Legislature(2009 - 2010)BUTROVICH 205

03/27/2009 03:30 PM RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 108 STAMPEDE STATE RECREATION AREA TELECONFERENCED
Heard & Held
*+ SJR 13 URGING US TO RATIFY LAW OF THE SEA TREATY TELECONFERENCED
Scheduled But Not Heard
+= HCR 2 IN-STATE GAS PIPELINE TELECONFERENCED
Moved SCS CSHCR 2(RES) Out of Committee
+= HCR 3 IN-STATE GAS PIPELINE TELECONFERENCED
Heard & Held
+= HCR 4 IN-STATE GAS PIPELINE TELECONFERENCED
Heard & Held
+= HCR 5 IN-STATE GAS PIPELINE TELECONFERENCED
Heard & Held
+ SB 71 ALTERNATIVE ENERGY FOR PUBLIC WORKS TELECONFERENCED
Moved CSSB 71(RES) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 54 PRICE GOUGING INVOLVING ENERGY RESOURCES
Moved CSSB 54(RES) Out of Committee
= SJR 16 OFFSHORE OIL & GAS REVENUE
Moved CSSJR 16(RES) Out of Committee
<Meeting Will Run to 5:30>
                   HCR  2-IN-STATE GAS PIPELINE                                                                             
                   HCR  3-IN-STATE GAS PIPELINE                                                                             
                   HCR  4-IN-STATE GAS PIPELINE                                                                             
                   HCR  5-IN-STATE GAS PIPELINE                                                                             
                                                                                                                                
3:49:39 PM                                                                                                                    
CHAIR WIELECHOWSKI announced  the consideration of HCR  2, HCR 3,                                                               
HCR 4,  and HCR 5.  He thanked the  sponsor for working  with his                                                               
office  and  Senator McGuire's  office  on  the language  and  to                                                               
consolidate the four resolutions into one.                                                                                      
                                                                                                                                
REPRESENTATIVE  JAY RAMRAS,  Alaska State  Legislature, said  the                                                               
Senate  committee substitute  (CS) [to  HCR 2]  contains language                                                               
that  articulates  how  to  go  about  building  an  instate  gas                                                               
pipeline.                                                                                                                       
                                                                                                                                
SENATOR HUGGINS  asked if the  CS represents the  original intent                                                               
of the four concurrent resolutions.                                                                                             
                                                                                                                                
REPRESENTATIVE RAMRAS  replied the  Senate CS  has a  little more                                                               
economy of language than he might  care for, but he is reasonably                                                               
satisfied.                                                                                                                      
                                                                                                                                
3:52:36 PM                                                                                                                    
CHAIR WIELECHOWSKI said there wasn't  any intention to change any                                                               
intent. Consolidating  the resolutions  made logistical  sense in                                                               
the interest of moving the concept forward.                                                                                     
                                                                                                                                
REPRESENTATIVE  RAMRAS  said  he   doesn't  want  to  dilute  the                                                               
expression to the  executive branch to make every  effort to move                                                               
this along as  expediently as possible. He  applauds hiring Harry                                                               
Noah as  coordinator of an  instate gas pipeline  and appreciates                                                               
that the  first thing he  will do is  to determine if  an instate                                                               
line is  superior to further  exploration of Cook Inlet.  To that                                                               
end, a notable  change is on page  4, line 17, where  the date is                                                               
changed from  November 2010  to June  2011. This  is the  date by                                                               
which Mr.  Noah wants  this finished. The  Senate CS  dilutes the                                                               
explicit  instructions  to  the   executive  branch,  but  he  is                                                               
satisfied  with the  compromise. This  will create  an attainable                                                               
legacy for the governor.                                                                                                        
                                                                                                                                
3:55:28 PM                                                                                                                    
SENATOR FRENCH referenced the whereas  clause on page 3, line 16,                                                               
and  asked  who is  asserting  that  "the collective  demand  for                                                               
natural gas  in the Interior  and Southcentral is  anticipated to                                                               
expand  from  200,000,000  cubic  feet  a  day  to  approximately                                                               
700,000,000 cubic feet a day during the period 2010 to 2025."                                                                   
                                                                                                                                
REPRESENTATIVE   RAMRAS  replied   that  came   from  an   Enstar                                                               
presentation to the House Resources Committee.                                                                                  
                                                                                                                                
SENATOR FRENCH referenced the further  resolved clause on page 4,                                                               
line 5, which talks about volume  in terms of cubic feet per year                                                               
and asked what that roughly translates to per day.                                                                              
                                                                                                                                
3:56:41 PM                                                                                                                    
REPRESENTATIVE RAMRAS replied  a 500 mcf per  day line translates                                                               
to about 180  bcf per year. The residential  and light commercial                                                               
use in  the Railbelt would  be about 60  bcf per year,  Agrium is                                                               
anticipated  to be  about 60  bcf per  year if  it comes  back on                                                               
line, and potential  expansion from the USDS would  be another 60                                                               
bcf per  year. That would  fill the  line and provide  the lowest                                                               
tariff for the users.                                                                                                           
                                                                                                                                
SENATOR FRENCH  asked if that  was the impetus for  selecting 500                                                               
mcf per day usage from an instate bullet line.                                                                                  
                                                                                                                                
REPRESENTATIVE RAMRAS said yes.                                                                                                 
                                                                                                                                
SENATOR  FRENCH observed  that  the  new June  1,  2011 date  for                                                               
taking action  bridges from  one administration  to the  next. He                                                               
asked the thought process for that selection.                                                                                   
                                                                                                                                
3:58:08 PM                                                                                                                    
REPRESENTATIVE RAMRAS  said he struggled with  that policy issue.                                                               
The  House maintained  that  a November  2010  date was  critical                                                               
because of the election cycle and  the open season for Denali and                                                               
TransCanada, but  June 1 2011  is the  date Harry Noah  spoke of.                                                               
The  change was  an accommodation  to Mr.  Noah, but  November 1,                                                               
2010 is probably  more relevant. I would be open  to an amendment                                                               
changing the date back to November 1, 2010, he said.                                                                            
                                                                                                                                
SENATOR FRENCH  said he'd leave  that suggestion in the  hands of                                                               
the chair.  He asked if  the administration has  provided further                                                               
input regarding how it will respond to this request.                                                                            
                                                                                                                                
REPRESENTATIVE RAMRAS  replied he  appreciates that it  is easier                                                               
to move one consolidated resolution  through the Legislature, but                                                               
a benefit of  the four distinct resolutions is  that they offered                                                               
an  incremental  and explicit  point  of  view to  the  executive                                                               
branch for building an instate gas pipeline.                                                                                    
                                                                                                                                
4:01:11 PM                                                                                                                    
CO-CHAIR MCGUIRE observed that to  up the timeline by nine months                                                               
might set  the administration  up for failure.  This is  the most                                                               
important thing  we can  do for  Alaskans and  these instructions                                                               
provide direction and continuity if  there is a new governor, she                                                               
said.   Should  the   committee   desire,  there   could  be   an                                                               
accompanying  letter   to  echo   the  Senate  support   and  the                                                               
incremental  and  instructive   methodology  that  Representative                                                               
Ramras envisioned, she added.                                                                                                   
                                                                                                                                
CO-CHAIR  WIELECHOWSKI said  he'd be  happy to  work with  her on                                                               
that.                                                                                                                           
                                                                                                                                
SENATOR HUGGINS said  the topic of instate gas  generates lots of                                                               
interest, but  it's tricky. The  fact that Harry Noah  is working                                                               
on this is  good because people think he can  make it happen. The                                                               
essence  of the  discussion today  is that  the economics  of the                                                               
bullet line project have to work.  What is more, we'll get a good                                                               
look at Cook Inlet.                                                                                                             
                                                                                                                                
4:05:17 PM                                                                                                                    
SENATOR HUGGINS said he heard  .5 bcf mentioned, but he's certain                                                               
that Alaskans will  say to move as  much gas as it  takes to make                                                               
the  pipeline   work  because  all   they  want  is   gas  that's                                                               
economical. For that  reason he doesn't feel  constrained by that                                                               
number, regardless  of what AGIA  says. Another thing to  keep in                                                               
mind is that Mr. Noah  is also working on statewide distribution,                                                               
not just gas  for those who live in the  Railbelt. Then there are                                                               
the  wild cards  including gas  to liquids  and a  place for  the                                                               
petrochemical  industry along  the railbelt.  Finally, he  agrees                                                               
that it is important that  this vision extends beyond the current                                                               
governor. This is meaningful to all Alaskans, he said.                                                                          
                                                                                                                                
REPRESENTATIVE  RAMRAS   said  what  is  not   included  in  this                                                               
resolution is any mention of  the tremendous capability for small                                                               
ships to  move large  quantities of LNG  to small  communities in                                                               
Southeast, Kodiak and  Dillingham. Doug Ward [of  Alaska Ship and                                                               
Dry Dock  in Ketchikan] will  be making a presentation  here next                                                               
week about the potential for using  small ships to deliver LNG to                                                               
gasify clusters  of industrial users in  these small communities,                                                               
he said.                                                                                                                        
                                                                                                                                
PAUL KENDALL,  representing himself, said  he and the  people who                                                               
think like  he does don't  want to  be subjugated to  natural gas                                                               
and they  don't want to  pay for it.  They want equal  funding to                                                               
develop Cook Inlet,  Knik Arm and Turnigan  into a world-renowned                                                               
research site for renewable energy.                                                                                             
                                                                                                                                
4:14:53 PM                                                                                                                    
CO-CHAIR MCGUIRE  moved to adopt the  Senate committee substitute                                                               
(CS) for  HCR 2. There being  no objection, version T  was before                                                               
the committee.                                                                                                                  
                                                                                                                                
CO-CHAIR MCGUIRE moved  to report the Senate CS for  CSHCR 2 from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s). There  being no objection,  SCS CSHCR 2(RES)  moved from                                                               
the Senate Resources Standing Committee.                                                                                        
                                                                                                                                

Document Name Date/Time Subjects
HCR 2 - Bill Packet.pdf SRES 3/27/2009 3:30:00 PM
SB 108 - Bill Packet.pdf SRES 3/27/2009 3:30:00 PM
SB 108
SB 54 - Bill Packet.pdf SRES 3/27/2009 3:30:00 PM
SB 54
SB 71 - Bill Packet.pdf SRES 3/27/2009 3:30:00 PM
SB 71
SJR 16 - Bill Packet.pdf SRES 3/27/2009 3:30:00 PM