Legislature(2015 - 2016)SENATE FINANCE 532

04/12/2016 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 100 UREA/AMMONIA/GAS-LIQ FACILITY; TAX CREDIT TELECONFERENCED
Heard & Held
+ HB 77 DISABILITY:ID/LICENSE AND TRAINING RQMTS. TELECONFERENCED
Heard & Held
HB 155 FEES; WAIVERS; CREDITS; DEDUCTIONS;TAXES
Heard & Held
+ HB 143 AIDEA BONDS: SWEETHEART CREEK HYDRO PROJ. TELECONFERENCED
Heard & Held
+= HB 41 SPORT FISHING SERVICES TELECONFERENCED
Heard & Held
+= HB 137 HUNT/FISH/TRAP: FEES;LICENSES;EXEMPTIONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR HOUSE BILL NO. 143(FIN)                                                                                                
                                                                                                                                
     "An Act  authorizing the Alaska  Industrial Development                                                                    
     and  Export Authority  to issue  bonds  to finance  the                                                                    
     infrastructure   and   construction    costs   of   the                                                                    
     Sweetheart Lake hydroelectric project."                                                                                    
                                                                                                                                
10:02:15 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE CATHY MUNOZ, SPONSOR, discussed the bill:                                                                        
                                                                                                                                
     House  Bill   143  authorizes  the   Alaska  Industrial                                                                    
     Development and  Export Authority  to issue up  to $120                                                                    
     million  in   conduit  issuance  bonds  to   finance  a                                                                    
     hydroelectric     project    at     Sweetheart    Lake,                                                                    
     approximately  43   miles  south  of   Juneau.  Conduit                                                                    
     issuances  do not  impact  AIDEA  bonding capacity  and                                                                    
    would solely be based on the merits of the project.                                                                         
                                                                                                                                
     AIDEA  would  act  as  a  facilitator  by  vetting  and                                                                    
     performing due  diligence on  the project  to determine                                                                    
     whether it qualifies for such financing.                                                                                   
                                                                                                                                
     Hydroelectric   power  is   a  clean,   effective,  and                                                                    
     affordable  source  of  energy in  coastal,  rainforest                                                                    
     Alaska - a region that can  use it to offset high costs                                                                    
     of  industries such  as  mining,  processing fish,  and                                                                    
     forest products.  Mining, tourism, and  fish processing                                                                    
     are vital to the area's economy.                                                                                           
                                                                                                                                
     Affordable  energy  is  a keystone  of  a  healthy  and                                                                    
     sustainable  economy.   It  ensures   Alaska  families,                                                                    
     businesses,  and job-creating  industries may  grow and                                                                    
     thrive. HB  143 would help  a region take  steps toward                                                                    
     unlocking its  great energy and resource  potential and                                                                    
     move  toward having  a  stronger  and more  diversified                                                                    
     economy.                                                                                                                   
                                                                                                                                
10:05:07 AM                                                                                                                   
                                                                                                                                
TERRY HARVEY, STAFF, REPRESENTATIVE CATHY MUNOZ, discussed                                                                      
the sectional analysis (copy on file):                                                                                          
                                                                                                                                
     Section  1 (a)  Provides legislative  approval for  the                                                                    
     Alaska Industrial  Development and Export  Authority to                                                                    
     issue  bonds  for  the  Sweetheart  Lake  hydroelectric                                                                    
     project  in  an  amount   not  to  exceed  $120,000,000                                                                    
     payable exclusively  from the revenue derived  from the                                                                    
     project.                                                                                                                   
                                                                                                                                
          (b) Provides that the bond authorization in this                                                                      
          section does not constitute a general obligation                                                                      
          of the state or authority.                                                                                            
                                                                                                                                
          (c)  Provides that  the bonds  authorized by  this                                                                    
          section may  not be considered in  calculating the                                                                    
          authority's 12-month  bonding limitation  under AS                                                                    
          44.88.095(a).                                                                                                         
                                                                                                                                
     Section 2 Repeals sec. 1 on June 30, 2020.                                                                                 
                                                                                                                                
10:06:25 AM                                                                                                                   
                                                                                                                                
Senator Dunleavy wondered whether the bill had any cost to                                                                      
the state.                                                                                                                      
                                                                                                                                
Representative Munoz  reiterated that  the bill had  no cost                                                                    
to the state.                                                                                                                   
                                                                                                                                
10:06:46 AM                                                                                                                   
                                                                                                                                
Senator Olson  wondered what  would occur  if the  mine shut                                                                    
down.                                                                                                                           
                                                                                                                                
Representative  Munoz related  that Kensington  had invested                                                                    
in an 8,000  foot tunnel, and there were  reserves that were                                                                    
available for low cost power.                                                                                                   
                                                                                                                                
Senator  Olson asked  about the  potential ramifications  if                                                                    
Kensington were to shut down.                                                                                                   
                                                                                                                                
Representative Munoz  replied that the other  large customer                                                                    
was the downtown district heating project.                                                                                      
                                                                                                                                
Vice-Chair Micciche wondered why  the bond authorization did                                                                    
not constitute a general obligation to the state.                                                                               
                                                                                                                                
10:09:19 AM                                                                                                                   
                                                                                                                                
JOHN  SPRINGSTEEN,  EXECUTIVE  DIRECTOR,  ALASKA  INDUSTRIAL                                                                    
DEVELOPMENT    AND    EXPORT    AUTHORITY    (AIDEA)    (via                                                                    
teleconference), explained  that the clause was  included so                                                                    
the project would not be  against the 12-month rolling limit                                                                    
of $400 million.                                                                                                                
                                                                                                                                
Co-Chair MacKinnon  announced that the bond  debt report had                                                                    
zero cash available for future  bond under the legislature's                                                                    
debt  calculation.  She  wondered  if  the  limit  would  be                                                                    
exceeded by $120 million.                                                                                                       
                                                                                                                                
Mr. Springsteen replied  that it was a  conduit issuance and                                                                    
relied solely on the revenue of the project.                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  wondered  whether other  projects  were                                                                    
counted against the  debt limit of the  rolling average with                                                                    
backed revenue bonds.                                                                                                           
                                                                                                                                
Mr. Springsteen  stated that  current statute  dictated that                                                                    
the only  bond issuances  that were  not counted  toward the                                                                    
$400 million 12-month rolling cap were refunding bonds.                                                                         
                                                                                                                                
Co-Chair MacKinnon  wondered if the legislation  was raising                                                                    
the cap by $120 million.                                                                                                        
                                                                                                                                
Mr. Springsteen replied that the  legislation was a one-time                                                                    
approval.                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon asked how long  it would take to fund the                                                                    
project.                                                                                                                        
                                                                                                                                
Mr. Springsteen  stated that  the project  had not  yet come                                                                    
forward with a feasibility study.                                                                                               
                                                                                                                                
Co-Chair MacKinnon asked if such  projects were typically 10                                                                    
years, 20 years, 30 years, or 50 years.                                                                                         
                                                                                                                                
Mr.  Springsteen thought  that  hydroelectric projects  were                                                                    
typically  50 years,  and the  project  could be  up to  100                                                                    
years.                                                                                                                          
                                                                                                                                
Vice-Chair Micciche  surmised that the bill  was not against                                                                    
AIDEA's  bonding  limitation  because  the  securities  were                                                                    
based upon the financial backing of another entity.                                                                             
                                                                                                                                
Mr. Springsteen iterated that the  assets and revenue of the                                                                    
project provided a security for the bond issuance.                                                                              
                                                                                                                                
Co-Chair  MacKinnon asked  if there  was a  moral obligation                                                                    
with the revenue bond.                                                                                                          
                                                                                                                                
Mr. Springsteen stated that in  the instance there was not a                                                                    
moral obligation.                                                                                                               
                                                                                                                                
Co-Chair MacKinnon opened public testimony.                                                                                     
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
10:15:27 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:15:37 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
                                                                                                                                
10:16:19 AM                                                                                                                   
                                                                                                                                
Vice-Chair Micciche  wanted to support the  Kensington mine.                                                                    
He stated that the heat  pump technology was fascinating. He                                                                    
hoped to expand heat pump technology.                                                                                           
                                                                                                                                
Co-Chair MacKinnon commented that  she would like to discuss                                                                    
the reason for the language.                                                                                                    
                                                                                                                                
HB  143  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB 100 03-31-15 Peak Oilfield Service Company LLC Letter of Support for HB 100.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 3.25.15 HRES HB 100 - J R Meyers Opposition.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 4-4-16 Mayor Letter HB100-Agrium.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 1427 Agrium State Gov Impact Revised 1_28_2015.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Agrium Econ Impact Final Report 5.22.13.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 AgriumStudy11_4.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Alaska Garden Letter of Support-HB 100.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 AS 38.05.135.docx SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 CSHB 100 (FIN) Sponsor Statement.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Forms 6000 and 6300.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Friese-Letter of Support-HB 100.docx SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 House bill 100 Agrium.msg SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 House Bill 100-Letter of Support_Klessens.doc SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 How the credit works.docx SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 House Bill 100.msg SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Kenai Resolution.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 KPEDD Letter of Support.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Letter of Support-Furie.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Public Testimony Benson.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Public Testimony Egrass.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Public Testimony KPEDD.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Public Testimony Huston.msg SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Public Testimony Lynden.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Public Testimony Smith.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Support Letter Saner.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Support-Arctic Rope and Wire.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Support-Cialek.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Support-Dowland Bach.docx SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Support-Glacier Electric.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Support-Kenai Chamber.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100 Support-KPEDD.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100.msg SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100-AgriumRestartSupportLetter_HEA.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100-Letter of Support-Alaska Farm Bureau.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100-Support_Stynsberg.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100-Support-Kakivik.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100-Support-Udelhoven.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100-Support-Warthen.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
Support of HB 100 - Epperheimer Inc..msg SFIN 4/12/2016 9:00:00 AM
HB 100
HB 100-Univar Support.pdf SFIN 4/12/2016 9:00:00 AM
HB 100
CSHB 77 Sponsor Statement 3 11 16.pdf SFIN 4/12/2016 9:00:00 AM
HB 77
HB 77 Disability Training and Identification Bill support senator mackinnon.docx SFIN 4/12/2016 9:00:00 AM
HB 77
HB 77- Supporting Documentation.pdf SFIN 4/12/2016 9:00:00 AM
HB 77
Summary of Changes ver. W-ver. E-, ver. P 4-5-2016.pdf SFIN 4/12/2016 9:00:00 AM
HB 77
HB 143 Sectional Summary.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB 137 2016-Apr-BOG Game Lic Inc Support-HB 137.pdf SFIN 4/12/2016 9:00:00 AM
HB 137
HB 137 SCS CSHB 137(RES) Supporting Document - Tag Fee Revenue Increase.pdf SFIN 4/12/2016 9:00:00 AM
HB 137
HB 137 SCS CSHB 137(RES) Supporting Document - License and Stamp Fee Revenue Increase.pdf SFIN 4/12/2016 9:00:00 AM
HB 137
HB 137 Public Testimony Mauer.pdf SFIN 4/12/2016 9:00:00 AM
HB 137
HB 41 Public Testimony Downes Tallerico Schwalm.pdf SFIN 4/12/2016 9:00:00 AM
HB 41
HB 41 Public Testimony KRSA.pdf SFIN 4/12/2016 9:00:00 AM
HB 41
HB 137 Public Testimony KRSA.pdf SFIN 4/12/2016 9:00:00 AM
HB 137
HB 41 CSHB 41 work draft version G.pdf SFIN 4/12/2016 9:00:00 AM
HB 41
HB 143 Sectional Summary.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB143 AIDEA Springsteen.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB143 CBJ Support March 22 2016.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB143 Juneau Hydro Presentation.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB143 Kensington Update Support Letter January 2016.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB143 Letters of Support.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB143 Operating Engineers Support Letter.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB143 Resolutions of Support.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB143(S)FIN Explanation of Changes.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB143(S)FIN Sponsor Statement.pdf SFIN 4/12/2016 9:00:00 AM
HB 143
HB 155 Sectional Summary.pdf SFIN 4/12/2016 9:00:00 AM
HB 155
HB 100 Sectional Summary CSHB 100(FIN).pdf SFIN 4/12/2016 9:00:00 AM
HB 100
HB 137 Public Testimony Packet 1.pdf SFIN 4/12/2016 9:00:00 AM
HB 137