Legislature(2023 - 2024)SENATE FINANCE 532
05/11/2024 10:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB120 | |
| SB125 | |
| HB19 | |
| HB50 | |
| HB122 | |
| SB217 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 120 | TELECONFERENCED | |
| += | SB 125 | TELECONFERENCED | |
| += | HB 19 | TELECONFERENCED | |
| += | HB 50 | TELECONFERENCED | |
| += | SB 217 | TELECONFERENCED | |
| *+ | HB 122 | TELECONFERENCED | |
| HB 111 | |||
| + | TELECONFERENCED | ||
| += | HB 66 | TELECONFERENCED | |
| += | HB 347 | TELECONFERENCED | |
| += | HB 202 | TELECONFERENCED | |
| *+ | HB 145 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
May 11, 2024
11:04 a.m.
11:04:16 AM
CALL TO ORDER
Co-Chair Olson called the Senate Finance Committee meeting
to order at 11:04 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Jesse Kiehl
Senator Kelly Merrick
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Ken Alper, Staff to Co-Chair Olson; Zach Young, Staff for
Representative Tomaszewski; Senator Cathy Giessel; John
Crowther, Deputy Commissioner, Department of Natural
Resources; Zach Young, Staff to Representative Frank
Tomaszewski.
PRESENT VIA TELECONFERENCE
Sandra Moller, Director, Division of Community & Regional
Affairs, Department of Commerce, Community & Regional
Affairs; Micaela Fowler, Deputy Commissioner, Department of
Commerce, Community and Economic Development; Chris
Wallace, Petroleum Engineer, Alaska Oil & Gas Conservation
Commission, Anchorage; Ken Huckeba, Self, Wasilla; Cassie
Andrew, Self, Anchorage; Ken Griffin, Self, Wasilla; Sean
Clifton, Policy & Program Specialist, Division of Oil and
Gas, Department of Natural Resources; Lydia Shumaker, Self,
Wasilla; John Boyle, Commissioner, Department of Natural
Resources, Anchorage; Becki Alvey, Advisory Section
Manager, Regulatory Commission of Alaska; Bill O'Leary,
President & CEO, Alaska Railroad; Curtis Thayer, Executive
Director, Alaska Energy Authority, Anchorage.
SUMMARY
SB 125 AK HOUSING FINANCE CORP: SUSTAIN ENERGY
CSSB 125(FIN) was REPORTED out of committee with
four "do pass" recommendations and with three no
recommendation recommendations; and with one new
zero fiscal note from the Department of
Administration; one new fiscal impact note from
the Department of Revenue; two new fiscal impact
notes from the Department of Commerce, Community
and Economic Development; and one new zero fiscal
note from the Department of Commerce, Community
and Economic Development.
SB 217 INTEGRATED TRANSMISSION SYSTEMS
SB 217 was heard and HELD in Committee for
further consideration.
HB 19 REGISTRATION OF BOATS: EXEMPTION
SCS CS HB 19(FIN) was REPORTED out of committee
with one "do pass" recommendation and with six
no recommendation recommendations; and with one
new zero fiscal note from the Department of Fish
and Game; one new zero fiscal note from the
Department of Commerce, Community and Economic
Development; one new fiscal impact note from the
Department of Administration; and one new zero
fiscal note from the Department of Natural
Resources.
HB 50 CARBON STORAGE
HB 50 was heard and HELD in Committee for further
consideration.
HB 66 CONTROLLED SUB;HOMICIDE;CRIMES;SENTENCING
HB 66 was SCHEDULED but not HEARD.
HB 111 EDUCATION FOR DEAF & HARD OF HEARING
HB 111 was SCHEDULED but not HEARD.
HB 120 HUNT/FISH LICENSE FOR NONRESIDENT STUDENT
SCS HB 120(FIN) was REPORTED out of committee
with three "do pass" recommendations and with
three "no recommendation" recommendations, and
with three new zero fiscal notes from the
Department of Fish and Game.
HB 122 RAILROAD CORP. FINANCING
HB 122 was heard and HELD in Committee for
further consideration.
HB 145 LOANS UNDER $25,000; PAYDAY LOANS
HB 145 was REMOVED from the agenda.
HB 202 OPIOID OVERDOSE DRUGS IN SCHOOLS
HB 202 was SCHEDULED but not HEARD.
HB 347 PROPERTY ASSESSMENT
HB 347 was SCHEDULED but not HEARD.
HOUSE BILL NO. 120
"An Act relating to hunting, trapping, and fishing licenses
for certain nonresident postsecondary students; and
providing for an effective date."
11:04:51 AM
Co-Chair Olson relayed that the committee heard the bill on
May 7, 2024, at which time public testimony was taken.
Senator Wilson MOVED to ADOPT proposed committee substitute
for HB 120, Work Draft 33-LS0633\B (Bullard, 4/27/24).
Co-Chair Olson OBJECTED for discussion.
11:05:28 AM
KEN ALPER, STAFF TO CO-CHAIR OLSON, discussed the changes
reflected in the CS.
Co-Chair Olson WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
11:07:04 AM
ZACH YOUNG, STAFF FOR REPRESENTATIVE TOMASZEWSKI, provided
support for the CS as written and concurred with changes.
Senator Wilson MOVED to report SCS HB 120(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes.
SCS HB 120(FIN) was REPORTED out of committee with three
"do pass" recommendations and with three no
recommendation recommendation, and with three new zero
fiscal notes from the Department of Fish and Game.
SENATE BILL NO. 125
"An Act relating to subsidiary corporations of the Alaska
Housing Finance Corporation; and establishing the Alaska
energy independence fund."
11:07:55 AM
Co-Chair Olson relayed that the had been heard previously
in committee.
KEN ALPER, STAFF TO Co-Chair Olson, reviewed the CS and
highlighted that the bill would establish a subsidiary
corporation within the Alaska Housing Finance Corporation
for the purpose of lending money for renewable energy
products.
Co-Chair Olson asked whether there was any opposition to
the CS.
Mr. Alper had not heard of any opposition to the
legislation.
11:09:16 AM
AT EASE
11:11:17 AM
REVONVENED
Senator Kiehl MOVED to ADOPT Amendment 1, 33-GS1074\U.2
(Walsh, 5/10/24) (copy on file).
Co-Chair Olson OBJECTED for discussion.
Senator Kiehl spoke to Amendment 1. He explained that the
amendment was a small adjustment to the scope of the bill.
The amendment had to do with commercial fishing loans from
the Commercial Fishing Revolving Loan fund. He noted that
the fund had a balance of about $36 million. He explained
that the fund loans at 2 points above the prime rate and
currently had a different limit for new loans and
refinancing. He emphasized that the commercial fishing
industry was in crisis, and small family businesses were
suffering. The amendment would allow commercial fishermen
to refinance loans up to $400,000, over a three-year
period, and would set the interest rate for the three-year
period at 5.25 percent. He said that this would benefit
Alaskan fishing families and fish processors.
11:14:25 AM
Senator Bishop asked whether there was anyone available
from the Department of Commerce, Community, and Economic
Development (DCCED) to comment on the amendment.
11:14:45 AM
AT EASE
11:15:23 AM
RECONVENED
Senator Bishop referenced Section 3 and the interest rate
of 5.25 percent for three years. He wondered whether
modeling had been done to determine whether the fund could
sustain the proposed interest rate.
Senator Kiehl relayed that he had with Micaela Fowler at
DCCED, and the department was comfortable with the
amendment.
11:16:54 AM
SANDRA MOLLER, DIRECTOR, DIVISION OF COMMUNITY & REGIONAL
AFFAIRS, DEPARTMENT OF COMMERCE, COMMUNITY & REGIONAL
AFFAIRS (via teleconference), did not have and comments on
the loan program modeling.
11:17:09 AM
Co-Chair Stedman thought it was important to discuss the
interest rate and dollar amount limits.
Ms. Moller surmised that Co-Chair Stedman had asked about
the dollar amount and interest rate changes. She asked Co-
Chair Stedman to restate the question.
Co-Chair Stedman referenced page 7, line 28 and Page 8,
lines 15 and 16.
Ms. Moller requested a moment to find the references in the
bill.
Co-Chair Stedman wondered whether the amendment sponsor
could discuss the changes.
Senator Kiehl believed that Ms. Fowler was going to be
dialing in. He noted that currently the loan fund loaned
at prime, plus 2, capped at a maximum of 10.5 percent. The
amendment would lower the rate for three-years to prime,
plus 2, capped at 5.25 percent.
Co-Chair Stedman understood the amendment was meant to help
the industry through difficult times and the rate would
revert to 10.5 percent once things improved.
Senator Kiehl answered affirmatively.
11:20:18 AM
AT EASE
11:21:50 AM
RECONVENED
MICAELA FOWLER, DEPUTY COMMISSIONER, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT (via
teleconference), introduced herself.
Co-Chair Stedman relayed that member's questions related to
the interest rate, the dollar amount, and the amount of
time the interest rate would be lowered.
Ms. Fowler relayed that the department appreciated the
consideration for the commercial fishing industry. She
referenced the Commercial Fisheries Revolving Loan Fund and
noted it had been an effective tool for the state. She said
that the department supported the amendment.
Ms. Fowler noted that current rates were at the 10.5
percent cap, and the rate was set at prime, plus 2. She
said that 5.25 percent saw set because it was historically
the lowest the rates had been. She thought it was an
appropriate rate and reiterated that it would return to
10.5 percent when the industry recovered.
11:25:06 AM
Co-Chair Olson WITHDREW his objection. There being NO
OBJECTION, it was so ordered. Amendment 1 was ADOPTED.
Senator Kiehl MOVED to report CSSB 125(FIN) out of
Committee as amended with individual recommendations and
the accompanying fiscal notes.
CSSB 125(FIN) was REPORTED out of committee with four "do
pass" recommendations and with three no recommendation
recommendations; and with one new zero fiscal note from the
Department of Administration; one new fiscal impact note
from the Department of Revenue; two new fiscal impact notes
from the Department of Commerce, Community and Economic
Development; and one new zero fiscal note from the
Department of Commerce, Community and Economic Development.
CS FOR HOUSE BILL NO. 19(FIN) am
"An Act relating to the registration of commercial
vessels."
11:25:49 AM
Co-Chair Olson relayed that the bill had been heard earlier
in the week; a committee substitute had been adopted and
public testimony had been taken.
Senator Merrick MOVED to report SCS CSHB 19(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CS HB 19(FIN) was REPORTED out of committee with one
"do pass" recommendation and with six no recommendation
recommendations; and with one zero fiscal note from the
Department of Fish and Game; one zero fiscal note from the
Department of Commerce, Community and Economic Development;
one fiscal impact note from the Department of
Administration; and one zero fiscal note from the
Department of Natural Resources.
11:26:39 AM
AT EASE
11:28:12 AM
RECONVENED
CS FOR HOUSE BILL NO. 50(FIN)
"An Act relating to carbon storage on state land;
relating to the powers and duties of the Alaska Oil
and Gas Conservation Commission; relating to carbon
storage exploration licenses; relating to carbon
storage leases; relating to carbon storage operator
permits; relating to enhanced oil or gas recovery;
relating to long-term monitoring and maintenance of
storage facilities; relating to carbon oxide
sequestration tax credits; relating to the duties of
the Department of Natural Resources; relating to
carbon dioxide pipelines; and providing for an
effective date."
11:28:16 AM
Co-Chair Olson noted that the bill had been heard several
times and a committee substitute had been adopted the
previous day.
11:28:31 AM
Co-Chair Olson OPENED public testimony.
11:28:59 AM
CHRIS WALLACE, PETROLEUM ENGINEER, ALASKA OIL & GAS
CONSERVATION COMMISSION, ANCHORAGE (via teleconference),
relayed that he was present for questions, and supported
the bill.
11:29:06 AM
KEN HUCKEBA, SELF, WASILLA (via teleconference), testified
in opposition to the bill. He asserted that the revenue for
carbon capture was a sales pitch. He suggested that that
carbon capture was unsafe, which had been the experience in
Japan. He thought the bill could be catastrophic or cost
the state a great deal of money. He believed that any
financial gain was speculative.
11:32:19 AM
CASSIE ANDREW, SELF, ANCHORAGE (via teleconference), spoke
in opposition to the bill. She spoke of the bill in
denigrating terms. She asserted that the 45Q federal tax
credit was fraudulent. She did not believe that the
legislation incentivize production and was against the
Paris agreement.
11:34:16 AM
KEN GRIFFIN, SELF, WASILLA (via teleconference), testified
against the bill. He mentioned that he had spent many hours
following energy legislation. He emphasized that an easy
search would reveal that carbon capture had been
detrimental to other states. He questioned why the state
would put something in the ground that resulted in
permanent liability. He asserted that what the bill
proposed was insanity and would lead to little revenue,
leaving Alaskans to foot the bill. He hoped that committee
members would not support the legislation out of fear of
Governor Dunleavys punitive response.
11:38:00 AM
Co-Chair Olson queried whether the Department of Natural
resources supported the legislation.
11:38:25 AM
SEAN CLIFTON, POLICY & PROGRAM SPECIALIST, DIVISION OF OIL
AND GAS, DEPARTMENT OF NATURAL RESOURCES (via
teleconference), relayed that he was not present to speak
to that question.
Co-Chair Olson assumed that the department would be in
favor of a governors bill.
11:39:01 AM
AT EASE
11:41:02 AM
RECONVENED
Co-Chair Olson continued with public testimony.
11:41:18 AM
LYDIA SHUMAKER, SELF, WASILLA (via teleconference),
testified in opposition to the bill. She felt that the bill
was unnecessary and would open Alaskans up to future
detriment. She said that global evidence had proved that
pressurized CO2 was dangerous. She mentioned potential
leaks and other potential problems. She asserted that the
bill was dangerous for humans and the environment. She
urged the committee to kill the bill.
11:45:05 AM
Co-Chair Olson CLOSED public testimony.
Co-Chair Olson relayed that there were three amendments to
consider.
11:45:21 AM
Senator Bishop MOVED to ADOPT Amendment 1, 33-GH1567\T.4,
(Dunmire, 5/10/24)(copy on file).
Co-Chair Olson OBJECTED for discussion.
Senator Bishop spoke to Amendment 1. He explained that the
amendment was known as "reserve-based lending language and
established a loan program administered by AIDEA for Cook
Inlet oil and gas projects. He continued that AIDEA would
be able to accept an ownership share of a project, in the
form of a carried interest and did not obligate AIDEA to
contribute to the development costs of the project. He
outlined the actions allowable by the authority under the
amendment.
11:46:50 AM
Senator Kiehl referenced Senator Bishop's remarks about the
nature of the interest and that if a project went over
budget, more money could not be requested from AIDEA.
Senator Bishop relayed that AIDEA was available for
questions.
11:47:27 AM
AT EASE
11:48:08 AM
RECONVENED
Senator Bishop reiterated that AIDEA would be allowed to
accept an ownership share in a project fund if the
ownership share was in the form of carry interest that did
not obligate the authority to contribute to the development
costs of the project.
Co-Chair Olson WITHDREW his objection. There being NO
OBJECTION, it was so ordered. Amendment 1 was ADOPTED.
11:48:46 AM
Senator Bishop MOVED to ADOPT Amendment 2, 33-GH1567\T.5,
(Dunmire, 5/10/24) (copy on file).
Co-Chair Olson OBJECTED for discussion.
Senator Bishop spoke to Amendment 2 and noted that the
language was from the original bill. He said that the
Senate resources Committee had paired down the bill and the
amendment would replace language that had been removed
related to geothermal resources. He
Co-Chair Olson WITHDREW his objection. There being NO
OBJECTION, it was so ordered. Amendment 2 was ADOPTED.
11:50:39 AM
Senator Wilson MOVED to ADOPT Amendment 3, 33-GH1567\T.7,
(Dunmire, 5/10/24) (copy on file).
Co-Chair Olson OBJECTED for discussion.
Senator Wilson spoke to Amendment 3. He explained that the
amendment would restore the commercial terms that came out
of Senate Resources Committee from $10 back to $2.50.
Co-Chair Olson WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
11:51:45 AM
AT EASE
11:52:49 AM
RECONVENED
Co-Chair Olson asked whether the department would like to
speak to the bill now that the amendments had been adopted.
11:53:16 AM
JOHN CROWTHER, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, relayed that the administration supported the
three amendments adopted by the committee.
Senator Kiehl asked whether the department could speak to
the perception of geologic risk raised during public
testimony.
Mr. Crowther explained that prior committees had discussed
the issue. He said that because of the nature of the
intended injection, seismic activity was not expected to be
a problem. He noted that some of the concerns about the
surface concentration and exposure of carbon dioxide were
founded and that any project would require designs to deal
with the possibility. He assured the committee that safety
would be a priority.
11:56:32 AM
Co-Chair Olson noted that Chris Wallace from the Alaska Oil
& Gas Conservation Commission (AOGCC) was available for
questions.
CHRIS WALLANCE, ALASKA OIL and GAS CONSERVATION COMMISSION,
said that all safety standards and concerns would be
addressed by industry.
Senator Bishop wondered about the Class 6 Injection Permit
required by the Environmental Protection Agency (EPA).
Mr. Crowther responded that AOGCC could speak to the
permit. He added that the permit would be necessary for
carbon storage projects to process.
11:58:35 AM
Co-Chair Stedman thought the issue was complicated when
considering the technical aspects. He asked for a
definition of a Class 6 well and state and federal
regulatory oversight.
Mr. Crowther explained that the United States Department of
Environmental Protection, under the Safe Drinking Water
Act, had a program to regulate any injection underground,
for any purpose, that could affect drinking water. Under
the act the wells are divided into different classes, as
they serve different purposes, and Class 6 of those wells
was for the injection of carbon dioxide underground, which
involved a comprehensive regulatory analysis.
Co-Chair Stedman spoke to public testimony concerning Cook
Inlet and Alaskans concerned about why the capture should
happen in Alaska versus Japan.
Mr. Crowther said that the reason that Alaska was a
prolific hydrocarbon basis was because there were
sedimentary basins with deposits of porous reservoirs that
were also sealed by impenetrable rock, a geological feature
that was rare. He said that many places on the Pacific Rim
had limited potential for hydrocarbon development and the
storage of carbon dioxide.
12:02:07 PM
Co-Chair Olson asked whether the administration was
satisfied with the bill as amended.
12:02:19 PM
JOHN BOYLE, COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES,
ANCHORAGE (via teleconference), relayed that the
administration had concerns with Section 40 of the bill,
which dealt with the Regulatory Commission of Alaska, and
potential LNG import provisions.
Co-Chair Stedman asked for specificity surrounding the
administrations concerns about Section 40.
Commissioner Boyle deferred to Mr. Crowther.
Mr. Crowther noted that Section 40 focused on a provision
that was introduced related to the administration of gas
storage under the RCA. He shared that the administration
wanted assurances that the language in the bill that
addressed potential costs associated with natural gas
storage should not shift the status quo where the costs
considered by the RCA were not definitively included or
excluded. He deferred further comment to the RCA.
12:04:39 PM
Co-Chair Stedman asked for a representative of the RCA.
12:04:51 PM
AT EASE
12:07:53 PM
RECONVENED
Co-Chair Stedman asked for the RCAs opinion on the amended
bill and for comments of Section 40.
BECKI ALVEY, ADVISORY SECTION MANAGER, REGULATORY
COMMISSION OF ALASKA (via teleconference), relayed that the
commission had not taken a formal position on the section
of the bill or the bill itself.
Co-Chair Olson relayed that the committee would be hearing
the legislation again, which would give the commission time
to research the bill as currently written.
HB 50 was heard and HELD in Committee for further
consideration.
12:09:38 PM
AT EASE
12:11:06 PM
RECONVENED
CS FOR HOUSE BILL NO. 122(FIN) am
"An Act authorizing the Alaska Railroad Corporation to
issue revenue bonds to finance the replacement of the
Alaska Railroad Corporation's passenger dock and
related terminal facility in Seward, Alaska;
authorizing the Alaska Railroad Corporation to issue
revenue bonds to finance the completion of the Port
MacKenzie Rail Extension in Point MacKenzie, Alaska;
and providing for an effective date."
12:11:10 PM
Co-Chair Olson relayed that the committee had heard the
companion bill, SB 105, on February 27, 2024.
12:11:35 PM
ZACH YOUNG, STAFF TO REPRESENTATIVE FRANK TOMASZEWSKI,
shared that the bill would provide an additional $75
million in bond authorization for the Alaska Railroad to
complete the reinstallation and construction of a new
floating passenger cruise ship dock and attached terminal
in Seward. He relayed that in 2022, the legislature
authorized $60 million in bond authorization, but a new
cost study and renewed scope of the work had determined
that the need was for 75 million. The project would break
ground in the fall of 2025, to be completed in the Spring
of 2026. He explained that there was an amendment passed on
the House floor that added $58 million in bond
authorization for the first phase of the Port MacKenzie
Rail Extension. The legislature had appropriated UGF in the
past of approximately $180 million, however, the project
had never been completed. He concluded that the bill was a
railroad bonding bill.
12:13:35 PM
Co-Chair Stedman recalled that several years previously
there had been a request, and an appropriation made, for
the rail extension in the area. He recounted that the
railroad had indicated that it did not want to extend the
rail but would prefer the funds be used for rolling stock
and upgrades. He said that the railroad had asserted that
it would not maintain or use a rail extension. He thought
there was important history on the matter that needed to be
considered.
12:14:52 PM
BILL O'LEARY, PRESIDENT & CEO, ALASKA RAILROAD (via
teleconference), believed that Co-Chair Stedman's remarks
had been in reference to decisions made by the previous
CEO. He asserted that the railroad supported the Port
MacKenzie Rail Extension Project. The railroad believed
that rail infrastructure was key to unlocking areas and
resources of the state. He noted that the Port Mackenzie
rail extension was costly, and they were applying for
federal match dollars. He stated that customers needed to
be identified that would use the infrastructure before
bonds could be issued. He said that $58 million in bonds
was approximately $4.5 million in debt service per year,
which would be the targeted pre cash flow.
12:18:21 PM
Co-Chair Olson expressed concern related to the funding for
the rail extension in addition to funding the port, which
would be needed to bring customers. He admitted skepticism
and asked whether there was more to the plan.
Mr. O'Leary replied that the port was owned by the Mat Su
Borough, and he could not speak to the condition of the
port or the needs of users.
Co-Chair Olson referenced the concern that there was a port
being considered less than 2 miles away from the Port of
Alaska would be in competition with that port.
12:19:34 PM
Co-Chair Stedman referenced the beginning of the bill and
the dock extension, which would accommodate cruise ships.
He asked whether there were customers standing by for use
of the proposed facility.
Mr. O'Leary answered that "absolutely, we have customers"
and furthered that the deal that was being proposed was to
work with the Royal Caribbean Group; Royal Caribbean Group
would be the anchor tenant. He noted that Royal Caribbean
had approached the railroad with a real estate transaction
and would be guaranteeing the issued bonds through a long-
term tiered usage agreement.
12:21:35 PM
Senator Wilson thought the difference between the port in
Anchorage and the proposed one in Mat-Su was that the
Anchorage port saw more goods and services and the Point
McKinzie port would be more of a resource port that aided
in the movement of resources. He queried pending funding
opportunities awarded to the railroad.
Mr. O'Leary cited that the grant application was due at the
end of May and the railroad estimated that the award would
be announced prior to the election in November 2024.
Senator Wilson asked when the match would need to be
awarded to be eligible for the grant.
Mr. O'Leary thought that the match would be necessary
before construction were to begin in 2025. If bonds were to
be used as matching funds, they would need to be issued in
the 2025 timeframe.
Senator Wilson surmised that if the funding was not awarded
until winter, the construction would not start until
springtime, and that it was possible that the next
legislature could issue bonds that would be usable in a
timely manner.
Mr. O'Leary understood the same and did not think there had
been a detailed construction schedule issued.
12:24:24 PM
Co-Chair Stedman asked whether the grant would be lost if
matching funds were not immediately available upon award of
the grant in the fall.
Mr. O'Leary said that the grant would bee awarded in
September or October. Before the grant could be executed,
the railroad would have to demonstrate where matching funds
would come from.
Co-Chair Stedman about the time frame to acquire matching
funds to avoid losing the grant.
Mr. O'Leary responded that he did not know.
Co-Chair Stedman thought clarity was needed when Mr.
O'Leary answered the committee's questions. He thought it
would be abnormal to receive a grant in November and have
to have matching funds available by December. He felt that
the bill needed further amending.
12:27:48 PM
Senator Bishop mentioned the Northern rail extension, and
thought it was important to add the extension to the
conversation.
12:28:03 PM
Co-Chair Olson OPENED public testimony.
12:28:21 PM
Co-Chair Olson CLOSED public testimony.
12:28:31 PM
Senator Wilson asked about the choice of Seward over
Whittier.
Mr. O'Leary responded that the railroad was replacing an
existing asset in Seward. He said that the railroad would
continue to work with customers in Whittier and there could
be expansion in both locations.
Senator Wilson wondered whether it was true that Whittier
had more opportunity for expansion and growth. He asked
whether Whittier offered opportunity for expansion for the
railroad.
Mr. O'Leary was not certain he understood Senator Wilson's
question. He noted that he was happy to work with customers
in Whittier.
12:30:51 PM
Co-Chair Stedman commented on the various port and rail
projects in the state. He thought the committee would be
receptive in expanding the rail in all the directions. He
contrasted that just as power line extensions were made, or
electrical interties, economically beneficial rail
extension was of interest to the committee.
Co-Chair Olson agreed. He suggested that Mr. OLeary return
to the committee in the future with a list of priority
projects.
Mr. O'Leary relayed that he would be delighted to do so.
HB 122 was heard and HELD in Committee for further
consideration.
12:32:21 PM
RECESSED
3:10:37 PM
RECONVENED
SENATE BILL NO. 217
"An Act relating to the taxation of independent power
producers; and increasing the efficiency of integrated
transmission system charges and use for the benefit of
ratepayers."
3:10:42 PM
Co-Chair Olson discussed housekeeping.
Co-Chair Stedman MOVED to ADOPT Amendment 1, 33-GS2489\D.6,
(Walsh, 5/11/24) (copy on file).
Co-Chair Olson OBJECTED for discussion.
Co-Chair Stedman spoke to Amendment 1:
Page 6, line 9, following system:
Insert or joint action agency established under
AS 42.45.310 located off the interconnected road
system
Co-Chair Olson WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
3:11:56 PM
Co-Chair Stedman MOVED to ADOPT Amendment 2, 33-GS2489\D.1
(Walsh, 5/10/24) (copy on file).
Co-Chair Olson OBJECTED for discussion.
Co-Chair Stedman spoke to Amendment 2:
Page 3, line 3, following utility:
Insert or a joint action agency established
under AS 42.45.310
Co-Chair Olson WITHDREW his objection. There being NO
further OBJECTION, it was so ordered.
3:12:38 PM
AT EASE
3:13:05 PM
RECONVENED
Senator Bishop MOVED to ADOPT Amendment 3, 33-GS2489\D.4
(Walsh, 5/10/24) (copy on file).
Co-Chair Olson OBJECTED for discussion.
Senator Bishop spoke to Amendment 3. He relayed that the
amendment would allow AEA to have its own employees;
currently AEA used employees of ADIEA. He added that two
separate boards would be created as well. Current AIDEA
employes doing the work of AEA would simply be transferred
and located under AEA.
Co-Chair Olson WITHDREW his objection.
Senator Kiehl asked whether AIDEA employees were currently
in the exempt service.
3:14:12 PM
CURTIS THAYER, EXECUTIVE DIRECTOR, ALASKA ENERGY AUTHORITY,
ANCHORAGE (via teleconference), relayed that it was the
same language that currently defined AIDEA employees. They
would stay in exempt services.
Co-Chair Olson WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
3:15:06 PM
Co-Chair Hoffman MOVED to ADOPT Amendment 4.
Co-Chair Olson OBJECTED for discussion.
3:15:22 PM
AT EASE
3:17:53 PM
RECONVENED
Co-Chair Olson relayed that the committee would take no
further action on Amendment 4 and would set the bill aside.
SB 217 was heard and HELD in Committee for further
consideration.
ADJOURNMENT
3:18:25 PM
The meeting was adjourned at 3:18 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 125 Amendment 1 Kiehl.pdf |
SFIN 5/11/2024 10:00:00 AM |
SB 125 |
| HB 120 CS in SFin summary of changes 5-11-24.pdf |
SFIN 5/11/2024 10:00:00 AM |
HB 120 |
| HB 120(FIN) work draft version -B.pdf |
SFIN 5/11/2024 10:00:00 AM |
HB 120 |
| HB 50 Amendment 1 Bishop.pdf |
SFIN 5/11/2024 10:00:00 AM |
HB 50 |
| HB 50 Amendment 2 Bishop.pdf |
SFIN 5/11/2024 10:00:00 AM |
HB 50 |
| HB 50 Amendment 3 Wilson.pdf |
SFIN 5/11/2024 10:00:00 AM |
HB 50 |
| SB 217 Amendment 1 Stedman.pdf |
SFIN 5/11/2024 10:00:00 AM |
SB 217 |
| SB 217 Amendment 2 Stedman.pdf |
SFIN 5/11/2024 10:00:00 AM |
SB 217 |
| SB 217 Amendment 3 Bishop.pdf |
SFIN 5/11/2024 10:00:00 AM |
SB 217 |
| HB 145 INFiN AK HB 145 Testimony.5.10.24.pdf |
SFIN 5/11/2024 10:00:00 AM |
HB 145 |