04/11/2009 09:00 AM House FINANCE

HOUSE BILL NO. 44                                                                                                             
                                                                                                                                
     "An Act  relating to  investments applicable  to energy;                                                                   
     authorizing  the Alaska  Permanent  Fund Corporation  to                                                                   
     make   in-state   energy    project   investments;   and                                                                   
     authorizing certain  public corporations to  issue bonds                                                                   
     for energy projects."                                                                                                      
                                                                                                                                
10:17:30 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MIKE  CHENAULT, SPONSOR, testified  in support                                                                   
of HB 44.                                                                                                                       
                                                                                                                                
Co-Chair  Stoltze  provided  some   history  and  called  for                                                                   
amendments.                                                                                                                     
                                                                                                                                
Representative Gara MOVED Amendment 3:                                                                                          
                                                                                                                                
     Page 3, line 9, following "gas shortfalls":                                                                                
                                                                                                                                
     Insert ", the impact on consumers and the economy of                                                                       
     high cost energy,"                                                                                                         
                                                                                                                                
Co-Chair Stoltze OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Representative  Gara explained the  amendment. He  thought it                                                                   
was in the  state's best interest  to move ahead with  an in-                                                                   
state  gas  pipeline,  but  was   concerned  that  a  company                                                                   
building a gas pipeline might  not prioritize consumer costs.                                                                   
The  amendment  would  ensure  that the  Alaska  Natural  Gas                                                                   
Development  Authority  (ANGDA)   retains  the  authority  to                                                                   
evaluate a  project to make sure  it is in the  best interest                                                                   
of consumers.                                                                                                                   
                                                                                                                                
Representative  Chenault  stated  that  he  did  not  have  a                                                                   
problem with the amendment. His intent was cheap gas.                                                                           
                                                                                                                                
10:21:13 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stoltze  removed  his  OBJECTION.  There  being  no                                                                   
further objection, Amendment 3 was ADOPTED.                                                                                     
                                                                                                                                
Co-Chair Stoltze discussed the fiscal notes.                                                                                    
                                                                                                                                
TOM  WRIGHT, STAFF,  REPRESENTATIVE  MIKE CHENAULT,  SPONSOR,                                                                   
noted concerns  about ANGDA  going out  to bond, but  assured                                                                   
the committee that Representative  Chenault would keep an eye                                                                   
on the situation.                                                                                                               
                                                                                                                                
Vice-Chair Thomas commented that  he wanted an audit of ANGDA                                                                   
to see what they  have done with the money given  them in the                                                                   
past.                                                                                                                           
                                                                                                                                
Representative  Fairclough pointed  out the possibility  that                                                                   
the legislation could allow a  small number of legislators to                                                                   
take away or  improperly delegate power. She  stated that she                                                                   
wanted a  clear record  reflecting the  desire for  a stopgap                                                                   
measure. She  referred to an  opinion from Legislative  Legal                                                                   
Services on April 2, 2009.                                                                                                      
                                                                                                                                
10:25:03 AM                                                                                                                   
                                                                                                                                
Mr.  Wright noted  that HB  152  also gave  authority to  the                                                                   
Legislative Budget and Audit Committee to approve projects.                                                                     
                                                                                                                                
Representative  Fairclough stated  that she  wanted it  clear                                                                   
for the record  that a small group of legislators  could make                                                                   
a decision  that changes  the  action of the  full body.  She                                                                   
highlighted  the  issue because  of  a recent  supreme  court                                                                   
ruling   against  a   legislative  action   related  to   the                                                                   
university; the  issue of the transfer of  legislative powers                                                                   
on appropriations was challenged and won.                                                                                       
                                                                                                                                
Co-Chair  Hawker  MOVED  to  report  CS  HB  44(FIN)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  notes. There being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB  44(FIN)  was  REPORTED   out  of  Committee  with  no                                                                   
recommendation and attached zero  note 1 by the Department of                                                                   
Revenue and two new zero notes  by the Department of Revenue.                                                                   
                                                                                                                                
10:27:26 AM         AT EASE                                                                                                   
10:27:56 AM         RECONVENED