SB 25-AIDEA: SUSTAINABLE ENERGY/ INTEREST RATE  3:44:06 PM CHAIR OLSON announced that the next order of business would be CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 25(FIN), "An Act establishing the sustainable energy transmission and supply development program in the Alaska Industrial Development and Export Authority; relating to the interest rates of the Alaska Industrial Development and Export Authority; and relating to taxes paid on interests in property owned by the Alaska Industrial Development and Export Authority and to the local contribution for public education funding related to that property." 3:44:15 PM REPRESENTATIVE JOHNSON made a motion to adopt the proposed committee substitute (CS) for SB 25, labeled 27-LS0290\L, Kirsch, 4/14/12, as the working document. CHAIR OLSON objection for purpose of discussion [Version L was before the committee.] 3:45:18 PM TOM WRIGHT, Staff, Representative Mike Chenault, Alaska State Legislature, on behalf of Representative Mike Chenault, explained the changes in Version L, which would remove the property tax exemptions of five properties owned by Alaska Industrial Development and Export Authority (AIDEA), including the FedEx building in Anchorage, the Ketchikan shipyard, part of Red Dog. He explained Representative Chenault thought it was best left to municipalities to decide. Additionally, the intent language indicates that the legislature intends to appropriate during fiscal years 2012 and 2014 a total of $250,000,000 - $125,000,000 this year and another $125,000,000 in the next legislative session. He offered it is up to the legislature to authorize any appropriations each year so the intent language is not necessary. He said the fiscal note is for $125,000,000 this year and the legislature can decide to appropriate any additional funds if it so desires next session. He explained the third change exempts a natural gas pipeline transporting gas from the North Slope to market. He suggested adding Cook Inlet to market or any other field. He clarified that way AIDEA would not be financing or bonding any major pipeline, but that doesn't mean AIDEA can't fund a project for distribution lines off the main pipeline, just that they won't be involved in the financing of a main transmission line from either Cook Inlet or the North Slope. 3:47:30 PM REPRESENTATIVE JOHNSON asked for clarification on the page reference. MR. WRIGHT referred to page 10, line 30 of SB 25. 3:48:07 PM REPRESENTATIVE JOHNSON moved to adopt Conceptual Amendment 1, as follows: on page 10, line 30, following "North Slope to market" insert, "or Cook Inlet." 3:48:34 PM REPRESENTATIVE SADDLER asked whether he wanted it limited to those two and then acknowledged it should be limited to the North Slope and Cook Inlet. There being no further objection, Conceptual Amendment 1 was adopted. 3:49:08 PM REPRESENTATIVE JOHNSON asked for the sponsor's comments to the amendments. 3:49:20 PM MICHAEL PAWLOWSKI, Staff, Senator Lesil McGuire, Alaska State Legislature, stated that he understood the committee's actions, but pointed out the sponsor supports the language which excluded property owned by the AIDEA which is exempt from city or borough taxes. He acknowledged that removal of the language would return the fiscal note to a zero fiscal note. He reiterated that as the committee considers changes to note the proposed CS would substantively reduce the fiscal impact. He said Senator McGuire was fine with the changes in exclusion of large-scale natural gas pipeline projects, and was comfortable with adding the North Slope or Cook Inlet language since the amount of money in the fund is not enough to get close to a large-scale project. Additionally, funding natural gas pipeline projects would crowd out other projects this bill is intended to cover - which are the medium to smaller-scale projects around the state. REPRESENTATIVE JOHNSON related he has answered his questions. CHAIR OLSON removed his objection. 3:51:06 PM REPRESENTATIVE JOHNSON moved to report the proposed committee substitute (CS) for SB 25, Version 27-LS-0290\L, Kirsch, 4/14/12, as amended, out of committee with individual recommendations and the accompanying fiscal notes, which he understood would be zero fiscal notes in the next committee. There being no further objection, the HCSCSSS SB25(L&C) was reported from the House Labor and Commerce Standing Committee.