05/13/2003 02:20 PM Senate L&C

             HCR 21-ALASKA ENERGY POLICY TASK FORCE                                                                         
                                                                                                                                
CHAIR BUNDE announced HCR 21 to be up for consideration.                                                                        
                                                                                                                                
MR. TOM  WRIGHT, staff  to Representative  John Harris,  said the                                                               
Representative  introduced this  resolution  because  he saw  the                                                               
need  for the  state to  come up  with a  comprehensive long-term                                                               
energy plan. A  long-term plan would help the  state promote more                                                               
economic  development, technological  advancement  and create  an                                                               
energy plan so the legislature has some guidelines.                                                                             
                                                                                                                                
CHAIR BUNDE asked how the task force would be established.                                                                      
                                                                                                                                
MR.  WRIGHT replied  it would  have a  member from  the Board  of                                                               
Directors  of the  Alaska Energy  Authority, the  commissioner of                                                               
the Department  of Revenue, two  members chosen by  the governor,                                                               
two members chosen by the Speaker  of House, three members by the                                                               
Senate  President, one  who  would be  selected  by the  minority                                                               
members from the  House and Senate from a list  of three names in                                                               
consultation with  the speaker.  The task  force would  elect its                                                               
own chair from the membership.                                                                                                  
                                                                                                                                
CHAIR BUNDE noted the fiscal note of $78,000.                                                                                   
                                                                                                                                
MR. WRIGHT  responded they want  to staff the task  force because                                                               
it  will  get technical  assistance  from  AIDEA and  the  Alaska                                                               
Energy Authority.  They feel the  task force will  be undertaking                                                               
two comprehensive plans  - one being the Railbelt  portion (to be                                                               
submitted to the legislature by  December 31) and the other being                                                               
the  non-Railbelt  portion (to  be  submitted  by March  31),  so                                                               
fiscal note needs to cover staff time.                                                                                          
                                                                                                                                
SENATOR STEVENS  said in the  case of  the Salmon Task  Force, it                                                               
was nice to have a legislator  on it that could shepherd the bill                                                               
through  the legislature.  He  wanted to  know  why a  legislator                                                               
would not be involved in this.                                                                                                  
                                                                                                                                
MR. WRIGHT  replied that the reason  Representative Harris wanted                                                               
to keep this within the industry  is because there would be a lot                                                               
of discussions  around the technical  aspects and he  didn't want                                                               
to see a  lot of politics involved. He added  there is nothing to                                                               
preclude anyone  from the legislature  from participating  in the                                                               
task force.                                                                                                                     
                                                                                                                                
CHAIR  BUNDE asked  since the  task  force will  focus mostly  on                                                               
electrical energy,  it would  be more  appropriate to  rename the                                                               
task force the "Electrical Energy Task Force."                                                                                  
                                                                                                                                
MR.  WRIGHT agreed  that it  is focused  on electrical  needs and                                                               
said, "It could go one way or the other, Mr. Chairman..."                                                                       
                                                                                                                                
CHAIR  BUNDE  stated,  for  the  record, that  this  will  be  an                                                               
electrical   task   force   that   will  not   be   involved   in                                                               
petrochemicals.                                                                                                                 
                                                                                                                                
SENATOR FRENCH  asked for  an example  of a  state-owned Railbelt                                                               
energy asset.                                                                                                                   
                                                                                                                                
MR. WRIGHT replied  Healy and possibly Bradley  Lake, because the                                                               
state financed half of that project.  He didn't know if the state                                                               
was an owner in it, though.                                                                                                     
                                                                                                                                
SENATOR SEEKINS asked if this  obligates any legislature to adopt                                                               
any plan that is presented.                                                                                                     
                                                                                                                                
MR. WRIGHT replied, "No, it does not."                                                                                          
                                                                                                                                
MR.  ERIC  YOULD, Executive  Director,  ARECA,  said his  members                                                               
generate about 90%  of the electricity around the  state and feel                                                               
this  resolution  has  merit. Some  large  projects  on  Alaska's                                                               
horizon are beyond  the abilities of the  individual utilities to                                                               
pursue  -  for  instance,  a transmission  line  from  Nenana  to                                                               
Dominion Creek and  the Intertie from Anchorage  to Fairbanks and                                                               
Kenai. There is  a transmission line that could go  from Delta to                                                               
Tok, through  Glennallen and  back into  the Anchorage  area that                                                               
would be  very important  considering that there  might be  a gas                                                               
line  terminal facility  in the  Valdez  area in  the future.  In                                                               
order  to liquefy  that gas,  put  it in  barges and  ship it  to                                                               
market, tremendous amounts  of waste heat would  be generated and                                                               
that heat  alone could generate  up to 300 megawatts  of capacity                                                               
that could be fed back into the Railbelt area.                                                                                  
                                                                                                                                
TAPE 03-32, SIDE B                                                                                                            
                                                                                                                              
MR. YOULD thought a task force  would be much more effective than                                                               
an interdepartmental study by a  state agency, which would take a                                                               
long time.                                                                                                                      
                                                                                                                                
SENATOR  SEEKINS moved  to pass  CSHCR 21(FIN),  version H,  from                                                               
committee  with  individual   recommendations  and  the  attached                                                               
fiscal note.  SENATORS FRENCH, SEEKINS, STEVENS,  DAVIS and BUNDE                                                               
voted yea and HCR 21 passed from committee.