Legislature(2007 - 2008)HOUSE FINANCE 519
07/26/2008 10:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB4003 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB4002 | TELECONFERENCED | |
| + | HB4003 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 4003
"An Act making supplemental appropriations to the
Alaska Energy Authority for power cost equalization;
making special appropriations to the Department of
Revenue and to the Department of Health and Social
Services for the Alaska resource rebate program; making
a special appropriation to the Department of Revenue
for the payment of certain shared taxes relating to
aviation fuel; and providing for an effective date."
Ms. Rehfeld explained the components of the bill, which
include:
· $8.0 million for the one time payment for resource
rebate and associated administrative costs;
· $10.7 million for hold harmless provisions;
· Includes a request for supplemental funding for the
Power Cost Equalization (PCE) program of $9.6
million based on rates needing adjustment or
increase in the near future; and
· A component concerning $150,000 to hold harmless, in
the event of motor fuel tax suspension, for
communities that operate their own airports.
11:33:52 AM
Vice-Chair Stoltze asked if it equals $7 per person and
would come out the original dividend.
Mr. Burnett clarified that under the original bill $10.7
million dollars of hold harmless was a general fund
appropriation that would not have come out of the dividend.
Vice-Chair Stoltze asked if there is a list of airports that
would receive the funding for lost revenues.
Mr. Burnett related that Juneau, Ketchikan, Kenai,
Anchorage, Kodiak, Soldotna, and Palmer qualify for the
funding.
11:36:03 AM
Co-Chair Chenault asked why these were the only ones
included.
Mr. Burnett reported that the bill addresses municipality-
owned airports, not state-owned airports.
11:36:57 AM
Representative Hawker requested the new fiscal note showing
$400,000 hold harmless.
11:37:55 AM
Representative Gara mentioned the Renewable Energy Fund
adopted last year, with many new applications needing
review. He asked about additional staff authorization.
Co-Chair Meyer said that question would be answered on
Monday.
11:39:10 AM
HB 4003 was heard and HELD in Committee for further
consideration.
RECESS: 11:39:45 AM
RECONVENE: 1:08:37 PM
The following statewide testimony was taken in log note
format. Handouts will be on file with the House Finance
Committee through the 25th Legislative Session, contact 465-
6814. After the 25th Legislative Session they will be
available through the Legislative Library at 465-3808.
HB4002-RESOURCE REBATE PROGRAM FOR RESIDENTS
HB4003-APPROP: ENERGY RELIEF/REBATE/FUEL TAX
TIME SPEAKER DISCUSSION
1:08:37 PM JULIE KITKA, Provided members with written testimony
PRESIDENT, (copy on file). She related that this
ALASKA is a very historic period due to
FEDERATION OF financial problems in the U.S. economy,
NATIVES as well as to high energy costs. The
state has a responsibility to provide
affordable energy to Alaskans and to
provide energy to the Lower 48. Every
major institution in the Native
community is concerned about the energy
problem. The Native community is
interested in having the solutions
accountable, to incentivize
communities, and expand the private
sector. A new shift in thinking needs
to take place. Energy relief is a
first step. State resources must also
be invested for the future. She
cautioned that actions that are taken
do not create a backlash. She spoke in
favor of stabilizing energy costs, a
cash rebate, and a multi-year approach
to energy prices. She believed high
energy costs are here to stay. Ms.
Kitka looked at restructuring as an
opportunity and the need for smart
investing on behalf of state
government. She stressed providing
immediate relief. Ms. Kitka pointed
out that all cost-of-living prices have
increased. She spoke in support of
funding for Power Cost Equalization
(PCE). She recommended that rural
utilities be stabilized. She spoke in
behalf of the Denali Commission's
energy needs. She testified in support
of the family fuel subsidy and in favor
of funding alternative energy projects
in order to encourage economic
development. She also stated support
for funding higher education
institutions so that they can proceed
with research on energy issues. She
thanked the committee for their work.
1:31:38 PM Co-Chair Meyer Asked if those opinions were from the
Alaska Federation of Natives.
1:32:24 PM Ms. Kitka Explained where her statements came
from the Alaska Federation of Natives
(AFN) energy group.
1:32:46 PM Vice-Chair Talked about the need for an early
Stoltze energy relief payment.
1:33:49 PM JERRY BURNETT, Explained the recommendations for
DIRECTOR, payment of the rebate and the
DIVISION OF possibility for an earlier payment.
ADMINISTRATIVE
SERVICES,
DEPARTMENT OF
REVENUE
1:35:04 PM Vice-Chair Thought there might be a way to
Stoltze facilitate an earlier payment.
1:35:42 PM Mr. Burnett Observed that it may be possible to
issue a separate resource rebate check
a few weeks before the permanent fund
dividend is issued.
1:35:58 PM Representative Thanked Ms. Kitka for her testimony and
Gara invited her to return often.
1:36:22 PM Ms. Kitka Complimented the legislators for their
accessibility.
1:37:05 PM ROBERT KEITH, Spoke to the "urban/rural divide"
CHAIR, comment. He recalled past use of that
KAWERAK, INC., term. He complimented the legislature
NOME on their welcoming attitude. He
described problems related to rising
costs in his Native village of Elim. He
noted a problem with the economic
impact of a $1200 rebate. He suggested
using excess funds to mitigate fuel
costs. He described energy summits in
his area, wind generators, the SITCO
program, and federal grant programs. He
suggested having a technical clearing
house for energy issues. He spoke in
favor of PCE.
1:49:18 PM Representative Inquired about the use of solar panels
Joule in the region.
1:49:57 PM Mr. Keith Reported that Bering Strait Native
Corporation has installed a large solar
panel, as have several other
corporations.
1:52:18 PM BARB NICKELS, Reported that the Bering Strait
DIRECTOR, Development Council supports SB 4002
BERING STRAIT and SB 4003. She spoke of rising fuel
DEVELOPMENT costs in the Bering Strait region and
COUNCIL the hardships that creates for
(ARDOR) community members. She referred to the
relationship between fuel costs and
migration out of villages and the
resulting implications on educational
systems. She spoke in favor of a state
economic development plan. She
concluded that rural Alaskans want to
help themselves, yet need the state's
immediate assistance.
1:59:48 PM Representative Thanked Ms. Nickels for her testimony.
Gara
2:00:23 PM DAVID PELTO, Testified against the bills, as
PALMER written. He maintained that long-term
investments are needed and the state
should help only those in need. He
spoke against the sense of entitlement
many Alaskans have.
2:03:03 PM JUDITH Testified against funds for individuals
ANDEREGG, in the form of an energy assistance
PALMER rebate using PFD qualifications to
determine residency.
2:07:24 PM HOWARD DORSEY, Testified in support of the resource
KENAI rebate program for residents. He spoke
of ways that he could benefit from the
rebate in home improvements and
weatherization. He suggested that the
money be dispersed sooner than later,
as the fuel barges leave for remote
villages in near future.
2:11:41 PM MARGARET Discussed documents she submitted on
MANOUSOFF, behalf of Alaska Conservation Solutions
ALASKA (copy on file.) She testified in
CONSERVATION opposition to the resource rebate
SOLUTIONS, program for several reasons;
ANCHORAGE entitlement, tax, and equity issues,
and social consequences. She maintained
that common resources ought to be used
for the common good. She suggested
possible solutions to energy problems.
She urged the state to make long-
lasting investments.
2:21:50 PM Representative Asked for more information about Ms.
Hawker Manousoff's organization.
2:22:53 PM Ms. Manousoff Explained her organization's history
and focus on education about causes of
global warming, including possible
solutions.
2:24:02 PM JERRY Suggested using the energy assistance
MCCUTCHEON, program qualifications (LIHEAP) to
ANCHORAGE determine eligibility for energy
relief. He requested that the money be
paid to the individual rather than the
vendor. He testified against fuel tax
suspension.
2:27:34 PM PAUL D. Complimented Ms. Kitka's presentation.
KENDALL, Testified against the Resource Rebate
ANCHORAGE program for residents. He emphasized
the need to stay focused on the issues.
He suggested a daily television program
by the Alaska Energy Authority. He
stressed the need for clean air,
alternative methods of electricity, and
transportation.
2:40:19 PM BI JERREL, Testified in support of the Resource
KENAI Rebate program for residents.
2:43:44 PM EUGENE Testified in support of the Resource
BOBLETT, Rebate program for residents. He
SOLDOTNA stressed his difficult economic
situation as a senior with the rising
cost of propane.
2:59:46 PM TOM LOKOSH Questioned the nexus between the rebate
bill and the Governor's budget and how
funds are allocated. He pointed out
that none of the rebates allow for the
person who rents. He thought that the
LIHEAP formula should be used to
determine qualification for the rebate.
He suggested finding less expensive
alternative energy sources rather than
subsidizing in the form of PCE.
3:13:18 PM Representative Clarified a previous conversation with
Nelson Representative Gara regarding the
resource rebate.
3:14:40 PM Mr. Lakosh Commented on dispersing natural
resources in the state.
3:15:32 PM Representative Explained the purpose of the special
Nelson session and the allowable topics of
discussion.
3:16:28 PM GEORGIA Shared her personal experience with
WESTFALL high fuel costs "off the grid". She
testified in favor of the resource
rebate.
3:20:58 PM LAURA Testified in favor of the resource
SCHAEVITZ, rebate. She spoke of the high cost of
ANCHORAGE living. She opposed using the rebate to
garnish wages.
3:28:28 PM JUDITH MAGNUS, Shared her experiences with higher cost
ANCHORAGE of living expenses. She testified in
favor of the resource rebate.
ADJOURNMENT The meeting was adjourned at 3:34 PM
| Document Name | Date/Time | Subjects |
|---|