04/07/2009 01:00 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB14 | |
| HJR9 | |
| SB34 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 14 | TELECONFERENCED | |
| + | HJR 9 | TELECONFERENCED | |
| *+ | SB 34 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
April 7, 2009
1:59 p.m.
MEMBERS PRESENT
Senator Albert Kookesh, Chair
Senator Linda Menard, Vice Chair
Senator Bettye Davis
Senator Kevin Meyer
Senator Joe Paskvan
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 14
"An Act expanding the motor fuel tax suspension period."
MOVED SB 14 OUT OF COMMITTEE
HOUSE JOINT RESOLUTION NO. 9
Designating the Alaska Aviation Heritage Museum located at 4721
Aircraft Drive in Anchorage as the official headquarters for the
State of Alaska's Centennial of Flight Celebration.
MOVED SCS HJR 9(TRA) OUT OF COMMITTEE
SENATE BILL NO. 34
"An Act directing the Department of Transportation and Public
Facilities to prepare a report on the feasibility of using
compressed natural gas to power vehicles in the state, including
vehicles owned or operated by the state, and including in that
study, if warranted, a pilot program proposal for powering some
vehicles owned or operated by the state with compressed natural
gas."
MOVED SB 34 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 14
SHORT TITLE: EXTEND MOTOR FUEL TAX SUSPENSION
SPONSOR(s): SENATOR(s) DAVIS
01/21/09 (S) PREFILE RELEASED 1/9/09
01/21/09 (S) READ THE FIRST TIME - REFERRALS
01/21/09 (S) L&C, TRA, FIN
03/10/09 (S) L&C AT 1:30 PM BELTZ 211
03/10/09 (S) Heard & Held
03/10/09 (S) MINUTE(L&C)
03/24/09 (S) L&C AT 1:30 PM BELTZ 211
03/24/09 (S) Scheduled But Not Heard
03/26/09 (S) L&C AT 1:30 PM BELTZ 211
03/26/09 (S) Moved SB 14 Out of Committee
03/26/09 (S) MINUTE(L&C)
03/27/09 (S) L&C RPT 3DP 1AM
03/27/09 (S) DP: PASKVAN, DAVIS, MEYER
03/27/09 (S) AM: THOMAS
04/07/09 (S) TRA AT 1:00 PM BUTROVICH 205
BILL: HJR 9
SHORT TITLE: CENTENNIAL OF FLIGHT CELEBRATION
SPONSOR(s): REPRESENTATIVE(s) FOSTER
01/28/09 (H) READ THE FIRST TIME - REFERRALS
01/28/09 (H) TRA
03/24/09 (H) TRA AT 1:00 PM CAPITOL 17
03/24/09 (H) Moved Out of Committee
03/24/09 (H) MINUTE(TRA)
03/25/09 (H) TRA RPT 6DP
03/25/09 (H) DP: JOHANSEN, MUNOZ, DOOGAN, JOHNSON,
GRUENBERG, WILSON
03/30/09 (H) TRANSMITTED TO (S)
03/30/09 (H) VERSION: HJR 9
04/01/09 (S) READ THE FIRST TIME - REFERRALS
04/01/09 (S) TRA
04/07/09 (S) TRA AT 1:00 PM BUTROVICH 205
BILL: SB 34
SHORT TITLE: COMPRESSED NATURAL GAS FOR STATE VEHICLES
SPONSOR(s): SENATOR(s) DYSON
01/21/09 (S) PREFILE RELEASED 1/9/09
01/21/09 (S) READ THE FIRST TIME - REFERRALS
01/21/09 (S) TRA, ENE, FIN
04/07/09 (S) TRA AT 1:00 PM BUTROVICH 205
WITNESS REGISTER
TOM OBERMEYER, Staff
to Senator Davis
Alaska Capitol Building
POSITION STATEMENT: Introduced SB 14 on behalf of the sponsor.
PAUL LABOLLE, Staff
to Representative Richard Foster
Alaska Capitol Building
Juneau AK
POSITION STATEMENT: Introduced HJR 9 on behalf of the sponsor.
GAYLE PHILLIPS, former member
Alaska Legislature and President
Alaska Aviation Museum Board of Directors
Anchorage AK
POSITION STATEMENT: Spoke in support of HJR 9.
SENATOR FRED DYSON
Alaska State Legislature
Juneau AK
POSITION STATEMENT: Sponsor of SB 34.
LUCKY SCHULTZ, Staff
to Senator Dyson
Alaska Capitol Building
Juneau AK
POSITION STATEMENT: Provided information related to SB 34.
ACTION NARRATIVE
1:59:13 PM
CHAIR ALBERT KOOKESH called the Senate Transportation Standing
Committee meeting to order at 1:59 p.m. Present at the call to
order were Senators Meyer, Davis, Menard and Kookesh. Senator
Paskvan joined the committee soon thereafter.
SB 14-EXTEND MOTOR FUEL TAX SUSPENSION
1:59:46 PM
CHAIR KOOKESH announced the consideration of SB 14.
TOM OBERMEYER, Staff to Senator Davis, sponsor of SB 14, said
the bill extends the motor fuel tax suspension period an
additional 2 years. The suspension was initiated during times of
high fuel prices and was designed to help stimulate the economy
in Alaska. However, Alaska continues to pay some of the highest
motor fuel prices in the nation; it affects the price of all
goods that are shipped to the state.
2:01:47 PM
Air and cruise travel to Alaska is also declining because of the
current recession. Extending the suspension of the motor fuel
tax will have a major impact on the enormous quantities of fuel
consumed in the transport of goods and people in Alaska. It will
encourage cargo carriers to maintain flights and cargo hubs in
Alaska, and it will encourage air and cruise lines to reduce
fares to stimulate demand.
2:02:44 PM
CHAIR KOOKESH noted that Johanna Bales with the Department of
Revenue is available to answer questions.
SENATOR MEYER said he voted in favor of the bill in the previous
committee and he will be a do pass today. This is a bill that
will help both urban and rural Alaska. However, he would note
that DOT would like the fuel tax to increase from 8 cents to 16
cents or 32 cents to provide money for repairing and building
roads. At some point this will have to be addressed.
SENATOR KOOKESH closed public testimony and asked for a motion.
SENATOR MENARD moved to report SB 14 from committee with
individual recommendations and attached fiscal note(s). There
being no objection, SB 14 moved from the Senate Transportation
Standing Committee.
HJR 9-CENTENNIAL OF FLIGHT CELEBRATION
2:05:04 PM
SENATOR KOOKESH announced the consideration of HJR 9.
PAUL LABOLLE, Staff to Representative Richard Foster, sponsor of
HJR 9, stated that this resolutions designates the Alaska
Aviation Heritage Museum as the official headquarters for the
centennial flight celebration, which will occur in 2013.
2:06:23 PM
GAYLE PHILLIPS, former member of the Alaska Legislature and
President of the Alaska Aviation Museum Board of Directors,
urged the committee to pass HJR 9. Approval of the resolution
provides time for the board to work with other aviation entities
throughout the state to plan for this significant anniversary in
Alaska's aviation history, she said. The board also will work
with other museums of flight throughout the country and world to
prepare for their participation in Alaska's celebration of
motorized flight. The celebration will enhance the Alaska
economy and visitor industry.
2:07:59 PM
SENATOR PASKVAN joined the committee.
SENATOR KOOKESH closed public testimony and opened committee
discussion.
SENATOR PASKVAN said his staff reminded him that the first
flight in Alaska took place at an exhibition in Fairbanks on
July 4, 1913, and he wonders why that isn't reflected in the
resolution.
MS. PHILLIPS said she doesn't know why that information isn't
included in the resolution because that is an acknowledged fact.
MR. LABOLLE suggested he make a friendly conceptual amendment.
2:09:32 PM
SENATOR PASKVAN moved a conceptual amendment to recognize that
the first flight in Alaska occurred July 4, 1913 at an
exhibition in Fairbanks Alaska.
SENATOR KOOKESH found no objection and announced that the
conceptual amendment is adopted.
SENATOR MEYER moved to report HJR 9 with the conceptual
amendment and zero fiscal note from committee with individual
recommendations. There being no objection, SCS HJR 9(TRA) moved
from the Senate Transportation Standing Committee.
At ease at 2:10 pm.
SB 34-COMPRESSED NATURAL GAS FOR STATE VEHICLES
2:11:20 PM
SENATOR KOOKESH announced the consideration of SB 34.
SENATOR FRED DYSON, sponsor of SB 34, said compressed natural
gas (CNG) often is overlooked as an energy source, and anyone
paying attention to energy needs realizes that almost none of
the alternative sources work for the transportation sector.
Technology for battery-powered and hydrogen-fueled vehicles
hasn't come as far as everyone hoped it would when it was
initially considered 10-15 years ago, but CNG is making an
impact in the transportation industry. In Argentina 85 percent
of the public vehicles are CNG powered and the states of Texas
and Utah are currently running fleets of buses that are powered
by CNG.
SENATOR DYSON said his professional experience is that virtually
all diesel engines can be converted to run on some derivative of
natural gas, which is hopeful for generator use in rural Alaska.
It's an open argument as to whether propane or natural gas is
more efficient, but he surmises that CNG is more economic for
industrial users.
2:14:00 PM
SENATOR DYSON said that Anchorage had quite a few CNG and
propane-powered vehicles 10-15 years ago, but there weren't any
filling stations for those vehicles. Anchorage gas companies
have said they will build the stations just as soon as there's a
market, and the market is waiting for filling stations before
buying CNG or propane-powered vehicles. He noted that in his
community quite a few folks have connected their generator to
their house natural gas supply for use when the commercial
electric power goes down. Some folks have also tapped into their
natural gas line and put in a compressor to fill their private
vehicles using what's called a slow fill. Commercial
applications provide a high pressure quick fill, which is needed
for buses and other commercial vehicles. He related that he is
trying to push the Municipality of Anchorage to purchase CNG
powered buses as it replaces the current fleet, but they argue
that there isn't a filling station. He asked Enstar to make it
work but thus far there is no resolution.
The advantage of CNG for the transportation sector is apparent
even at today's prices. As those prices go up with the expected
surge in crude oil prices, the economics tilt further in favor
of CNG. Also, the difference in emissions is profound,
particularly for diesel. Nitrogen oxide from diesel engines is
difficult to deal with and converting diesel engines to natural
gas will not only affect emissions, it will also affect the
regulatory environment in which they operate. As carbon trapping
and trading becomes more common, using natural gas in the
transportation sector will become more significant.
SENATOR DYSON related that in his area a local contractor has
proposed to use the methane that's produced from the municipal
landfill to supply hundreds of vehicles with fuel each day. It's
a marriage made in heaven when you can solve somebody's problem
and make money doing so, he said
2:18:53 PM
SB 34 proposes a Department of Transportation (DOT) task force
to study the feasibility of using CNG to power vehicles in the
state. He said he thinks municipal and state fleets are the
logical test. In the last 15 years the technology for storage,
conversions, and compressors has come forward an order of
magnitude making it very practical.
SENATOR MENARD noted the fiscal note is $75,000.
LUCKY SCHULTZ, Staff to Senator Dyson, explained that DOT wants
to hire a consultant to do a proper study.
SENATOR DYSON added that the original intention was for DOT to
do this in-house, but they were reluctant to take this
additional project on with their existing staff.
2:21:18 PM
SENATOR KOOKESH noted that Aaron Bunker from CNG Alaska and
Diana Rotkis from DOT are online to answer questions.
MR. SCHULTZ reported that CNG Alaska has estimated that the
quantity of methane coming from the Anchorage land fill is
equivalent to 4,000 to 5,000 gallons of gasoline per day.
2:22:36 PM
SENATOR MEYER recalled that MOA was buying natural gas powered
cars and trucks in the 1990s and there was talk about extending
that to buses. He asked if that effort petered out because there
weren't any filling stations.
MR. SCHULTZ said the major problem was getting people to
participate. There was cost associated with converting a vehicle
and natural gas powered vehicles were more expensive. Things
have changed dramatically in the last 10 to 15 years; technology
has improved and gas and diesel prices are much higher than in
the 1990s.
2:23:58 PM
SENATOR MEYER questioned why state vehicles shouldn't be
required to convert to natural gas.
MR. SCHULTZ said that's the goal, but before making that
commitment he'd like to hear from an expert about the costs and
benefits.
SENATOR KOOKESH said thus the request for a study.
SENATOR DYSON added that somebody has to make the investment in
the vehicles to create a market to put filling stations out
there. The state is the logical one to do that with short-haul
vehicles. The big difference now as compared to 15 years ago is
the fuel cost differential, but engines that run on CNG also
last longer and have lower emissions. This appears to be a win-
win but somebody needs to break the logjam, he said.
2:25:47 PM
SENATOR PASKVAN commented that he hopes the study will look into
the pollution issue that's related to air inversion. It's a
health issue for significant areas of Alaska.
SENATOR KOOKESH, finding no further comments or questions,
closed public testimony and asked the will of the committee.
SENATOR MENARD moved to report SB 34 from committee with
individual recommendations and attached fiscal note(s). There
being no objection, SB 34 moved from the Senate Transportation
Standing Committee.
2:27:11 PM
There being no further business to come before the committee,
Chair Kookesh adjourned the Senate Transportation Standing
Committee meeting at 2:27 pm.
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