02/26/2015 11:15 AM Senate SPECIAL CMTE ON THE ARCTIC

                    HB 1-STATE ARCTIC POLICY                                                                                
                                                                                                                                
11:19:33 AM                                                                                                                   
CO-CHAIR MCGUIRE announced  the consideration of HB  1. She noted                                                               
that  when she  recessed the  meeting on  February 19,  2015, the                                                               
committee had adopted version S  and was considering Amendment 1.                                                               
She had objected for discussion purposes.                                                                                       
                                                                                                                                
SENATOR BISHOP withdrew Amendment 1 and offered Amendment 2:                                                                    
                                                                                                                                
     Page 3, line 13:                                                                                                           
                                                                                                                                
     Insert new subsection:                                                                                                     
                                                                                                                                
     Section 2 AS 44.99.105(1)                                                                                                  
                                                                                                                                
     (G)Continue  to  prepare   all  Alaskans  for  emerging                                                                    
     economic  activities, by  utilizing multiple  education                                                                    
     and  training  opportunities   and  implementing  state                                                                    
     workforce plans.                                                                                                           
                                                                                                                                
CO-CHAIR MCGUIRE objected for discussion purposes.                                                                              
                                                                                                                                
SENATOR BISHOP  read the amendment.  He said  he thinks it  is an                                                               
improvement over Amendment 1 and "gets us where we want to go."                                                                 
                                                                                                                                
CO-CHAIR MCGUIRE  withdrew her objection. There  being no further                                                               
objection, Amendment 2 was adopted.                                                                                             
                                                                                                                                
KARA  MORIARTY, President/CEO,  Alaska  Oil  and Gas  Association                                                               
(AOGA), testified  in support of HB  1. She related that  AOGA is                                                               
the  professional trade  association whose  mission is  to foster                                                               
the  long-term viability  of the  oil  and gas  industry for  the                                                               
benefit  of  all  Alaskans.  She  said  AOGA  members  have  been                                                               
exploring,  developing,  producing,  transporting,  and  refining                                                               
Alaska's natural resources in the  Arctic for more than 40 years.                                                               
She said  AOGA is  proud of  its partnership  with the  people of                                                               
Alaska providing  revenue to  the state,  economic opportunities,                                                               
and infrastructure to the Arctic Region.                                                                                        
                                                                                                                                
She thanked  the 26 members  of the Arctic Policy  Commission for                                                               
the substantial  amount of  work undertaken  the past  two years.                                                               
The  outcome, both  the report  and the  implementation plan  and                                                               
this  bill, are  to be  commended as  a robust  and comprehensive                                                               
views of Alaska's Arctic. Both place  the people of the Arctic at                                                               
the  forefront  and  reiterate  Alaska's  commitment  to  vibrant                                                               
communities   through   a   healthy  environment   and   economic                                                               
stability.  Since statehood,  the  industry  has fueled  Alaska's                                                               
economy by  providing jobs  and revenues to  the state  and local                                                               
funding. Today, the  oil and gas industry accounts  for more than                                                               
92  percent of  the state's  general unrestricted  funds, and  99                                                               
percent of the revenue to the North Slope Borough.                                                                              
                                                                                                                                
MS. MORIARTY  noted that AOGA was  not an official member  of the                                                               
commission,  but  was actively  engaged  in  the process.  AOGA's                                                               
comments   were  focused   on  two   main  tenants,   access  and                                                               
predictability.  She concluded  that the  industry has  partnered                                                               
with  the state  to  uphold  and defend  multiple  use of  Arctic                                                               
public  lands   for  development  that  would   lead  to  immense                                                               
potential  for supporting  Arctic economies,  filling the  Trans-                                                               
Alaska  Pipeline System,  and generating  billions of  dollars in                                                               
government revenues.                                                                                                            
                                                                                                                                
She  said,   although  access   to  land   is  itemized   in  the                                                               
implementation  plan, AOGA  appreciates the  commission's renewed                                                               
commitment   in  its   policies.   AOGA  has   long  fought   for                                                               
predictability  in  development.   Stable  tax,  regulatory,  and                                                               
permitting processes encourage  investment and drive economically                                                               
vibrant communities. The oil and  gas industry has been commended                                                               
by the people of the  Arctic for outreach efforts and integration                                                               
of traditional  knowledge in industry operations.  Many companies                                                               
have  dedicated tribal  liaisons who  spend considerable  time in                                                               
the communities. She said the  bottom line is AOGA members engage                                                               
with Arctic communities every day  and look forward to continuing                                                               
to  do so  for  years  to come.  She  thanked  the Co-chairs  and                                                               
Representative Herron for their leadership.                                                                                     
                                                                                                                                
11:24:46 AM                                                                                                                   
CO-CHAIR MCGUIRE  thanked Ms. Moriarty  and noted the  arrival of                                                               
Senator Coghill.                                                                                                                
                                                                                                                                
CO-CHAIR  GIESSEL  thanked  AOGA,  the  Miners  Association,  the                                                               
Support Industry  Alliance, and the Resource  Development Council                                                               
for their contributions  to the bill and  for providing awareness                                                               
of  where   economic  development  and  the   protection  of  the                                                               
environment come from.                                                                                                          
                                                                                                                                
CO-CHAIR MCGUIRE agreed.                                                                                                        
                                                                                                                                
CO-CHAIR  GIESSEL  moved  to  report  SCS  CSHB  1,  version  29-                                                               
LS1103\S,   as   amended,    from   committee   with   individual                                                               
recommendations and  attached zero  fiscal notes. There  being no                                                               
objection, SCS CSHB  1(ARC) was reported from  the Senate Special                                                               
Committee on the Arctic.