HB 277-PIPELINE UTILITIES REGULATION CHAIR FATE announced that the first order of business would be HOUSE BILL NO. 277, "An Act relating to the powers of the Regulatory Commission of Alaska in regard to intrastate pipeline transportation services and pipeline facilities, to the rate of interest for funds to be paid by pipeline shippers or carriers at the end of a suspension of tariff filing, and to the prospective application of increased standards on regulated pipeline utilities; allowing the commission to accept rates set in conformity with a settlement agreement between the state and one or more pipeline carriers and to enforce the terms of a settlement agreement in regard to intrastate rates; and providing for an effective date." Number 0326 REPRESENTATIVE MASEK moved that the committee adopt CSHB 277, Version CSHB 277(RES) bil.doc, 5/12/2003, as a work draft. There being no objection, the proposed CS dated 5/12/2003 was before the committee. REPRESENTATIVE MASEK pointed out that the changes encompassed in the proposed CS are in the packet. CHAIR FATE, in response to Representative Heinze, specified that the proposed CS is the result of questions, answers, and clarifications during a meeting this morning among himself, Representative Dahlstrom, and the Department of Law. Number 0896 REPRESENTATIVE MASEK moved to report CSHB 277, Version CSHB 277(RES) bil.doc, 5/12/2003, out of committee [with individual recommendations and the accompanying fiscal notes]. REPRESENTATIVE WOLF objected for the purpose of discussion and requested an at-ease. The committee took an at-ease from 3:02 p.m. to 3:04 p.m. [Not on tape, but taken from the committee secretary's log notes, was Representative Wolf's withdrawal of his objection.] Number 0668 CHAIR FATE remarked that this legislation, in the view of many, began as objectionable and problematic. However, after three committee substitutes the legislation has matured to the point of addressing the issues of ongoing litigation under [RCA] Order 151 and retroactivity. He noted that there has been good discussion and testimony with regard to capacity and access, which is an element of the pipeline, although the Stranded Gas Act will negotiate those issues. He related his belief that this legislation is important to the state and has been worked through thoroughly, and therefore he didn't fear its going forward. Chair Fate emphasized that there has been tremendous participation on this legislation in order to fashion legislation that would be helpful in the state's economic development. Number 0996 REPRESENTATIVE GUTTENBERG objected to reporting the bill from committee. A roll call vote was taken. Representatives Wolf, Masek, Heinze, Lynn, and Fate voted in favor of reporting the bill from committee. Representative Guttenberg voted against it. Therefore, CSHB 277(RES) was reported out of the House Resources Standing Committee by a vote of 5-1. Number 1157 REPRESENTATIVE GUTTENBERG spoke to his objection. He acknowledged that this legislation is very important, but pointed out that there has been testimony from various people in the oil industry who have serious [concerns] with it. Representative Guttenberg highlighted that he hasn't had a chance to go through this new CS. He said, "We've seen what happens when we pass legislation on to other committees to do their work." For example, when HB 191 was reported out of this committee to the House Judiciary Standing Committee to hear the legal issues, it was waived from that committee. Representative Guttenberg related his belief that the House Resources Standing Committee should do its work. CHAIR FATE said this legislation was discussed and dissected [at length] and the committee isn't avoiding its responsibility. [CSHB 277(RES) was reported from committee.]