HOUSE BILL NO. 447 An Act making appropriations relating to power cost equalization and the sale of the four-dam pool hydroelectric project and to capitalize funds; and providing for an effective date. KEITH LAUFER, CHIEF FINANCIAL OFFICIER, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY (AIDEA), ANCHORAGE, advised that there had been a change made to Section 1 of the bill. Monies that were appropriated for the Southeast inter-tie loans in Section 5, Chapter 19, were appropriated under the bill, some to Alaska Energy Authority (AEA) for cost of the sale and the bulk to the Power Cost Equalization (PCE) endowment fund. That language has been rewritten under Section 1(a) of the bill. The original appropriation for the Southesat inter-tie loan lapses back to the Railbelt Energy Fund, Sections (b) & (c) and would be appropriated from the Constitutional Budget Reserve (CBR). Representative J. Davies asked the amount expected to be lapsed to that fund. Mr. Laufer replied $20 million dollars. Vice Chair Bunde MOVED to ADOPT the work draft #1-GH2083\D, Cramer, 4/13/00, as the version of the bill before the Committee. There being NO OBJECTION, it was adopted. Representative Phillips questioned if the interest would be going into the endowment. Co-Chair Therriault replied that it has been accruing into the general fund. Mr. Laufer advised that there were no other changes to the bill except the recommendation to Section 5 to add the legal names of each entity. Representative J. Davies referenced Page 2, Line 10, "purchasing the utilities". He believed that the previous version contained a definition of that language. BRIAN BJORKQUIST, (TESTIFIED VIA TELECONFERNCE), ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW, ANCHORAGE, acknowledged that the other bill had a definition of "purchasing utilities". Picking up that definition would insert after "Wrangle" the language "purchasing a utility,". To Page 2, Line 27, Co-Chair Therriault MOVED to ADOPT the proposed Amendment #1, the language recommended by Mr. Bjorkquist. There being NO OBJECTION, it was adopted. Representative Austerman MOVED to ADOPT Amendment #2, which would delete "$19.5 million dollars" and would insert "$100,000,000". [Copy on File]. Representative Austerman noted that the amendment would fully fund a Power Cost Equalization (PCE) endowment fund so that it would not need to be addressed every year. Representative J. Davies voiced support for the amendment. Co-Chair Therriault asked if the amendment were to pass, would it cause technical problems with HB 446. Mr. Laufer replied that it would reduce the dividends that flow from the endowment, however, it would not impact HB 446. Vice Chair Bunde pointed out that there is a statutory limit for $17 million dollars. The current scheme does not fully fund PCE. There would continue to be a need for a smaller amount to fund that. He noted concern that even with the amendment, there would most likely be additional funding requests for unanticipated growth. RANDY SIMMONS, EXECUTIVE DIRECTOR, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY (AIDEA), ANCHROAGE, advised that the statutory language states that a minimum of $17.3 million dollars in that language would be taken from the 1993 Act. The current formula in statute is for $17 million dollars. Mr. Bjorkquist interjected that in Chapter 18, SLA 1993, there is legislative intent that provides funding remain at a minimum of $17 million dollars. Co-Chair Therriault asked if that was considered intent language. Mr. Bjorkquist replied it was. Vice Chair Bunde reminded members the value of intent language. Representative Bunde suggested that the amendment could be a partial solution to the problem. Co-Chair Therriault asked if the current statutory formula drives that number. He noted that language would not modify the passage of either of the bills; instead, it calls for proration. Representative J. Davies agreed that the amendment would not fully fund the endowment. He stated that if the next legislature were to appropriate more or less, it would give strong statutory support. He emphasized that it would not bind future legislatures. Representative Phillips spoke in favor of the amendment. She stated that it would bring the issue of the PCE battle "off the table". A roll call vote was taken on the motion. IN FAVOR: Austerman, Bunde, J. Davies, G. Davis, Foster, Grussendorf, Moses, Phillips, Williams OPPOSED: Therriault Co-Chair Mulder was not present for the vote. The MOTION PASSED (9-1). Representative Foster MOVED to report CS HB 447 (FIN) out of Committee with individual recommendations. There being NO OBJECTION, it was ordered. CS HB 447 (FIN) was reported out of Committee with a "do pass" recommendation.