02/23/2010 03:00 PM House ENERGY

        HJR 45-OPPOSE FEDERAL CAP AND TRADE LEGISLATION                                                                     
                                                                                                                                
3:10:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  MILLETT  announced that  the  first  order of  business                                                               
would be HOUSE JOINT RESOLUTION  NO. 45, Urging the United States                                                               
Congress not to enact Cap and Trade legislation.                                                                                
                                                                                                                                
3:10:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BILL STOLTZ,  Alaska State  Legislature, informed                                                               
the committee  that a legislative  resolution is a  formal letter                                                               
to  Congress  expressing concerns  about  issues  outside of  the                                                               
legislature's  political  boundaries.   He  opined  Congressional                                                               
leaders and  the White House are  supporting a policy of  cap and                                                               
trade  legislation  which,  if enacted,  would  have  deleterious                                                               
impacts on  all levels of  the national economy.   Representative                                                               
Stoltze,  and the  co-sponsors of  HJR 45,  respectively disagree                                                               
with  the  supporters  of  cap  and  trade  legislation  and  the                                                               
resolution points out their concerns.   He noted that Congressman                                                               
Don  Young  and  Senator  Lisa  Murkowski  helped  formulate  the                                                               
resolution.   In  the interest  of efficiency,  he said  he would                                                               
support  the  amendment to  be  offered  by Representative  Tuck.                                                               
Representative Stoltze  stressed that  cap and  trade legislation                                                               
adds to  the living expenses  of the average American  family and                                                               
of individuals,  and prevents  opportunities in  an inexhaustible                                                               
list of industries.  He urged  the committee to bring forward the                                                               
resolution.                                                                                                                     
                                                                                                                                
3:15:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN observed producer  and user states differ                                                               
on this issue.  He offered his support.                                                                                         
                                                                                                                                
3:15:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STOLTZ advised  that user  states are  unaware of                                                               
how affected they are.                                                                                                          
                                                                                                                                
3:16:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT opened public testimony.                                                                                       
                                                                                                                                
3:16:29 PM                                                                                                                    
                                                                                                                                
MIKE MILLER, Vice Chairman,  Northern Region, National Federation                                                               
of  Independent  Business (NFIB),  said  his  organization is  in                                                               
strong  support of  the resolution.    As a  business owner  with                                                               
businesses  in North  Pole and  Ketchikan, he  stated that  3,600                                                               
jobs  in Alaska  may  be lost  if cap  and  trade legislation  is                                                               
enacted.   This would  happen because  when small  businesses cut                                                               
budgets, they  cannot cut items  like taxes, but must  cut wages.                                                               
As  a  result, jobs  have  been  lost  in  the visitor  and  gift                                                               
industries during the past two  years.  Furthermore, according to                                                               
the Heritage  Foundation, federal cap and  trade legislation will                                                               
increase the price  of gasoline by $1.20 per  gallon.  Especially                                                               
in  the   visitor  industry,  the   more  a  visitor's   cost  of                                                               
transportation to  Alaska is raised,  the less  he or she  has to                                                               
spend.   In addition, all  of Alaska's residents are  affected by                                                               
the cost  of transportation for goods.   In fact, there  was a 20                                                               
percent fuel  surcharge added on to  a recent shipment to  one of                                                               
his  businesses.   Mr.  Miller concluded  that  for every  dollar                                                               
taken out  of the  economy by  the loss of  jobs, the  economy is                                                               
negatively affected.  He re-stated his support for HJR 45.                                                                      
                                                                                                                                
3:21:07 PM                                                                                                                    
                                                                                                                                
MEERA  KOHLER,   President  and  CEO,  Alaska   Village  Electric                                                               
Cooperative (AVEC),  informed the committee AVEC  serves 53 small                                                               
villages  throughout the  state.   Ms. Kohler  recalled that  the                                                               
issue of cap and  trade and carbon taxes is not  new.  She agreed                                                               
with the  resolution's sponsor that potential  carbon taxes would                                                               
affect those  who can  least afford  it.   For example,  in rural                                                               
areas  residents  do  not have  opportunities  to  use  renewable                                                               
sources of  energy that do  not come  from fossil fuels  and they                                                               
will "be hit  very, very hard."   She noted that a  ton of carbon                                                               
on the market for  $50 equates to a cost of $0.04  per kWh in the                                                               
villages, and  to a  40 percent increase  in rates  for Anchorage                                                               
Municipal Light and  Power (ML&P).  Ms. Kohler  urged that Alaska                                                               
send a  message as  quickly as  possible that  this is  an unfair                                                               
tax.                                                                                                                            
                                                                                                                                
3:22:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT closed public testimony.                                                                                       
                                                                                                                                
3:23:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK moved to adopt Conceptual Amendment 1.                                                                      
                                                                                                                                
REPRESENTATIVE JOHANSEN objected.                                                                                               
                                                                                                                                
3:23:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK advised that on page 1, line 8, of the                                                                      
resolution, the conceptual amendment deletes "that has been                                                                     
backed by a partisan", and inserts "and is before Congress".                                                                    
                                                                                                                                
3:24:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STOLTZ said this is a constructive amendment.                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON supported Conceptual Amendment 1.                                                                         
                                                                                                                                
3:25:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN withdrew his objection.                                                                                 
                                                                                                                                
CO-CHAIR MILLETT announced Conceptual Amendment 1 was adopted.                                                                  
                                                                                                                                
3:25:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  moved to report  HJR 45, [as  amended] out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal  notes.   There  being  no objection,  CSHJR
(ENE) was reported from the House Special Committee on Energy.