HOUSE JOINT RESOLUTION NO. 45 Urging the United States Congress not to enact Cap and Trade legislation. 9:10:38 AM JOHN COAN, STAFF, REPRESENTATIVE BILL STOLTZE, SPONSOR, explained that the resolution was intended to send a message to Congress and to the President on an issue that would deeply affect Alaska and all Alaskans. He stressed that the Cap and Trade legislation in Congress would be detrimental across all industries. Mr. Coan reported that Representative Stoltze's office had worked closely with the governor's office and members of the Alaska delegation to craft the resolution urging Congress not to enact the measure. He described the resolution as a straightforward expression of concerns regarding cap and trade legislation and its impact on average working families and economic growth in the state. RICK WILLIAMS, PETERSBURG (via teleconference), spoke as a commercial fisherman in support of the resolution: Thank you for recognizing the geographical, disproportionate impacts of mandatory greenhouse gas reductions on the state of Alaska. In Southeast Alaska, the cap and trade bill will cripple our tourism, fishing industry and barge service. Everything we buy and do will cost more. The cost-of- living increases will force many families to leave. We ordinary people are learning the goal of this cap and trade bill is to make carbon dioxide a number one commodity on the planet. Quoting the February issue of Harper's Magazine: "Unlike traditional commodities, which sometime during the course of their market exchange must be delivered to someone in physical form, the carbon market is based on the delivery of an invisible substance to no one. Its value resides entirely in the promise of its absence." Big banks and big multinationals love the trillions of dollars tied to this bill. They can work both ends and it is ripe for abuse. China and India love it; they have made it absolutely clear that they are not going to perpetuate their poverty by initiating unrealistic regulations, and will inherit our wealth. This cap and trade bill has nothing to do with the environment and everything to do with power and greed. Furthermore, there is no scientific consensus on climate change. There is, however, a petition to the U.S. government signed by 31,478 American scientists, including 9,029 with PhDs, urging our government to reject the Kyoto Protocol and any similar proposals. Additionally, it may be good to send a copy of HJR 45 to Senators Boxer and Inhofe, the ranking members of the [U.S.] Senate Committee on Environment and Public Works. 9:15:10 AM Co-Chair Stoltze stated that the resolution was not intended to disregard environmental concerns and the issues of climate change, but a major philosophical and practical disagreement that cap and trade is a vehicle to fix it. He thought there clearly is climate change and there are environmental concerns and worldwide environmental degradation issues. He referred to testimony by Meera Kohler [President of Alaska Village Electric Cooperative, Inc.] regarding the impact on the delivery of electrical services to rural Alaska; she projected an additional cost of $0.04/kWh if the cap and trade bill were implemented. Co-Chair Stoltze MOVED Conceptual Amendment 1: Page 3, line 26: Insert: Senator Barbara Boxer, Chair, U.S. Senate Committee on the Environment and Public Works; and Senator James Inhofe, Ranking Member, U.S. Senate Committee on the Environment and Public Works; There being NO OBJECTION, it was so ordered. Representative Gara spoke in opposition to the resolution. He noted that there were various versions of the cap and trade legislation pending in Congress; he thought some were better and some worse. He stated he might support the resolution if it were amended. Representative Gara relayed that there are versions of the legislation that people believe will encourage the expansion of natural gas production and other versions that people believe will harm natural gas pipeline prospects. He was working on an amendment that would clarify support of versions that would expand the use and demand for Alaska natural gas. Co-Chair Stoltze put aside the bill until later in the meeting. 9:19:39 AM Co-Chair Hawker commented that although there were various versions of the bill in Congress, HJR 45 did not target any particular version but took a stand against legislation that would negatively impact Alaskans. HOUSE JOINT RESOLUTION NO. 45 Urging the United States Congress not to enact Cap and Trade legislation. 9:45:03 AM Co-Chair Stoltze returned to HJR 45. Representative Gara MOVED to ADOPT Conceptual Amendment 2: Insert page 3, line 12: Whereas there are proposals to amend the pending legislation that would expand the demand for Alaska natural gas, and that would benefit Alaska; and Page 3, line 16: Insert after "enact", insert "any version of" Co-Chair Stoltze OBJECTED. Representative Gara explained the amendment. He believed there were versions of the cap and trade legislation in Congress that would discriminate against the use of natural gas and therefore be harmful to Alaska, and that there are proposals that may not technically be cap and trade provisions that would encourage the use of natural gas, which would be beneficial to the state. The amendment first acknowledges the existence of proposals that would expand the use of natural gas. Secondly, the Alaska delegation might work against provisions that would discriminate against natural gas and work for provisions that would move a natural gas pipeline forward. Inserting the language "any version of" would address the intent to discourage detrimental versions. Co-Chair Stoltze MOVED to divide the amendment into two parts. There being NO OBJECTION, it was so ordered. Representative Gara MOVED to ADOPT Amendment 2a: Insert page 3, line 12: Whereas there are proposals to amend the pending legislation that would expand the demand for Alaska natural gas, and that would benefit Alaska; and Representative Gara explained Amendment 2a. He noted a number of factual statements in the "Whereas" section; he regarded the amendment as factual as well. 9:49:28 AM Co-Chair Stoltze expressed concerns that the amendment would clutter the issue. Representative Gara responded that the "Whereas" section made factual statements, not whether the issues were supported or not. He believed the statement in the amendment was bipartisan. Representative Kelly spoke against Amendment 2a. He stated concerns about secondary effects and about climate change. Co-Chair Stoltze MAINAINED his OBJECTION. A roll call vote was taken on the motion. IN FAVOR: Gara, Salmon, Doogan, Foster OPPOSED: Joule, Kelly, Thomas, Austerman, Fairclough, Stoltze, Hawker. The MOTION FAILED (4/7). 9:52:42 AM Representative Gara MOVED to ADOPT Amendment 2b: Page 3, line 16: Insert after "enact", insert "any version of" Co-Chair Stoltze believed the amendment to be technical and did not object to it. There being NO OBJECTION, Amendment 2b was adopted. Co-Chair Hawker clarified the amendment numbers. There was a discussion about language in the amendment. 9:55:11 AM Representative Gara maintained that a "Whereas" section beginning with line 5 on page 3 was inaccurate. The section says that cap and trade will harm the demand for natural gas, which he claimed was not true for some versions of the legislation. He wanted to distinguish between proposals. Co-Chair Stoltze disagreed. Representative Gara proposed inserting language to clarify that certain versions of cap and trade legislation would harm demand for natural gas. 9:58:12 AM Co-Chair Stoltze suggested changing "would" on line 6 to "may". Representative Gara reiterated his concerns that certain versions would be bad for Alaska. Co-Chair Hawker MOVED conceptual Amendment 3: Page 3, line 6: Replace "would" with "may" There being NO OBJECTION, it was so ordered. Co-Chair Hawker MOVED to report HJR 45 as amended out of Committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHJR 45(FIN) was REPORTED out of Committee with a "do pass" recommendation and with attached new zero note by the Legislative Affairs Agency. 9:59:54 AM