                                                                                                       
                                                                                                                                
EMMA POKON, Assistant Attorney General                                                                                          
Department of Law (DOL)                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Commented on SB 57.                                                                                      
                                                                                                                                
ALICE EDWARDS, Deputy Commissioner                                                                                              
Department of Environmental Conservation (DEC)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Commented on SB 57.                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:31:04 PM                                                                                                                    
CHAIR  CATHY   GIESSEL  called  the  Senate   Resources  Standing                                                             
Committee meeting  to order at 3:31  p.m. Present at the  call to                                                               
order  were   Senators  Stedman,  Costello,   Micciche,  Stoltze,                                                               
Coghill, Wielechowski and Chair Giessel.                                                                                        
                                                                                                                                
           SB   8-INDUSTRIAL HEMP PRODUCTION LICENSES                                                                       
                                                                                                                                
3:32:13 PM                                                                                                                    
CHAIR GIESSEL announced  SB 8 [version 29-L/S028|A] to  be up for                                                               
consideration.                                                                                                                  
                                                                                                                                
3:32:17 PM                                                                                                                    
MATT MOSER,  staff to Senator  Ellis, sponsor of SB  8, explained                                                               
that industrial hemp has been  cultivated by humans for thousands                                                               
of years.  The Declaration of  Independence and  the Constitution                                                               
were both  written on hemp  papers. It is  ironic that a  crop so                                                               
important to American history is still illegal today.                                                                           
                                                                                                                                
He said 19 states have  embraced pilot studies on hemp production                                                               
across the  country and it  is, in fact,  an issue with  which to                                                               
fight  federal  overreach.  It  is  also  an  issue  that  brings                                                               
Republicans and  Democrats together,  which is what  drew Senator                                                               
Ellis to  the issue  originally. He  said that  Kentucky Senators                                                               
Mitch  McConnell and  Rand Paul  have  introduced the  Industrial                                                               
Hemp Farming Act that has numerous co-sponsors.                                                                                 
                                                                                                                                
3:34:25 PM                                                                                                                    
MR. MOSER provided a sectional analysis of SB 8 as follows:                                                                     
                                                                                                                                
Section 1 adds a new section  to Title 3 entitled Industrial Hemp                                                               
and  defining   it  as  an   agricultural  crop  in   Alaska.  It                                                               
establishes  a license  procedure  in the  Department of  Natural                                                               
Resources (DNR)  that allows a  licensed hemp producer  to plant,                                                               
grow, harvest, process, possess, sell  or buy industrial hemp. It                                                               
also requires the DNR to adopt regulations.                                                                                     
                                                                                                                                
Language  on page  2, line  6,  says a  licensed industrial  hemp                                                               
grower must document  and file verification that  hemp seeds they                                                               
have  used  are certified  and  document  to  have less  than  .3                                                               
percent tetrahydrocannabinol (THC),  the psycho active ingredient                                                               
in  recreational marijuana.  Language on  page 2,  line 19,  sets                                                               
this definition in statute.                                                                                                     
                                                                                                                                
Section 2 on  page 2, line 21, creates an  affirmative defense to                                                               
prosecution for a properly licensed hemp grower.                                                                                
                                                                                                                                
Section 3  on page  3, line  4, allows  the Department  of Public                                                               
Safety  (DPS)  to  conduct a  national  criminal  history  record                                                               
check,  something  that  other  states  have  included  in  their                                                               
statutes.                                                                                                                       
                                                                                                                                
Section 4  on page  3, line  6, states  that a  properly licensed                                                               
producer of industrial  hemp is not required to be  licensed as a                                                               
marijuana establishment.                                                                                                        
                                                                                                                                
3:37:40 PM                                                                                                                    
SENATOR  STOLTZE asked  why there  has to  be a  criminal history                                                               
registry record check if hemp is a benign substance.                                                                            
                                                                                                                                
MR. MOSER  answered that the  sponsor agrees that it  is probably                                                               
not  necessary,  but  that  component  of  the  bill  used  model                                                               
legislation from other states.                                                                                                  
                                                                                                                                
3:38:46 PM                                                                                                                    
SENATOR  WIELECHOWSKI said  it is  still considered  a controlled                                                               
substance  by the  federal government  and asked  if he  would be                                                               
arrested for eating a hemp granola bar.                                                                                         
                                                                                                                                
MR. MOSER  answered that hemp  products across the  United States                                                               
are growing by  double digits every year, but right  now the U.S.                                                               
is an  importer of industrial  hemp raw materials from  China and                                                               
Canada. So, the feds won't interfere with his snack.                                                                            
                                                                                                                                
SENATOR  MICCICHE asked  if Alaska  has right  growing conditions                                                               
and soils to grow it.                                                                                                           
                                                                                                                                
MR.  MOSER  answered  that  there   are  a  number  of  different                                                               
opinions.  He found  information about  hemp growing  in Northern                                                               
Russia,  and  British  Columbia  has a  white  paper  about  hemp                                                               
production in Canada.                                                                                                           
                                                                                                                                
3:40:33 PM                                                                                                                    
SCOTT HENDRICK,  Program Director,  National Conference  of State                                                               
Legislature  (NCSL),  Denver,  Colorado,   said  the  NCSL  is  a                                                               
bipartisan organization  that presents  research and  analysis to                                                               
state legislatures  and doesn't take positions  on issues debated                                                               
in the  states. His purpose  today was to provide  information on                                                               
how other states have handled this issue.                                                                                       
                                                                                                                                
He   said  that   the  increasing   number  of   industrial  hemp                                                               
discussions are  driven by  the inclusion of  a provision  in the                                                               
2014  Federal   Farm  bill  that  authorizes   states  to  pursue                                                               
industrial  hemp pilot  projects  through  their universities  or                                                               
Departments of  Agriculture. Some states have  passed legislation                                                               
to promote the industrial hemp  industry prior to the federal law                                                               
changes  last  year. To  date,  22  states  have passed  laws  on                                                               
industrial  hemp;   7  states   -  Delaware,   Hawaii,  Illinois,                                                               
Michigan, Nebraska,  New York and  Utah - have  laws establishing                                                               
hemp research programs usually administered  by a state agency or                                                               
university.   Connecticut and New  Hampshire have passed  laws to                                                               
study  industrial  hemp.  Thirteen  other  states  -  California,                                                               
Colorado,  Indiana,  Kentucky,   Maine,  Montana,  North  Dakota,                                                               
Oregon, South  Carolina, Tennessee,  Vermont, Virginia,  and West                                                               
Virginia - have passed laws  to establish a commercial industrial                                                               
hemp program  similar to what is  being considered in SB  8. Some                                                               
of these  states will not  start issuing licenses until  they are                                                               
granted waivers from  the Drug Enforcement Agency  (DEA) or until                                                               
changes are  made to federal  law. So,  some states have  laws on                                                               
the books, but they aren't  being acted upon now. Several states,                                                               
such as  Washington and Colorado,  are moving forward  with their                                                               
commercial hemp  programs. He  would focus  his remarks  on these                                                               
types of laws and how they compare to the language in SB 8.                                                                     
                                                                                                                                
MR. HENDRICK said  several other policy options  adopted by other                                                               
states were  not included  in the  legislation. He  said SB  8 is                                                               
very representative  of industrial  hemp program laws  enacted in                                                               
other  states.   It  defines   industrial  hemp,   establishes  a                                                               
licensing  scheme  with   regulatory  requirements  for  growers,                                                               
provides for inspection and oversight,  and grants an affirmative                                                               
defense  for  prosecution  under state  substance  control  laws.                                                               
Other states have general addressed these areas, too.                                                                           
                                                                                                                                
SB 8's definition is in  line with other states' definition. Some                                                               
states have also  chosen to include in their  definition that the                                                               
plant must  have a "Delta-9"  THC concentration of not  more than                                                               
0.3 percent  and many specify that  the THC limits are  "on a dry                                                               
weight basis."                                                                                                                  
                                                                                                                                
MR. HENDRICK  said the  licensing scheme  in SB  8 is  similar to                                                               
other states'  laws. However, section (1)(c)  doesn't require GPS                                                               
coordinates or  a map of the  growing area for the  growing areas                                                               
as  other states  have required.  Indiana  and Kentucky  prohibit                                                               
anyone who  has been convicted of  a drug related offense  in the                                                               
last  10 years  from  obtaining a  growers  license. Some  states                                                               
require  written  consent  with   the  license  application  that                                                               
explicitly allows access to the  growing property for testing and                                                               
inspections.  Some states  set terms  for  licenses stating  that                                                               
they  are only  valid  for  a certain  time  period, usually  1-3                                                               
years.  Oregon's  law  states  that   a  license  is  a  personal                                                               
privilege and not transferrable.                                                                                                
                                                                                                                                
3:45:48 PM                                                                                                                    
Regulatory requirements  in section  (1)(d) have a  provision for                                                               
the licensee to  provide documentation that seeds  planted are of                                                               
a type  and variety certified  to grow industrial hemp  having no                                                               
more than 0.3  percent THC. Other states have  more detailed seed                                                               
certification requirements in  statute; for example, California's                                                               
law establishes  an approved  list of  seed types  and Colorado's                                                               
law  formally  establishes  a seed  certification  program.  Some                                                               
states have  slightly different regulatory requirements  for seed                                                               
growers  as  opposed  to  those growing  the  crop,  itself.  The                                                               
requirements for  the seed growers relate  to inspection, keeping                                                               
records  of who  they sell  to,  preserving those  records for  a                                                               
certain time period,  and requirements as the amount  and type of                                                               
inventory they can hold at any one time.                                                                                        
                                                                                                                                
MR. HENDRICK said  SB 8 would also require the  licensee to share                                                               
with the state  any contracts to grow industrial hemp.  This is a                                                               
small  difference from  others,  but  Colorado actually  requires                                                               
proof of a  contract before a license can be  issued. Most of the                                                               
other  regulatory requirements  closely  align  with language  in                                                               
other  states.  He  said  some  state  laws  have  more  detailed                                                               
oversight for things  like how inspections and  testings can take                                                               
place and what  to do if test samples come  back with THC amounts                                                               
higher than lawfully acceptable.                                                                                                
                                                                                                                                
3:47:21 PM                                                                                                                    
Section  2   of  SB  8   provides  an  affirmative   defense  for                                                               
prosecution  under the  Controlled Substance  laws. Some  states,                                                               
such as Colorado, extended this  protection to include people who                                                               
are  processing,  selling  or otherwise  distributing  industrial                                                               
hemp grown  by a  person who  is registered  under their  law. In                                                               
Montana, in  order for  the defense to  apply, the  licensee must                                                               
"have valid  applicable controlled substances  registrations with                                                               
the U.S.DEA."                                                                                                                   
                                                                                                                                
3:48:01 PM                                                                                                                    
MR.  HENDRICK said  additional policy  options that  other states                                                               
have adopted are  create a board or advisory  committee to advise                                                               
on  laws, regulations,  enforcement and  budgetary matters.  Some                                                               
have adopted  detailed seed registration  certification programs.                                                               
Some specifically set  up an industrial hemp fund  to support the                                                               
program.   Money  going   into  these   funds  usually   includes                                                               
registration   or  licensing   fees.  Some   states  specifically                                                               
authorize  grants   from  foundations  or   private  individuals.                                                               
Colorado  uses a  portion  of its  revenues  from marijuana  sale                                                               
taxes to support the industrial hemp fund, as well.                                                                             
                                                                                                                                
3:48:59 PM                                                                                                                    
In terms of  penalties, some states authorize  civil penalties of                                                               
up   $2,500  per   violation  and   some  have   minimum  acreage                                                               
requirements, usually 5 acres or  greater for growers of the crop                                                               
and 2.5 acres or more for seed cultivators.                                                                                     
                                                                                                                                
MR. HENDRICK said some states  have considered the transportation                                                               
of  hemp   away  from   the  growth   site  and   require  agents                                                               
transporting  the harvest  to carry  the licensing  documentation                                                               
with them. California requires sample  testing of industrial hemp                                                               
crops immediately before the harvest.                                                                                           
                                                                                                                                
SENATOR STOLTZE  asked if  individual states  does its  own seed,                                                               
soil and product certification.                                                                                                 
                                                                                                                                
MR. HENDRICK replied that some  states haven't established a seed                                                               
certification program and some have.                                                                                            
                                                                                                                                
SENATOR STOLTZE  said he was  more concerned about the  levels of                                                               
drug content.                                                                                                                   
                                                                                                                                
MR. HENDRICK  replied that the  level of  drug content is  set at                                                               
the same amount as for the crop, itself.                                                                                        
                                                                                                                                
SENATOR  STOLTZE   asked  if  each   state  is   responsible  for                                                               
conducting those tests.                                                                                                         
                                                                                                                                
MR. HENDRICK answered yes.                                                                                                      
                                                                                                                                
SENATOR STOLTZE asked to determine  fiscal impact, if the federal                                                               
government is able to render  any assistance for certification as                                                               
with other agricultural products.                                                                                               
                                                                                                                                
MR. HENDRICK answered he wasn't aware of any federal assistance.                                                                
                                                                                                                                
SENATOR MICCICHE said  it seems like the  background checks seems                                                               
a  little extreme  if it  doesn't  have potential  for abuse  and                                                               
asked him to explain why.                                                                                                       
                                                                                                                                
3:53:06 PM                                                                                                                    
MR. HENDRICK answered  that he couldn't speak to why,  but he had                                                               
heard someone  say that allowing  industrial hemp might be  a way                                                               
for people  to grow marijuana  in those  plots. It could  be that                                                               
industrial hemp is still considered  to be a controlled substance                                                               
on a federal level.                                                                                                             
                                                                                                                                
3:54:15 PM                                                                                                                    
SENATOR  MICCICHE   asked  at  what  point   would  a  controlled                                                               
substance not require control.                                                                                                  
                                                                                                                                
MR. HENDRICK answered  that he wasn't sure, because  he wasn't an                                                               
expert  on  federal law.  The  states  have definitions  for  the                                                               
industrial hemp  plant and some  define industrial  hemp products                                                               
separately  from the  plant. Zero  levels of  THC wouldn't  be an                                                               
issue.                                                                                                                          
                                                                                                                                
SENATOR  STOLTZE asked  about  possible  federal assistance  with                                                               
marketing and other facets of the agricultural community.                                                                       
                                                                                                                                
MR.  HENRICK  responded that  he  would  look into  what  federal                                                               
assistance is available.                                                                                                        
                                                                                                                                
SENATOR STOLTZE added "or prohibited."                                                                                          
                                                                                                                                
3:56:31 PM                                                                                                                    
LARRY DEVILBISS,  Mayor, Mat-Su Borough, Palmer,  Alaska, said he                                                               
is  a farmer  and  knows that  the industrial  hemp  will not  be                                                               
confused visually with  a marijuana plant. They  are not remotely                                                               
alike. He didn't think it  had a massive commercial potential for                                                               
Alaska, but it probably has a  niche value. The seed is available                                                               
at places like Costco and he  has one 92 year old constituent who                                                               
credits his health  all to hemp and has a  bible verse to support                                                               
it.                                                                                                                             
                                                                                                                                
4:00:04 PM                                                                                                                    
BRYCE  WRIGLEY,  President,  Alaska   Farm  Bureau  (AFB),  Delta                                                               
Junction, Alaska, supported  SB 8. He said the two  crops of hemp                                                               
and  marijuana  are  significantly  different.  Hemp  is  a  very                                                               
versatile crop  providing fiber  and oil  that can  be used  in a                                                               
wide range  of products in  the health  food world. In  fact hemp                                                               
seeds are considered a super food with up to 20 percent protein.                                                                
                                                                                                                                
The U.S. imports  $2 billion worth of hemp products  per year and                                                               
it seems  that if  the products  are safe  to import,  they could                                                               
also be  safely grown  here. The  low level  of THC  contained in                                                               
industrial hemp  provides the necessary safeguards  to the public                                                               
health.                                                                                                                         
                                                                                                                                
MR. WRIGLEY  said it isn't  clear whether industrial hemp  can be                                                               
grown to  maturity here,  so that the  desired products  could be                                                               
processed into suitable items. The  development of hemp varieties                                                               
with the  required low  THC concentration,  the short  season and                                                               
other desirable  traits is the  proper purview of  the University                                                               
of Alaska  Fairbanks as it is  a land grant university  with land                                                               
facilities  in different  areas of  the state  to provide  a wide                                                               
range of  trial locations.  He stressed that  it is  important to                                                               
conduct  this  research  in a  controlled  manner  by  legitimate                                                               
researchers who can  evaluate the traits, measure  the THC levels                                                               
and screen for  unintended risks. Even if no  varieties are found                                                               
that  can  mature  in  Alaska's latitude  there  is  promise  for                                                               
industrial hemp  as a  cover crop  for green  manure or  for weed                                                               
suppression. The  proper methods for determining  whether this is                                                               
a  good opportunity  for Alaskan  farmers is  for UAF  to do  the                                                               
research and  pass the  breeder seed  through the  Plant Material                                                               
Center to individual farmers to grow.                                                                                           
                                                                                                                                
4:02:24 PM                                                                                                                    
SENATOR  STOLTZE asked  if the  Farm  Bureau officially  endorsed                                                               
growing hemp in the past.                                                                                                       
                                                                                                                                
MR. WRIGLEY  replied this week is  the first time it  came before                                                               
the AFB and they endorsed SB 8 officially.                                                                                      
                                                                                                                                
SENATOR COSTELLO  asked how  large of an  industry hemp  would be                                                               
and if any farmers had expressed interest in growing it.                                                                        
                                                                                                                                
MR. WRIGLEY  answered that he  hadn't heard of anyone  wanting to                                                               
grow  it. It  has maturity  issues in  Alaska's latitude.  Alaska                                                               
struggles  with rotational  crops being  limited particularly  in                                                               
the  north as  to what  can be  rotated with  barley and  grains.                                                               
There are  possibilities that hemp  could provide a  green manure                                                               
crop  or a  method of  suppressing  weeds because  it grows  very                                                               
densely.                                                                                                                        
                                                                                                                                
SENATOR COSTELLO asked  if the research should be done  by UAF or                                                               
individual farmers.                                                                                                             
                                                                                                                                
MR. WRIGLEY  replied that his  strong recommendation would  be to                                                               
do  it  through   UAF,  because  they  have   the  capability  of                                                               
evaluating  various aspects  of hemp  as a  crop and  determining                                                               
what  varieties would  be the  best, THC  levels and  things like                                                               
that.  It  would helpful  to  have  the University  provide  that                                                               
research first,  because accredited  and land  grant universities                                                               
were  established to  provide that  service. The  information was                                                               
meant to  be disseminated through  cooperative extension  and the                                                               
Plant  Material Center  was tasked  with growing  those crops  as                                                               
they were  determined to be  viable. He thought it  was important                                                               
to reestablish the importance of the University in that process.                                                                
                                                                                                                                
4:06:18 PM                                                                                                                    
SENATOR STOLTZE asked if the hemp plant could become invasive.                                                                  
                                                                                                                                
MR. WRIGLEY answered that it can,  but it is spread by speed. One                                                               
hopes if  it can mature  here that  it would be  managed properly                                                               
and  that  the  plant  would  be  harvested  before  mature  seed                                                               
setting.  That  is  another  compelling  reason  to  involve  the                                                               
University.                                                                                                                     
                                                                                                                                
CHAIR GIESSEL  thanked him  for his  testimony and  opened public                                                               
testimony.                                                                                                                      
                                                                                                                                
4:07:49 PM                                                                                                                    
JIM SYKES, representing himself,  Palmer, Alaska, supported SB 8.                                                               
He is  also a member of  the Mat-Su Borough Assembly,  but is not                                                               
speaking for them, but they  were okay with the Mayor's testimony                                                               
earlier. The  idea of putting a  THC dry weight and  allowing for                                                               
inspection  at any  time  of  a crop  and  testing is  important,                                                               
especially with medical and recreational marijuana.                                                                             
                                                                                                                                
4:10:01 PM                                                                                                                    
FRANK TURNEY, representing  himself, Fairbanks, Alaska, supported                                                               
SB 8.  He said  the real terminology  is cannabis,  not marijuana                                                               
that  has  been  used  as   a  racist  tool  against  blacks  and                                                               
minorities, has been grown for  medicinal and industrial uses for                                                               
10,000  years.   Cannabis  sativa  L  is   grown  for  industrial                                                               
production  like fiber  and oils;  cannabis sativa  is grown  for                                                               
medicinal and recreational uses.   Unlike other biomass that need                                                               
a lot of water,  but hemp needs just a little bit  of water and a                                                               
little  bit of  sunshine:  10 tons  per acre  for  three or  four                                                               
months growing  time and 50,000 products  can be made out  of it.                                                               
People worry  about sterilizing  the seed, but  now a  hemp vodka                                                               
named Purgatory  is being  made in Wasilla;  it is  authorized by                                                               
the DEA  and certified  by the  State of  Alaska. They  get their                                                               
seeds sterilized from Canada. Industrial  hemp should be grown in                                                               
Alaska.                                                                                                                         
                                                                                                                                
4:12:41 PM                                                                                                                    
SENATOR STOLTZE asked why the department needs the fiscal note.                                                                 
                                                                                                                                
FRANCI   HAVEMEISTER,   Director,    Division   of   Agriculture,                                                               
Department  of   Natural  Resources  (DNR),   Anchorage,  Alaska,                                                               
replied  that   the  fiscal  note   is  strictly  to   write  the                                                               
regulations for this crop. That  would allow the industry to move                                                               
forward and possibly start production of the crop.                                                                              
                                                                                                                                
4:14:50 PM                                                                                                                    
SENATOR STOLTZE  noted there were  zero out-year costs  and asked                                                               
if  this  becomes an  industry  what  additional costs  would  be                                                               
involved.                                                                                                                       
                                                                                                                                
MS.  HAVEMEISTER  answered  that  the  department  would  be  the                                                               
licensing agency as well as the regulator.                                                                                      
                                                                                                                                
SENATOR  STOLTZE  said  when  he  had  the  commercialization  of                                                               
marijuana bill  in the State  Affairs Committee he  was troubled,                                                               
because of the division's role  which included making agriculture                                                               
revolving  loan   funds  and  seed  certification,   storage  and                                                               
enhanced security,  and a whole myriad  of costs for which  it is                                                               
not doing  now had a  zero fiscal note  saying that hemp  was the                                                               
Division of Commerce's problem. He didn't see the difference.                                                                   
                                                                                                                                
MS.  HAVEMEISTER replied  that the  difference between  this bill                                                               
and  the  one  on  marijuana  is  that  this  language  and  hemp                                                               
production  would be  allowed through  the  Farm bill  and it  is                                                               
written into the Farm Bill  that the Divisions of Agriculture and                                                               
the Universities can be involved in research.                                                                                   
                                                                                                                                
4:17:33 PM                                                                                                                    
SENATOR STOLTZE  asked who in  her division would  be responsible                                                               
for certification and THC testing.                                                                                              
                                                                                                                                
MS.  HAVEMEISTER  replied  that  at this  time  the  Division  of                                                               
Agriculture  doesn't have  capability  to do  the  THC tests.  If                                                               
funding  were  to come  through,  it  potentially could  be  done                                                               
through them.                                                                                                                   
                                                                                                                                
SENATOR  STOLTZE said  he  wasn't asking  if  funding was  coming                                                               
through; legislation  is coming  through and it  has implications                                                               
for funding.  He didn't want  to pass the  bill and then  see the                                                               
need  for funding.  He was  disappointed that  he wasn't  getting                                                               
answers.                                                                                                                        
                                                                                                                                
CHAIR GIESSEL  pointed out that the  bill will go to  the Finance                                                               
Committee as well  as the Judiciary Committee.  Seeing no further                                                               
comments,  she  left public  testimony  open  and  held SB  8  in                                                               
committee.                                                                                                                      
                                                                                                                                
           HJR  4-OFFSHORE OIL & GAS REVENUE SHARING                                                                        
                                                                                                                                
4:19:43 PM                                                                                                                    
CHAIR GIESSEL announced HJR 4 to be up for consideration.                                                                       
                                                                                                                                
SENATOR COGHILL moved to adopt Amendment 1, 29-LS0281\A.2.                                                                      
                                                                                                                                
                                                 29-LS0281\A.2                                                                  
                                                       Nauman                                                                   
                                                      3/20/15                                                                   
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE TO HJR 4                                                                                             
                                                                                                                                
     Page 1, line 5, following "integrity":                                                                                   
          Insert "; urging the United States Congress to                                                                      
     reject  any  proposal  to divert  or  otherwise  reduce                                                                  
     revenue  sharing  to  the   coastal  states  and  their                                                                  
     political subdivisions under the  Gulf of Mexico Energy                                                                  
     Security Act of  2006; and urging the  President of the                                                                  
     United  States   to  direct,  to  the   maximum  extent                                                                  
     possible,   federal    funds   received    from   outer                                                                  
     continental  shelf development,  and  not dedicated  to                                                                  
     states   or   other   federal  programs,   to   federal                                                                  
     infrastructure in the affected states"                                                                                   
                                                                                                                                
     Page 1, lines 7 - 13:                                                                                                      
          Delete all material and insert:                                                                                       
          "WHEREAS the state, which has more coastline than                                                                   
     the rest  of the United States  combined, requests that                                                                    
     the  United  States   Congress  pass  legislation  that                                                                    
     allows the  state to equitably share  revenue generated                                                                    
     on the outer continental shelf of the state; and"                                                                          
                                                                                                                                
     Page 2, lines 7 - 8:                                                                                                       
          Delete "federal oil and gas leases in outer                                                                           
     continental shelf areas adjacent to each state"                                                                            
          Insert "leases covered under phase one of the                                                                         
     Gulf of Mexico  Energy Security Act of  2006; phase two                                                                    
     of  the Gulf  of  Mexico Energy  Security  Act of  2006                                                                    
     expands the definition  of "qualified outer continental                                                                    
     shelf  revenue" and  continues to  share revenue  on an                                                                    
     adjacency  factor  but   includes  an  annual  revenue-                                                                    
     sharing cap of $500,000,000 that applies through 2055"                                                                     
                                                                                                                                
     Page 3, line 5, following "opportunities":                                                                                 
          Insert "or, alternatively, could be used for                                                                          
     deficit reduction"                                                                                                         
                                                                                                                                
     Page 3, line 11, following "integrity":                                                                                    
     Insert new material to read:                                                                                               
          "; and be it                                                                                                          
          FURTHER   RESOLVED    that   the    Alaska   State                                                                  
     Legislature urges the United  States Congress to reject                                                                    
     any  proposal to  divert  or  otherwise reduce  revenue                                                                    
     sharing  to  the  coastal states  and  their  political                                                                    
     subdivisions under  the Gulf of Mexico  Energy Security                                                                    
     Act of 2006; and be it                                                                                                     
          FURTHER   RESOLVED    that   the    Alaska   State                                                                  
     Legislature urges  the President  of the  United States                                                                    
     to  direct, to  the  maximum  extent possible,  federal                                                                    
     funds   received    from   outer    continental   shelf                                                                    
     development,  and  not  dedicated to  states  or  other                                                                    
     federal   programs,   to  federal   infrastructure   in                                                                    
     affected states"                                                                                                           
                                                                                                                                
SENATOR STOLTZE objected for discussion purposes.                                                                               
                                                                                                                                
CHAD HUTCHISON,  staff to Senator  Coghill, sponsor  of Amendment                                                               
1,   explained  that   the  amendment   was   based  on   ongoing                                                               
conversations they  had had with Senator  Murkowski's staff, Mike                                                               
Pawlowski on how to increase Alaska's share of offshore revenue.                                                                
                                                                                                                                
He said  that right  now, Alaska  is under  the authority  of the                                                               
Outer Continental  Shelf Lands  Act (OCSL),  which means  that it                                                               
receives  27 percent  for offshore  revenues in  areas 3-6  miles                                                               
away for the  coast. The way it  works is that the  27 percent is                                                               
taken  out by  the federal  government for  offshore leasing  and                                                               
given  back  to   the  state  so  it  can  use   it  to  increase                                                               
infrastructure on  shore. The only  relevant field that  is privy                                                               
to this  provision is the North  Star Field in the  Beaufort Sea,                                                               
but the  expectation is that  if the  Liberty Field comes  on, it                                                               
would increase that revenue.                                                                                                    
                                                                                                                                
Concurrent to that  is the Gulf of Mexico Energy  Security Act in                                                               
which  the   Gulf  States  -   Alabama,  Texas,   Louisiana,  and                                                               
Mississippi  - receive  37.5 percent  of  the offshore  revenues.                                                               
They get  more for a  number of  reasons: because it  occurred in                                                               
2006  that  had the  right  type  of  political influence  and  a                                                               
tremendous amount of  drilling and in an area that  is subject to                                                               
hurricanes.                                                                                                                     
                                                                                                                                
4:23:12 PM                                                                                                                    
Alaska wants to  increase the amount of offshore  revenue it gets                                                               
from the federal government.                                                                                                    
                                                                                                                                
SENATOR  STOLTZE  said  this   proposal  replaces  a  contentious                                                               
provision  that would  have disrupted  a historical  argument the                                                               
state  has  made and  made  it  much  stronger  and asked  if  it                                                               
requires a title change.                                                                                                        
                                                                                                                                
MR. HUTCHISON answered yes.                                                                                                     
                                                                                                                                
CHAIR GIESSEL said the title change was on the amendment page.                                                                  
                                                                                                                                
SENATOR  COSTELLO said  one  congressional  office has  indicated                                                               
support  and asked  if the  entire congressional  delegation been                                                               
contacted about this amendment.                                                                                                 
                                                                                                                                
4:24:49 PM                                                                                                                    
MR.  HUTCHISON that  have had  briefings  with representative  of                                                               
Senator Sullivan,  but the primary  person that is  most familiar                                                               
with the  oil and gas  is Mr. Pawlowski and  they rely on  him at                                                               
this  point to  communicate  the  message to  the  others in  the                                                               
delegation.                                                                                                                     
                                                                                                                                
SENATOR  COGHILL  said  they  are   trying  to  give  a  tool  to                                                               
congressional  delegation  that adds  Alaska's  voice  go to  the                                                               
other  states' that  opposes distributing  that  37.5 percent  to                                                               
other federal or  conservation programs instead of  it going back                                                               
to the states.                                                                                                                  
                                                                                                                                
REPRESENTATIVE   SADDLER,  sponsor   of  HJR   4,  Alaska   State                                                               
Legislature, Juneau, Alaska, said he supported the amendment.                                                                   
                                                                                                                                
SENATOR STOLTZE removed his objection.                                                                                          
                                                                                                                                
CHAIR GIESSEL announced that Amendment  1 was adopted. Finding no                                                               
further comments, she closed public testimony.                                                                                  
                                                                                                                                
SENATOR COSTELLO  mentioned that this resolution  has bi-partisan                                                               
support in  the other body.  It is  an important issue  of debate                                                               
that Congress will be having.                                                                                                   
                                                                                                                                
SENATOR STOLTZE  said he appreciated  that Senator  Murkowski was                                                               
taking the lead on this.                                                                                                        
                                                                                                                                
SENATOR  COSTELLO  moved  to  report  HJR  4,  as  amended,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s). There were  no objections and therefore,  SCS HJR 4(RES)                                                               
moved from committee.                                                                                                           
                                                                                                                                
                   SB  57-CLEAN AIR ACT PLAN                                                                                
                                                                                                                                
4:30:04 PM                                                                                                                    
CHAIR  GIESSEL  brought  SB  57 back  before  the  committee  and                                                               
invited Mr.  Rokeberg to continue  commenting on the  bill. [CSSB                                                               
57(NRG), 29-LS0523\G was before the committee.]                                                                                 
                                                                                                                                
4:30:34 PM                                                                                                                    
NORMAN  ROKEBERG, Commissioner,  Regulatory Commission  of Alaska                                                               
(RCA),  Anchorage, Alaska,  said his  opinions on  SB 57  are not                                                               
official RCA  opinions. He clarified  his December 1  comments on                                                               
SB  57.  He  said  it  would require  the  drafting  of  a  state                                                               
implementation plan  that may  prohibit the  submission of  a set                                                               
from the  state. Under the bill  the state would have  to develop                                                               
and proceed  with a plan  but then it  would run into  the bill's                                                               
requirements  which  he  found troubling.  For  example,  section                                                               
(a)(1), on page  1, line 13, indicates that this  does not result                                                               
in  increased  electrical  utility  rates and  it  would  have  a                                                               
disproportionate  effect   on  households  of  low   to  moderate                                                               
incomes.                                                                                                                        
                                                                                                                                
MR.  ROKERBERG said  page  7  of his  comments  referring to  the                                                               
impact of EPA's  mandate because of the goals they  set and their                                                               
impact of  shutting down Healy's  plants 1  and 2 for  the 45,000                                                               
Golden   Valley  Electric   Association   (GVEA)  ratepayers   in                                                               
Fairbanks.  The estimate of  increased cost would be $.05-.07 per                                                               
kilowatt hour, bringing  rates up to $.29-.31 kilowatt  hour or a                                                               
26  percent  increase.  The   analysis  is  extremely  difficult,                                                               
because the RCA  does not have the capability to  be to determine                                                               
the  distinction between  low and  moderate income  from a  broad                                                               
retail  rate. The  impacts  would  be $450  per  year across  all                                                               
retail ratepayers.  One could assume  that increases  will impact                                                               
low and moderate ratepayers even  with a plan that would decrease                                                               
greenhouse gases.                                                                                                               
                                                                                                                                
4:34:27 PM                                                                                                                    
Texas, for instance,  believes an in-state plan  will raise costs                                                               
10  percent, but  if the  EPA  does it,  it will  be 44  percent.                                                               
Similarly with the state of Ohio at 36 percent.                                                                                 
                                                                                                                                
Additionally,  subsection  2  regarding  electrical  reliability,                                                               
resource adequacy  and transmission, is very  vague and difficult                                                               
to  understand.  Closing  the  coal  plants  in  Fairbanks  would                                                               
exacerbate the problems they have now in terms of reliability.                                                                  
                                                                                                                                
Additionally, number  three, a  big part  of the  EPA plan  is to                                                               
introduce  a  greater  amount  of  renewables,  but  particularly                                                               
energy  efficiencies  and  this   will  clearly  impair  existing                                                               
electrical generation  capacity. Number four, obviously  if there                                                               
is  any  reduction  in  Healy  1, GVEA  has  indicated  they  are                                                               
scheduling its potential retirement  sometime around 2023. He was                                                               
not sure  how that would impact  the meaning of the  bill, but it                                                               
would cost in terms of  employment. These hurdles may prohibit or                                                               
restrict the ability of the state to  do a plan and it is hanging                                                               
over the heads  of the folks doing  it and may have  an impact on                                                               
the quality of their work.                                                                                                      
                                                                                                                                
MR. ROKEBERG said  the RCA could look into the  areas specific to                                                               
electric power, but  doing all the rest of the  things creates an                                                               
extra burden on  them. The goal is to just  get an exemption from                                                               
the EPA and to write a plan that Alaska can live with.                                                                          
                                                                                                                                
Further, he  said Alaska has  a long history of  fighting against                                                               
federal  intrusion on  policy  issues. He  also  differed on  the                                                               
notion that not  filing a plan would be beneficial  to the mining                                                               
industry.  He didn't  think it  would be  helpful at  all. Alaska                                                               
needs to write a plan it can live with.                                                                                         
                                                                                                                                
SENATOR STEDMAN said  he heard Mr. Rokeberg say  that Rule 111(d)                                                               
would  not  impact  the  North  Slope oil  basin,  but  he  hears                                                               
differently from the companies up there.                                                                                        
                                                                                                                                
MR. ROKEBERG  responded that at  this point the  111(d) provision                                                               
only impacts five utilities on the  Railbelt; it has no impact on                                                               
the North  Slope. That  is one  of the  problems. In  every other                                                               
state, these designs are statewide,  but in Alaska enforcement is                                                               
restricted to  the Railbelt area. Efficiencies  made in renewable                                                               
and energy efficiencies  there are not even being  counted by the                                                               
EPA.  In addition,  the  Railbelt has  an  entire new  generation                                                               
fleet and the  EPA rule applied in  2012. So, a plan  needs to be                                                               
written that would account for those new plants.                                                                                
                                                                                                                                
SENATOR  STEDMAN said  that energy  is Alaska's  biggest industry                                                               
and his  understanding from the  industry is that it  will affect                                                               
them.                                                                                                                           
                                                                                                                                
4:40:51 PM                                                                                                                    
CHAIR  GIESSEL said  the EPA  is already  in Alaska  and she  had                                                               
received  letters of  support for  SB 57  from Alaska's  Railbelt                                                               
Cooperative  Transmission  and  Electric  Company  (ARCTEC),  the                                                               
Alaska Chamber,  the Teamsters,  the Fairbanks  Chamber, Consumer                                                               
Energy Alliance, the Miners Association,  and more diverse groups                                                               
and she  wasn't sure  what Mr. Rokeberg  was advocating  for. The                                                               
bill advocates  for a waiver  at the very  onset and to  have the                                                               
rest of the data available to  the legislature before any kind of                                                               
plan would be submitted seems only transparent.                                                                                 
                                                                                                                                
MR.  ROKEBERG said  she  had  done an  excellent  job of  getting                                                               
support for the  bill, but he believed that the  bill is based on                                                               
the  premise that  submitting a  plan is  not good  and that  the                                                               
requirements  do  not  ultimately   serve  Alaska's  purposes  in                                                               
seeking an  exemption. It adds  work and analysis cannot  even be                                                               
performed  for many  sections  of the  bill  by the  departments,                                                               
because they don't  have economists on staff, which  gave rise to                                                               
the fiscal note. In addition, it  also gives authority to the DEC                                                               
whereas the original  comments were developed by  a working group                                                               
that cuts across  numerous agencies that have  expertise in doing                                                               
that.  Putting the  authority in  DEC could  create the  need for                                                               
further fiscal notes.                                                                                                           
                                                                                                                                
CHAIR GIESSEL  responded that, in  fact, DEC has an  economist on                                                               
staff and the new zero fiscal  note comes about because of HB 140                                                               
that passed  last year  requiring departments  to produce  a good                                                               
faith estimate  on the cost of  implementing regulations. Federal                                                               
actions that require compliance  were explicitly written into the                                                               
statute through  HB 140. That  funding, amounting to  $278,000 in                                                               
FY16 provides  for the procurement  of an economist  III position                                                               
as well  as contractual  assistance for  the development  of cost                                                               
estimates  including data  collection,  analysis,  and report  of                                                               
findings in the amount required for the contract.                                                                               
                                                                                                                                
SENATOR GIESSEL  said it is spelled  out on page 2  of the fiscal                                                               
note. SB 57 requires the DEC  to perform this analysis; they have                                                               
the money  and it is  unencumbered for FY16. The  original fiscal                                                               
note estimated about  $100,000 over the two fiscal  years for the                                                               
contractual assistance  and that  would be  included in  what was                                                               
passed last year. So, in fact, this bill has a zero fiscal note.                                                                
                                                                                                                                
4:45:37 PM                                                                                                                    
SENATOR  STEDMAN said  he is  generally hesitant  when committees                                                               
start zeroing out fiscal notes to avoid the Finance Committee.                                                                  
                                                                                                                                
CHAIR GIESSEL  said this  fiscal note came  from the  Division of                                                               
Legislative Finance.                                                                                                            
                                                                                                                                
SENATOR COSTELLO  asked if the  Department of Law  (Department of                                                               
Law)  could say  whether  the  EPA has  the  authority under  the                                                               
111(d)  rule to  regulate  in  this manner.  In  a  way they  are                                                               
recognizing that it  has this authority by responding to  it in a                                                               
manner this  legislation does, which  is to allow Alaska  to seek                                                               
an exemption. How does that work?                                                                                               
                                                                                                                                
4:48:31 PM                                                                                                                    
EMMA POKON, Assistant Attorney General,  Department of Law (DOL),                                                               
Anchorage,  Alaska,   responded  that  the  state   is  currently                                                               
participating  in litigation  in  the  Washington, D.C.,  Circuit                                                               
challenging  Rule  111(d)  and   EPA's  authority  to  issue  the                                                               
proposed  regulation. This  legislation would  be outside  of the                                                               
legal question  she is prepared  to answer. EPA is  continuing to                                                               
say that  they believe they have  the authority for this  and the                                                               
rule will  be issued this  summer; the  court will decide  in the                                                               
end whether or not EPA has the authority.                                                                                       
                                                                                                                                
SENATOR COSTELLO said she sits  on the Department of Law's budget                                                               
subcommittee  and  earlier  this  week  she  asked  the  Attorney                                                               
General Craig Richards  what the state's plan is  on pushing back                                                               
against Rule  111(d). His  memo in response  says that  the Clean                                                               
Power Plan rule is an example of  an area where the state felt it                                                               
necessary to  push back against the  EPA. It went on  to say that                                                               
the  state is  essentially submitting  comments dealing  with the                                                               
EPA's interpretation and  how they believe it is  wrong. She said                                                               
the state  attached a legal  analysis explaining why  it believes                                                               
the EPA's  proposed interpretation  is improper. It  mentions the                                                               
state  is intervening  in  a  lawsuit. Her  concern  is that  the                                                               
Department of  Law (DOL)  is already engaged  in this  issue, but                                                               
maybe it should wait until the legislature weighs in.                                                                           
                                                                                                                                
4:52:24 PM                                                                                                                    
MS. POKON  said the  litigation was  started a  while ago  in the                                                               
last  administration  and  she   couldn't  say  which  branch  of                                                               
government should  be first to  make a statement about  the EPA's                                                               
authority.                                                                                                                      
                                                                                                                                
CHAIR  GIESSEL commented  that this  bill is  the second  line of                                                               
defense if the lawsuit should fail.                                                                                             
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if the  state passes  this and  then                                                               
tries to  put a plan  in place, what  happens if the  feds reject                                                               
it.                                                                                                                             
                                                                                                                                
MR. POKON replied that the feds would implement a plan.                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI  asked the  likelihood that the  state would                                                               
receive an exemption.                                                                                                           
                                                                                                                                
MS.  POKON  replied   that  Alaska  has  been  given   a  lot  of                                                               
exemptions.                                                                                                                     
                                                                                                                                
4:54:44 PM                                                                                                                    
SENATOR  WIELECHOWSKI  asked if  anyone  else  had asked  for  an                                                               
exemption.                                                                                                                      
                                                                                                                                
MS. POKON replied  that she had not seen specific  request for an                                                               
exemption  or  waiver  from  the  rule,  but  other  states  have                                                               
objected to EPA's authority or commented in a negative fashion.                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI  asked if it  is possible that  Alaska could                                                               
fail  to produce  an SIP  in  accordance with  our own  stringent                                                               
criteria  and  in turn  cause  ourselves  to  be subjected  to  a                                                               
federal implementation plan.                                                                                                    
                                                                                                                                
MS. POKON  answered that her  reading of SB  57 is that  it would                                                               
require DEC to  make affirmative determinations of  the effect of                                                               
the state  plan and it would  not be submitting a  state plan for                                                               
approval to  the EPA until  the determinations could be  made. If                                                               
DEC  could not  make those  determination then  they wouldn't  be                                                               
submitting a state  plan, which under the terms of  the Clean Air                                                               
Act would result in a federal implementation plan.                                                                              
                                                                                                                                
SENATOR WIELECHOWSKI  said in other words,  the legislature could                                                               
be making  it so  hard for  DEC to  come with  a plan  that meets                                                               
federal requirements such that the  federal government rejects it                                                               
and then implements a federal plan.                                                                                             
                                                                                                                                
MS. POKON replied that is a possible outcome.                                                                                   
                                                                                                                                
SENATOR COGHILL  said he liked what  SB 57 was trying  to do, but                                                               
maybe this  should go into effect  if the feds start  giving us a                                                               
hard  time on  the  exemption  rather than  doing  it before  the                                                               
exemption request is  settled. Has the state  already applied for                                                               
an exemption?                                                                                                                   
                                                                                                                                
4:58:09 PM                                                                                                                    
SENATOR  STOLTZE   asked  whether   the  111(d)   provisions  are                                                               
implemented or in  the development process and  that might change                                                               
the relevancy of their approach.                                                                                                
                                                                                                                                
4:58:41 PM                                                                                                                    
ALICE EDWARDS,  Deputy Commissioner, Department  of Environmental                                                               
Conservation  (DEC), Anchorage,  Alaska, responded  that the  EPA                                                               
has  not  finalized  the  rule   making  for  111(d);  the  state                                                               
submitted comments  on December 1,  which was  at the end  of the                                                               
comment period.  The EPA  has indicated  that they  will finalize                                                               
ruling  making  this summer.  In  the  multi-agency (RCA,  Alaska                                                               
Energy Authority  (AEA), DEC and the  Governor's Office) comments                                                               
to EPA,  the state  requested an exemption  for this  rule making                                                               
along  with  other  associated  comments.  They  don't  know  for                                                               
certain whether or not an exemption will be granted.                                                                            
                                                                                                                                
SENATOR COGHILL questioned the  constitutionality of the proposed                                                               
rule and thought we need to  focus there as long as possible, and                                                               
asked  if SB  57  would back  up their  comments  or weaken  that                                                               
position.                                                                                                                       
                                                                                                                                
MS. EDWARDS  answered that state comments  take three approaches;                                                               
they start with the legal  aspects, which Department of Law spoke                                                               
about; it asks for the exemption  and then depending on where EPA                                                               
landed they  also put in  information that might address  some of                                                               
the ruling making issues if they  moved forward and either of the                                                               
options came through. Then the  real question becomes: in the end                                                               
it is not known  how the final rule will look  or how the state's                                                               
comments  or litigation  is going  to be  resolved. If  the state                                                               
fails to  get an  exemption, the question  becomes how  the state                                                               
will develop a state plan and  if the bill will allow development                                                               
of it and meeting the requirements.                                                                                             
                                                                                                                                
5:02:40 PM                                                                                                                    
SENATOR  STEDMAN clarified  that the  Senate Resources  Committee                                                               
prepared the fiscal note is.                                                                                                    
                                                                                                                                
CHAIR GIESSEL said it may say  that, but the consultant to it was                                                               
Legislative Finance.                                                                                                            
                                                                                                                                
SENATOR COSTELLO  asked if  the department  could comment  on her                                                               
concern, which is that the state  cannot submit a plan that shows                                                               
there is  no retail electric  service rate increase.  Every state                                                               
realizes that  the consumer is  the one  who will pay  and saying                                                               
that  the state  has  to submit  a  plan that  has  no effect  on                                                               
increased retail service rates could be tying our hands.                                                                        
                                                                                                                                
Finding  no  further  questions,  Chair Giessel  held  SB  57  in                                                               
committee.                                                                                                                      
                                                                                                                                
5:04:45 PM                                                                                                                    
CHAIR GIESSEL  adjourned the  Senate Resources  Committee meeting                                                               
at 5:04 p.m.                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
SB 57 Sponsor Statement.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Sectional Analysis.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Article The Daily Signal 2-17-2015.pdf SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 - Backup Documents - Rokeberg - observations re 111(d) in Alaska 2-12-2015.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - State of Alaska Comments, Docket # EPA-HQ-OAR-2013-0602.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 DEC fiscal note 3-13-15.pdf SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Article The Daily Signal 2-17-2015.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document -Article MINNPOST.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Letter Support - Consumer Energy Alliance - AK.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Article Bloomberg BNA.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Article NMA - EPA-Climate-rules NMA Bullets.pdf SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Article NMA - FactSheet-ElectricityPrices.pdf SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Article NMA -Tennessee.pdf SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 - Supporting Document -Letter ARCTEC 3-12-15.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Article - EPA imposes costly power plan on Tennessee, all states 3-9-15.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Alaska Chamber 3-13-15.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Article The Pew Charitable Trusts 2-27-2015.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 - Supporting Document - Article NMA -Electrical Grid Reliability.pdf SNRG 3/17/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Letter Alaska Miners Association 3-16-15.pdf SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - Letter - Golden Valley Electric Association 3-16-15.pdf SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document - EPA Clean Power Plan - NMA.pdf SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Supporting Document- Letter Fairbanks Chamber of Commerce- 3-12-15.pdf SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 - Supporting Documents - ADN Denali Park Air Quality.pdf SRES 3/18/2015 3:30:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Explanation of Changes Version E to I.pdf SRES 3/18/2015 3:30:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57- Letter of Opposition Whytal.pdf SRES 3/18/2015 3:30:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
SB 57 Letter of Opposition - Morley.pdf SRES 3/18/2015 3:30:00 PM
SRES 3/20/2015 3:30:00 PM
SB 57
HJR004A.pdf HRES 2/27/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
HJR 4
HJR 4 Sponsor Statement.pdf HRES 2/27/2015 1:00:00 PM
SRES 3/20/2015 3:30:00 PM
HJR 4
SB 8.PDF SRES 3/20/2015 3:30:00 PM
SB 8
SB8 -Sponsor Statement.pdf SRES 3/20/2015 3:30:00 PM
SB 8
SB8- Sectional Analysis.pdf SRES 3/20/2015 3:30:00 PM
SB 8
SB8 - Supporting Documents-Article Mitch McConnell, Rand Paul push legalizing hemp growth - Jenny Hopkinson - POLITICO.pdf SRES 3/20/2015 3:30:00 PM
SB 8
SB8 - Supporting Documents-Article Industrial hemp could jump-start economy.pdf SRES 3/20/2015 3:30:00 PM
SB 8
SB8 - Supporting Documents-Article Hemp - Ontarios new wonder crop.pdf SRES 3/20/2015 3:30:00 PM
SB 8
SB8 - Supporting Documents NCSL Industrial Hemp Policy 12-15-2000.pdf SRES 3/20/2015 3:30:00 PM
SB 8
SB8 - Supporting Documents Farm Bureau Reaffirms Support of Industrial Hemp.pdf SRES 3/20/2015 3:30:00 PM
SB 8
SB8 - Supporting Documents Fairbanks North Star Borough resolution 2-9-12.pdf SRES 3/20/2015 3:30:00 PM
SB 8
SB8 - Supporting Documents Fairbanks City Resolution of Support 11-14-2011.pdf SRES 3/20/2015 3:30:00 PM
SB 8
SB8 - Supporting Documents Cory_Gardner_backs_bill_to_legalize_industrial_hemp_on_federal.pdf SRES 3/20/2015 3:30:00 PM
SB 8
SB0057G.PDF SRES 3/20/2015 3:30:00 PM
SB 57