Legislature(2011 - 2012)BELTZ 105 (TSBldg)
01/31/2012 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB154 | |
| SB122 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| = | SB 122 | ||
| = | SB 154 | ||
SB 154-NATURAL GAS CONVERSION PROGRAM/FUND
CHAIR OLSON announced the consideration of SB 154.
3:34:43 PM
SENATOR JOE THOMAS, SB 154 sponsor, said the bill would create a
low interest loan program for Alaskan families to replace their
oil, coal or wood home-heating appliances with natural gas
fueled appliances. He said families would have the ability to
plan ahead for low cost energy, knowing that when they do get
access to natural gas in their neighborhoods or communities they
will be able to afford to use it.
He said the home heating change-out mechanism would create a
more robust gas distribution system in Southcentral Alaska where
gas is currently distributed. He said Fairbanks would be able to
prepare for delivery of natural gas either by pipeline or truck.
He said the Fairbanks Borough was studying the options and
economics of expanding the current gas distribution system
beyond the current 1100 customers to over 3500 customers in a
relatively short period of time. He said he had a recent
discussion with Fairbanks Natural Gas and was told that over
2000 homes in Fairbanks are within reach of the current pipeline
infrastructure.
He said heavier use of gas in Fairbanks would also assist the
borough in complying with the Environmental Protection Agency's
(EPA) air quality mandate when 12,000 homes are converted to
natural gas.
3:36:31 PM
SENATOR THOMAS He said by implementing SB 154 and establishing
the natural gas home heating conversion loan fund, upgrading to
cleaner, cheaper gas will become affordable for more families,
making any gas delivery project much more economic. He said the
economy would be vitalized by job creation across the state and
more money would circulate within Alaska rather than on energy
expenditures.
3:37:52 PM
GRIER HOPKINS, staff to Senator Thomas, said he was available
for questions.
CHAIR OLSON asked what the plans were for extending some of the
services in Fairbanks.
SENATOR THOMAS answered that Fairbanks Natural Gas would
continue to address distribution logistics and infrastructure.
He said Golden Valley Electric Association and Flint Hills
Resources' North Pole Refinery could offer the Fairbanks market
with excess natural gas from their Prudhoe Bay shipments.
CHAIR OLSON asked if Fairbanks residents would pay higher taxes
due to the added infrastructure costs.
SENATOR THOMAS answered no.
SENATOR WAGONER commented that SB 154 would benefit both
Fairbanks and other areas in the state that have natural gas
availability.
CHAIR OLSON asked if Senator Wagoner's constituents were in
favor of SB 154.
SENATOR WAGONER replied that he did not know, but said he was in
favor of SB 154.
CHAIR OLSON commented that SB 154 had a large fiscal note and
answers were required.
3:40:47 PM
SENATOR WAGONER said money would come back to the state in
future years.
CHAIR OLSON asked how the money would come back to the state.
SENATOR WAGONER answered that the money appropriated was a loan,
not a grant.
CHAIR OLSON asked about a return on investment at one percent
interest.
SENATOR THOMAS answered that the loans within the program are at
one percent interest to be repaid over a ten-year period.
SENATOR WAGONER confirmed that the loan is at one percent and
the principle would be paid back.
3:41:20 PM
SENATOR KOOKESH moved to report SB 154 from the committee with
individual recommendations and attached fiscal note(s).
3:41:33 PM
CHAIR OLSON announced without objection, SB 154 moved from the
Senate Community and Regional Affairs Standing Committee.
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