Legislature(2011 - 2012)BARNES 124
04/03/2012 03:00 PM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| HB357 | |
| HB336 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 336 | TELECONFERENCED | |
| += | HB 357 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
April 3, 2012
3:04 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Lance Pruitt, Co-Chair
Representative Bob Lynn
Representative Kurt Olson
Representative Dan Saddler
Representative Pete Petersen
Representative Chris Tuck
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Steve Thompson
Senator Lesil McGuire
COMMITTEE CALENDAR
HOUSE BILL NO. 357
"An Act establishing the sustainable energy transmission and
supply development program in the Alaska Industrial Development
and Export Authority."
- MOVED CSHB 357(ENE) OUT OF COMMITTEE
HOUSE BILL NO. 336
"An Act establishing an energy assistance program in the
Department of Revenue to issue an energy voucher to Alaska
permanent fund dividend recipients; and relating to the analysis
and recommendation of an energy assistance program by the
governor."
- MOVED CSHB 336(ENE) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 357
SHORT TITLE: AIDEA SUSTAINABLE ENERGY PROGRAM
SPONSOR(s): REPRESENTATIVE(s) PRUITT
02/22/12 (H) READ THE FIRST TIME - REFERRALS
02/22/12 (H) ENE, FIN
03/06/12 (H) ENE AT 3:00 PM BARNES 124
03/06/12 (H) <Bill Hearing Postponed to 3/13/12>
03/13/12 (H) ENE AT 3:00 PM BARNES 124
03/13/12 (H) Heard & Held
03/13/12 (H) MINUTE(ENE)
03/29/12 (H) ENE AT 3:00 PM BARNES 124
03/29/12 (H) Heard & Held
03/29/12 (H) MINUTE(ENE)
04/03/12 (H) ENE AT 3:00 PM BARNES 124
BILL: HB 336
SHORT TITLE: ENERGY ASSISTANCE PROGRAM & VOUCHERS
SPONSOR(s): REPRESENTATIVE(s) THOMPSON
02/22/12 (H) READ THE FIRST TIME - REFERRALS
02/22/12 (H) ENE, L&C, FIN
03/06/12 (H) ENE AT 3:00 PM BARNES 124
03/06/12 (H) <Bill Hearing Postponed to 3/13/12>
03/13/12 (H) ENE AT 3:00 PM BARNES 124
03/13/12 (H) Heard & Held
03/13/12 (H) MINUTE(ENE)
03/27/12 (H) ENE AT 3:00 PM BARNES 124
03/27/12 (H) Heard & Held
03/27/12 (H) MINUTE(ENE)
03/29/12 (H) ENE AT 3:00 PM BARNES 124
03/29/12 (H) Heard & Held
03/29/12 (H) MINUTE(ENE)
04/03/12 (H) ENE AT 3:00 PM BARNES 124
WITNESS REGISTER
DIRK CRAFT, Staff
Representative Lance Pruitt
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Pruitt,
sponsor, presented the changes to HB 357 Version M that were
encompassed in Version B.
PAUL LABOLLE, Staff
Representative Neal Foster
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Neal Foster,
Co-Chair, House Special Committee on Energy, presented changes
in the proposed committee substitute identified as Version E for
HB 336.
ACTION NARRATIVE
3:04:25 PM
CO-CHAIR LANCE PRUITT called the House Special Committee on
Energy meeting to order at 3:04 p.m. Representatives Pruitt,
Lynn, Tuck, Petersen, and Olson were present at the call to
order. Representatives Saddler and Foster arrived as the
meeting was in progress. Representative Thompson and Senator
McGuire were also present.
HB 357-AIDEA SUSTAINABLE ENERGY PROGRAM
3:05:09 PM
CO-CHAIR PRUITT announced that the first order of business would
be HOUSE BILL NO. 357, "An Act establishing the sustainable
energy transmission and supply development program in the Alaska
Industrial Development and Export Authority."
3:05:18 PM
REPRESENTATIVE OLSON moved the proposed committee substitute
(CS) for HB 357, Version 27-LS1402\B, Kirsch, 4/2/12, as the
working document. There being no objection, Version B was
before the committee.
3:06:19 PM
DIRK CRAFT, Staff to Representative Lance Pruitt, Alaska State
Legislature, presented the changes to HB 357 Version M that were
encompassed in Version B. In Version M of the bill, section 5
was deleted and subsequent sections were renumbered because the
Department of Law (DOL) confirmed that this section could be
construed to create a liability for the legislature. The new
section 5 retains the same language from section 6 in Version M,
except for the following change: "an energy project" was
replaced with "qualified energy development" on page 4, line 6,
and page 5, line 1, in order to satisfy the Alaska Industrial
Development & Export Authority (AIDEA), Department of Commerce,
Community & Economic Development. The new section 6 retains the
same language from section 7 in Version M, except for the
following change: "an energy project" was replaced with
"qualified energy development" on page 5, line 29. The new
section 7 retains the same language from section 8 in Version M.
The new section 8 retains the same language from section 9 in
Version M. The new section 9 retains the same language from
section 10 in Version M, except for the following change:
deletion of the word "energy" proceeding "loan" on page 6, line
26. The new section 10 retains the same language from section
11 in Version M, except for the following changes: deletion of
the word "energy" proceeding "loan" on page 6, line 28, and on
page 7, lines 6 and 11. The new section 11 retains the same
language from section 12 in Version M, except for the following
change: deletion of the word "energy" proceeding "loan" on page
7, line 20. The new section 13 retains the same language from
section 14 in Version M, except for the following changes:
"energy projects" was replaced with "qualified energy
development" on page 8, lines 18-19, on page 9, lines 11-14, 22-
23 and 26, and on page 10, lines 5, 12-13, 15-16, and 18-19.
The new section 14 retains the same language from section 15 in
Version M, except for the following changes: "an energy
project" was replaced with "qualified energy development" on
page 10, line 23; inserted "conservation" proceeding "storage"
on page 10, line 25; replaced "conversion of natural gas, coal,
or biomass to liquids" with "the chemical, catalytic, or
biological upgrade or conversion of natural gas, coal or biomass
to hydrocarbon liquids" on page 10, lines 29-30; inserted
"gasification of coal or biomass into synthesis gas" on page 11,
line 3; inserted "the chemical, catalytic, or biological upgrade
of synthesis gas into methane" on page 11, lines 4-5; inserted
"the manufacture of hydrogen from any feedstock, excluding the
mechanical separation from air" on page 11, lines 6-7. The new
section 15 retains the same language from section 16 in Version
M, except for the following change: the reference is changed
from section 14 to section 13 to reflect the number of sections.
3:13:08 PM
REPRESENTATIVE SADDLER asked for clarification on the change
from "an energy project" to "qualified energy development."
MR. CRAFT explained AIDEA has a specific definition of
"projects" in its statutes. He read from AS 44.88.900:
"project" means a plant or facility used or intended
for use in connection with making, processing,
preparing, transporting, or producing, in any manner
goods, products, or substances of any kind or nature
in connection with developing or utilizing a natural
resource for extracting, smelting, transporting,
converting, assembling, or producing in any manner
minerals, raw minerals, chemicals, compounds, alloys,
fibers, commodities, and materials, products, or
substances of any kind or nature.
REPRESENTATIVE SADDLER said, "So this is a separate fund for
purposes other than what's defined in 'project.'"
MR. CRAFT said correct.
3:15:06 PM
REPRESENTATIVE TUCK directed attention to the addition of
"conservation" on page 10, line 25 of the bill and asked for
what type of conservation projects these loans would be used.
MR. CRAFT said the sponsor's intent was to be all-encompassing
and include any type of energy project that involves
conservation. He deferred to a representative of AIDEA for more
details. In further response to Representative Tuck, he said
the sponsor worked closely with AIDEA on crafting the new
language in the bill.
REPRESENTATIVE TUCK expressed his understanding that the bill
originally addressed power generation and transmission, but has
expanded to include any type of manufacturing from liquid gasses
and value-added industries.
MR. CRAFT said, "Again, I think it was, the intent was to create
a fund that could be used for energy projects, ... any type of
energy project that is currently in use by utilities statewide
.... That can include any kind of project we discussed in this
committee."
3:16:46 PM
REPRESENTATIVE PRUITT opined the intent is not necessarily for a
value-added product for export, but there are opportunities for
manufacturing within the state. He referred to the new
language, "the chemical, catalytic, or biological upgrade or
conversion of natural gas, coal or biomass" and stressed that an
electrical utility or a small company could get funding to use
these processes within the state. Representative Pruitt said,
"It's not intended for export."
REPRESENTATIVE TUCK asked where to find the applicable language
in the bill.
MR. CRAFT returned attention to sections 13 and 14 of Version B.
Section 13 begins on page 8, line 14, and establishes a new
separate fund within AIDEA. He restated the intent of the bill,
which is to stop utilities from obtaining financing for projects
from out-of-state sources, and to keep the financing process in
the state. Page 9, lines 12-35, outlines the powers and duties.
Mr. Craft explained that a new fund is created to protect the
existing credit rating of AIDEA, and to offer expanded powers
and limitations when it comes to energy financing. He deferred
to AIDEA for more details.
3:20:14 PM
REPRESENTATIVE TUCK stated he liked the intent of the bill, as
it is a good example of how to offer low interest loans for
value-added industry, manufacturing, and a local petrochemical
industry in the future. He understood that the state needs to
help industry by reducing the cost of energy; however, there
needs to be a return on investment after providing "seed money."
Furthermore, the bill provides planning for the future.
Representative Tuck said he appreciated the idea of the bill.
3:22:09 PM
REPRESENTATIVE OLSON moved to report the proposed CS for HB 357,
Version 27-LS1402\B, Kirsch, 4/2/12, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 357(ENE) was
reported from the House Special Committee on Energy.
3:22:55 PM
The committee took an at-ease from 3:22 p.m. to 3:23 p.m.
3:23:05 PM
CO-CHAIR PRUITT clarified that CSHB 357(ENE) was not amended.
HB 336-ENERGY ASSISTANCE PROGRAM & VOUCHERS
3:25:15 PM
CO-CHAIR PRUITT announced that the final order of business would
be HOUSE BILL NO. 336, "An Act establishing an energy assistance
program in the Department of Revenue to issue an energy voucher
to Alaska permanent fund dividend recipients; and relating to
the analysis and recommendation of an energy assistance program
by the governor."
3:25:32 PM
PAUL LABOLLE, Staff to Representative Neal Foster, Alaska State
Legislature, presented the new proposed committee substitute
(CS) for HB 336, Version 27-LS1403\E, Nauman, 4/2/12, by
explaining the changes between Version I and Version E. The
language added during the previous House Special Committee on
Energy hearing "other identifying information" is now found on
page 3, line 14, of Version E and he read:
the address or other identifying information requested
by the corporation listed on the heating oil, natural
gas, or electricity account that the voucher will
credit
MR. LABOLLE referred to three of the other changes adopted
during the previous hearing and said the drafter recommended
incorporating those changes in "a more complex language section"
beginning with the following new language on page 4, line 1,
which read:
(g) If a recipient of an energy voucher certifies on a
form provided by the corporation, bearing notice that
false statements made on the form are punishable by
law, that the recipient
MR. LABOLLE advised that the drafter replicated the language in
section 1, subsection (g) of Version I and divided it into
subsections thus on page 4, line 1 of Version E, subsection (g)
currently only illustrates that the recipient provide a notice
that false statements made in this form are punishable by law,
whereas Version I subsection (g) cited both access to a
distributor and that they did not directly pay for energy or
heat costs. The new section 1 in Version E states the
requirements of not paying directly for heating oil or not
having reasonable access to a qualified distributor. Section 1,
subsection (g) paragraph (1) in Version I was replaced by
section 1, subsection (g) subparagraph (A) in Version E which
read:
for a replacement voucher in the name of the landlord
of the primary residence in the state [in] which the
recipient resides, the full value of which shall be
deducted by the landlord from the recipient's rent;
3:29:07 PM
MR. LABOLLE continued to section 1, subsection (g), subparagraph
(B) in Version E, which was a replication of what was previously
found in subsection (g) paragraph (2) in Version I, "dealing
with the $250 for rent." Section 1, subsection (g), paragraph
(2) in Version E, deals with the $500 payment for a fuel that is
not heating oil, natural gas, or electricity. Mr. Labolle
reminded the committee there were concerns about the ability of
the power cost equalization (PCE) program and condominium
associations to respond to the bill. He was advised by the
Alaska Housing Finance Corporation (AHFC), Department of
Revenue, that these instances can be addressed through
regulation rather than statute. Returning attention to page 4,
line 10 of Version E, he said "energy or heating costs" was
deleted; however, the drafter recommended that language should
remain, otherwise those who live off the road system - without
access to a qualified distributer - but who do heat with fuel
oil, natural gas, or electricity, would be exempted from the
bill.
3:33:00 PM
REPRESENTATIVE OLSON moved to adopt the proposed CS for HB 336,
Version 27-LS1403\E, Nauman, 4/2/12, as the working document.
There being no objection, Version E was before the committee.
3:33:34 PM
REPRESENTATIVE OLSON moved to adopt the fiscal note identified
as HB336CS(ENE)-DOR-PFD-03-27-12, fiscal note number 1. There
being no objection, the fiscal note was adopted.
3:34:49 PM
REPRESENTATIVE TUCK asked for clarification on which fiscal note
was adopted.
The committee took a brief at-ease.
3:36:32 PM
REPRESENTATIVE OLSON moved to adopt the fiscal note identified
as HB336CS(ENE)-DOR-AHFC-04-03-12. There being no objection,
the fiscal note was adopted.
3:37:47 PM
CO-CHAIR FOSTER moved to report the proposed CS for HB 336,
Version 27-LS1403\E, Nauman 4/2/12, out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, CSHB 336(ENE) was reported out of the
House Special Committee on Energy.
3:38:30 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 3:38 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01 HB 357 Sponsor Statement.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 01a CS HB 357 Summary of Changes from Version M to Version B.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 02 CSHB 357 (ENE) Version B.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 03 CSHB 357 Version M.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 04 HB 357 Version A.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 05 HB357-DCCED-AIDEA-03-02-12(a).pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 06 HB336CS(ENE)-DOR-AHFC-04-02-12.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 06 HB336CS(ENE)-DOR-PFD-03-28-12.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 06 HB357-DCCED-AIDEA-03-02-12(b).pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 07 Support Documents - S&P AIDEA Rating Report.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 08 Support Documents - AIDEA Simplified project process flow chart.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 09 Support Documents - AIDEA Rating Agency Information.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 10 Support Documents - Development Flow Chart draft v1.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 357 |
| 1 HB 336 version A.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 1b CS HB 336 Version E.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 1a CS HB 336( ) versionB.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 1a CSHB 336 Version I.pdf |
HENE 3/27/2012 3:00:00 PM HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 2 HB 336 Sponsor Statement.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 2a CSHB 336 Sponsor Statement.pdf |
HENE 3/27/2012 3:00:00 PM HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 2aa CSHB 336 Sectional Analysis.pdf |
HENE 3/27/2012 3:00:00 PM HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 3 HB336-DOR-TAX-03-02-12.pdf |
HENE 3/27/2012 3:00:00 PM HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 4HB336-DOA-OAH-3-8-12.pdf |
HENE 3/27/2012 3:00:00 PM HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 5 HB336-DOR-PFD-03-02-12.pdf |
HENE 3/27/2012 3:00:00 PM HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 6 HB 336 support letter AARP.pdf |
HENE 3/27/2012 3:00:00 PM HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 7 HB 336 Kawerak letter of support.pdf |
HENE 3/27/2012 3:00:00 PM HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 8 HB 336 Bristol Bay letter of support.pdf |
HENE 3/27/2012 3:00:00 PM HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 9 AK Commision on Aging HB 336 Energy Assistance.pdf |
HENE 3/27/2012 3:00:00 PM HENE 4/3/2012 3:00:00 PM |
HB 336 |
| 10 AAgli HB 336 oral testimony 3 27 12.pdf |
HENE 4/3/2012 3:00:00 PM |
HB 336 |