Legislature(2013 - 2014)BUTROVICH 205

03/05/2014 03:30 PM Senate RESOURCES


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03:31:07 PM Start
03:32:01 PM SCR16
03:55:10 PM SB77
04:23:49 PM Chinook Salmon Research Initiative Overview & Update
05:13:02 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 77 BIG GAME HUNTING WITH CHILDREN TELECONFERENCED
Moved CSSB 77(RES) Out of Committee
-- Public Testimony --
+ Chinook Salmon Research Initiative Overview and TELECONFERENCED
Update
Department of Fish & Game
Deputy Commissioner Kevin Brooks
Ed Jones, Chinook Initiative Coordinator
-- Invited Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SCR 16 REQ GOV TO INVESTIGATE COAL RESOURCES
Moved CSSCR 16(RES) Out of Committee
          SCR 16-REQ GOV TO INVESTIGATE COAL RESOURCES                                                                      
                                                                                                                                
3:32:01 PM                                                                                                                    
CHAIR GIESSEL announced SCR 16 to be up for consideration.                                                                      
                                                                                                                                
3:32:14 PM                                                                                                                    
SENATOR  PETE KELLY,  Alaska State  Legislature, Juneau,  Alaska,                                                               
sponsor of SCR 16, said he wanted an amendment to be offered.                                                                   
                                                                                                                                
3:32:55 PM                                                                                                                    
CHAIR GIESSEL moved Amendment 1 (A.2).                                                                                          
                                                                                                                                
                                                 28-LS1519\A.2                                                                  
                                                       Nauman                                                                   
                                                      2/28/14                                                                   
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                                                                                                      
                                                                                                                                
     Page 2, line 5, following "investigate":                                                                                   
          Insert ", without regard to federal permits or                                                                        
     restrictions,"                                                                                                             
                                                                                                                                
SENATOR FAIRCLOUGH objected for discussion purposes.                                                                            
                                                                                                                                
3:33:21 PM                                                                                                                    
CHAIR  GIESSEL  explained  that this  amendment  makes  a  simple                                                               
change on page 2, line 5, by inserting the above wording.                                                                       
                                                                                                                                
3:33:49 PM                                                                                                                    
SENATOR FAIRCLOUGH asked him to explain the intent.                                                                             
                                                                                                                                
SENATOR KELLY responded that this  resolution is about "the grave                                                               
danger  we  find ourselves  in  in  this  state" with  regard  to                                                               
energy.   He   recalled   what  Putin   did   in   the   Ukraine,                                                               
Czechoslovakia in 1938, and Poland  in 1939. Events can change on                                                               
a dime.  Who would have  thought on  September 11 you  would find                                                               
that the  whole world had changed  in an instant when  two planes                                                               
crashed into the Towers?                                                                                                        
                                                                                                                                
Things  like that  will  happen  and our  energy  prices will  go                                                               
through  the  roof and  we  are  already  paying prices  in  some                                                               
communities  that  just  simply   aren't  sustainable.  He  said,                                                               
"Alaska is facing an energy poverty; it's going to wipe us out."                                                                
                                                                                                                                
He said this resolution is  about defying the federal government,                                                               
because for years  we've heard people say just go  drill in ANWR.                                                               
Well, we  can't; it's  federal ground  and if  you did  find some                                                               
company that wanted to  go out there and take the  risk of a fine                                                               
or tax  consequences, then  they have to  cross federal  land and                                                               
rivers, and  there are  thousands of  problems between  there and                                                               
delivering the oil in Valdez.                                                                                                   
                                                                                                                                
3:36:07 PM                                                                                                                    
SENATOR KELLY said he envisions  investigating the possibility of                                                               
building a  coal power plant  with state  funds on state  land to                                                               
federal  specifications but  without regard  to federal  permits.                                                               
The  reason  being   that  so  often  the   state  meets  federal                                                               
specifications  and  then  some  judge  in  San  Francisco  says,                                                               
"Sorry, you didn't say 'Mother, May I?'"                                                                                        
                                                                                                                                
SENATOR KELLY  said we are  people of the  rule of law;  but that                                                               
isn't going  to matter.  The nuances  of federal  regulations are                                                               
not  going to  matter when  we simply  can't afford  to turn  our                                                               
lights or  our furnaces on  because the  cost of energy  has gone                                                               
through  the   roof.  So,   he  wanted   the  Governor   and  the                                                               
Administration  to investigate  and the  state to  build a  power                                                               
plant on state land and when it's built we turn it on.                                                                          
                                                                                                                                
3:37:26 PM                                                                                                                    
SENATOR FAIRCLOUGH asked if he was  asking for a process: for the                                                               
Governor  to work  to identify  somewhere  on state  land a  coal                                                               
fired plant. What she objected to was using the rule of law.                                                                    
                                                                                                                                
SENATOR KELLY replied  that the purpose of building  a coal fired                                                               
plant on state land is we  don't need permission from the feds to                                                               
do  that  on state  land.  If  we build  it  on  state land,  the                                                               
question is  whether you turn  it on  or not. He  understood that                                                               
this was a little  bit of dreaming, but the fact  is we are going                                                               
to need to  dream a little bit big to  protect the generations of                                                               
the  future. Something  is going  to  come that  is going  change                                                               
energy prices once again and  the last time it crippled Alaskans.                                                               
This  is  investigating a  process;  it's  not building  a  power                                                               
plant.  A  lot  more  discussion  is  needed  than  a  concurrent                                                               
resolution.                                                                                                                     
                                                                                                                                
3:39:07 PM                                                                                                                    
SENATOR  DYSON said  he was  a great  enthusiast for  the use  of                                                               
Alaska's  coal. He  pointed out  on page  2, line  5, it  says to                                                               
investigate development  of "a  large coal  power plant,"  and in                                                               
electric generation  always has  the argument  about distribution                                                               
as opposed  to centralization, and  power distribution  over long                                                               
distances is difficult. He asked  if Senator Kelly was specifying                                                               
doing this in only one location.                                                                                                
                                                                                                                                
SENATOR KELLY replied that the  resolution identifies some places                                                               
in the  state and one  is the coal  reserves up by  Kotzebue. The                                                               
point  is that  Alaskan reserves  are  about half  of the  United                                                               
States' reserves and it could provide power for 100 years.                                                                      
                                                                                                                                
SENATOR DYSON corrected that it  could power all of North America                                                               
for 300 years.                                                                                                                  
                                                                                                                                
SENATOR KELLY  said it's low  sulphur coal  and in fact  the coal                                                               
near Fairbanks, which  isn't the best, is equivalent  to the coal                                                               
that meets the  standard of the 1990 Clean Air  Act. The question                                                               
is does it  envision other places; and that is  a policy decision                                                               
for the Governor's group.                                                                                                       
                                                                                                                                
SENATOR DYSON asked if it was fair  to say on the record that his                                                               
intention was  to not  limit this  to "a"  very large  plant, but                                                               
concept to be used wherever it makes sense.                                                                                     
                                                                                                                                
SENATOR  KELLY  answered  that was  correct.  Senator  Dyson  had                                                               
mentioned DC power and  even though it is a bit  of a dream right                                                               
now, but  technology is moving  quickly and  by the time  this is                                                               
put  together,  we  could  hope  to power  rural  Alaska  from  a                                                               
gigawatt  plant  in MatSu  or  Fairbanks  or Kotzebue,  for  that                                                               
matter, from coal.                                                                                                              
                                                                                                                                
SENATOR MICCICHE said  a lot of folks in his  district were upset                                                               
at  doing another  a  study.  But the  further  resolve says  for                                                               
$75,000 worth of  study we get to understand:  the potential cost                                                               
of coal plants  from 200 megawatts to 2 gigawatts,  the cost of a                                                               
kilowatt  of  a coal  generated  energy  in comparison  to  other                                                               
sources, the technological potential  for transmission, and how a                                                               
large  mine coal  plant might  help balance  future needs  of the                                                               
state with hydro  and other types. He wanted to  know the answers                                                               
to that question. This is  not an anti-environmental thing. There                                                               
is a  huge supply of potential  coal energy lying right  here and                                                               
we  should   understand  whether   or  not   they  can   be  used                                                               
responsibly.                                                                                                                    
                                                                                                                                
3:43:38 PM                                                                                                                    
SENATOR FAIRCLOUGH  removed her objection [therefore  Amendment 1                                                               
was adopted] and  offered conceptual Amendment 2 on  page 2, line                                                               
5, after  the word "development  of" delete "a" and  after "large                                                               
coal power plant"  insert the letter "s" on the  word "plant". So                                                               
it would then read:                                                                                                             
                                                                                                                                
     Be  it  resolved  that  the  Alaska  State  Legislature                                                                    
     respectfully  requests  the   Governor  to  investigate                                                                    
     without regard  to federal permits or  restrictions the                                                                    
     development of  large coal power plants  and associated                                                                    
     electrical grid  to provide energy to  residents of the                                                                    
     state to heat their homes and keep their lights on.                                                                        
                                                                                                                                
CHAIR GIESSEL objected for discussion purposes.                                                                                 
                                                                                                                                
SENATOR  FAIRCLOUGH responded  that  the purpose  was to  address                                                               
Senator Dyson's thought  and what she heard from  the sponsor was                                                               
his concurrence that we could look at more than one.                                                                            
                                                                                                                                
SENATOR KELLY said he had no objection to that language.                                                                        
                                                                                                                                
3:45:07 PM                                                                                                                    
CHAIR GIESSEL  removed her objection  and conceptual  Amendment 2                                                               
was adopted.  She pointed  out that the  Emma Creek  Coal Project                                                               
Plan  was in  their  packets  as well  as  a  recent "Energy  and                                                               
Economic Impacts  of Coal in  Interior Alaska," a  McDowell Group                                                               
report.                                                                                                                         
                                                                                                                                
3:45:42 PM                                                                                                                    
CHAIR GIESSEL  noted opposition to coal  comments during previous                                                               
committee testimony: someone said  that climate change is settled                                                               
and there  was talk about  CO, and  she included the  response to                                                               
                             2                                                                                                  
that  in a  report called  "The Social  Cost of  Coal." She  said                                                               
people forget  that CO  is plant food  and the optimal  level for                                                               
                      2                                                                                                         
plant growth is  1200 parts per million. Presently,  we're at 400                                                               
parts per  million. So, for  each little increment of  CO  we are                                                               
                                                         2                                                                      
actually reaping  positive results in food  production for people                                                               
to  live here,  and  over the  last 100  years  plant growth  has                                                               
increased by 60 percent.                                                                                                        
                                                                                                                                
CHAIR GIESSEL said certainly, climate  has changed multiple times                                                               
over the centuries. We had an  ice age 12,000 years ago, a lesser                                                               
ice age from  1560 to 1820, but we also  had the medieval warming                                                               
period and that's never talked about.  That was from 1200 to 1410                                                               
A.D. and during this time  Norwegians came to Greenland, found it                                                               
to be  such a rich environment  that they farmed and  lived there                                                               
for a couple hundred years.  The temperature then was 2-3 degrees                                                               
Centigrade above the today's baseline.                                                                                          
                                                                                                                                
She added that  Henry's Law states that at  any given temperature                                                               
the amount of gas dissolved  in solution is directly proportional                                                               
to the  pressure of the  gas in the  air above the  solution (the                                                               
ocean and  CO.  As  CO  increases in the atmosphere,  Henry's Law                                                               
             2)2                                                                                                                
states, and has proven, that  the amount of CO  in the ocean also                                                               
                                              2                                                                                 
increases.  So,   Chair  Giessel  concluded  that   there  is  an                                                               
"automatic balancing system in our environment."                                                                                
                                                                                                                                
CHAIR  GIESSEL said  there is  a lot  of advocacy  for green  and                                                               
alternative energy such as wind  turbines, but 3-5 tons of copper                                                               
is in every wind turbine. That  is two solid Chevy Suburbans. So,                                                               
to say that  coal will be the  demise of the humane  race is just                                                               
exaggeration.                                                                                                                   
                                                                                                                                
3:49:13 PM                                                                                                                    
SENATOR  MICCICHE  said  a  fascinating book  to  read  was  "The                                                               
History of Weather."                                                                                                            
                                                                                                                                
SENATOR DYSON  agreed that there  was a lot of  misinformation in                                                               
the public.  He could  defend a pretty  cogent argument  that the                                                               
Industrial Revolution  could not  have gone forward  without coal                                                               
and that it  saved the forests of Europe. The  energy just wasn't                                                               
available  then. When  you think  about  all the  ills that  went                                                               
along with it,  virtually all the things we enjoy  in modern life                                                               
- the machines and efficiencies,  and medical science - power has                                                               
enabled  the provisions  of clean  water  and a  way of  treating                                                               
waste.  "If   you  think   pollution  in   cities  is   bad  from                                                               
automobiles,  you should  have seen  or heard  about what  it was                                                               
like with  horses." He could  also make  a pretty good  case that                                                               
the  oil  industry  saved  the whales,  because  before  the  oil                                                               
industry, sperm whale oil was a premier lubricant.                                                                              
                                                                                                                                
3:52:26 PM                                                                                                                    
SENATOR  DYSON moved  to report  SCR 16,  version \A  as amended,                                                               
from committee to the next  committee of referral with individual                                                               
recommendations  and  attached  fiscal  note(s).  There  were  no                                                               
objections  and CSSCR  16(RES) passed  from the  Senate Resources                                                               
Standing Committee.                                                                                                             

Document Name Date/Time Subjects
SCR 16 Amendment A.2.pdf SRES 3/5/2014 3:30:00 PM
SCR 16
SCR 16 Supp Document The Social Costs of Carbon.pdf SRES 3/5/2014 3:30:00 PM
SCR 16
SB 77 vs A.pdf SRES 3/5/2014 3:30:00 PM
SB 77
SB 77 Sponsor Statement.pdf SRES 3/5/2014 3:30:00 PM
SB 77
SB 77 Fiscal Note.pdf SRES 3/5/2014 3:30:00 PM
SB 77
SB 77 Supp Letter TedSpraker 20140204.pdf SRES 3/5/2014 3:30:00 PM
SB 77
SB 77 Amendment A.2.PDF SRES 3/5/2014 3:30:00 PM
SB 77
SB 77 Amendment A.3.PDF SRES 3/5/2014 3:30:00 PM
SB 77
SB 77 Supp Document Ted Spraker 20140304.PDF SRES 3/5/2014 3:30:00 PM
SB 77
SRES CSRI Overivew Presentation 20130305.pdf SRES 3/5/2014 3:30:00 PM