Legislature(2025 - 2026)GRUENBERG 120
05/06/2025 03:15 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB40 | |
| HB24 | |
| HB170 | |
| HB119 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 119 | TELECONFERENCED | |
| += | HB 24 | TELECONFERENCED | |
| += | HB 170 | TELECONFERENCED | |
| *+ | SB 40 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 119-GAS PIPELINE FAIRBANKS SPUR
3:39:51 PM
CHAIR CARRICK announced that the final 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."
CHAIR CARRICK mentioned a committee substitute for HB 119 was
submitted on Friday.
3:40:34 PM
The committee took an at-ease from 3:40 p.m. to 3:41 p.m.
3:40:56 PM
REPRESENTATIVE STORY moved to adopt the proposed committee
substitute (CS) for HB 119, Version 34-LS0613\N, Nauman, 5/1/25,
as a working document.
CHAIR CARRICK objected for the purpose of discussion.
3:41:32 PM
STUART RELAY, Staff, Representative Ashley Carrick, Alaska State
Legislature, read the summary of changes [included in the
committee file] for the proposed CS for HB 119, which read as
follows [original punctuation provided]:
Page 1 line 2: Updated title to reflect additions to
the bill.
Section 1: Adds language requiring a Fairbanks spur
line to AS 35.25.005(5). The previous version of the
bill only included this language in subsection 4.
Adding that same language to subsection 5 expands the
requirement for a spur line to Fairbanks to any
natural gas pipeline project undertaken by AGDC.
Section 2: New Section
Establishes a framework to pay for natural gas hook
ups for homes and business. It does this by allowing
tax revenue from natural gas transported through an
instate natural gas pipeline established by AGDC to be
used for hook ups.
Section 3: Former Section 2
3:42:30 PM
REPRESENTATIVE HOLLAND drew attention to Section 2 and asked for
clarification regarding tax levied.
MR. RELAY said that he did not have the exact legal language in
front of him but the reference in this section is for a tax on
transportation of natural gas for a pipeline that will be levied
on gas transported through the pipeline. Under the proposed
language, a portion of tax revenue from natural gas could be
used for hookups on homes and businesses.
3:44:18 PM
BERNARD AOTO, Staff, Representative Will Stapp, Alaska State
Legislature, on behalf of Representative Stapp, prime sponsor of
HB 119, said that the area mentioned in Section 2 refers to any
taxes levied under gas development.
REPRESENTATIVE HOLLAND said that he assumes that Title 43
relates to production tax. Pointing to the last portion of line
6, he asked whether there is any understanding that this would
go from spur and all secondary lines or just from the mains.
MR. AOTO responded that the language on page 3, lines 6-7,
pertains to communities in general.
3:46:35 PM
CHAIR CARRICK remarked that there is a significant natural gas
line system in Fairbanks. She said there is a lot of merit to
building in areas with lowest air quality standards; therefore,
her intent is to leave the language as it is to ensure maximum
buildout.
MR. AOTO referring to the phrase "legislature may appropriate"
on line 5, pointed out that that would depend upon whichever
legislature is in control when the project comes to fruition.
3:47:59 PM
REPRESENTATIVE HIMSCHOOT asked who would maintain the spur.
MR. AOTO responded that the idea behind Section 2 is the state
would assist in the building of a spur line. He said it is the
state's purview to maintain any infrastructure developed under
this project, the main line, and any spur lines developed.
REPRESENTATIVE HIMSCHOOT asked for confirmation that the bill
would require a spur to be built. She asked who would do the
maintenance because it assumes that it would be maintained by
the same people maintaining the main line.
MR. AOTO responded that is correct. Currently, the Alaska
Gasline Development Corporation (AGDC) has a 25 percent stake
and Glenfarne Group, LLC. has a 75 percent stake.
REPRESENTATIVE HIMSCHOOT remarked that it would add a
significant additional expense.
3:50:40 PM
CHAIR CARRICK said that it is a significant project and a spur
line is small relative to the total cost.
REPRESENTATIVE HIMSCHOOT said that the legislature demanding
something that is not part of a negotiation is hard.
MR. AOTO said that the last cost estimate regarding Alaska
liquified natural gas (LNG) was about $44 billion, while
estimates for a spur was about $120 million. He remarked that
$125 million is small relative to $44 billion and can be seen as
a rounding error.
3:51:50 PM
REPRESENTATIVE HIMSCHOOT expressed concern about the legislature
using its power "to insert something into a negotiation that may
or may not currently be there."
3:52:41 PM
REPRESENTATIVE VANCE, referring to the last line in Section 2,
expressed concern that this would be legally more than just a
spur line to Fairbanks. She asked Mr. Aoto whether the sponsor
was working on getting more clarifying language from Legislative
Legal Services.
MR. AOTO replied that his office was in contact with Legislative
Legal Services regarding how the language corresponds to the
overall bill. Although Sections 4 and 5 have specific
references, the projects themselves could span throughout
Alaska.
REPRESENTATIVE VANCE said that the concern is the way that it is
worded: gas line connections to places of business and
residences are much different from spur lines. It puts out a
false expectation that the legislature would pay for lines to
individual homes. She said when her community got natural gas,
residents had to pay for it themselves. It may mislead
residents to think that the state would pay for their natural
gas connections.
MR. AOTO said that this is the intent.
3:55:25 PM
REPRESENTATIVE WILL STAPP, Alaska State Legislature, as prime
sponsor of HB 119, explained the intent was to make the language
as least prescriptive as possible. He clarified that he didn't
want the language to be too narrow or too prescriptive.
REPRESENTATIVE VANCE said while she appreciates this intent, she
has seen the legislature appropriate money in very specific
ways. She said that she wants to ensure that all communities
are treated equally.
3:56:59 PM
REPRESENTATIVE MCCABE said that he is concerned about Section 2
and he lives six miles past the final terminus of the gas line.
He said that this is "kind of cool" but he can't imagine it
would be paid for; a quote for this was over $1 million.
REPRESENTATIVE STAPP said that is an interesting question. It
is an interesting concept to do a "hot tap," but he cannot
imagine this would happen. He did not think that the language
would prohibit, and he said other issues may be faced if doing a
hot tap.
3:58:48 PM
CHAIR CARRICK removed her objection to the motion to adopt the
proposed CS for HB 119, Version 34-LS0613\N, Nauman, 5/1/25, as
a working document. There being no further objection, Version
N was before the committee.
3:59:15 PM
REPRESENTATIVE HOLLAND, regarding the transfer of the ownership
of this instate natural gas pipeline to a private company, noted
that the Alaska Gasline Development Corporation (AGDC), while
retaining minority ownership, is not the controlling developer.
He said that he was not sure how the legislature could enact
legislation that would compel a company to make additional
infrastructure.
REPRESENTATIVE STAPP acknowledged that AGDC does not own the
project. He talked about looking at a mechanism where Alaskans
benefit. He stated the objective would be to ensure that as
many Alaskans as possible have access to natural gas.
REPRESENTATIVE HOLLAND said that he understands the gist of the
proposed mechanism.
4:01:44 PM
REPRESENTATIVE STORY moved to report CSHB 119, Version 34-
LS0613\N, Nauman, 5/1/25, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSHB 119(STA) was reported out of the House State
Affairs Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 119 Ver N.pdf |
HSTA 5/6/2025 3:15:00 PM |
HB 119 |
| CSHB 119 Summary of Changes Ver A to N.pdf |
HSTA 5/6/2025 3:15:00 PM |
HB 119 |
| HB 119 Support LTR FEDCO 3-12-25.pdf |
HSTA 5/6/2025 3:15:00 PM |
HB 119 |
| HB 119 Support LTR APA 3-24-25.pdf |
HSTA 5/6/2025 3:15:00 PM |
HB 119 |
| HB 119 Support Letter AFL-CIO 3-20-25.pdf |
HSTA 5/6/2025 3:15:00 PM |
HB 119 |
| HB 24 Support LTR ACAT 5-2-25.pdf |
HSTA 5/6/2025 3:15:00 PM |
HB 24 |
| HB 170 Written Testimony Rec'd 5-5-25.pdf |
HSTA 5/6/2025 3:15:00 PM |
HB 170 |
| HB 170 Written Testimony Lisa Larsen 5-5-25.pdf |
HSTA 5/6/2025 3:15:00 PM |
HB 170 |
| CSHB 119 Summary of Changes Ver A to N CORRECTED.pdf |
HSTA 5/6/2025 3:15:00 PM |
HB 119 |