Legislature(1993 - 1994)
05/08/1993 05:00 PM House FIN
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* first hearing in first committee of referral
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SENATE BILL NO. 126
"An Act making special appropriations for design and
construction of power transmission interties between
Anchorage and the Kenai Peninsula, between Healy and
Fairbanks, and between the Swan Lake and Tyee Lake
hydroelectric projects; and providing for an effective
date."
Ms. Kronseng pointed out that the appropriation includes
funding for the Department of Community and Regional Affairs
to cover expenses of the functions being transferred. She
expected that a portion of the appropriation will lapse.
Co-Chair Larson provided members with AMENDMENT 1
(Attachment 1). Ms. Kronseng explained that the Amendment
was requested by bond counsel to make AIDEA partner to the
contracts. She clarified that the language is specific to
the Northern and Southern intertie grants. Co-Chair Larson
MOVED to ADOPT AMENDMENT 1. There being NO OBJECTION, it
was so ordered.
Representative Brown provided members with AMENDMENT 2
(Attachment 2). The Amendment was offered by Representative
Brown on behalf of Representative Finkelstein. Amendment 2
would appropriate $8.0 thousand dollars for "ongoing
residential and business energy efficiency improvement
programs."
REPRESENTATIVE DAVID FINKELSTEIN provided members with a
memorandum, dated 5/08/93, explaining Amendment 2
(Attachment 3). He reviewed Attachment 3. He concluded
that energy conserved is the same as energy produced. He
emphasized that retrofitted and energy efficient buildings
would result in lower operating costs by 20 to 30 percent
annually. He maintained that costs would be recouped in
approximately three years.
Representative Brown MOVED to ADOPT AMENDMENT 2.
Representative Martin OBJECTED. Co-Chair MacLean noted that
there is a $17 million dollar capital appropriation to the
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Alaska Housing Finance Corporation (AHFC) for home
improvements. Representative Finkelstein stressed that the
demand for the low income weatherization program in AHFC far
exceeds the amount of money available. He stated that the
Department of Transportation and Public Facilities cannot
afford to retrofit state buildings.
A roll call vote was taken on the motion to adopt Amendment
2.
IN FAVOR: Brown
OPPOSED: Grussendorf, Navarre, Foster, Hanley, Martin,
Parnell, Therriault, MacLean, Larson
Representative Hoffman was not present for the vote.
The MOTION FAILED (1-9).
Representative Brown provided members with AMENDMENT 3
(Attachment 4). Amendment 3 would appropriate $15.0 million
dollars to the Department of Transportation and Public
Facilities for institutional facilities demand-side
management programs. Representative Navarre spoke in favor
of Amendment 3.
SHELBY STASTNY, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET
agreed that expenditures on energy efficiencies would result
in savings. He acknowledged the legislature's prerogative
to decide how the state's money is spent.
Representative Navarre asked Mr. Shelby to investigate cost
savings which would be generated by retrofitting state
facilitates for energy efficiency.
Representative Martin asked Mr. Shelby to develop a list of
priorities for state facilities. Representative Hanley
recommended that a comprehensive plan for increased energy
efficiency be developed. Representative Grussendorf
suggested that a deferred maintenance list be included.
A roll call vote was taken on the motion to adopt Amendment
3.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
Representative Hoffman was not present for the vote.
The MOTION FAILED (3-7).
Representative Brown provided members with AMENDMENT 4
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(Attachment 5). Amendment 4 would delete section 15. She
stated that the intent is to allow the separation of HCS
CSSB 106(FIN) and CSSB 126(RLS) am(efd fld). Representative
Navarre spoke in support of Amendment 4. He felt that it
would be bad policy to base the passage of CSSB 126(RLS)
am(efd fld) on HCS CSSB 106(FIN).
Ms. Kronseng stressed that authorization language is needed
to execute the bonding package.
Representative Brown MOVED to ADOPT AMENDMENT 4.
Representative Hanley OBJECTED. A roll call vote was taken
on the motion.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Therriault
OPPOSED: Foster, Hanley, Martin, Parnell, MacLean, Larson
The MOTION FAILED (5-6).
Representative Brown provided members with AMENDMENT 5
(Attachment 6). She explained that Amendment 5 incorporates
suggestions made by residents in the Sutton/Glennallen area.
The amendment mandates that feasibility studies are
completed prior to the dispersion of funds. Representative
Martin objected to the amendment. He felt that the
restrictions placed by the amendment would be costly.
Representative Brown WITHDREW AMENDMENT 5. Co-Chair Larson
noted that Amendment 5 reflects the concerns of area
residents.
Representative Navarre asked for further information
regarding the Tazimina River hydroelectric power project.
Co-Chair Larson pointed out that the project is also
contained in the capital budget.
Ms. Kronseng explained that the intent is to build a small
generator at the base of a waterfall located on the River.
She observed that feasibility studies have been completed
and the project is ready for construction. The total
project cost is estimated at $10.0 million dollars. It will
serve NewHalen and Nondalton. She added that six or seven
other communities could be served.
Representative Brown asked who would pay for the interties
to connect other communities. Mr. Stastny explained that
three or four communities would be connected without an
additional intertie. There are two or three communities
that would be connected with the addition of one intertie.
Co-Chair MacLean noted that the project is on AEA's project
list.
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Representative Brown stressed that projects contained in HCS
CSSB 126 (FIN) are not economically efficient uses of the
state's money.
Representative Hoffman expressed concern that AEA is being
"dismantled". He stated that money would be better spent on
solving fuel storage tank problems in Western Alaska.
Representative Therriault MOVED to report HCS CSSB 126 (FIN)
out of Committee with individual recommendations.
HCS CSSB 126 (FIN) was reported out of Committee with "no
recommendation".
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