Legislature(2015 - 2016)BUTROVICH 205

04/15/2015 03:30 PM Senate RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 50 AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT TELECONFERENCED
Moved CSSB 50(RES) Out of Committee
+ HB 137 HUNTING, SPORT FISH, TRAPPING FEES TELECONFERENCED
Scheduled but Not Heard
<Pending Referral>
-- Public Testimony --
+ HJR 24 LIFT FEDERAL LAND WITHDRAWALS TELECONFERENCED
Moved HJR 24 Out of Committee
-- Public Testimony --
*+ SJR 18 SUPPORT SHELL PORT OF SEATTLE LEASE TELECONFERENCED
Moved CSSJR 18(RES) Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                         April 15, 2015                                                                                         
                           3:30 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Cathy Giessel, Chair                                                                                                    
Senator Mia Costello, Vice Chair                                                                                                
Senator John Coghill                                                                                                            
Senator Peter Micciche                                                                                                          
Senator Bert Stedman                                                                                                            
Senator Bill Stoltze                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Bill Wielechowski                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 24                                                                                                   
Urging  the  federal  government  to  honor  its  commitments  to                                                               
transfer  land  to  the  state;  and  urging  the  United  States                                                               
Secretary  of the  Interior  and the  United  States Congress  to                                                               
adhere to the recommendations of  the United States Department of                                                               
the Interior  in its 2006  report under the Alaska  Land Transfer                                                               
Acceleration Act, including lifting withdrawals.                                                                                
                                                                                                                                
     - MOVED HJR 24 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE JOINT RESOLUTION NO. 18                                                                                                  
Supporting the leases  issued by the United  States Department of                                                               
the Interior  to Royal  Dutch Shell in  the Chukchi  and Beaufort                                                               
Seas;  urging  the  Governor  of the  State  of  Washington,  the                                                               
Seattle City Council, and other  public officials in the State of                                                               
Washington to  refrain from destructive  attacks on  the economy,                                                               
jobs, and  lives of  the people  of this state  and the  State of                                                               
Washington and  to look  first at  closing the  Boeing production                                                               
facilities to reduce emissions of  carbon dioxide from commercial                                                               
activity; inviting Royal Dutch Shell to  use a port in this state                                                               
as the  homeport of its Arctic  drilling fleet if the  lease with                                                               
the  Port  of Seattle  is  terminated;  and requesting  that  the                                                               
Alaska Congressional  delegation support restricting  the Export-                                                               
Import  Bank  of the  United  States  to  lending only  to  small                                                               
businesses.                                                                                                                     
                                                                                                                                
     - MOVED CSSJR 18(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 50                                                                                                              
"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."                                                                         
                                                                                                                                
     - MOVED CSSB 50(RES) OUT OF COMMITTEE                                                                                      
                                                                                                                                
CSHB 137(FIN) AM                                                                                                                
"An Act raising  certain fees related to  sport fishing, hunting,                                                               
and trapping; relating  to the fish and game  fund; providing for                                                               
the  repeal of  the  sport fishing  surcharge  and sport  fishing                                                               
facility revenue  bonds; replacing  the permanent  sport fishing,                                                               
hunting, or  trapping identification  card for  certain residents                                                               
with an  identification card valid  for three years;  relating to                                                               
hunting  and  fishing  by  proxy;   relating  to  fish  and  game                                                               
conservation decals; raising  the age of eligibility  for a sport                                                               
fishing,  hunting,  or  trapping   license  exemption  for  state                                                               
residents; raising the age at  which a state resident is required                                                               
to obtain a license for  sport fishing, hunting, or trapping; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HJR 24                                                                                                                  
SHORT TITLE: LIFT FEDERAL LAND WITHDRAWALS                                                                                      
SPONSOR(s): REPRESENTATIVE(s) KELLER                                                                                            
                                                                                                                                
04/07/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/07/15       (H)       RES                                                                                                    
04/10/15       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/10/15       (H)       Moved  HJR 24 Out of Committee                                                                         
04/10/15       (H)       MINUTE(RES)                                                                                            
04/11/15       (H)       RES RPT 5DP 1AM                                                                                        
04/11/15       (H)       DP: JOHNSON, SEATON, TARR, OLSON,                                                                      
                         HAWKER                                                                                                 
04/11/15       (H)       AM: JOSEPHSON                                                                                          
04/13/15       (H)       TRANSMITTED TO (S)                                                                                     
04/13/15       (H)       VERSION: HJR 24                                                                                        
04/14/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/14/15       (S)       RES                                                                                                    
04/15/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SJR 18                                                                                                                  
SHORT TITLE: SUPPORT SHELL PORT OF SEATTLE LEASE                                                                                
SPONSOR(s): RESOURCES                                                                                                           
                                                                                                                                
04/13/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/13/15       (S)       RES                                                                                                    
04/15/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB  50                                                                                                                  
SHORT TITLE: AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT                                                                            
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/11/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/11/15       (S)       NRG, RES, FIN                                                                                          
03/10/15       (S)       NRG AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
03/10/15       (S)       Heard & Held                                                                                           
03/10/15       (S)       MINUTE(NRG)                                                                                            
03/26/15       (S)       NRG AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
03/26/15       (S)       Moved  CSSB 50(NRG) Out of Committee                                                                   
03/26/15       (S)       MINUTE(NRG)                                                                                            
03/27/15       (S)       NRG RPT CS  3DP 1NR  SAME TITLE                                                                        
03/27/15       (S)       DP: EGAN, BISHOP, HOFFMAN                                                                              
03/27/15       (S)       NR: MICCICHE                                                                                           
03/30/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/30/15       (S)       Heard & Held                                                                                           
03/30/15       (S)       MINUTE(RES)                                                                                            
04/03/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/03/15       (S)       -- MEETING CANCELED --                                                                                 
04/09/15       (S)       FIN AT 1:30 PM SENATE FINANCE 532                                                                      
04/09/15       (S)       <Pending Referral>                                                                                     
04/10/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/10/15       (S)       Heard & Held                                                                                           
04/10/15       (S)       MINUTE(RES)                                                                                            
04/14/15       (S)       RES AT 3:30 PM FAHRENKAMP 203                                                                          
04/14/15       (S)       Heard & Held                                                                                           
04/14/15       (S)       MINUTE(RES)                                                                                            
04/15/15       (S)       FIN AT 1:30 PM SENATE FINANCE 532                                                                      
04/15/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JIM POUND, staff to Representative Wesley Keller                                                                                
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Commented HJR 24 for the sponsor.                                                                        
                                                                                                                                
SARAH TAYLOR                                                                                                                    
Citizen's Advisory Commission on Federal Areas                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Supported HJR 24.                                                                                        
                                                                                                                                
KARI NORE, staff to Senator Giessel                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Commented on SJR 18 for the sponsor.                                                                     
                                                                                                                                
REED CHRISTENSEN, Board Member                                                                                                  
Alaska Support Industry Alliance                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Strongly supported SJR 18.                                                                               
                                                                                                                                
SARAH ERKMANN, Manager                                                                                                          
External Affairs                                                                                                                
Alaska Oil and Gas Association (AOGA)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Supported SJR 18.                                                                                        
                                                                                                                                
AKIS GIALOPSIS, staff to Senator Giessel and the Senate                                                                         
Resources Committee                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Reviewed proposed changes to SB 50 for the                                                               
sponsor.                                                                                                                        
                                                                                                                                
BILL PARADY, Deputy Commissioner                                                                                                
Department of Commerce, Community and Economic Development                                                                      
(DCCED)                                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Commented on SB 50.                                                                                      
                                                                                                                                
GENE THERRIAULT, Director                                                                                                       
Alaska Energy Authority (AEA)                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Commented on SB 50.                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:30:55 PM                                                                                                                    
CHAIR CATHY GIESSEL called the Senate Resources Standing                                                                      
Committee meeting to order at 3:30 p.m. Present at the call to                                                                  
order  were  Senators  Stedman,   Costello,  Coghill,  and  Chair                                                               
Giessel.                                                                                                                        
                                                                                                                                
              HJR 24-LIFT FEDERAL LAND WITHDRAWALS                                                                          
                                                                                                                                
3:31:36 PM                                                                                                                    
CHAIR GIESSEL announced the consideration of HJR 24.                                                                            
                                                                                                                                
3:31:40 PM                                                                                                                    
JIM POUND,  staff to Representative  Wesley Keller,  Alaska State                                                               
Legislature, Juneau,  Alaska, explained  HJR 24 for  the sponsor.                                                               
He  said it  is a  kinder  gentler version  of previous  language                                                               
about  land and  the federal  government. He  explained that  the                                                               
"whereas" clause is  basically a history of  the land withdrawals                                                               
during the Alaska Native Claims  Settlement Act (ANCSA). That act                                                               
and the  Alaska National Interest Land  Conservation Act (ANILCA)                                                               
authorized the  Secretary of Interior  to withdraw and  hold more                                                               
than 150  million acres  of land  in Alaska  for the  purposes of                                                               
studying what to do with it down the road.                                                                                      
                                                                                                                                
3:32:21 PM                                                                                                                    
SENATOR STOLTZE joined the committee.                                                                                           
                                                                                                                                
MR.  POUND explained  that part  of  that requirement  was for  a                                                               
report, known  as the Alaska Lands  Transfer Acceleration Report,                                                               
to  be filed  with  Congress, which  was done  in  2006; it  also                                                               
became an  act in 2007. The  report cited that 95  percent of the                                                               
land that  was being withheld  had outlived its  original purpose                                                               
and should  be returned to  the state. Despite that  report, none                                                               
of that  land has  been released  so far.  During that  time, the                                                               
state has been permitted to do  some "top-filing" on the land, so                                                               
whenever it  is turned over there  is an option for  the state to                                                               
getting that land and take care of it.                                                                                          
                                                                                                                                
The resolves ask  the federal government to  honor its commitment                                                               
to  Alaska  under  Statehood, ANCSA,  the  Cook  Inlet  Exchange,                                                               
ANILCA and the Alaska Land  Transfer Acceleration Act and release                                                               
approximately  152,181,400   acres  of  land.  It   further  asks                                                               
congress to strongly  encourage the Secretary of  the Interior to                                                               
act in that direction. The only  stick in this resolution is that                                                               
it suggests  that the  Attorney General to  seek legal  action if                                                               
the land is not released.                                                                                                       
                                                                                                                                
The final clause says who the resolution will go to.                                                                            
                                                                                                                                
3:34:10 PM                                                                                                                    
SARAH  TAYLOR, Citizen's  Advisory Commission  on Federal  Areas,                                                               
Anchorage, Alaska, supported HJR 24.  She had been working on the                                                               
Bureau of Land Management (BLM)  (d)(1) withdrawal issues for the                                                               
last 12  years. "Why are we  still waiting for our  land? Someone                                                               
said the answer is because the good stuff is all locked up."                                                                    
                                                                                                                                
She  explained that  the D-1  withdrawals  reference Section  17,                                                               
(d)(1), of  the Alaska National  Interest Lands  Conservation Act                                                               
(ANILCA). All  of those withdrawals  are still on the  books even                                                               
34 years  after ANILCA was  passed. A number of  withdrawals were                                                               
made for a  pipeline corridor and some other things,  and the BLM                                                               
2006 report recognized the reasons  for those withdrawals were no                                                               
longer at issue  and that, therefore, the release  of 151 million                                                               
acres  was consistent  with  the public  interest  but they  were                                                               
going to  consider withholding  6 million  acres of  (d)(1) lands                                                               
until a more appropriate withdrawal could be put in place.                                                                      
                                                                                                                                
Throughout 2000, when BLM was  going through its planning process                                                               
it was recommending  in each plan that the  (d)(1) withdrawals be                                                               
lifted. Even with each of  those recommendation those withdrawals                                                               
have not been lifted. Some very  prime acreage is sitting under a                                                               
(d)(1) withdrawal  preventing its transfer  to anyone. This  is a                                                               
great  opportunity to  free up  the  title and  start to  address                                                               
which withdrawals  they would like to  hold on to and  then allow                                                               
Alaska to receive entitlement free of this encumbrance.                                                                         
                                                                                                                                
SENATOR COGHILL said the only  negative aspect about this is that                                                               
Alaska is  dealing with so  many federal issues  that resolutions                                                               
are going out  at a high rate.  They just need to  make sure they                                                               
are heard.                                                                                                                      
                                                                                                                                
CHAIR GIESSEL  opened public testimony  on HJR 24;  finding none,                                                               
she closed it.                                                                                                                  
                                                                                                                                
SENATOR  COSTELLO moved  to report  HJR 24,  version 29-LS0843\A,                                                               
from committee with individual  recommendations and attached zero                                                               
fiscal note. There were no objections and it was so ordered.                                                                    
                                                                                                                                
3:40:03 PM                                                                                                                    
At ease from 3:40 to 3:41 p.m.                                                                                                  
                                                                                                                                
3:41:27 PM                                                                                                                    
SENATOR MICCICHE joined the committee.                                                                                          
                                                                                                                                
           SJR 18-SUPPORT SHELL PORT OF SEATTLE LEASE                                                                       
                                                                                                                                
3:41:37 PM                                                                                                                    
CHAIR GIESSEL announced consideration of SJR 18.                                                                                
                                                                                                                                
KARI NORE,  staff to Senator  Giessel, Alaska  State Legislature,                                                               
Juneau, Alaska, explained  SJR 18 for the sponsor.  She said this                                                               
resolution  supports  the  Royal  Dutch  Shell  Port  of  Seattle                                                               
leases.  It   also  urges  the   State  of  Washington   to  stop                                                               
interfering with  Alaska's economic development,  especially when                                                               
it comes to  developing the oil and gas deposits  in the Beaufort                                                               
and Chuckchi Seas and the Alaska Arctic.                                                                                        
                                                                                                                                
She said this  resolution also offers Seward  and/or Dutch Harbor                                                               
as  possible  ports for  Royal  Dutch  Shell  in the  event  that                                                               
Seattle  and  the  State  of Washington  move  forward  with  the                                                               
termination of their current leases.                                                                                            
                                                                                                                                
SENATOR STEDMAN said Shell had  been looking at several ports and                                                               
that Dutch  Harbor and Seward are  far from the supply  chain. He                                                               
was  wondering why  those were  picked  from the  whole gamut  of                                                               
choices they have in Alaska.                                                                                                    
                                                                                                                                
CHAIR GIESSEL  replied that  Dutch Harbor  is an  actual location                                                               
where Shell has harbored their  vessels before and they have some                                                               
facilities set  up for them  there; Seward  is in the  process of                                                               
developing a harbor.  Ketchikan is an option and  she wasn't sure                                                               
that Whittier could accommodate the drilling vessels.                                                                           
                                                                                                                                
SENATOR STEDMAN  said Sitka has  a dock facility that  is capable                                                               
of  accommodating Panamax-sized  ships.  It appears  that no  one                                                               
port  will have  the  capacity to  facilitate  offshore and  that                                                               
Alaska  will  end  up  with  multiple  ports.  Seattle  is  being                                                               
extremely rude and Alaska would like to get Shell's business.                                                                   
                                                                                                                                
SENATOR  STOLTZE   said  Seward  has   a  rich  history   in  the                                                               
development  of Alaska  and asked  if they  had received  support                                                               
from the City  of Seward for economic development  because of the                                                               
National Park issue and politics  involved in Seward. He asked if                                                               
they  had  received any  support  from  the  City of  Seward  for                                                               
economic  development and  bringing something  as evil  as fossil                                                               
fuels into its port.                                                                                                            
                                                                                                                                
CHAIR  GIESSEL  responded,  as the  immediate  past  senator  for                                                               
Seward,  that Seward  was  the  home port  for  at  least one  of                                                               
Shell's vessels and  is quite open to  development. An industrial                                                               
harbor is being developed across the bay from the city.                                                                         
                                                                                                                                
3:46:40 PM                                                                                                                    
SENATOR  STEDMAN  moved  conceptual   Amendment  1  to  add  "has                                                               
available  potential   home  ports   at  Dutch   Harbor,  Seward,                                                               
Ketchikan, Sitka, and  anywhere in Prince William  Sound" on page                                                               
3, line  13, to  leave the  all the  options open  for companies.                                                               
There were no objections and conceptual Amendment 1 was adopted.                                                                
                                                                                                                                
3:47:42 PM                                                                                                                    
CHAIR GIESSEL opened public testimony on SJR 18.                                                                                
                                                                                                                                
REED   CHRISTENSEN,  Board   Member,   Alaska  Support   Industry                                                               
Alliance,  Anchorage, Alaska,  strongly supported  SJR 18.  He is                                                               
also  the President  of Dowland-Bach  Corporation.   He said  the                                                               
Alaska business  climate is like the  weather: if you like  it or                                                               
not, just wait  five minutes because it will  change. This rugged                                                               
environment and remoteness  is part of the  natural challenges of                                                               
doing business  in Alaska,  but most people  don't realize  it or                                                               
our resiliency and capacity to rise to them.                                                                                    
                                                                                                                                
However, the recent  stance by neighbors in  Washington State and                                                               
others are  much worse than  the flooding of the  Dalton Highway.                                                               
The  Alliance  strongly  supports   this  resolution  and  echoes                                                               
remarks  made by  Mayor Brower  of the  North Slope  in her  open                                                               
letter to  Lieutenant Governor Hensley that  says statements from                                                               
current  leadership in  Washington State  and Seattle  "reflect a                                                               
lack of  basic knowledge  about our region  and are  offensive to                                                               
people who live in America's Arctic."                                                                                           
                                                                                                                                
3:51:23 PM                                                                                                                    
SARAH  ERKMANN, Manager,  External  Affairs, Alaska  Oil and  Gas                                                               
Association  (AOGA), Anchorage,  Alaska,  supported  SJR 18.  She                                                               
said the Arctic Outer Continental  Shelf (OCS) holds enormous oil                                                               
and gas  resources, approximately 27  billion barrels of  oil and                                                               
132 tcf of natural gas.  In comparison, the Trans Alaska Pipeline                                                               
System (TAPS)  has carried just  more than 17 billion  barrels in                                                               
over  30 years.  At one  point, it  carried more  than 2  million                                                               
barrels  of oil  a  day,  but now  it  transports  an average  of                                                               
550,000 barrels  a day. TAPS  has played  a critical link  in the                                                               
nation's energy security and OCS  development in the Beaufort and                                                               
Chukchi Seas could feed into  TAPs and maintain its viability for                                                               
years to come.                                                                                                                  
                                                                                                                                
Additionally, oil  and gas  development in  the Arctic  OCS means                                                               
jobs for Alaskans. Development of  the Chuckchi and Beaufort Seas                                                               
is predicted  to produce an  annual average of 35,000  direct and                                                               
indirect  jobs over  the  next half  century  for Alaska,  alone.                                                               
Those jobs  represent a total  payroll of more than  $70 billion.                                                               
When  it comes  to  the Pacific  Northwest,  Shell's decision  to                                                               
stage its Arctic operation in  Seattle in 2012 poured hundreds of                                                               
millions of  dollars into the  Seattle economy and  employed more                                                               
than 400 people. Seattle stands  to benefit from similar economic                                                               
benefits in  2015. On  a broader scale,  the State  of Washington                                                               
and  City of  Seattle benefit  from the  development of  Alaska's                                                               
resources via  113,000 jobs for  Washington residents  and annual                                                               
business sales to the state of $5 billion.                                                                                      
                                                                                                                                
3:54:11 PM                                                                                                                    
CHAIR  GIESSEL finding  no  further comments  on  SJR 18,  closed                                                               
public testimony.                                                                                                               
                                                                                                                                
SENATOR  STEDMAN  commented  that  Washington State  might  do  a                                                               
refined  products tax  on  exports next  year,  and maybe  Alaska                                                               
might have  a difference of opinion  on that. So, it  goes beyond                                                               
just what they are doing with Shell.                                                                                            
                                                                                                                                
3:55:04 PM                                                                                                                    
SENATOR MICCICHE said he appreciated  SJR 18 very much. The point                                                               
is not lost  of the hypocrisy of some communities;  it seems like                                                               
the more btus  they use per capita the more  they are against oil                                                               
and  gas  development.  He suggested  encouraging  developers  of                                                               
waters off of  Alaska to start a little earlier  on to keep their                                                               
investments  in the  state. The  more that  occurs, the  more our                                                               
infrastructure  will be  capable of  servicing those  vessels and                                                               
assets.                                                                                                                         
                                                                                                                                
SENATOR COGHILL  remarked that one  of the things that  gets lost                                                               
by many  people who live in  Seattle is that Alaska  is trying to                                                               
build  an infrastructure  for  power here.  They  have lived  for                                                               
almost a century with hydro  projects put together by the federal                                                               
government and run by the Army  Corps of Engineers that has given                                                               
them 4-cent  power that they  lean on,  and they are  quite often                                                               
accusing Alaskans  of leaning on  the federal  government. Boeing                                                               
would not  have moved to Seattle  if it hadn't been  for low cost                                                               
power that was created a century ago.                                                                                           
                                                                                                                                
SENATOR STEDMAN  added that  it goes beyond  the western  side of                                                               
the State of Washington; "it goes  into the eastern side when you                                                               
look at damming of rivers  for hydro-generation and the farm belt                                                               
that sprang  up once they had  the ability to water  the desert."                                                               
In the  event legislators ever go  down that road and  mention it                                                               
formally to  their legislature,  he would like  to use  a broader                                                               
brush  and  remind them  of  development  on  both sides  of  the                                                               
mountains.                                                                                                                      
                                                                                                                                
SENATOR  COSTELLO  moved  to  report SJR  18,  as  amended,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s). There were no objections  and CSSJR 18(RES) was reported                                                               
from the Senate Resources Standing Committee.                                                                                   
                                                                                                                                
3:59:23 PM                                                                                                                    
At ease from 3:59 to 4:00 p.m.                                                                                                  
                                                                                                                                
         SB  50-AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT                                                                     
                                                                                                                                
4:00:45 PM                                                                                                                    
CHAIR GIESSEL announced  the consideration of SB  50, noting that                                                               
this is the fourth time the committee has taken it up.                                                                          
                                                                                                                                
SENATOR  COSTELLO  moved  to  adopt  CSSB 50  (  ),  version  29-                                                               
GS1019\E, as the working document.                                                                                              
                                                                                                                                
CHAIR GIESSEL objected for discussion purposes.                                                                                 
                                                                                                                                
4:01:32 PM                                                                                                                    
AKIS  GIALOPSOS,   staff  to  Senator  Giessel   and  the  Senate                                                               
Resources  Committee, Alaska  State Legislature,  Juneau, Alaska,                                                               
went over the proposed changes to  SB 50 for the sponsor. He said                                                               
in contrast to  Version W, sections 1,  2, 3, 6, and  7 have been                                                               
removed.  Those   sections  dealt   specifically  with   the  two                                                               
additional  components  of SB  50  that  did  not deal  with  the                                                               
Interior  Energy  Project  (IEP), namely  adjusting  the  bonding                                                               
authorizations for AIDEA for inflation  and repealing of existing                                                               
bond authorizations. The rationale  is two-fold: first, these are                                                               
clean-up provisions  and due diligence  warrants putting  them in                                                               
another bill where they can  be vetted. Secondly, it appears that                                                               
the exigent circumstances of accelerating  the IEP is requiring a                                                               
focus on the IEP's flexibility in  the context of AIDEA and thus,                                                               
scaling that bill to that project.                                                                                              
                                                                                                                                
The second changes address Senator  Coghill's installation of new                                                               
language in a new  sections 1 and 4 of Version  E. He deferred to                                                               
Senator Coghill for an explanation.                                                                                             
                                                                                                                                
4:03:21 PM                                                                                                                    
SENATOR  COGHILL  explained  that  section 1  deals  with  intent                                                               
language.  With  the increased  flexibility,  it  asks that  this                                                               
language focus  solely on advancing  the Interior  Energy Project                                                               
(IEP) referred  to in 26SLA. To  stay consistent, it asks  for an                                                               
open and  competitive solicitation process and  to select private                                                               
entities to participate in the LNG project.                                                                                     
                                                                                                                                
Section  4 in  the uncodified  law  asks for  reports that  would                                                               
require the  Alaska Industrial  Development and  Export Authority                                                               
(AIDEA) to submit quarterly reports  to the legislature by way of                                                               
the Chief  Clerk and Secretary  and to the  legislature generally                                                               
at  the  request of  Legislative  Budget  and Audit  (LB&A).  The                                                               
quarterly  reports   should  include   a  progress  on   all  the                                                               
components: a  status of  the local  distribution infrastructure,                                                               
an   up-to-date  monitoring   of   conversions  and   anticipated                                                               
conversions,  which   will  drive  economies  of   scale,  and  a                                                               
financial accounting  of funds expended and  those anticipated to                                                               
be spent.  Section 5  said there comes  a time  when requirements                                                               
should be repealed.                                                                                                             
                                                                                                                                
CHAIR GIESSEL asked why the year 2025 was chosen.                                                                               
                                                                                                                                
MR. GIALOPSOS  apologized for omitting  a fourth change,  the new                                                               
section 5,  which is repealer  language of the prior  section 4.{                                                               
The reason 2025  was added was to affirm the  IEP's trajectory of                                                               
coinciding with  first gas from  the North Slope production  of a                                                               
large  scale natural  gas project.  The intent  of the  chair and                                                               
others  of having  that timeframe,  even if  the IEP  enters into                                                               
obsolescence earlier, is so there would  be an ability for a post                                                               
mortem on  the positive or  negative consequences of  that policy                                                               
decision to inform future AIDEA endeavors.                                                                                      
                                                                                                                                
CHAIR  GIESSEL  invited  opinions  from Mr.  Therriault  and  Mr.                                                               
Parady on Version E.                                                                                                            
                                                                                                                                
4:08:02 PM                                                                                                                    
BILL  PARADY,   Deputy  Commissioner,  Department   of  Commerce,                                                               
Community  and  Economic  Development (DCCED),  deferred  to  his                                                               
colleague for comment,  but he appreciated the  opportunity to be                                                               
accountable for what is represented in section 4.                                                                               
                                                                                                                                
GENE  THERRIAULT,   Director,  Alaska  Energy   Authority  (AEA),                                                               
Fairbanks, Alaska, said the reporting  requirements and intent in                                                               
SB 50 are reasonable.                                                                                                           
                                                                                                                                
CHAIR  GIESSEL  found  no questions  and  removed  her  objection                                                               
saying CSSB 50 (RES) version \E was adopted.                                                                                    
                                                                                                                                
SENATOR STOLTZE said hope, caution, skepticism burns eternal.                                                                   
                                                                                                                                
SENATOR COGHILL said these reporting  requirements will help keep                                                               
a  bright light  on  the  IEP; due  diligence  by  AIDEA and  the                                                               
legislature  is important.  He guessed  another discussion  on it                                                               
would be needed next year.                                                                                                      
                                                                                                                                
CHAIR GIESSEL  commented that yesterday  they heard  great public                                                               
testimony from Fairbanks  and she had received an  email from one                                                               
of them, Mr.  Merrick Pierce, whose concluding  sentence was that                                                               
the meter price needs to be  closer to $10 mmbtu in Anchorage for                                                               
a  project  to work  and  she  thought  that  was a  pretty  high                                                               
requirement  for this  project to  pencil out  in Fairbanks.  She                                                               
said the main purpose of this CS  was to focus on the IEP and get                                                               
gas to Fairbanks as soon as possible.                                                                                           
                                                                                                                                
SENATOR  STEDMAN  commented  it's   clear  that  Fairbanks  needs                                                               
assistance with  air inversion  issues and the  cost of  oil over                                                               
the last  few years, and a  $10 in Anchorage price  would be nice                                                               
to have across the state.                                                                                                       
                                                                                                                                
4:15:59 PM                                                                                                                    
SENATOR COSTELLO  moved to report  CSSB 50(RES), version  E, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s). There were no objections and it was so ordered.                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                              
4:16:46 PM                                                                                                                    
Finding no further  business to come before  the committee, Chair                                                               
Giessel adjourned the Senate Resources  Committee meeting at 4:16                                                               
p.m.                                                                                                                            
                                                                                                                                

Document Name Date/Time Subjects
HJR024A.PDF SRES 4/15/2015 3:30:00 PM
HJR 24
HJR 24 Sponsor statement.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJR24 Fiscal Note-.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJR 24 2008 ltr.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJR 24 BLM Cover sheet.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJR 24 chapter_1.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJr 24 chapter_2.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJR 24 chapter_3.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJr 24 chapter_4.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJr 24 DNR Land sheet.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJR 24 H. floor vote.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJr 24 map.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJR 24 Res Vote.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
HJR 24 sec207_akd1withdrawls.pdf SRES 4/15/2015 3:30:00 PM
HJR 24
SJR 18 Version W.PDF SRES 4/15/2015 3:30:00 PM
SJR 18
SJR 18 Sponsor Statement.pdf SRES 4/15/2015 3:30:00 PM
SJR 18
SJR 18 Fiscal Note.pdf SRES 4/15/2015 3:30:00 PM
SJR 18
SJR 18 Seattle City Council.pdf SRES 4/15/2015 3:30:00 PM
SJR 18
SJR 18 Seattle Chamber Study.pdf SRES 4/15/2015 3:30:00 PM
SJR 18
SJR 18 North Slope Borough Letter.pdf SRES 4/15/2015 3:30:00 PM
SJR 18
SJR 18 Gov. Inslee Letter.pdf SRES 4/15/2015 3:30:00 PM
SJR 18
SJR 18 Export-Import Bank Articles.pdf SRES 4/15/2015 3:30:00 PM
SJR 18
SB50- Proposed CS- Version E.pdf SRES 4/15/2015 3:30:00 PM
SB 50
SB50- Explanation of Changes- Version W to Version E.pdf SRES 4/15/2015 3:30:00 PM
SB 50