CS FOR SENATE BILL NO. 23(FIN) "An Act relating to development project financing by the Alaska Industrial Development and Export Authority; relating to the dividends from the Alaska Industrial Development and Export Authority; authorizing the Alaska Industrial Development and Export Authority to provide financing and issue bonds for a liquefied natural gas production system and natural gas distribution system; and providing for an effective date." Co-Chair Stoltze explained that HB 74 had been merged with SB 23. 8:13:03 PM Representative Costello MOVED to ADOPT the proposed committee substitute for HCSCSSB 23 (FIN), Work Draft 28- GS1738\R (Bailey, 4/4/13). Co-Chair Stoltze OBJECTED for discussion. DANIEL GEORGE, STAFF, REPRESENTATIVE BILL STOLTZE, pointed to changes in the bill. He stated that the CS reintroduced provisions related to Alaska Industrial Development and Export Authority, (AIDEA) direct financing that were removed by the House Labor and Commerce Committee. A change on page 10, line 25 stated, "a natural gas distribution system and affiliated infrastructure in interior Alaska," where the "interior Alaska" portion was added. Co-Chair Stoltze WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. Representative Thompson MOVED a technical amendment on page 10, line 25 to capitalize the word "Interior." He commented that the word "interior" in the bill referred to a place and therefore required capitalization. Representative Kawasaki objected. He asked for clarification on the word interior and its meaning in the bill. Representative Thompson explained that the lowercase word did not adequately reflect Interior Alaska as a place. He posed that the word interior might refer to the inside of his home rather than a place in our state. The Interior of Alaska included the North Slope, Fairbanks and the Fairbanks North Star Borough. Co-Chair Stoltze added that the previous committee removed the word interior. The House Finance Committee reinserted the word, which asserted the original intent of the bill. He added that Southcentral was routinely capitalized in legislation. Representative Thompson relayed that the interior area of Alaska was also characterized as "middle earth." Representative Wilson added that Interior referred to the Fairbanks area and surrounding communities. Representative Kawasaki WITHDREW his objection. Representative Edgmon clarified that Interior also included the rural surrounding areas. Co-Chair Stoltze concurred that Interior was an inclusive term for the central portion of Alaska and the surrounding areas. 8:17:44 PM Representative Gara noted that the Interior did not include Southcentral. Co-Chair Stoltze asked for information related to the term from the sponsor. TED LEONARD, EXECUTIVE DIRECTOR, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY, (AIDEA), DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, agreed with the assessment stated with the Interior Delegation that Interior encompassed North Star Borough, parts of the North Slope, Northwest Arctic Borough and the inclusive area in the middle of Alaska. There being NO OBJECTION, it was so ordered. The technical amendment capitalizing the word "Interior" was ADOPTED. Mr. Leonard did not have additional comments for the committee. He was available for questions. 8:20:11 PM Representative Costello discussed the two "replacement" fiscal notes. The first note from Department of Commerce, Community and Economic Development (DCCED) showed $950 thousand for FY 14 total operating cost. The second fiscal note from Fund Capitalization showed $125 million FY 14 operating cost. Co-Chair Austerman pointed to the new DCCED fiscal note and the $200 thousand increase in the replacement note. He asked about the change between the two notes. Mr. Leonard replied that the $950 thousand was the combined HB 74 plus the Interior gas plan. He pointed out the $200 thousand cost for regulations plus $750 thousand for project management. Representative Costello revisited the fiscal notes and discussed the costs in out-years. She stated that the DCCED note showed an operating expenditure of $650 thousand in FY 15, $450 thousand in FY 16, $350 thousand in FY 17 and $150 thousand for both FY 18 and FY 19. Co-Chair Stoltze noted that HB 74 received public testimony prior to merging the legislation with SB 23. 8:24:13 PM Representative Wilson MOVED to REPORT HCS CSSB 23(FIN) out of committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HCS CSSB 23(FIN) was REPORTED out of committee with a "do pass" recommendation and with two new fiscal impact notes from the Department of Commerce, Community and Economic Development. Co-Chair Stoltze discussed the schedule for the upcoming days. Representative Kawasaki asked who would present to the committee the following day. Co-Chair Stoltze replied that the administration and consultants would present to the committee on Sunday.