06/04/2016 03:00 PM House FINANCE

HOUSE BILL NO. 246                                                                                                            
                                                                                                                                
     "An  Act  creating  the   oil  and  gas  infrastructure                                                                    
     development program and the  oil and gas infrastructure                                                                    
     development fund  in the Alaska  Industrial Development                                                                    
     and Export  Authority; relating  to the  interest rates                                                                    
     of  the   Alaska  Industrial  Development   and  Export                                                                    
     Authority;   relating   to   the   sustainable   energy                                                                    
     transmission   and   supply  development   and   Arctic                                                                    
     infrastructure  development  programs   of  the  Alaska                                                                    
     Industrial Development  and Export  Authority; relating                                                                    
     to  dividends from  the  Alaska Industrial  Development                                                                    
     and Export  Authority; and adding definitions  for 'oil                                                                    
     and   gas  development   infrastructure'  and   'proven                                                                    
     reserves.'"                                                                                                                
                                                                                                                                
                                                                                                                                
Co-Chair Thompson OPENED public testimony.                                                                                      
                                                                                                                                
3:01:53 PM                                                                                                                    
                                                                                                                                
KARA  MORIARTY,  PRESIDENT  AND  CEO,  ALASKA  OIL  AND  GAS                                                                    
ASSOCIATION (via teleconference), spoke  in opposition of HB
.  She  mentioned  sending  the  committee  material  the                                                                    
previous  day.  She wanted  to  make  three points.  AIDEA's                                                                    
intent for the bill was  to attract new companies to Alaska,                                                                    
to  get  more  production,  and generate  new  revenue.  She                                                                    
believed   that   the    current   fiscal   system   already                                                                    
accomplished  these things  through production  credits. She                                                                    
furthered that loans  should not be viewed  as a replacement                                                                    
for credits.   Credits bring more value to the  state than a                                                                    
loan  program. Third,  she questioned  why  the state  would                                                                    
want to spend  limited resources on loans  when credits were                                                                    
already  achieving  the  desired results.  She  thanked  the                                                                    
committee for its time.                                                                                                         
                                                                                                                                
3:03:38 PM                                                                                                                    
                                                                                                                                
MIKE COONS,  SELF, PALMER  (via teleconference),  opposed HB
.  He suggested  that the  governor's  proposal had  been                                                                    
nothing  but smoke  and mirrors  and  anything but  fiscally                                                                    
conservative.  He  read  from  the  fiscal  note  and  again                                                                    
mentioned smoke  and mirrors. He urged  committee members to                                                                    
kill the bill and thanked them for their time.                                                                                  
                                                                                                                                
Co-Chair Thompson  relayed that  written testimony  could be                                                                    
submitted    to    [email protected].    He    noted    that                                                                    
Representative    Gara,     Representative    Pruitt,    and                                                                    
Representative  Munoz had  joined the  meeting prior  to the                                                                    
beginning of public testimony.                                                                                                  
                                                                                                                                
Co-Chair Thompson CLOSED public testimony.                                                                                      
                                                                                                                                
Co-Chair Thompson indicated that the next House Finance                                                                         
Committee meeting would be held Monday, June 6th at 3:00                                                                        
p.m.