Legislature(2005 - 2006)HOUSE FINANCE 519

04/04/2006 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 57 SALE OF STATE LAND TO ADJACENT LANDOWNERS TELECONFERENCED
Moved CSHB 57(FIN) Out of Committee
+ HB 445 ALTERNATIVE ENERGY GRANT FUND TELECONFERENCED
Heard & Held
+ HB 470 MANDATORY USE OF HEADLIGHTS TELECONFERENCED
<Bill Hearing Postponed>
*+ HB 493 SCHOOL CONSTRUCTION BOND REIMBURSEMENT TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
          HOUSE BILL NO. 445                                                                                                  
                                                                                                                                
               "An Act relating to the alternative energy grant fund                                                            
               and to alternative energy grants."                                                                               
                                                                                                                                
          2:40:54 PM                                                                                                          
                                                                                                                                
          Representative Stoltze    MOVED  to  ADOPT  Work   DRAFT  24-                                                         
          LS1311\X,  Cook,  3/31/06.   There  being  NO OBJECTIONS  the                                                         
          Committee Substitute (FIN) was ADOPTED.                                                                               
                                                                                                                                
          2:42:00 PM                                                                                                          
                                                                                                                                
          REPRESENTATIVE  BILL THOMAS,  Sponsor, introduced  his staff,                                                         
          Kaci  Schroeder  and   testified  regarding  the  bill.    He                                                         
          explained  that  the  bill proposed  to  take  ten cents  per                                                         
          barrel from  oil price revenue  sharing and place  it into an                                                         
          alternative   energy  fund,   to  be   administered   by  the                                                         
          Alternative  Energy  Authority  (AEA).    He noted  that  AEA                                                         
          already  had  the  infrastructure   necessary  to  administer                                                         
          grants.     He  estimated   that  the  fund   would  generate                                                         
          approximately  $30 million  per year.    The  program funding                                                         
          mechanism could be in  place only if the price of oil was $35                                                         
          per  barrel or  higher.   The program  funding  could sustain                                                         
          itself  if left  alone.    He  explained that  the  AEA would                                                         
          direct  the  funding  to support  alternative  and  efficient                                                         
          energy  projects.   Grants may  not exceed  $20  million, but                                                         
          grantees may  be eligible for more than  one grant over time.                                                         
          Projects are to be submitted  to the AEA, who would use their                                                         
          existing criterion to  determine project viability.  Grantees                                                         
          must match funding at  25 percent.  He defined an alternative                                                         
          energy  project as "a  project that  produces energy  for the                                                         
          production  of electricity,  heat or  medical  power, derived                                                         
          from   renewable  or  local   resources  other   than  liquid                                                         
          petroleum, primarily  diesel."   He went  on to define energy                                                         
          efficiency  project as one  that "improves the  efficiency of                                                         
          energy generation,  transmission or use  at facilities across                                                         
          the  state".   This  includes  facility installation,  energy                                                         
          efficient  lighting, and  improved  use of  diesel fuel.   He                                                         
          defined  an  electric utility  as  "an  entity that  provides                                                         
          power for  public consumption  and has been certified  by the                                                         
          Regulatory Commission of Alaska (RCA)".                                                                               
                                                                                                                                
          2:46:42 PM                                                                                                          
                                                                                                                                
          Representative Thomas  noted that the legislation was crafted                                                         
          following  a trip to Yakutat,  where the cost of  fuel was an                                                         
          issue,  and residents  expressed a  desire to  utilize nearby                                                         
          natural gas,  but lacked the financial resources  to create a                                                         
          system.  He pointed  out that when Haines converted to hydro-                                                         
          electric  power,   although  some  were   skeptical,  it  has                                                         
          provided  steady  rates  in  the current  climate  of  rising                                                         
          costs.   He expressed  the desire for  the State to  plan for                                                         
          the future.                                                                                                           
                                                                                                                                
          Representative  Thomas proposed  that the bill  would benefit                                                         
          urban as well  as rural communities.  He  noted that in South                                                         
          Central  Alaska, natural  gas was running  low.   He stressed                                                         
          that  using current resources  to solve these  problems would                                                         
          save money  in the future.   He stated that  some communities                                                         
          in  his district  use over  a million  gallons of  diesel per                                                         
          year.   He suggested that  with a grant program,  a community                                                         
          could  bond their share  and recoup the  funds over a  six or                                                         
          eight year period, using  technologies such as wind and tidal                                                         
          surge.   He  also proposed  that it  could  free up  some PCE                                                         
          funds.                                                                                                                
                                                                                                                                
          Additionally,  Representative  Thomas  noted that  decreasing                                                         
          energy  costs to consumers puts  money back into  the Alaskan                                                         
          economy.  He referenced  the Fire Island project, and Chugiac                                                         
          Electric that sought  to harness geothermal power at a nearby                                                         
          hotsprings,  as well  as some  southeast communities  looking                                                         
          into using  wood fire to heat swimming pools  and cut down on                                                         
          wood waste.   He concluded  his presentation by  pointing out                                                         
          that  projects  would  be screened  by  the  AEA rather  than                                                         
          approaching  the legislature  directly, thereby  streamlining                                                         
          the funding process.                                                                                                  
                                                                                                                                
          2:50:23 PM                                                                                                          
                                                                                                                                
          Representative  Thomas expressed his  usual stance  as a pro-                                                         
          industry  legislator, and conceded  that a  new environmental                                                         
          focus  was novel  for his  office.   Co-Chair Meyer  observed                                                         
          that  using  hydro  energy  seemed  wise  for  Representative                                                         
          Thomas' district and  asked if there was reference to nuclear                                                         
          energy  in  the bill.    Representative  Thomas stated  that,                                                         
          although  there was  allowance  for nuclear  projects  in the                                                         
          bill, the AEA did not currently allow such projects.                                                                  
                                                                                                                                
          2:51:46 PM                                                                                                          
                                                                                                                                
          Representative  Holm asked about the criterion  that would be                                                         
          adopted  to determine  economic viability  of a project.   He                                                         
          maintained   caution  in   giving  authority   to  regulatory                                                         
          agencies,  and  asked for  assurances  of  fair and  unbiased                                                         
          decision making.                                                                                                      
                                                                                                                                
          2:52:35 PM                                                                                                          
                                                                                                                                
          Representative   Thomas  reiterated  that   AEA  already  had                                                         
          established  criteria  in place,  as  well as  a process  for                                                         
          reviewing projects.   He cited several communities that would                                                         
          benefit from the proposed program.                                                                                    
                                                                                                                                
          Representative  Hawker  referred  to  earlier  comments,  and                                                         
          asked  for clarification  of  the  idea of  the State  having                                                         
          "extra" wealth.   Representative Thomas referred  to the vote                                                         
          to reserve  $600 million and proposed that  if the State used                                                         
          $20 to  $30 million  to support alternative  energy projects,                                                         
          communities  could be weaned from dependence  on diesel fuel.                                                         
          He  referred to  several communities  that were  being helped                                                         
          with small  grants to retire debt and go  forward with energy                                                         
          projects.   He observed that oil prices  were not expected to                                                         
          decline, and  suggested it would be wise  to use reserves for                                                         
          pro-active  programs.    Responding  to  another  comment  by                                                         
          Representative  Hawker, Representative  Thomas  mentioned the                                                         
          PPT bill  and the perception that $1 billion  to $2.3 billion                                                         
          in revenue  would be raised by the State.   He suggested that                                                         
          some  of the monies  should be  used to  make the  State more                                                         
          energy independent.   He maintained that  the funding for his                                                         
          bill  would be generated  by the  State's royalties,  if they                                                         
          were at  a level over $35  per barrel.  He  proposed that, if                                                         
          adopted,  the  program would  use  ten cents  per barrel  for                                                         
          energy projects.   He stressed  that he did not  believe that                                                         
          the  entire $20  to $30 million  per year  would be  spent on                                                         
          projects.                                                                                                             
                                                                                                                                
          2:56:38 PM                                                                                                          
                                                                                                                                
          Representative Hawker  insisted upon clarifying the notion of                                                         
          "extra"  wealth.   He referenced  the "prevailing  price", or                                                         
          West Coast  price, of $35 per barrel.   He proposed that more                                                         
          than  $45  per  barrel  was  needed to  balance  the  State's                                                         
          budget,  and maintained  that by  taking  ten cents  from the                                                         
          amount  it increased  the State's  deficit.   He  stated that                                                         
          there   was  not  currently   adequate  funding   for  social                                                         
          services,  and proposed that  taking $100 million  out of the                                                         
          budget would result in deficit spending for the State.                                                                
                                                                                                                                
          Representative Thomas  replied that projects would ultimately                                                         
          be channeled  through the legislative  budget process, giving                                                         
          legislators  the opportunity not  to fund them if  funds were                                                         
          not  available.  He  emphasized that  since his  district was                                                         
          dependant upon diesel,  it was a priority for him to see them                                                         
          replace this with alternative energy.                                                                                 
                                                                                                                                
          Representative  Hawker  expressed concern  that  even with  a                                                         
          large increase in taxes  on the oil industry, the funding was                                                         
          already  spent.  He  debated the idea  that the State  was in                                                         
          the position of having "extra" wealth.                                                                                
                                                                                                                                
          2:59:01 PM                                                                                                          
                                                                                                                                
          Representative   Thomas   emphasized   that   this   was   an                                                         
          appropriation  bill,  and  would  come before  the  Committee                                                         
          yearly for approval.  He urged approval.                                                                              
                                                                                                                                
          Vice-Chairman  Meyer agreed that the bill  was timely and had                                                         
          merit, and suggested  that the funding source would be worked                                                         
          out in the legislative process.                                                                                       
                                                                                                                                
          Representative Joule  commented on the hope for the gas line.                                                         
          He noted that  a benefit of the gas pipeline  would be access                                                         
          to that  energy for Alaskans  in various areas  of the State.                                                         
          He  stressed  that the  proposed  legislation  is to  explore                                                         
          alternative energy to  areas that will not have access to the                                                         
          gas  line reserves.    He emphasized  the appropriateness  of                                                         
          these areas seeking  alternative energy methods.  He observed                                                         
          that  the bill attempted  to liberate these  communities from                                                         
          dependence on diesel fuel.  He encouraged the legislation.                                                            
                                                                                                                                
          3:01:44 PM                                                                                                          
                                                                                                                                
          Co-Chair  Meyer agreed that  especially in remote  areas like                                                         
          Kotzebue, such alternative sources would be very helpful.                                                             
                                                                                                                                
          3:02:24 PM                                                                                                          
                                                                                                                                
          RON   MILLER,    EXECUTIVE   DIRECTOR,    ALASKA   INDUSTRIAL                                                         
          DEVELOPMENT AND EXPORT  AUTHORITY (AIDEA) testified regarding                                                         
          the  bill.   He agreed  that the  bill did  not create  a new                                                         
          program,  but rather  created another  source of  funding for                                                         
          existing  alternative  energy programs.   He  noted  that the                                                         
          program was currently  funded primarily by federal funds, but                                                         
          was completing an outside  solicitation.  He stated that they                                                         
          used   an  established  set   of  guidelines   in  evaluating                                                         
          potential  projects.   Their  primary  focus is  on the  life                                                         
          cycle savings  of a project.  He referred  to the Alternative                                                         
          Energy Newletter,  and described projects  such as the Prince                                                         
          of  Wales   Island  hydro  electric  project,   funded  by  a                                                         
          combination  of grant fund and  funds from the  power project                                                         
          loan fund.   He noted  that this project would  displace over                                                         
          half a million gallons  of diesel annually for that area.  He                                                         
          expressed support of the bill.                                                                                        
                                                                                                                                
          3:04:37 PM                                                                                                          
                                                                                                                                
          Representative Holm  asked what  criteria  were  employed  to                                                         
          decide which areas and projects would be funded.                                                                      
                                                                                                                                
                                                                                                                                
          PETER  CRIMP,  PROJECT  MANGER  FOR  ALTERNATIVE  ENERGY  AND                                                         
          ENERGY  EFFICIENCY,  DEPARTMENT  OF COMMERCE,  COMMUNITY  AND                                                         
          ECONOMIC  DEVELOPMENT  responded  that  they  conducted  life                                                         
          cycle  economic analayses  for each  project, looking  at the                                                         
          overall  savings  for   its  life.    He  noted  that  for  a                                                         
          hydroelectric  project with  a span  of  40 years,  the costs                                                         
          were  compared over  a horizon  to an  existing  project, for                                                         
          example  a diesel  power  project,  and then  to the  present                                                         
          value  of savings.   He  noted that  they ranked  projects by                                                         
          benefit to costs ratios  and allocated resources according to                                                         
          these ratios.                                                                                                         
                                                                                                                                
          3:06:09 PM                                                                                                          
          Representative Holm  asked how various  communities  would be                                                         
          chosen.    Mr.  Crimp   noted  that  they  would  choose  the                                                         
          community  project  with the  most  savings  compared to  the                                                         
          least costs.                                                                                                          
                                                                                                                                
          Representative  Holm asked  if any  biases existed,  and only                                                         
          strict  calculations were  used.  Mr.  Crimp noted  that they                                                         
          made  every effort to  conduct "arms' length"  assessments of                                                         
          projects, using  a financial analysis as  well as an analysis                                                         
          of technical merit.                                                                                                   
                                                                                                                                
                                                                                                                                
          3:07:27 PM                                                                                                          
                                                                                                                                
          Representative  Holm  noted  a  concern expressed  about  the                                                         
          project at Fire Island,  regarding loss of wildlife and other                                                         
          deterrents.    He  speculated  that  projects  might  contain                                                         
          possible problems not  addressed from a financial standpoint.                                                         
          He asked how these concerns were taken into account.                                                                  
                                                                                                                                
          3:08:27 PM                                                                                                          
                                                                                                                                
          Mr.  Crimp  explained  that before  Alaska  Energy  Authority                                                         
          provided  any   funding  for  projects,   they  required  all                                                         
          necessary  permits.  He noted  that before Fire  Island could                                                         
          be  approved, it would  need permits  from Fish  and Wildlife                                                         
          service,  as well  as possibly  the FAA,  Core  of Engineers,                                                         
          etc.  Balanced financing for the project is also required.                                                            
                                                                                                                                
          3:09:21 PM                                                                                                          
                                                                                                                                
          Representative Kerttula   observed that the ultimate  goal of                                                         
          the bill  was not only to  provide good sources  of energy to                                                         
          various  areas Statewide,  but also  long-term  cost savings.                                                         
          Mr.  Crimp  confirmed   that  this  was  the  thrust  of  the                                                         
          Authority's   program  -  to  reduce  the   overall  cost  of                                                         
          providing energy to the State.                                                                                        
                                                                                                                                
          3:10:19 PM                                                                                                          
                                                                                                                                
          Representative Joule      asked about the progress of the Ing                                                         
          River  project.    Mr.  Crimp explained  that  a  feasibility                                                         
          analysis  was being  conducted for the  project in  Knik Arm,                                                         
          that would  use tidal flow  turbon technology. He  noted that                                                         
          the  same technology  could be employed  in the  Yukon River.                                                         
          Although  the  economics were  currently  unclear, he  stated                                                         
          that the  overall effort has been useful  in producing common                                                         
          assumptions, and projected 3 to 5 years for completion.                                                               
                                                                                                                                
          3:11:38 PM                                                                                                          
                                                                                                                                
          Representative Hawker     referred to Page 2,  Lines 8 to 13,                                                         
          which  discusses criterion for  grant projects. He  asked for                                                         
          clarification  of "economically viable" as  well as "services                                                         
          of the  grantee".  He  also asked how  economically liability                                                         
          was determined if a  project proved unviable, as had been the                                                         
          case in some past projects.                                                                                           
                                                                                                                                
          Mr. Crimp  referred to earlier testimony  by Mr. Miller about                                                         
          the ranking  of proposals.   He noted that the  services that                                                         
          reduce costs for consumers  would receive the focus.  He also                                                         
          stressed   that  the  current   program  required   a  match,                                                         
          sometimes  as much  as 60  percent, involving  out  of pocket                                                         
          match as well as financing.                                                                                           
                                                                                                                                
          3:14:17 PM                                                                                                          
                                                                                                                                
          Representative Hawker     noted the  current  bill  contained                                                         
          only  a 25  percent match,  and asked  if a performance  bond                                                         
          would  be  required  equal  to  State  funding.    Mr.  Crimp                                                         
          responded  that there  was no  requirement for  a performance                                                         
          bond,  but emphasized  that the  recipient's investment  in a                                                         
          project was an incentive for project success.                                                                         
                                                                                                                                
          Representative Hawker     maintained that while  providing an                                                         
          incentive  for programs, the  State remained liable  for lost                                                         
          revenue.                                                                                                              
                                                                                                                                
          3:15:14 PM                                                                                                          
                                                                                                                                
          Representative  Holm asked if  these projects were  under the                                                         
          supervision  of the  Regulatory Commission  of  Alaska (RCA).                                                         
          Mr. Miller  stated that some utilities were  not regulated by                                                         
          RCA.                                                                                                                  
                                                                                                                                
          3:16:08 PM                                                                                                          
                                                                                                                                
          Representative  Kelly referred to a presentation  given about                                                         
          the  small, interconnected  hydro power  plants  for exchange                                                         
          into  the  Northwest.   He  observed  that  in major  Alaskan                                                         
          communities in  Southeast this might be a  viable option.  He                                                         
          cited  personal experience  with various  experimental energy                                                         
          projects,  and noted that  hydro-electric power tended  to be                                                         
          the most proven resource,  as opposed to other projects which                                                         
          were more  speculative.  He asked if this  project focused on                                                         
          hydro power as a solution for Alaska.                                                                                 
                                                                                                                                
          3:17:54 PM                                                                                                          
                                                                                                                                
          Mr. Miller  responded that they had not  been approached with                                                         
          such  a  proposal,  and  speculated  that, especially  as  an                                                         
          export  project, it  would have  to prove  cost effectiveness                                                         
          for Alaska.  Representative Kelly noted       that     diesel                                                         
          efficiency  and hydro  projects seemed  to have  the greatest                                                         
          amount  of improvement,  but  observed  that sometimes  these                                                         
          projects  might be  adversely affected  by climate  and other                                                         
          environmental factors.                                                                                                
                                                                                                                                
          3:19:19 PM                                                                                                          
                                                                                                                                
          Mr.  Miller  noted  that  they  were  very  active  in  hydro                                                         
          electric   projects,  supporting   them  through   grant  and                                                         
          financing programs.   He noted two  successful hydro projects                                                         
          in Juneau,  as well  as on Prince of  Wales Island.   He also                                                         
          noted   that  diesel   efficiency   has  proven   successful,                                                         
          particularly  with   in-use  efficiencies  such  as  lighting                                                         
          retrofits.   He  noted  that Juneau  had some  of the  lowest                                                         
     energy rates in the States due to hydro projects.                                                                          
                                                                                                                                
          3:20:33 PM                                                                                                          
                                                                                                                                
          Vice Chairman Stoltze     opened   the   floor    to   public                                                         
          testimony.                                                                                                            
                                                                                                                                
          CHRIS  ROSE,  EXECUTIVE  DIRECTOR,  RENEWABLE  ENERGY  ALASKA                                                         
          PROJECT,  testified  via  teleconference  in support  of  the                                                         
          bill.   He observed  that 40  states have  incentive policies                                                         
          built in at the state  level for energy renewal.  He observed                                                         
          that the price of oil  was projected to remain high, and that                                                         
          communities  that relied  solely  on this  source would  face                                                         
          increasing   costs.     He   also  noted   that  there   were                                                         
          opportunities  for   improvements  in  the  rail  belt.    He                                                         
          explained that  his organization was educating  the public on                                                         
          the changes  in technologies.  For example,  in some areas of                                                         
          the country, wind was  the cheapest form of energy available.                                                         
          He  also noted  that  having a  policy like  this bill  would                                                         
          create a  future energy framework  for the state.   He stated                                                         
          that the  renewable energy market was the  fastest growing in                                                         
          the  country.   The "clean  energy market"  was  predicted to                                                         
          quadruple  in  nine  years'  time.    He  concluded  that  if                                                         
          policies  like  this  were  put  in  place,  consumers  would                                                         
          benefit  from fixed  rate power, such  as instituting  a wind                                                         
          generator in rural areas.   He emphasized that efficiency was                                                         
          also part  of the overall program needed.   He concluded that                                                         
          they  believed in  the merit  of the  policy, and  encouraged                                                         
          legislators  to use the amount  of oil as a  guidepost in how                                                         
          much was invested into alternative energy.                                                                            
                                                                                                                                
          3:26:14 PM                                                                                                          
                                                                                                                                
          MEERA KOHLER,PRESIDENT  AND CEO, ALASKA  VILLAGE ELECTRIC CO-                                                         
          OP testified via teleconference  in support of the bill.  She                                                         
          explained  that  they  were  a utility  providing  energy  to                                                         
          21,000 Alaskans  in 52 villages.  She observed  that the bill                                                         
          provided an  opportunity for communities dependent  on oil to                                                         
          develop  some   alternatives  to  rising   oil  costs.    She                                                         
          applauded  the bill's link to  the cost of oil,  and the high                                                         
          level  cap on  the grants,  as well  as the  25 percent  cash                                                         
          match.  She concluded  that the bill brought Alaska closer to                                                         
          energy independence and encouraged its support.                                                                       
                                                                                                                                
          3:28:09 PM                                                                                                          
                                                                                                                                
          Representative Kelly  asked  if  her  organization  would  be                                                         
          amenable  to assuming  the completion risk  of a  venture, or                                                         
          converting the 25 percent  match to a loan.  Ms. Kohler noted                                                         
          that 25 percent of the  cost of a project was absorbed by the                                                         
          utility,  and the other  costs were  covered by  the granting                                                         
          agency.  She noted that  the utility would retain the risk of                                                         
          the 25 percent, unless  they convinced the granting agency to                                                         
          share any additional costs.                                                                                           
                                                                                                                                
          3:30:28 PM                                                                                                          
                                                                                                                                
          Representative Kelly      observed  that  if  a  project  was                                                         
          unsuccessful,  a utility  would  need to  take on  completion                                                         
          costs  for a project  that was not  generating revenue.   Ms.                                                         
          Kohler concurred,  and added that if a  project was funded at                                                         
          $5 million,  and actually cost $6 million,  the utility would                                                         
          need  to  bridge  that  gap.   She  stated  that  they  might                                                         
          approach  the  federal  government,  but confirmed  that  the                                                         
          utility would somehow need to come forward.                                                                           
                                                                                                                                
          3:31:38 PM                                                                                                          
                                                                                                                                
          JOSH  LAROSE, SOUTHWEST  MUNICIPAL CONFERENCE,  testified via                                                         
          teleconference  in  support  of the  bill.    He referred  to                                                         
          current newspaper  articles about the prices  of diesel fuel,                                                         
          as well  as the rural  energy funding bills,  concluding that                                                         
          the   funding   for   rural   diesel   energy   would   prove                                                         
          unsustainable.  He pointed  out that the debate was regarding                                                         
          how to best provide  options to these rural areas.  He stated                                                         
          that  small   communities  were  facing   a  bleak  financial                                                         
          situation, and  that the bill presented immediate  as well as                                                         
          future relief.                                                                                                        
                                                                                                                                
          3:33:46 PM                                                                                                          
                                                                                                                                
          KATHIE  WASSERMAN,  ALASKA  MUNICIPAL  LEAGUE,  testified  in                                                         
          support  of the legislation.   She  stated that the  bill was                                                         
          forward  thinking, encouraging investigation  into utilities'                                                         
          future,  and  cost  savings  in  areas  such  as  educational                                                         
          facilities.   She cited  her experience  as mayor of  a small                                                         
          community,  and  recalled the  high  rate of  energy cost  to                                                         
          these areas.   She proposed that if more  communities had the                                                         
          option to study other means it would provide savings.                                                                 
                                                                                                                                
          3:36:02 PM                                                                                                          
                                                                                                                                
          Co-Chair Meyer asked  about the nature of  the hydro plant in                                                         
          her area.   Ms. Wasserman noted  that the was put  in place a                                                         
          long time  ago by the  cold storage company that  founded the                                                         
          community of Pelican,  and not paid for by the city or State.                                                         
                                                                                                                                
          3:36:38 PM                                                                                                          
                                                                                                                                
          Representative Hawker     pointed out  the $7  billion dollar                                                         
          liability to the pension  plan by the State.  He asked how he                                                         
          could  invest in this  program without addressing  this other                                                         
          legal liability.                                                                                                      
                                                                                                                                
          3:37:17 PM                                                                                                          
                                                                                                                                
          Ms.  Wasserman  suggested that  there  might  be other  areas                                                         
          where  monies could  be cut in  the budget.   She  offered to                                                         
          discuss these ideas with legislators.                                                                                 
                                                                                                                                
          3:37:59 PM                                                                                                          
                                                                                                                                
          PAUL FUHS,  CITY AND BOROUGH OF YAKUTAT,  testified about the                                                         
          costs  of energy  to smaller  communities.   He  recalled the                                                         
          importance of savings measures to these areas.                                                                        
                                                                                                                                
          3:39:48 PM                                                                                                          
                                                                                                                                
          Co-Chair Meyer  agreed that the legislation  was a good idea.                                                         
          He  offered  to  work  with  the  Sponsor  to  come  up  with                                                         
          alternative funding.                                                                                                  
                                                                                                                                
          3:40:57 PM                                                                                                          
                                                                                                                                
          HB 445 was HELD in Committee for further consideration.                                                               

Document Name Date/Time Subjects