CS FOR HOUSE BILL NO. 105(FIN) "An Act relating to the programs and bonds of the Alaska Industrial Development and Export Authority; relating to the Alaska Industrial Development and Export Authority sustainable energy transmission and supply development fund; requiring the Alaska Industrial Development and Export Authority to deliver to the legislature reports relating to the Interior energy project; relating to the financing authorization through the Alaska Industrial Development and Export Authority of a liquefied natural gas production plant and natural gas energy projects and distribution systems in the state; amending and repealing bond authorizations granted to the Alaska Industrial Development and Export Authority; authorizing the Alaska Industrial Development and Export Authority to issue bonds to finance the infrastructure and construction costs of the Sweetheart Lake hydroelectric project; authorizing the Alaska Industrial Development and Export Authority to issue bonds to finance the infrastructure and construction costs of rebuilding transmission between the Hope substation and Portage, rebuilding transmission between Powerline Pass to Indian, and the Eklutna hydroelectric transmission system upgrade project; relating to legislative approval for loans from the power project fund to the City of King Cove; and providing for an effective date." 9:11:47 AM Vice-Chair Micciche MOVED to ADOPT the proposed committee substitute for CSHB 105(FIN), Work Draft 29-GH1019\F (Shutts, 4/17/15). Co-Chair MacKinnon OBJECTED for discussion. ERIN SHINE, STAFF, SENATOR ANNA MACKINNON, explained that the committee substitute incorporated components of SB 50 and HB 105. She stated that there was an expanded title on page one. Section 1 was intent language that had not changed from the root version. She looked at Section 2, which raised the limitations on amounts that the Alaska Industrial Development and Export Authority (AIDEA) could bond without legislative approval. She looked at Section 3, which would raise the bonding level. She furthered that there was an amendment on page 3, line 4 and 5, which changed the word, "law" to "the legislature." Section 4 raised the bonding level for AIDEA from $20 million to $25 million. Section 5 was the beginning of many sections that placed sideboards on the EIP project. She noted that Sections 6, 7, and 8 incorporated most of the language from the House version of the bill. Section 9 included added language from the House version. Section 10 incorporated a bonding amendment, which reduced the funds from $85 million to $28 million. Section 11 was a repealer section, which was original language from the governor's introduced legislation. Section 12 was the report language that was in each version of the bill. Co-Chair MacKinnon REMOVED her objection. There being NO OBJECTION, Work Draft 29-GH1019\F was ADOPTED. GENE THERRIAULT, DEPUTY DIRECTOR, STATEWIDE ENERGY POLICY DEVELOPMENT, ALASKA ENERGY AUTHORITY, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, thanked the committee for their efforts. He believed that the committee substitute contain all the critical language for the IEP. Co-Chair MacKinnon asked that Mr. Therriault study the bill, and be available later in the day for questions. Co-Chair MacKinnon wondered if Mr. Parady had any additional comments. FRED PARADY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT, stated that he had no additional comments. Vice-Chair Micciche wondered where in the legislation the phrase, "propane air mixture" was included. Mr. Therriault replied that propane delivered in a pipe system there was a mixture of air to lower the BPU content to an appropriate level for the appliances. CSHB 105(FIN) was HEARD and HELD in committee for further consideration. CS FOR HOUSE BILL NO. 105(FIN) "An Act relating to the programs and bonds of the Alaska Industrial Development and Export Authority; relating to the Alaska Industrial Development and Export Authority sustainable energy transmission and supply development fund; requiring the Alaska Industrial Development and Export Authority to deliver to the legislature reports relating to the Interior energy project; relating to the financing authorization through the Alaska Industrial Development and Export Authority of a liquefied natural gas production plant and natural gas energy projects and distribution systems in the state; amending and repealing bond authorizations granted to the Alaska Industrial Development and Export Authority; authorizing the Alaska Industrial Development and Export Authority to issue bonds to finance the infrastructure and construction costs of the Sweetheart Lake hydroelectric project; authorizing the Alaska Industrial Development and Export Authority to issue bonds to finance the infrastructure and construction costs of rebuilding transmission between the Hope substation and Portage, rebuilding transmission between Powerline Pass to Indian, and the Eklutna hydroelectric transmission system upgrade project; relating to legislative approval for loans from the power project fund to the City of King Cove; and providing for an effective date." 1:36:30 PM GENE THERRIAULT, DEPUTY DIRECTOR, STATEWIDE ENERGY POLICY DEVELOPMENT, ALASKA ENERGY AUTHORITY, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, felt that the intended language was appropriately incorporated. Co-Chair MacKinnon looked at page 6, line 22, and remarked that the word, "propane" was not included. Co-Chair Kelly queried the draft version. Co-Chair MacKinnon stated that the bill version was F. Mr. Therriault deferred to Mr. Parady, regarding the word, "propane." FRED PARADY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT, explained that the deletion of the word "propane" was due to the feeling that the phrase "natural gas" would cover the word. Vice-Chair Micciche stated that technically liquid petroleum gas was considered "propane." He stated that adding the word, "propane" at the end of the sentence on line 22 and after the words "natural gas" on line 24 would be more appropriate, and expand the potential. Mr. Parady agreed. 1:38:53 PM AT EASE 1:39:00 PM RECONVENED Vice-Chair Micciche moved Conceptual Amendment 1. He explained the amendment: Add "or propane" after the words "natural gas" on line 24. Co-Chair MacKinnon restated the amendment. Vice-Chair Micciche explained the fiscal note. Vice-Chair Micciche felt that the concept was a simple concept, and would result in generational low energy costs. Vice-Chair Micciche MOVED to REPORT SCS CSHB 105(FIN) out of committee with individual recommendations and the accompanying fiscal note. SCS CSHB 105(FIN) was REPORTED out of committee with a "do pass" recommendation and with one new zero fiscal note from the Department of Commerce, Community, and Economic Development. 1:42:04 PM AT EASE 1:44:17 PM RECONVENED Co-Chair MacKinnon discussed housekeeping.