Legislature(2009 - 2010)SENATE FINANCE 532
03/30/2010 09:00 AM Senate FINANCE
Audio | Topic |
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Start | |
HCR2 | |
SB237 | |
SB4 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | HCR 2 | TELECONFERENCED | |
+= | SB 237 | TELECONFERENCED | |
+ | SB 4 | TELECONFERENCED | |
+ | TELECONFERENCED |
HOUSE CONCURRENT RESOLUTION NO. 2 Requesting the governor to provide energy security for all Alaskans by pursuing development of a natural gas bullet pipeline from the North Slope to the Cook Inlet region; and requesting the governor to identify and negotiate with one or more persons capable of producing natural gas from the Gubik area, and other areas on the North Slope if necessary, in sufficient quantities to support a bullet pipeline project. Senator Huggins MOVED to ADOPT work draft 26-LSO264\M. Co- Chair Stedman OBJECTED. REPRESENTATIVE JAY RAMRAS disclosed that this was the second hearing of the resolution by the Senate Finance Committee. He commented on the issue's maturation. Co-Chair Stedman asked about the changes made in the CS. Representative Ramras explained the changes in the CS. He commented on Line 14 and discussion regarding jeopardizing the supply to consumers relying on production from the Cook Inlet region. He highlighted Page 3, Lines 19-22 which reflects the Senate Resource Co-chairs studying gas to liquids programs. He informed that Fischer-Tropsch projects were large for the Alaskan marketplace. He claimed that the technology is now advanced and appropriate. 9:21:57 AM Co-Chair Stedman asserted that Representative Ramras was detailing the CS. Representative Ramras explained the CS through sectional analysis. He noted that Alaska now has a standalone gas Pipeline project advanced by the plan created by Harry Noah. He discussed Line 14, which mirrors some of the aspirations in HB 369. He commented on Line 17 through Line 20 concerning a precipitous decline in the taps line necessitating alternative revenue sources for the export of lesser priced energy for those Alaskans living along the Yukon River. Line 21 and 22 recognize two imminent open seasons. He highlighted Lines 23 through 26 that recognize a heavily conditioned open season for the pipeline. The open season would provide the most efficient method of delivery for the least expensive gas to Alaskans, which is impossible if the project is so heavily conditioned to be delayed for an indeterminable amount of time. He continued with Line 27 through 29 which reinforces the concern regarding moving forward into the construction phase for a large diameter gas pipeline. He discussed Page 5, Lines 5 through 10 which addressed necessary permits, right of ways, and specifications. He mentioned Lines 11 through 17 and the two facilities discussed including the importance of maintaining the existing export license for the Conoco Phillips Marathon Liquefied Natural Gas (LNG) facility. The export permit is the only one of its kind in the United States and serves as an industrial anchor for the purpose of establishing an instate gas pipeline. He expressed concern for a project without an industrial anchor as it becomes simply a concept and no longer a project. 9:28:49 AM Representative Ramras discussed Lines 18 thorough 21, which reinforce the need for the administration and the Department of Natural Resources (DNR) to pursue the renewal of the license issued by the Department of Energy (DOE). He mentioned the instate gas caucus which enjoys a membership of 17 members in the state legislature. He recognized the continued negotiations with the commercial working group. He stressed the need for a robust discussion amongst a commercial working group of buyers and sellers to encourage the governor and the stand alone pipeline team to continue those discussions. He stressed the importance of a gas to liquids program. 9:31:34 AM Co-Chair Stedman removed his objection. Version M was adopted. Co-Chair Stedman asked for an explanation of HCR 2. Representative Ramras responded that global market place dynamics have changed. Version M is recognition of the fact that the dynamics of shale gas and of equatorial tide water projects have changed in the last year. He thought it better to take advantage of Japanese Crude Cocktail, which is a barrel of energy equivalent price computation. He stressed mindfulness about the necessity of acting quickly to export natural gas. He felt a responsibility for determining means of delivering energy to all communities including the Railbelt. He stated that an economy built on inexpensive and abundant energy is exemplified by Anchorage. He noted the initiatives to move in-state gas forward. 9:37:12 AM Senator Ellis asked about the interplay between hydro and natural gas. He commented on the interest in instate natural gas. He asked about the tradeoff between the two options. Representative Ramras responded that Alaska is referred to as a state in civil war. He noted that one project competes against another. One project, the Susitna, is large. The interior comprises the largest coldest community in the circumpolar globe still tethered to diesel. He noted that the transportation tariff makes electric heat unlikely. He opined that HCR 2 speaks to the commercial working group in addressing the component of demand. He spoke to the likely hood of a transportation tariff if the proposed pipeline is only partially full. He stated that he did not see a contest between large scale hydro and instate gas. He calculated that the contest was the gathering of a commercial working group to match buyers and sellers and create enough demand to allow for a reasonable transportation tariff. The state's future is in hydro power and the benefit of hydrocarbons and gas molecules is the bridge fuel for the next 50 to 100 years. 9:41:10 AM Senator Huggins commented that the inside support in the governor's office is helpful. He observed that the process expressed by Representative Ramras was sound. He agreed with the various alternatives. He opined that the psychology of Alaska selling gas was important especially in-state gas. He underlined that the issue was not only about the Railbelt, but the logistical distribution system that allows transport of gas products to remote areas is important. He asked about key elements concerning the package and the timeline to allow the project to move forward. He stressed that the final decision or solution must be economically viable. 9:43:34 AM Representative Ramras stressed the importance of the project's sanction date. He believed that the state could see a sanction date in a year or two. He elaborated that Alaskans are interested in the short term plan. He noted that HCR 2 recognizes that if the state does not proceed with the project it must consider the importation of gas into the South Central region. He cautioned that Cook Inlet's gas supply is depleted and expanding communities and businesses will have to employ diesel as a fuel source for the next 10 or 20 years. He advocated for a discussion between buyers and sellers in the commercial working group. He advised that the governor's office, administration, and the Department of Natural Resources engage in the extension of the export license for the Marathon Conoco Liquefied Natural Gas (LNG) facility. He encouraged the members of both legislative bodies to seek alignment. 9:50:00 AM Senator Thomas appreciated the resolution as a comprehensive solution. He expressed support for the instate gasline. He guessed that if Alaska were to lose their export license it would be their last leading to dependence on gas importation. 9:51:18 AM Co-Chair Stedman asked about Page 2, Line 22 of the CS. He wondered about the date of 2016 for transport of natural gas along the pipeline. He inquired about the optimistic timeline and wondered if it was a print error. Representative Ramras opined that Alaska would not see a large diameter gas pipeline until after the year 2016. The focus of the resolution is an in-state gas pipeline. 9:52:30 AM Co-Chair Stedman mentioned one zero fiscal note from the Senate Finance Committee. Co-Chair Hoffman MOVED to report SCSCSHCR 2 (FIN) out of Committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HCR 2 was REPORTED out of Committee with a "do pass" recommendation and with a new zero fiscal note from the Senate Finance Committee. 9:55:42 AM
Document Name | Date/Time | Subjects |
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Sponsor Stmt HCR 2.pdf |
SFIN 3/30/2010 9:00:00 AM |
HCR 2 |
SB 237 Sponsor Statement.docx |
SFIN 3/30/2010 9:00:00 AM |
SB 237 |
SB 237 Sectional SFIN.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 237 |
SB 237 Kasayulie Ruling.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 237 |
SB 237 DEED Capital Projects.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 237 |
sb237 Sectional Analysis[1].pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 237 |
sb237 Program Funding_Historical and Projected[1].pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 237 |
SB4 Index Map[1].pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
SB4 Sectional Analysis[2].doc |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
SB 4 Bill Packet[1].pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
2009 SB 4 CRA opposition RDC.PDF |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
2009 SB 4 CRA opposition RDC.PDF |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
HCR 2 SCS FIN 032910 Version M.pdf |
SFIN 3/30/2010 9:00:00 AM |
HCR 2 |
SB 4 ACMP SFIN 03 30 10.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
SB004CS(CRA)-DEC-CO-3-29-10.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
SB 237 Maintenance Reimbursement 2010.pdf.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 237 |
SB 4 AOGA letter 03 30 10.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
2009 CSSB 4 CRA sponsor statement.doc |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
2009 CSSB 4 CRA sectional analysis.doc |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
SB 4 Shell Testimony SFIN 033010.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
SB 4 AK Miners Assoc. SFIN 032910.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |
SB 237 ACSA Position Statement.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 237 |
SB 4 Mayor Itta SFIN 033010.pdf |
SFIN 3/30/2010 9:00:00 AM |
SB 4 |