HB 119-GAS PIPELINE FAIRBANKS SPUR  4:37:52 PM CHAIR CARRICK announced that the next order of business would be HOUSE BILL NO. 119, "An Act relating to an in-state natural gas pipeline developed by the Alaska Gasline Development Corporation; and providing for an effective date." 4:41:02 PM CHAIR CARRICK opened public testimony on HB 119. 4:41:23 PM DANIEL HECKMAN, Regulatory Manager, Golden Valley Electric Association (GVEA), testified in support of HB 119, which aligns with GVEA's goals and supports measures to ensure short-term certainty for inputting liquified natural gas (LNG) to Cook Inlet and state efforts to assess the feasibility of connecting a gas line connecting the North Slope to the Railbelt, including a spur to the Fairbanks North Slope Borough. 4:44:25 PM MR. HECKMAN, in response to Representative McCabe, noted that GVEA's plant in North Pole, Alaska, is slated for a dual fuel fired set-up that would allow for both oil and natural gas. To a follow-up question, he noted that the cost of this conversation would be significant. 4:46:36 PM CHAIR CARRICK noted that powerplant on University of Alaska Fairbanks (UAF) campus can burn coal or natural gas. 4:47:03 PM DAVID GUTTENBERG, Assembly Member, Fairbanks North Star Borough, noted that the assembly has passed numerous resolutions in support of a spur line into Fairbanks, and he expressed frustration that it was not a part of the project from the beginning. He talked about the state's constitution requiring the state's resources to be of maximum benefit to all Alaskans. He said the Alaska Gasline Development Corporation (AGDC) "has always given the concept of a spur line built into the project kind of a sideways glance." 4:50:32 PM JOMO STEWART, President, Fairbanks Economic Development Corporation (FEDC), testified in support of HB 119 as a much needed "conversation starter." He spoke about AGDC's indication that Fairbanks lateral is not integral to the overall gasline project and the concern that causes for the Fairbanks North Star Borough. He said that while FEDC understands that highest priority of the State of Alaska is to monetize North Slope gas "to the good of all residents" and its secondary concern is to get gas down to Southcentral Alaska, it would be "a tragedy" if Fairbanks were bypassed or the gas was too expensive to use or the borough were not in the position to support the gas line with its demands. He stated that while HB 119 is not a solution, it is a start of a valuable conversation. 4:53:44 PM GRIER HOPKINS, Mayor, Fairbanks North Star Borough, testified in support of HB 119. He emphasized the importance of not bypassing Fairbanks and noted that the borough has been developing a natural gas market. He emphasized the high cost of heating in Interior Alaska. He said HB 119 would ensure that those in the greater borough area are "not left behind" and do not see increased costs for natural gas "at their doorstep." 4:57:17 PM MR. HOPKINS, in response to Representative Vance, described the role of the Fairbanks North Star Borough as making certain that the project is economical at the local level and to begin working on all projects necessary to ensure access for the spur line. He indicated that HB 119 would give ensure the spur is going to happen. In response to a follow-up question, he added that the borough would also need to see headway with the project as a whole. Knowing that they would be part of project would allow the borough to plan. In response to encouragement from Representative Vance to begin community engagement, he shared that community financial assistance plans and educational programs have been created. 5:00:42 PM REPRESENTATIVE MCCABE talked local improvement districts, talked about resistance to put gas lines into some of his districts. Said low income people have not been able to pay, asked if this would be an issue. MR. HOPKINS, in response to Representative McCabe regarding the lack of financial means in some communities, said the borough received federal funding for line expansion and price to hook up is paid by those who want to hook up. He talked about density mapping and a process for figuring out interest. He said the borough is allowing residential and business choice, needs to be economical. He offered further details about service areas. 5:05:09 PM ELENA SUDDUTH, General Manager, Interior Gas Utility, testified in support of HB 119. She Interior climate is harsh and the price of available fuel sources is high. She stated that currently IGU supplies approximately 1.5 billion cubic feet (bcf) of natural gas annually, and she explained the involved process that must happen to supply that gas because there is no natural gas pipeline that comes to the region. This process more than doubles the price of natural gas to the Interior compared to the Southcentral region. She said a Wood Mackenzie study projected that Fairbanks could transition to natural gas and achieve a 90 percent penetration rate from 2031 to 2033, for a total demand of 11 bcf. She compared that to the current demand of 1.5 bcf. She stated, "Reaching this level of adoption requires an affordable rate." She said without the infrastructure, the Interior might not reach the projected level, which could result in increased costs for the rest of the state during phase I of the project. She said the mandate under HB 119 for the spur to Fairbanks as essential, and given the already high cost of energy in this region, she said it is crucial that financial responsibility for this lateral not fall on its residents. She concluded that HB 119 would establish the spur as a statewide priority. 5:08:50 PM CHAIR CARRICK, after ascertaining there was no one else who wished to testify, closed public testimony on HB 119. 5:09:02 PM CHAIR CARRICK set an amendment deadline and announced that HB 119 was held over.