Legislature(2023 - 2024)BARNES 124
04/17/2024 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Department of Labor and Workforce Development Commissioner | |
| HB187 | |
| HB313 | |
| HB394 | |
| HB325 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 325 | TELECONFERENCED | |
| *+ | HB 375 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | HB 187 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | HJR 27 | TELECONFERENCED | |
| += | HB 313 | TELECONFERENCED | |
| += | HB 394 | TELECONFERENCED | |
HB 394-RCA REGULATE NATURAL GAS STORAGE FACILITY
4:31:04 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 394, "An Act relating to the Regulatory
Commission of Alaska and regulation of the service of natural
gas storage and liquefied natural gas import facilities;
relating to records of the Regulatory Commission of Alaska;
relating to rates established by the Regulatory Commission of
Alaska; and providing for an effective date."
4:31:22 PM
The committee took an at-ease from 4:31 p.m. to 4:32 p.m.
4:32:31 PM
REPRESENTATIVE CARRICK moved to adopt Amendment 1 to HB 394,
labeled 33-LS1441\U.1, Nauman, 4/4/24, which read as follows:
Page 1, lines 2 - 3:
Delete "relating to records of the Regulatory
Commission of Alaska;"
Page 2, line 27, through page 3, line 4:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, lines 17 - 27:
Delete all material.
Renumber the following bill sections accordingly.
4:32:49 PM
REPRESENTATIVE WRIGHT objected.
4:32:53 PM
REPRESENTATIVE CARRICK explained that Amendment 1 would remove
the confidentiality requirement of HB 394 and cited her
questions to the RCA during the previous bill hearing as reason
for the proposed amendment.
4:34:08 PM
REPRESENTATIVE WRIGHT asked for the opinion of the bill sponsor.
4:34:24 PM
REPRESENTAIVE TOM MCKAY, Alaska State Legislature, on behalf of
the bill sponsor, the House Resources Standing Committee, on
which he serves as chair, deferred the answer regarding HB 394
to Trevor Jepson.
4:34:43 PM
TREVOR JEPSON, Staff, Representative Tom McKay, Alaska State
Legislature, on behalf of the bill sponsor, the House Resources
Standing Committee, on which Representative McKay serves as
chair, explained that there is currently a petition process that
a company has to apply for to receive confidentiality of
financial records. He said that the bill sponsor strongly
opposes Amendment 1 and warned that the proposed legislation
would be "moot, null, and void" if Amendment 1 were to pass.
4:35:28 PM
A roll call vote was taken. Representatives Carrick and Fields
voted in favor of Amendment 1 to HB 394. Representatives
Saddler, Wright, Prax, Ruffridge, and Sumner voted against it.
Therefore, Amendment 1 failed to be adopted by a vote of 2-5.
4:35:57 PM
CHAIR SUMNER moved to adopt Amendment 2 to HB 394, labeled 33-
LS1441\U.2, Nauman, 4/4/24, which read as follows:
Page 1, line 2:
Delete "and liquefied natural gas import
facilities"
Page 1, line 7:
Delete "AS 42.05.711(q), (s), and (w)"
Insert "AS 42.05.711(q) and (s)"
Page 3, lines 16 - 18:
Delete all material.
Renumber the following bill sections accordingly.
REPRESENTATIVE SADDLER objected for the purpose of discussion.
4:36:11 PM
TREVOR JEPSON said that Amendment 2 would allow for certain dual
jurisdiction liquified natural gas (LNG) import facilities. In
response to a question from Representative Saddler, he indicated
that [Representative McKay's staff] had not found any further
information regarding dual regulatory authority.
4:37:48 PM
REPRESENTATIVE FIELDS observed that Amendment 2 was "better
written" and "more concise."
CHAIR SUMNER stated that he would withdraw Amendment 2, then
announced that without objection, it was so ordered.
4:38:11 PM
The committee took a brief at-ease at 4:38 p.m.
4:38:40 PM
CHAIR SUMNER moved to adopt Amendment 3 to HB 394, labeled 33-
LS1441\U.3, Nauman, 4/4/24, which read as follows:
Page 1, lines 2 - 4:
Delete "and liquefied natural gas import
facilities; relating to records of the Regulatory
Commission of Alaska; relating to rates established by
the Regulatory Commission of Alaska; and providing for
an effective date"
Page 1, line 7:
Delete ", (s), and (w)"
Insert "and (s)"
Page 2, line 3, through page 3, line 4:
Delete all material.
Renumber the following bill sections accordingly.
Page 3, lines 16 - 18:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, lines 9 - 27:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, line 29:
Delete all material.
REPRESENTATIVE WRIGHT objected for the purpose of discussion.
4:39:01 PM
REPRESENTATIVE MCKAY stated support for Amendment 3.
MR. JEPSON said that Amendment 3 would clarify language that
should've already be considered.
4:39:35 PM
REPRESENTATIVE WRIGHT removed his objection.
REPRESENTATIVE SADDLER objected for the purpose of discussion.
4:40:08 PM
REPRESENTATIVE SADDLER inquired as to how any given federal
authority might play a role in the cost of LNG and asked for an
example of a facility where federal authority is included in the
facilities cost calculations.
MR. JEPSON responded that he did not currently have an answer to
those questions.
4:41:16 PM
ROBERT DOYLE, Chair, Regulatory Commission of Alaska, said he
would need to research to answer Representative Saddler's
question.
REPRESENTATIVE SADDLER clarified that he would like to know the
downstream effects of Amendment 3 but added that he was "fairly
satisfied."
4:42:21 PM
JOHN SIMS, President, Enstar National Gas, told Representative
Saddler that he couldn't answer his question at the time and
made clear that ENSTAR Natural Gas Company is in support of
Amendment 3.
4:43:37 PM
REPRESENTATIVE SADDLER removed his objection. There being no
further objection, Amendment 3 was adopted.
4:43:51 PM
REPRESENTATIVE FIELDS moved to adopt Amendment 4 to HB 394, as
amended, labeled 33-LS1441\U.4, Nauman, 4/4/24, which read as
follows:
Page 1, lines 3 - 4:
Delete "relating to rates established by the
Regulatory Commission of Alaska;"
Page 2, lines 3 - 26:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, lines 9 - 16:
Delete all material.
Renumber the following bill sections accordingly.
REPRESENTATIVE WRIGHT objected.
4:44:08 PM
REPRESENTATIVE FIELDS explained that Amendment 4 would help to
keep the costs of stored gas low for a utility by changing the
fair market value language in HB 394.
REPRESENTATIVE MCKAY pointed out that HB 394 would cover all gas
and emphasized that the price of gas is too unpredictable to
justify the "fair market value" language in HB 394. He stated
opposition to Amendment 4.
REPRESENTATIVE FIELDS explained the proposed amendment using a
hypothetical example.
REPRESENTATIVE MCKAY deferred the question to Mr. Doyle and
commented that it is not his intention to oversell stored gas
under HB 394.
4:47:44 PM
CHAIR SUMNER summarized Amendment 4 and invited Mr. Doyle to
speak to it.
4:48:28 PM
MR. DOYLE said that he agrees with the bill sponsor that gas
prices are established through long term contracts which are not
influenced by exogenous events.
4:49:32 PM
REPRESENTATIVE SADDLER asked Mr. Doyle what the RCA includes in
its definition of costs associated with the term "oil and gas
fields."
MR. DOYLE answered by using an example of how a long-term gas
storage contract might be conducted and further gave context to
his answer by explaining the process that a contract goes
through to come to fruition.
REPRESENTATIVE SADDLER asked if the value of the oil and gas
itself in the field is not worth more than the acquisition cost.
CHAIR SUMNER explained that the combined cost of the cushion gas
and the working gas would be comparable to the other rates and
shared his belief that the price would fluctuate by "market
magicians."
4:52:48 PM
MR. JEPSON said that the fair market value language relates only
to assets of oil and gas companies, not the gas itself.
4:53:52 PM
A roll call vote was taken. Representatives Fields and Carrick
voted in favor of Amendment 4 to HB 394. Representatives
Saddler, Prax, Wright, Ruffridge, and Sumner voted against it.
Therefore, Amendment 4 failed to be adopted by a vote of 2-5.
4:54:15 PM
REPRESENTATIVE FIELDS moved Amendment 5 to HB 394, as amended,
labeled 33-LS1441\U.8, Nauman, 4/17/24, which read as follows:
Page 1, lines 3 - 4:
Delete "relating to rates established by the
Regulatory Commission of Alaska;"
Page 2, lines 3 - 26:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, lines 9 - 16:
Delete all material.
Renumber the following bill sections accordingly.
REPRESENTATIVE SADDLER objected.
4:54:27 PM
REPRESENTATIVE FIELDS explained that Amendment 5 would give the
RCA the authority to review data and records related to
confidentiality of gas prices and sales.
4:55:09 PM
The committee took an at-ease from 4:55 p.m. to 5:00 p.m.
5:00:16 PM
REPRESENTATIVE MCKAY stated that Amendment 5 is not necessary.
REPRESENTATIVE FIELDS asked Mr. Doyle if the proposed
legislation would need Amendment 5.
5:01:02 PM
MR. DOYLE responded that the way HB 394 is currently written is
sufficient to give the RCA the authority to review financial
records as necessary.
5:01:58 PM
REPRESENTATIVE FIELDS [moved to] withdraw Amendment 5. [There
being no objection, Amendment 5 was withdrawn.]
5:02:10 PM
REPRESENTATIVE RUFFRIDGE moved to report HB 394, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes.
REPRESENTATIVE CARRICK objected.
5:02:30 PM
A roll call vote was begun and subsequently voided.
5:02:57 PM
The committee took an at-ease from 5:02 p.m. to 5:03 p.m.
5:03:05 PM
A roll call vote was taken. Representatives Wright, Saddler,
Prax, Ruffridge, and Sumner voted in favor of reporting HB 394,
as amended, out of committee with individual recommendations and
the accompanying fiscal notes. Representatives Carrick and
Fields voted against it. Therefore, CSHB 394(L&C) was reported
out of the House Labor and Commerce Standing Committee by a vote
of 5-2.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Cathy Munoz Resume DOLWD_Redacted.pdf |
HL&C 4/17/2024 3:15:00 PM |
|
| HB 375 Sponsor Statement 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM STRA 5/7/2024 1:30:00 PM STRA 5/9/2024 9:00:00 AM |
HB 375 |
| HB 375 Sectional Analysis 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM STRA 5/7/2024 1:30:00 PM STRA 5/9/2024 9:00:00 AM |
HB 375 |
| HB 375 Fiscal Note 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM STRA 5/7/2024 1:30:00 PM STRA 5/9/2024 9:00:00 AM |
HB 375 |
| Letter to HHSS in follow up to 3.26.2024 hearing.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| A.4.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 313 |
| HB 187 Premera Letter.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 187 AK Medical Association Testimony.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 187 AHIP Comments AK.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 187 Fiscal Note DCCED.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 187 Letter from AETNA.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 187 ANTHC Support.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| Letter to House HSS regarding IRO 021624.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 Sectional Analysis Version A.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 Letter of Support - AHHA.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 Sponsor Statement.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 State Law Chart.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 Version A.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 Survey Data.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 375 Fiscal Note 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 375 |
| HB 375 Sponsor Statement 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 375 |
| HB 375 Sectional Analysis 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 375 |
| HB394 Amendments.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 394 |
| U.8.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 394 |
| U.9.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 394 |