HOUSE FINANCE COMMITTEE May 5, 2007 1:13 p.m. CALL TO ORDER Co-Chair Chenault called the House Finance Committee meeting to order at 1:13:03 PM. MEMBERS PRESENT Co-Chair Chenault Co-Chair Meyer Vice-Chair Stoltze Representative Crawford Representative Foster Representative Gara Representative Hawker Representative Kelly Representative Thomas MEMBERS ABSENT Representative Joule Representative Nelson ALSO PRESENT Representative Mark Neuman; Representative Anna Fairclough; PRESENT VIA TELECONFERENCE GENERAL SUBJECT(S): HB 177-NATURAL GAS PIPELINE PROJECT Public Testimony The following overview was taken in log note format. Handouts will be on file with the House Finance Committee through the 25th Legislative Session, contact 465-6814. After the 25th Legislative Session they will be available through the Legislative Library at 465-3808.   TIME SPEAKER DISCUSSION  1:14:14 PM Robert Testified in support of a project labor Peterson, agreement (PLA), which would encourage Operating local hire.  Engineers, Anchorage  1:15:47 PM Jason Brune, Noted that RDC has not taken a position Executive on AGIA lightly; they engaged in a Director, lengthy work session. The membership Resource does agree that Alaska needs a gas Development pipeline and needs it soon. He Council (RDC), concurred with many of AGIA's guiding Anchorage principles, including the insistence on a transparent process, but did not believe that AGIA would result in a gas pipeline without amendments. The statewide RDC Board reached the following points of consensus: AGIA should maximize transparency in the progress (they believe AGIA meets this goal); AGIA should strive to maximize the number of bidders and bid requirements (AGIA should be amended in order to allow applicants as much flexibility as possible); and bid requirements set out in AGIA are too prescriptive and should be replaced with broad objectives, the number of bid requirements should be minimized and flexibility should be maximized. He reiterated that AGIA should be amended to establish broad objectives.  ANCHORAGE (Teleconference Testimony)  1:18:57 PM Paul Laird, Testified against AGIA in its present General form. Oh behalf of the membership, he Manager, urged the bill be reformed.  Alaska Support Industry Alliance, Anchorage 1:20:47 PM Mary Shields, Encouraged greater scrutiny of the AGIA General bill so that it can add better value to Manager, state resources. She maintained that Northwest the bid process does not contain clear Technical and objective criteria for evaluation. Services, She expressed concern that the $500 Anchorage million incentive would encourage those without the financial strength to complete the project. She urged the state to require proof of financial viability. Selection of the licensee needs to follow a formalized, logical and objective course; any objectivity needs to be eliminated. Representative Gara emphasized that the 20 requirements included in AGIA would prevent subjectivity. The Governor is  committed to only accept bids from companies that have the wherefore all to do the work. Ms. Shields referred to difficulties in other state projects where a single entity or one or two commissioners decided the outcome.  1:25:36 PM Maynard Tapp, Proposed that AGIA should be passed Alliance, after reconsideration of the Stranded Anchorage Gas Act. He mentioned the required performance bonds. He urged that the gas pipeline not be delayed longer. He asked if the Legislature wants the federal government to take over the project.  1:27:36 PM Aves Thompson, Stated that getting a gas pipeline to Executive fruition is the highest priority of the Director, Alaska Trucking Association. He urged Alaska that the bidders address the outcomes. Trucking He recommended that the bill needs Association, clear and objective criteria to make Anchorage the decision. He felt that AGIA places too much emphasis on the short-term risks. He urged fiscal certainty.  1:30:04 PM Jim Gilbert, Testified in support of a gas project. President, He maintained that the AGIA legislation Alliance, needs amending. He urged that the Anchorage Legislature listen to the producers and give them what they want.  1:31:17 PM Alberto Offered to answer questions from the Rodriques, Committee.  Local 341, Anchorage 1:31:40 PM Jed Whittaker, Suggested that the State of Alaska own Self, the pipeline and the natural gas in Anchorage order to maintain Alaskan control on hiring. He spoke against the work of Exxon.  1:34:18 PM Paul Kendall, Voiced support for AGIA. Contracts are Self, amendable and can be reconstructed with Anchorage consent of the bodies involved. He expressed concern that the three largest producers have a desire to bid in a fair manner. He provided a list of recommendations.  1:38:25 PM Rebecca Logan, Asked the Committee to reinstate the ABC Alaska, original language for a PLA to the Anchorage bill: commit to negotiate, prior to construction, a project labor agreement, to assure expedited and labor stability for the project by qualified residents of the state.  1:39:02 PM Laurence Related a story of his work on the  Mooney, North Slope. He commented on the amount Laborers 341, of unemployment in the North Slope Anchorage area. He urged local hire.  1:41:15 PM Lon Wilson, Worried about the imminent threat of Alliance, the loss of gas. Argued that without a Anchorage pipeline, there will be an economic lapse for the state of Alaska. An agreement will only be reached though negotiations, which AGIA lacks. He maintained that there are many things wrong with AGIA. He urged that the scale be addressed.  1:43:35 PM Lyle Anne, AAA He urged that non union and union Fence Inc., workers be equally considered. The work Anchorage should be open to all Alaskans.  1:44:26 PM Julie Anne, Urged that the original language of AAA Fence AGIA be returned [PLA]. She encouraged Inc., prioritization of the Alaskan Anchorage workforce.  1:46:36 PM Vince Stated that 85% of the workers in Beltrami, Alaska are union workers. He applauded President, the Governor, who wants the pipeline. Alaska AFL-He stated that the AFL/CIO supports CIO, AGIA. The Governor is supportive of the Anchorage, Alaska workforce. He worried about the setbacks if the legislation fails.  1:50:48 PM Joey Merrick, Voiced support for a gas pipeline Business project. He added that there needs to Manager, Local be a project labor agreement. He urged 341, Eagle putting Alaskans to work, commenting River that the best way to do that would be through a PLA. Representative Crawford wondered if there was concern about discrimination from the unions. Mr. Merrick disagreed. He pointed out that they prioritize journeymen, ahead of those from out-of- state. It is illegal to discriminate against anyone with regard to the union status. Qualified union members have a preference.  1:55:34 PM Jerry Woods, Read from a resolution prepared by the Acting Conference supporting building the Director, project in order to bring increased Tanana Chief viability and economic advantage to the Conference, state through the unions. Expressed Fairbanks support for Alaska Native and local hire preference on any gas pipeline project.  2:00:54 PM Jeff Pruss, Spoke in support of inclusion of local Carpenters hire provisions.  Local 1243, Fairbanks  2:02:06 PM Jay Expressed support for AGIA. He felt Quakenbush, that it was appropriate for the state Fairbanks to set "must have" provisions. Spoke in Building and support of a project labor agreement, Construction which would encourage local Trades, opportunities. Testified in support of Fairbanks an "all Alaskan" project.  2:05:27 PM Jerry Walker, He suggested consideration of the tools Self, needed to compete in a global market, Fairbanks and long term versus short term risks. He observed that inappropriate government controls could hinder global inducements.  2:08:35 PM Mike Spoke in support of a project labor Littlefield, agreement, which would encourage local Local 959, opportunities. A PLA would allow unions Fairbanks to define working conditions.  2:11:04 PM Lisa Peger, Maintained that producers are asking The Silent the state not to negotiate in the best Majority, interest of the state. She spoke in Fairbanks support of a TransCanada pipeline.  2:13:36 PM Herb Simon, Encourage acceptance of the Governor's Nilchina proposal. He observed that no one can predict the trickle down effects of the pipeline.  2:15:57 PM Bill Warren, Spoke in support of a project labor Nikiski agreement, which would encourage local opportunities. He maintained that the producers want to work on their own timelines, which do not coincide with the state's. Spoke in support of a TransCanada pipeline and the use of ANGDA.  2:18:37 PM Charles Spoke in opposition to a project labor Wieger, agreement. He felt that a PLA would be Association of a detriment to the majority of workers, Builders and which do not belong to a union. He Contractors maintained that PLA's on TAPS did not benefit Alaskan workers. Workers would pay 25 percent of their wages to unions under a PLA.  2:20:50 PM Lynn Johnson, Testified in favor of a gas pipeline. President, He asserted that Alaska will not be Dowland Bach, able to build a pipeline without the Anchorage involvement of the producers. He suggested that changes needed to be made to the proposal and emphasized that AGIA may be the last chance for the project to go forward.  2:23:04 PM Jim Palmer, Observed that the commissioners would Eagle River decide the winner of the application process and recommended that this be  expanded. He stressed that all the stakeholders are necessary to move the project forward. He felt that AGIA may go too far in encouraging all the parties.  2:26:03 PM Merrick Spoke in support of the Governor's Pierce, proposal and in support of competition. He addressed the evaluation and ranking criteria. He suggested that (5) should be amended to all factors found by the commissioners to improve the health, safety and welfare of Alaskans. He noted that coal fired plants add contaminants into the Fairbanks area, which affect their children. Cancer is also an issue in Fairbanks, which is acerbated by coal fire plants. Delay in the pipeline means delays in upgrades to the coal fire power plants needed to help clean Fairbanks' air.  # ADJOURNMENT ADJOURNMENT The meeting was adjourned at 2:30 PM