Legislature(2003 - 2004)

05/12/2003 02:53 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 277-PIPELINE UTILITIES REGULATION                                                                                          
                                                                                                                                
CHAIR FATE  announced that the  first order of business  would be                                                               
HOUSE  BILL NO.  277,  "An  Act relating  to  the  powers of  the                                                               
Regulatory Commission of Alaska  in regard to intrastate pipeline                                                               
transportation services  and pipeline facilities, to  the rate of                                                               
interest for  funds to be  paid by pipeline shippers  or carriers                                                               
at  the  end  of  a  suspension of  tariff  filing,  and  to  the                                                               
prospective  application  of  increased  standards  on  regulated                                                               
pipeline utilities;  allowing the commission to  accept rates set                                                               
in conformity with  a settlement agreement between  the state and                                                               
one  or more  pipeline carriers  and to  enforce the  terms of  a                                                               
settlement  agreement   in  regard   to  intrastate   rates;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
Number 0326                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MASEK moved  that the  committee adopt  CSHB 277,                                                               
Version  CSHB  277(RES)  bil.doc,  5/12/2003, as  a  work  draft.                                                               
There being  no objection,  the proposed  CS dated  5/12/2003 was                                                               
before the committee.                                                                                                           
                                                                                                                                
REPRESENTATIVE MASEK pointed out  that the changes encompassed in                                                               
the proposed CS are in the packet.                                                                                              
                                                                                                                                
CHAIR FATE, in response to  Representative Heinze, specified that                                                               
the  proposed  CS  is  the  result  of  questions,  answers,  and                                                               
clarifications  during  a  meeting this  morning  among  himself,                                                               
Representative Dahlstrom, and the Department of Law.                                                                            
                                                                                                                                
Number 0896                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MASEK  moved to  report  CSHB  277, Version  CSHB
277(RES) bil.doc,  5/12/2003, out  of committee  [with individual                                                               
recommendations and the accompanying fiscal notes].                                                                             
                                                                                                                                
REPRESENTATIVE WOLF  objected for  the purpose of  discussion and                                                               
requested an at-ease.                                                                                                           
                                                                                                                                
The committee took an at-ease from 3:02 p.m. to 3:04 p.m.                                                                       
                                                                                                                                
[Not  on  tape, but  taken  from  the committee  secretary's  log                                                               
notes, was Representative Wolf's withdrawal of his objection.]                                                                  
                                                                                                                                
Number 0668                                                                                                                     
                                                                                                                                
CHAIR FATE remarked  that this legislation, in the  view of many,                                                               
began  as objectionable  and problematic.   However,  after three                                                               
committee substitutes  the legislation  has matured to  the point                                                               
of addressing the issues of  ongoing litigation under [RCA] Order                                                               
151  and  retroactivity.   He  noted  that  there has  been  good                                                               
discussion  and testimony  with  regard to  capacity and  access,                                                               
which is  an element of  the pipeline, although the  Stranded Gas                                                               
Act  will negotiate  those issues.   He  related his  belief that                                                               
this legislation  is important to  the state and has  been worked                                                               
through  thoroughly,  and  therefore  he didn't  fear  its  going                                                               
forward.   Chair Fate emphasized  that there has  been tremendous                                                               
participation   on  this   legislation   in   order  to   fashion                                                               
legislation  that  would  be  helpful  in  the  state's  economic                                                               
development.                                                                                                                    
                                                                                                                                
Number 0996                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG objected  to reporting  the bill  from                                                               
committee.                                                                                                                      
                                                                                                                                
A  roll  call  vote  was taken.    Representatives  Wolf,  Masek,                                                               
Heinze, Lynn, and Fate voted in  favor of reporting the bill from                                                               
committee.     Representative   Guttenberg   voted  against   it.                                                               
Therefore, CSHB 277(RES) was reported  out of the House Resources                                                               
Standing Committee by a vote of 5-1.                                                                                            
                                                                                                                                
Number 1157                                                                                                                     
                                                                                                                                
REPRESENTATIVE   GUTTENBERG  spoke   to   his   objection.     He                                                               
acknowledged  that  this  legislation   is  very  important,  but                                                               
pointed out that there has  been testimony from various people in                                                               
the   oil  industry   who  have   serious  [concerns]   with  it.                                                               
Representative  Guttenberg  highlighted  that  he  hasn't  had  a                                                               
chance to  go through  this new  CS.  He  said, "We've  seen what                                                               
happens when  we pass  legislation on to  other committees  to do                                                               
their work."   For example, when HB 191 was  reported out of this                                                               
committee to the  House Judiciary Standing Committee  to hear the                                                               
legal issues, it was waived  from that committee.  Representative                                                               
Guttenberg related  his belief that the  House Resources Standing                                                               
Committee should do its work.                                                                                                   
                                                                                                                                
CHAIR FATE said this legislation  was discussed and dissected [at                                                               
length]  and the  committee  isn't  avoiding its  responsibility.                                                               
[CSHB 277(RES) was reported from committee.]                                                                                    

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