03/25/2024 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HB295 | |
| Presentation(s): Regulatory Commission of Alaska | |
| HB359 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 359 | TELECONFERENCED | |
| += | HB 349 | TELECONFERENCED | |
| += | HB 295 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
March 25, 2024
1:05 p.m.
MEMBERS PRESENT
Representative Tom McKay, Chair
Representative George Rauscher, Vice Chair
Representative Thomas Baker
Representative Kevin McCabe
Representative Dan Saddler
Representative Stanley Wright
Representative Jennie Armstrong
Representative Donna Mears
Representative Maxine Dibert
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 295
"An Act relating to salmon hatchery permits; and authorizing the
sale of salmon to permitted persons for stocking lakes."
- MOVED CSHB 295(RES) OUT OF COMMITTEE
PRESENTATION(S): REGULATORY COMMISSION OF ALASKA BY BECKI
ALVEY~ ADVISORY SECTION MANAGER
- HEARD
HOUSE BILL NO. 359
"An Act relating to the permanent fund dividend and a one-time
permanent fund dividend payment and land voucher; and providing
for an effective date."
- HEARD & HELD
HOUSE BILL 349
"An Act relating to leases of public land for renewable energy
projects; and providing for an effective date.
- BILL RESCHEDULED TO 03/27/24
PREVIOUS COMMITTEE ACTION
BILL: HB 295
SHORT TITLE: SALMON HATCHERY PERMITS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/26/24 (H) READ THE FIRST TIME - REFERRALS
01/26/24 (H) FSH
02/06/24 (H) FSH AT 10:00 AM GRUENBERG 120
02/06/24 (H) Scheduled but Not Heard
02/20/24 (H) FSH AT 10:00 AM GRUENBERG 120
02/20/24 (H) -- MEETING CANCELED --
02/27/24 (H) FSH AT 10:00 AM GRUENBERG 120
02/27/24 (H) Heard & Held
02/27/24 (H) MINUTE(FSH)
03/05/24 (H) FSH AT 10:00 AM GRUENBERG 120
03/05/24 (H) <Bill Hearing Canceled>
03/07/24 (H) FSH AT 10:00 AM GRUENBERG 120
03/07/24 (H) Moved CSHB 295(FSH) Out of Committee
03/07/24 (H) MINUTE(FSH)
03/11/24 (H) FSH RPT CS(FSH) NEW TITLE 4DP 3NR
03/11/24 (H) DP: CARPENTER, STUTES, MCCABE, VANCE
03/11/24 (H) NR: C.JOHNSON, HIMSCHOOT, MCCORMICK
03/13/24 (H) RES REFERRAL ADDED AFTER FSH
03/18/24 (H) RES AT 1:00 PM BARNES 124
03/18/24 (H) -- MEETING CANCELED --
03/20/24 (H) RES AT 1:00 PM BARNES 124
03/20/24 (H) Heard & Held
03/20/24 (H) MINUTE(RES)
03/22/24 (H) RES AT 1:00 PM BARNES 124
03/22/24 (H) Heard & Held
03/22/24 (H) MINUTE(RES)
03/25/24 (H) RES AT 1:00 PM BARNES 124
BILL: HB 359
SHORT TITLE: ONE-TIME PFD PAYMENT
SPONSOR(s): CRONK
02/20/24 (H) READ THE FIRST TIME - REFERRALS
02/20/24 (H) RES, FIN
03/01/24 (H) RES AT 1:00 PM BARNES 124
03/01/24 (H) Heard & Held
03/01/24 (H) MINUTE(RES)
03/08/24 (H) RES AT 1:00 PM BARNES 124
03/08/24 (H) Heard & Held
03/08/24 (H) MINUTE(RES)
03/15/24 (H) RES AT 1:00 PM BARNES 124
03/15/24 (H) <Bill Hearing Canceled>
03/25/24 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
BECKI ALVEY, Advisory Section Manager
Regulatory Commission of Alaska
Anchorage, Alaska
POSITION STATEMENT: Gave the Regulatory Commission of Alaska
presentation.
TREVOR JEPSEN, Staff
Representative Tom McKay
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Mike Cronk,
prime sponsor, presented CSHB 359 (RES) to the committee.
DAVE STANCLIFF, Staff
Representative Mike Cronk
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Cronk, prime
sponsor, answered committee questions on CSHB 359 (RES).
CODY RICE, Professional Assistant
House Majority Office
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Mike Cronk,
prime sponsor, answered committee questions on CSHB 359 (RES).
ACTION NARRATIVE
1:05:19 PM
CHAIR TOM MCKAY called the House Resources Standing Committee
meeting to order at 1:05 p.m. Representatives Mears, Armstrong,
Dibert, McCabe, Wright, Baker, Rauscher, and McKay were present
at the call to order. Representative Saddler arrived as the
meeting was in progress.
HB 295-SALMON HATCHERY PERMITS
1:06:32 PM
CHAIR MCKAY announced that the first order of business would be
HOUSE BILL NO. 295, "An Act relating to salmon hatchery permits;
and authorizing the sale of salmon to permitted persons for
stocking lakes." [Before the committee was CSHB 295(FSH).]
1:06:47
CHAIR MCKAY moved Amendment 1 to CSHB 295(FSH), labeled 33-
GH2383\S.1, Bullard, 3/22/24, which read as follows:
Page 1, line 1:
Delete "relating to salmon hatchery permits; and"
Page 1, line 8, through page 2, line 1:
Delete all material.
REPRESENTATIVE RAUSCHER objected for the purpose of discussion.
CHAIR MCKAY explained that his office introduced Amendment 1 to
HB 295 in response to public testimony that was received in
previous House Resources Standing Committee meetings. He said
that the proposed Amendment would entirely remove Section 2 of
HB 295 and said that his concern with the section was that it
would have removed the public process surrounding the management
of fish hatcheries.
1:08:12 PM
REPRESENTATIVE RAUSCHER removed his objection. There being no
further objection, Amendment 1 was adopted.
1:08:29 PM
REPRESENTATIVE RAUSCHER moved to report CSHB 295, Version 33-
GH2383\S, Nauman, 3/15/24, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, CSHB 295(RES) was reported out of the
House Resources Standing Committee.
1:09:01 PM
The committee took an at-ease from 1:09 p.m. to 1:12 p.m.
^PRESENTATION(S): Regulatory Commission of Alaska
PRESENTATION(S): Regulatory Commission of Alaska
1:12:36 PM
CHAIR MCKAY announced that the next order of business would be
the Regulatory Commission of Alaska presentation.
1:13:36 PM
BECKI ALVEY, Advisory Section Manager, Regulatory Commission of
Alaska (RCA), gave a presentation, titled "Regulatory Commission
of Alaska," via PowerPoint [hard copy included in the committee
packet]. She began on slide 2, which described a brief history
of the RCA and some of its accomplishments since its inception.
She continued to slide 3, which outlined the organizational
structure of the RCA and highlighted the different sections of
regulatory work that it covers.
1:15:05 PM
REPRESENTATIVE RAUSCHER asked how the responsibilities of the
RCA have changed since its creation in 1960. He asked if the
cost of operating the RCA has increased over the years and asked
if all of the positions in the RCA are currently filled.
1:15:43 PM
MS. ALVEY answered that the responsibilities of the then Alaska
Public Service Commission (APSC) and now RCA have not changed
since the founding of either of the groups. She said that the
cost of operation within the RCA has grown over time and the RCA
has multiple open positions at the time of the current committee
meeting.
1:18:09 PM
MS. ALVEY resumed the presentation on slide 4, which outlined
the RCA's authorities and limitations as a commission in the
State of Alaska. She continued to slide 5, which defined the
term "Public Utility" as is written in Alaska Statute and moved
to slide 6, which explained what a certificate of Public
Convenience and Necessity is as it is written in Alaska Statute.
She continued to slide 7, which highlighted what a "certificated
entity" is as the term relates to all public utilities in
Alaska.
1:20:27 PM
REPRESENTATIVE SADDLER asked what the terms "not rate-regulated"
and "rate regulated" mean as they refer to public utilities in
Alaska.
1:20:49 PM
MS. ALVEY answered that a "rate-regulated" utility has their
rates set by the RCA and a "not rate-regulated" utility may set
their own rates.
1:21:56 PM
MS. ALVEY resumed the presentation on slide 8, which described
the task of the RCA in its role as a regulatory authority for
public utilities in Alaska. She continued to slide 9, which
listed certain public utilities that are currently exempt from
rate regulation under the RCA.
1:24:02 PM
REPRESENTATIVE SADDLER asked if the state was responsible for
regulating specific communications entities that are currently
covered by the Federal Communications Commission (FCC).
1:24:14 PM
MS. ALVEY answered that the state was not responsible for
regulating specific communications entities covered by the FCC
1:24:50 PM
MS. ALVEY resumed the presentation on slide 10, which outlined
the RCA's current tariff review process for entities affected by
trade tariffs. She moved to slide 11, which touched on the
power cost equalization (PCE) program and its goals. She
continued to slide 12, which outlined Cook Inlet's history of
natural gas supply and storage.
1:28:18 PM
REPRESENTATIVE MCCABE asked if the RCA is experiencing a "large
employee shortage" and asked why the RCA is not advertising any
employment opportunities.
1:28:41 PM
MS. ALVEY answered that the RCA currently has only one of its
five total "master analyst" positions filled and said that there
are six other miscellaneous positions unfilled. She explained
that the RCA advertises for its positions on Workplace Alaska
and said that the commission is currently working on filling
several of the open positions Representative McCabe was
referring to.
1:31:42 PM
MS. ALVEY resumed the presentation on slide 13, which described
the Twenty-Sixth Alaska State Legislature's House Bill 280, also
known as the "Cook Inlet Recovery Act". She continued to slide
14, which highlighted the two RCA-certificated natural gas
facilities in the Cook Inlet Gas Region.
1:33:07 PM
CHAIR MCKAY asked if the Interior Alaska Natural Gas Utility
(IANGU) is owned by the Alaska Industrial Development and Export
Authority (AIDEA) and if the Cook Inlet Natural Gas Storage
Alaska (CINGSA) is owned by the ENSTAR Natural Gas Company.
1:33:23 PM
MS. ALVEY replied that Chair McKay's understanding of the
current ownership of the public utilities' companies in the Cook
Inlet Gas Region was correct.
1:33:47 PM
MS. ALVEY resumed the presentation on slide 15, which detailed
CINGSA and the role that it plays as a public utility in the
Cook Inlet Gas Region.
1:34:45 PM
CHAIR MCKAY asked when two additional gas wells would be
developed.
1:34:58 PM
MS. ALVEY answered that the two additional gas wells in the Cook
Inlet Gas Region were scheduled to be developed by the year
2025.
1:35:21 PM
REPRESENTATIVE MEARS asked what goes into the decision-making
process when the RCA is working on a public utility's tariff
review filing. She asked what rules the RCA used when it was
hearing a public utility's tariff review claim.
1:35:41 PM
MS. ALVEY answered that the decision making process regarding a
public utility's tariff filing is largely dependent upon which
company is filing for the tariff review and what the proposed
terms of the tariff agreement were. She articulated that rules,
rates, and contracts influence the RCA's decision-making
process.
1:39:08 PM
REPRESENTATIVE MCCABE asked Ms. Alvey if the RCA was aware of
the Alaska Federation of Natives' (AFN's) resolution to
investigate the RCA's failure to serve its customers in rural
communities and asked if the RCA has done anything in response
to the resolution.
1:39:34 PM
MS. ALVEY answered that the RCA was aware of the resolution
passed by the AFN. She explained that the RCA has thoroughly
reviewed its own internal processes and operations as a result
of the AFN resolution and said that the RCA has opened a new
regulatory consideration to ensure that customers are getting
fair and swift service.
1:45:05 PM
REPRESENTATIVE SADDLER asked if the RCA is allowed to set a
higher than minimum cost of gas in the interest of incentivizing
production.
1:45:49 PM
MS. ALVEY explained that the RCA is bound to its statutes and
said that it would always look to regulate in the public
interest. She said that the RCA does not regulate gas producers
and explained how its regulations interact with both producers
and public utilities.
1:50:37 PM
CHAIR MCKAY asked what four public utilities companies are
regulated by the RCA. He asked if the RCA would regulate a
small, private renewable energy operation and asked how often
the RCA challenges public utilities' agreed upon gas prices.
1:51:25 PM
MS. ALVEY, in response to a series of questions from
Representative McKay, answered that the RCA regulates ENSTAR
Natural Gas Company; Doyon, Limited; and Norgasco while AIDEA
regulates the Fairbanks Natural Gas Company. She said that the
RCA would regulate the rates set by the contractual agreement
between the utility and the renewable energy provider. She said
that RCA staff review each individual contract between a public
utility and a gas producer.
1:59:00 PM
REPRESENTATIVE SADDLER shared his understanding that the RCA
does not have the authority to regulate commercial utilities.
MS. ALVEY confirmed that the RCA would review the producer and
utilities' gas contracts but would not regulate any rates for
commercial utilities.
2:00:21 PM
REPRESENTATIVE RAUSCHER asked how many vacancies there are
within the RCA and asked how long it would take to fill them.
MS. ALVEY replied that she would follow-up with the committee
with the requested information.
2:01:31 PM
REPRESENTATIVE SADDLER asked how many of the vacancies within
the RCA are directly affecting its ability to perform its
duties.
MS. ALVEY assured Representative Saddler that the RCA is fully
functioning despite the vacancies.
2:03:33 PM
CHAIR MCKAY thanked Ms. Alvey and the RCA for its presentation.
2:03:58 PM
The committee took an at-ease from 2:03 p.m. to 2:06 p.m.
HB 359-ONE-TIME PFD PAYMENT
2:06:01 PM
CHAIR MCKAY announced that the final order of business would be
HOUSE BILL NO. 359, "An Act relating to the permanent fund
dividend and a one-time permanent fund dividend payment and land
voucher; and providing for an effective date."
2:06:29 PM
The committee took a brief at-ease at 2:06 p.m.
2:06:43 PM
REPRESENTATIVE RAUSCHER moved to adopt the proposed committee
substitute (CS) for HB 359, Version 33-LS1292\B, Nauman,
3/15/24, as the working document.
2:07:15 PM
REPRESENTATIVE MEARS objected for the purpose of discussion.
2:08:02 PM
TREVOR JEPSEN, Staff, Representative Tom McKay, on behalf of
Representative Mike Cronk, prime sponsor, gave the summary of
changes under the proposed CS for HB 359 [included in the
committee packet], which read as follows [original punctuation
provided]:
Summary of Changes CS for House Bill 359(RES)
Permanent Fund Dividend Buy-Out
Title: "An Act relating to the permanent fund dividend
and a permanent fund dividend buy-out; and providing
for an effective date"
Slight title changes to account for change in payment
from a one-time lump sum to a three-year buyout
program.
Sec. 1 Removes section 1 of HB 359 version A
(Permanent Fund Dividend Land Vouchers) and replaces
with a modified version of HB 359 version A section 2
that conforms the language to account for three PFD
buy-out payments instead of a one-time lump sum
payment.
Sec. 2 Amended version of HB 359 version A section 3
which defines the PFD payout as three $5,000.00
payments in addition to three regular PFD payments
distributed over a three-year period (2026-2028)
instead of a one-time lump-sum payment.
Sec. 3 Amended version of HB 359 version A section 4
with conforming language to reflect the three-year
buy-out program as compared to the one-time payment.
Sec. 4 Same as section 5 in HB 359 version A
2:09:43 PM
A roll call vote was taken. Representatives McCabe, Baker,
Rauscher, Saddler, Wright, and McKay voted in favor of adopting
the proposed CS for HB 359, Version 33-LS1292\B, Nauman,
3/15/24, as the working document. Representatives Armstrong,
Mears, and Dibert voted against it. Therefore, Version B was
before the committee by a vote of 6-3.
2:11:04 PM
REPRESENTATIVE MEARS shared her concern that Version B would
negatively affect Alaskans who live in the state versus
individuals who might want to move to Alaska to abuse the
permanent fund dividend (PFD).
2:12:41 PM
DAVE STANCLIFF Staff, Representative Mike Cronk, on behalf of
Representative Mike Cronk, prime sponsor, answered committee
questions regarding HB 359, Version B. He said that no one can
know exactly what part of the demographic will benefit from the
proposed legislation and explained how the option to receive a
lump sum PFD might be beneficial for senior Alaskans or younger
families.
2:16:02 PM
CODY RICE, Professional Assistant, House Majority Office, on
behalf of Representative Mike Cronk, prime sponsor, answered
committee questions regarding HB 359, Version B. He shared a
specific data set that he prepared for the committee meeting
that highlighted how the proposed PFD distribution policies
could be implemented without risk of the PFD recipient leaving
Alaska or the State Treasury running out of money too quickly.
2:18:23 PM
REPRESENTATIVE ARMSTRONG reiterated that behavioral economics
indicate that a majority of people would choose to receive a
lump sum check rather than a delayed distribution and asked why
Version B is a good idea in the first place.
2:18:43 PM
MR. RICE confirmed Representative Armstrong's knowledge of
behavioral economics.
2:20:04 PM
MR. STANCLIFF added that Version B was being proposed to create
an option for residents that would prefer a lump sum PFD. He
said that some Alaskans are worried about the future of the
state and opined that Version B could create hope for those
people feeling uncertain about living in Alaska.
2:22:20 PM
REPRESENTATIVE MEARS asked if the proposed lump sum PFD would be
subject to federal income taxes.
2:22:39 PM
MR. RICE said that he did not know whether or not the proposed
lump sum PFD would be subject to federal taxes.
2:23:32 PM
REPRESENTATIVE SADDLER hypothesized about an individual who is
allowed to sell their rights to any future PFD they might be
eligible to receive and asked how the $15,000 figure mentioned
under Version B was attained.
MR. RICE answered that he was unsure if the PFD was
transferrable.
2:25:30 PM
MR. STANCLIFF added that the $15,000 figure was the product of
"a lot of discussion."
2:26:31 PM
REPRESENTATIVE RAUSCHER asked if the "Pick.Click.Give" program
would be included with the proposed lump sum PFD.
2:27:01 PM
MR. STANCLIFF assured Representative Rauscher that the
Pick.Click.Give program would be retained under the provisions
of Version B.
2:27:40 PM
CHAIR MCKAY shared his agreement with Representative Mears that
Version B should be deliberated further.
2:29:57 PM
CHAIR MCKAY announced that HB 359, Version B was held over.
2:30:05 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:30 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 359(RES) 33-LS1292B.pdf |
HRES 3/25/2024 1:00:00 PM |
HB 359 |
| CSHB 359(RES) 33-LS1292B Summary of Changes .pdf |
HRES 3/25/2024 1:00:00 PM |
HB 359 |
| HB 295 Amendment #1 (H)RES.pdf |
HRES 3/25/2024 1:00:00 PM |
HB 295 |
| RCA Presentation for HRES 3.25.24 V2.0.pdf |
HRES 3/25/2024 1:00:00 PM |