Legislature(2015 - 2016)BARNES 124

03/13/2015 01:00 PM House RESOURCES



Audio Topic
01:00:07 PM Start
01:01:59 PM HB105
01:10:11 PM Presentation(s): Alaska Oil and Gas Competitiveness Review Board Update
01:45:01 PM State of Alaska, Alaska Lng Project, 3rd Party Cost Forecast by Department of Natural Resources
01:51:37 PM Asap Project Reconfiguration Plan by Alaska Gasline Development Corporation
03:11:12 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Oil & Gas Competitiveness Review Board Update TELECONFERENCED
-- Testimony <Invitation Only> --
+ AK LNG Update by Dept. of Natural Resources, TELECONFERENCED
Dept. of Revenue & Alaska Gasline Development
Corporation
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 132 AGDC SUPPORT OF NATURAL GAS PROJECTS TELECONFERENCED
Scheduled but Not Heard
-- Testimony <Invitation Only> --
-- Will Reconvene at 1:00 p.m. 3/14/15 --
+= HB 105 AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT TELECONFERENCED
Heard & Held
         HB 105-AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT                                                                     
                                                                                                                                
1:01:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK  announced that  the first  order of  business is                                                               
HOUSE BILL  NO. 105, "An Act  relating to the programs  and bonds                                                               
of  the  Alaska  Industrial  Development  and  Export  Authority;                                                               
related  to  the  financing   authorization  through  the  Alaska                                                               
Industrial  Development  and  Export  Authority  of  a  liquefied                                                               
natural gas production plant and  natural gas energy projects and                                                               
distribution systems  in the state;  amending and  repealing bond                                                               
authorizations granted  to the Alaska Industrial  Development and                                                               
Export Authority; and providing for  an effective date."  [Before                                                               
the committee was CSHB 105(ENE).]                                                                                               
                                                                                                                                
1:02:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER  stated he  would like to  bring up  HB 105                                                               
because the committee and co-chairs  had requested amendments for                                                               
this bill  by noon today.   While the  bill itself is  simple, he                                                               
said, this  deadline is  difficult because he  does not  yet know                                                               
enough about the  specifics of the project being  taken by Alaska                                                               
Industrial Development and Export  Authority (AIDEA) and what its                                                               
alternative plans are.  Prior  to the committee taking amendments                                                               
or reporting  the bill, he said  he would like an  opportunity to                                                               
hear  more from  AIDEA and  the other  entities participating  in                                                               
that new project.                                                                                                               
                                                                                                                                
CO-CHAIR TALERICO  submitted that  the committee was  looking for                                                               
more of a plan  for the project and more needed  to be heard from                                                               
other  participants  and  entities.     He  suggested  that  more                                                               
information  be provided  by the  utilities involved  as well  as                                                               
others.  Given that well over  $200 million would be required for                                                               
this project,  he maintained that  more information is  needed by                                                               
committee members.                                                                                                              
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  asked  whether the  co-chairs  have  a                                                               
schedule in mind.                                                                                                               
                                                                                                                                
CO-CHAIR  NAGEAK replied  he would  like to  hear what  the other                                                               
committee members have to say.                                                                                                  
                                                                                                                                
1:05:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON offered  his concern  about the  pace and                                                               
said he  would like to get  more information because he  does not                                                               
know what the problem is, much less  how to fix it.  He therefore                                                               
stated that additional time is needed.                                                                                          
                                                                                                                                
REPRESENTATIVE  OLSON related  that  about two  months ago  AIDEA                                                               
launched  a $750,000  study on  all the  alternatives of  getting                                                               
energy  relief to  Fairbanks.   He suggested  the committee  have                                                               
AIDEA share an update on this study.                                                                                            
                                                                                                                                
REPRESENTATIVE SEATON noted that  at the bill's previous hearing,                                                               
he had questioned  the presenter about whether it  was limited to                                                               
LNG.   The  presenter had  thought that  there was  some way  the                                                               
wordings  could  be  interpreted  that  that  could  be  a  small                                                               
diameter pipeline as well going  from Cook Inlet.  Representative                                                               
Seaton recalled that  he had told the presenter he  would like to                                                               
see a legal  opinion in this regard because that  would be such a                                                               
stretch  "and whether  the  committee wants  to  have it  cheaper                                                               
energy for Interior  Alaska if we are including  or not including                                                               
that  portion ...  in  that  analysis."   Since  he  has not  yet                                                               
received an answer, he said he  is hoping the committee will have                                                               
more time to get the information from the Interior project.                                                                     
                                                                                                                                
REPRESENTATIVE HERRON  said he, too, would  like more information                                                               
so he can make a better conclusion and decision.                                                                                
                                                                                                                                
1:07:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON recollected  that at  the previous  hearing                                                               
the  committee  asked  for additional  information  on  the  port                                                               
authority's gas offering of several  years ago, but the committee                                                               
only received  the names of  some of  the companies and  not much                                                               
information.  He  said receiving more information  in this regard                                                               
would also be helpful.                                                                                                          
                                                                                                                                
REPRESENTATIVE JOSEPHSON  shared the committee's desire  for more                                                               
information on the  revised AIDEA plan.  Given the  crisis in the                                                               
Interior, however,  he offered  his hope  that something  will be                                                               
done this session  with ample time for the other  body to look at                                                               
the bill as well.                                                                                                               
                                                                                                                                
REPRESENTATIVE  HAWKER  pointed  out  that a  companion  bill  is                                                               
currently being heard in the Senate.                                                                                            
                                                                                                                                
REPRESENTATIVE OLSON  commented that in  his eight years  on this                                                               
committee, the  committee has always  tried to send  the cleanest                                                               
bill forward  that it can, even  when there is a  companion bill.                                                               
He opined that the committee  having inadequate information would                                                               
be a  disservice to  the people  in Fairbanks as  well as  to the                                                               
rest of the state.                                                                                                              
                                                                                                                                
1:09:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NAGEAK offered  his belief  that a  bill will  not move                                                               
forward today.  He agreed the  committee needs to see a plan from                                                               
the people who brought the bill forward.                                                                                        
                                                                                                                                
CO-CHAIR NAGEAK held  over HB 105 after determining  there was no                                                               
objection to doing so.  He  directed committee staff to talk with                                                               
AIDEA about a future presentation of the alternative studies.