Legislature(2025 - 2026)GRUENBERG 120
03/11/2025 03:15 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB91 | |
| HB30 | |
| HB119 | |
| HB43 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 91 | TELECONFERENCED | |
| += | HB 43 | TELECONFERENCED | |
| *+ | HB 104 | TELECONFERENCED | |
| += | HB 119 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 30 | TELECONFERENCED | |
HB 119-GAS PIPELINE FAIRBANKS SPUR
4:37:52 PM
CHAIR CARRICK announced that the next order of business would be
HOUSE BILL NO. 119, "An Act relating to an in-state natural gas
pipeline developed by the Alaska Gasline Development
Corporation; and providing for an effective date."
4:41:02 PM
CHAIR CARRICK opened public testimony on HB 119.
4:41:23 PM
DANIEL HECKMAN, Regulatory Manager, Golden Valley Electric
Association (GVEA), testified in support of HB 119, which aligns
with GVEA's goals and supports measures to ensure short-term
certainty for inputting liquified natural gas (LNG) to Cook
Inlet and state efforts to assess the feasibility of connecting
a gas line connecting the North Slope to the Railbelt, including
a spur to the Fairbanks North Slope Borough.
4:44:25 PM
MR. HECKMAN, in response to Representative McCabe, noted that
GVEA's plant in North Pole, Alaska, is slated for a dual fuel
fired set-up that would allow for both oil and natural gas. To
a follow-up question, he noted that the cost of this
conversation would be significant.
4:46:36 PM
CHAIR CARRICK noted that powerplant on University of Alaska
Fairbanks (UAF) campus can burn coal or natural gas.
4:47:03 PM
DAVID GUTTENBERG, Assembly Member, Fairbanks North Star Borough,
noted that the assembly has passed numerous resolutions in
support of a spur line into Fairbanks, and he expressed
frustration that it was not a part of the project from the
beginning. He talked about the state's constitution requiring
the state's resources to be of maximum benefit to all Alaskans.
He said the Alaska Gasline Development Corporation (AGDC) "has
always given the concept of a spur line built into the project
kind of a sideways glance."
4:50:32 PM
JOMO STEWART, President, Fairbanks Economic Development
Corporation (FEDC), testified in support of HB 119 as a much
needed "conversation starter." He spoke about AGDC's indication
that Fairbanks lateral is not integral to the overall gasline
project and the concern that causes for the Fairbanks North Star
Borough. He said that while FEDC understands that highest
priority of the State of Alaska is to monetize North Slope gas
"to the good of all residents" and its secondary concern is to
get gas down to Southcentral Alaska, it would be "a tragedy" if
Fairbanks were bypassed or the gas was too expensive to use or
the borough were not in the position to support the gas line
with its demands. He stated that while HB 119 is not a
solution, it is a start of a valuable conversation.
4:53:44 PM
GRIER HOPKINS, Mayor, Fairbanks North Star Borough, testified in
support of HB 119. He emphasized the importance of not
bypassing Fairbanks and noted that the borough has been
developing a natural gas market. He emphasized the high cost of
heating in Interior Alaska. He said HB 119 would ensure that
those in the greater borough area are "not left behind" and do
not see increased costs for natural gas "at their doorstep."
4:57:17 PM
MR. HOPKINS, in response to Representative Vance, described the
role of the Fairbanks North Star Borough as making certain that
the project is economical at the local level and to begin
working on all projects necessary to ensure access for the spur
line. He indicated that HB 119 would give ensure the spur is
going to happen. In response to a follow-up question, he added
that the borough would also need to see headway with the project
as a whole. Knowing that they would be part of project would
allow the borough to plan. In response to encouragement from
Representative Vance to begin community engagement, he shared
that community financial assistance plans and educational
programs have been created.
5:00:42 PM
REPRESENTATIVE MCCABE talked local improvement districts, talked
about resistance to put gas lines into some of his districts.
Said low income people have not been able to pay, asked if this
would be an issue.
MR. HOPKINS, in response to Representative McCabe regarding the
lack of financial means in some communities, said the borough
received federal funding for line expansion and price to hook up
is paid by those who want to hook up. He talked about density
mapping and a process for figuring out interest. He said the
borough is allowing residential and business choice, needs to be
economical. He offered further details about service areas.
5:05:09 PM
ELENA SUDDUTH, General Manager, Interior Gas Utility, testified
in support of HB 119. She Interior climate is harsh and the
price of available fuel sources is high. She stated that
currently IGU supplies approximately 1.5 billion cubic feet
(bcf) of natural gas annually, and she explained the involved
process that must happen to supply that gas because there is no
natural gas pipeline that comes to the region. This process
more than doubles the price of natural gas to the Interior
compared to the Southcentral region. She said a Wood Mackenzie
study projected that Fairbanks could transition to natural gas
and achieve a 90 percent penetration rate from 2031 to 2033, for
a total demand of 11 bcf. She compared that to the current
demand of 1.5 bcf. She stated, "Reaching this level of adoption
requires an affordable rate." She said without the
infrastructure, the Interior might not reach the projected
level, which could result in increased costs for the rest of the
state during phase I of the project. She said the mandate under
HB 119 for the spur to Fairbanks as essential, and given the
already high cost of energy in this region, she said it is
crucial that financial responsibility for this lateral not fall
on its residents. She concluded that HB 119 would establish the
spur as a statewide priority.
5:08:50 PM
CHAIR CARRICK, after ascertaining there was no one else who
wished to testify, closed public testimony on HB 119.
5:09:02 PM
CHAIR CARRICK set an amendment deadline and announced that HB
119 was held over.