HOUSE ECONOMIC TASK FORCE February 23, 1994 4:00 p.m. MEMBERS PRESENT Representative Jeannette James, Vice Chair Representative Joe Green Representative Al Vezey MEMBERS ABSENT Representative Jerry Mackie Representative Bettye Davis Representative Bill Williams Representative Carl Moses Representative Bill Hudson Representative Eileen MacLean COMMITTEE CALENDAR CSHB 199: "An Act relating to the exploration and production of oil and gas and related hydrocarbons, to oil and gas exploration licenses, and to oil and gas leases in certain areas of the state; and providing for an effective date." ENDORSED CSHB 199(O&G) HB 367: "An Act relating to the control of outdoor advertising." HELD OVER SB 151: "An Act providing for oil and gas exploration incentive credits for certain activities on certain land in the state; and providing for an effective date." ENDORSED SB 151 HB 330: "An Act relating to the use of natural gas as a motor vehicle fuel in sate owned vehicles." ENDORSED HB 330 WITNESS REGISTER DAVID KAMRATH, Legislative Aide Representative Harley Olberg Room 110, Capitol Building Juneau, AK 99801 Phone: 465-4859 POSITION STATEMENT: Provided information PREVIOUS ACTION BILL: HB 199 SHORT TITLE: OIL & GAS EXPLORATION LICENSES/LEASES SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR JRN-DATE JRN-PG ACTION 03/05/93 549 (H) READ THE FIRST TIME/REFERRAL(S) 03/05/93 549 (H) OIL & GAS, RESOURCES, FINANCE 03/05/93 549 (H) -ZERO FISCAL NOTE (REV) 3/5/93 03/05/93 549 (H) GOVERNOR'S TRANSMITTAL LETTER 03/15/93 (H) O&G AT 05:00 PM CAPITOL 124 03/16/93 (H) O&G AT 08:00 AM CAPITOL 124 03/22/93 (H) O&G AT 05:00 PM CAPITOL 124 03/22/93 (H) MINUTE(O&G) 03/25/93 (H) O&G AT 05:00 PM CAPITOL 124 03/31/93 (H) O&G AT 05:00 PM CAPITOL 124 04/06/93 (H) MINUTE(O&G) 04/07/93 (H) O&G AT 05:00 PM CAPITOL 124 04/07/93 (H) MINUTE(O&G) 01/13/94 (H) O&G AT 05:00 PM CAPITOL 124 01/26/94 (H) O&G AT 05:00 PM CAPITOL 124 01/31/94 (H) O&G AT 05:00 PM CAPITOL 124 01/31/94 (H) MINUTE(O&G) 02/07/94 (H) O&G AT 05:00 PM CAPITOL 124 02/09/94 2312 (H) O&G RPT CS(O&G) NEW TITLE 3DP 2NR 02/09/94 2312 (H) DP: G. DAVIS, KOTT, GREEN 02/09/94 2312 (H) NR: OLBERG, SITTON 02/09/94 2312 (H) -ZERO FISCAL NOTE (DNR) 2/9/94 02/09/94 2312 (H) REFERRED TO RESOURCES 02/23/94 (H) RES AT 08:15 AM CAPITOL 124 BILL: HB 367 SHORT TITLE: PROHIBITED HIGHWAY ADVERTISING SPONSOR(S): REPRESENTATIVE(S) OLBERG JRN-DATE JRN-PG ACTION 01/13/94 2052 (H) READ THE FIRST TIME/REFERRAL(S) 01/13/94 2052 (H) TRANSPORTATION, JUDICIARY 03/01/94 (H) TRA AT 05:00 PM CAPITOL 17 BILL: SB 151 SHORT TITLE: OIL & GAS EXPLORATION INCENTIVE CREDITS SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR JRN-DATE JRN-PG ACTION 03/05/93 618 (S) READ THE FIRST TIME/REFERRAL(S) 03/05/93 618 (S) OIL & GAS, JUDICIARY, FINANCE 03/05/93 618 (S) ZERO FISCAL NOTES (DNR, REV) 03/05/93 619 (S) GOVERNOR'S TRANSMITTAL LETTER 03/16/93 (S) O&G AT 08:00 AM 03/16/93 (H) MINUTE(O&G) 03/16/93 (S) MINUTE(O&G) 03/23/93 (S) O&G AT 5:00 PM BUTRVICH RM 205 03/23/93 (S) MINUTE(O&G) 03/30/93 (S) MINUTE(O&G) 03/31/93 1002 (S) O&G RPT 3DP 1DNP/AM 03/31/93 1002 (S) PREVIOUS ZERO FNS (DNR, REV) 04/15/93 1418 (S) JUD REFERRAL WAIVED Y11 N9 04/18/93 1468 (S) FIN RPT 6DP 1DNP 04/18/93 1468 (S) PREVIOUS ZERO FNS (DNR, REV) 04/18/93 (S) FIN AT 01:00 PM SENATE FIN 518 04/18/93 (S) MINUTE(FIN) 04/18/93 (S) MINUTE(RLS) 04/21/93 1613 (S) RULES 3CAL 1NR 4/21/93 04/21/93 1620 (S) MOVED TO BOTTOM OF CALENDAR 04/21/93 1633 (S) READ THE SECOND TIME 04/21/93 1633 (S) AM NO 1 FAILED Y9 N11 04/21/93 1634 (S) AM NO 2 FAILED Y7 N13 04/21/93 1634 (S) ADVANCE TO THIRD READING FAILED Y11 N9 04/21/93 1634 (S) THIRD READING 4/22 CALENDAR 04/22/93 1675 (S) READ THE THIRD TIME SB 151 04/22/93 1675 (S) PASSED Y14 N6 04/22/93 1675 (S) EFFECTIVE DATES SAME AS PASSAGE 04/22/93 1675 (S) JACKO NOTICE OF RECONSIDERATION 04/23/93 1714 (S) RECON TAKEN UP-IN THIRD READING 04/23/93 1715 (S) PASSED ON RECONSIDERATION Y14 N6 04/23/93 1715 (S) EFFECTIVE DATES SAME AS PASSAGE 04/23/93 1717 (S) TRANSMITTED TO (H) 04/24/93 1508 (H) READ THE FIRST TIME/REFERRAL(S) 04/24/93 1508 (H) OIL & GAS, RESOURCES, FINANCE 01/31/94 (H) O&G AT 05:00 PM CAPITOL 124 01/31/94 (H) MINUTE(O&G) 02/02/94 2215 (H) ADOPT AMENDMENT 02/02/94 2215 (H) O&G RPT 3DP 2NR 02/02/94 2215 (H) DP: KOTT, G. DAVIS, GREEN 02/02/94 2215 (H) NR: SITTON, OLBERG 02/02/94 2215 (H) -ZERO FISCAL NOTE (DNR) 2/2/94 02/02/94 2216 (H) JUD REFERRAL ADDED BILL: HB 330 SHORT TITLE: FUEL STATE AUTO FLEET WITH NATURAL GAS SPONSOR(S): REPRESENTATIVE(S) GREEN,Sanders JRN-DATE JRN-PG ACTION 01/03/94 2013 (H) PREFILE RELEASED 01/10/94 2013 (H) READ THE FIRST TIME/REFERRAL(S) 01/10/94 2013 (H) TRANSPORTATION, FINANCE 01/12/94 2042 (H) COSPONSOR(S): SANDERS ACTION NARRATIVE TAPE 94-04, SIDE A Number 000 VICE CHAIR JEANNETTE JAMES called the meeting to order at 4:15 p.m. Members present at the call to order were Representatives Al Vezey and Joe Green. HB 199 -OIL & GAS EXPLORATION LICENSES/LEASES REPRESENTATIVE JOE GREEN, Chair of the Oil and Gas Subcommittee, gave reasons why House Bill 199 would benefit the state of Alaska. REPRESENTATIVE JAMES asked about the consequences if the bill passed. REPRESENTATIVE GREEN replied that if the bill passed but was not used, there would be no harm done. REPRESENTATIVE VEZEY expressed concern that too much of Alaska would be opened up. REPRESENTATIVE GREEN replied that the Governor would only select one area per year. REPRESENTATIVE JAMES expressed concern that oil companies would just tie up large areas to keep other companies from getting them; prohibiting other industries such as timber and tourism to develop. REPRESENTATIVE GREEN replied that oil exploration created very small footprints and would allow other activities to occur simultaneously. REPRESENTATIVE VEZEY said that it may be too late to attract big dollars back to Alaska, but there was a need to at least try to attract small capital and small block leasing. He suggested seeing if there was an existing House Bill to accomplish this. REPRESENTATIVE JAMES said that, if there were no objections, the Task Force would endorse the Committee Substitute for House Bill 199. Both members agreed. HB 367 - PROHIBITED HIGHWAY ADVERTISING REPRESENTATIVE JAMES, Chair of the Tourism and Transportation Subcommittee, brought up the issue of signage. DAVID KAMRATH, STAFF FOR REPRESENTATIVE HARLEY OLBERG, testified regarding House Bill 367, noting that a proposed committee substitute will have the same wording as Senate Bill 157. It would allow a tourism related business to have up to four signs within fifty miles. REPRESENTATIVE VEZEY stated that penalties needed to be higher. He said he supported the concept, but wanted to see reasonable guidelines for maintenance of signs, and limitations imposed. REPRESENTATIVE JAMES said she feared the bill allowed too many signs. The committee agreed to consider this bill with some changes, agreeing there is a need to facilitate directions for visitors. Staff person Barbara Cotting agreed to continue working on this with David Kamrath. SB 151 - OIL & GAS EXPLORATION INCENTIVE CREDITS REPRESENTATIVE GREEN next discussed Senate Bill 151, explaining it allowed companies to apply a 10 percent tax credit for exploration against projects other than oil exploration. The Task Force agreed to endorse this bill. HB 330 - FUEL STATE AUTO FLEET WITH NATURAL GAS REPRESENTATIVE GREEN then brought up House Bill 330, noting a correction in his subcommittee's original list under New Legislation. House Bill 330 should replace item number 3. He stated this bill sends a message to the Federal Environmental Protection Agency that Alaska is complying with their standards. The Task Force agreed to endorse this bill. Staff was directed to send a notice to all Task Force members outlining the three bills which the group agreed to endorse today and if there were no objections from the other members by the next meeting, these three bills will remain on the list of bills endorsed by the Task Force. ADJOURNMENT REPRESENTATIVE JAMES adjourned the meeting at 5:30 p.m.