HB 287-APPROVE TESORO ROYALTY OIL SALE  9:24:58 AM CHAIR JOHNSON announced that the final order of business would be HOUSE BILL NO. 287, "An Act approving and ratifying the sale of royalty oil by the State of Alaska to Tesoro Corporation and Tesoro Refining and Marketing Company LLC; and providing for an effective date." [Before the committee was CSHB 287(FIN).] 9:25:05 AM REPRESENTATIVE CHENAULT moved that the committee adopt Amendment 1, 28-GH2862\N.2, Nauman, 4/15/14, which read: Page 1, line 3, following "refineries": Insert "and hydrocarbon processing facilities" Page 3, line 10, following "refinery": Insert "or hydrocarbon processing facility" Page 3, line 11, following "refinery": Insert "or hydrocarbon processing facility" Page 3, line 12, following "products": Insert "or processed hydrocarbon products" Page 3, line 18, following "refinery": Insert "or hydrocarbon processing facility" Page 4, following line 14: Insert a new paragraph to read: "(1) "processed hydrocarbon products" means separate marketable elements, compounds, or mixtures of oil or natural gas in a liquid or gaseous form, including gasoline, diesel, jet fuel, gas, oil, heating oil, kerosene, ammonia, and urea;" Renumber the following paragraphs accordingly. Page 4, line 18: Delete "or petroleum-based feedstock" Insert ", petroleum-based feedstock, or processed hydrocarbon products" CHAIR JOHNSON objected. 9:25:22 AM TOM WRIGHT, Staff, House Majority Office, Alaska State Legislature, explained that Amendment 1 would include Agrium Plant in terms of the tax credits and any other credits included in the legislation. Currently, Agrium is considering inspection, assessment, and possible renovation of the existing facility. The aforementioned is a $200 million project that would require a temporary workforce of about 440 workers and about $75 million in direct labor income over the two-year rehab. The hydrocarbon processing facility would include the Agrium Plant. Amendment 1 also changes the definition of "processed hydrocarbon products" to include ammonia and urea. 9:26:39 AM CHAIR JOHNSON, upon determining no one wished to testify, closed public testimony on HB 287. 9:26:58 AM CHAIR JOHNSON removed his objection. There being no further objection, Amendment 1 was adopted. 9:27:18 AM REPRESENTATIVE HAWKER requested that as this legislation moves forward through the Senate that the agencies, particularly the Department of Revenue (DOR) thoroughly review the tax credit provisions in order to ensure they are the most cost efficient and effective to achieve the desired outcome. He further requested the DOR and the Department of Natural Resources review the "qualified infrastructure expenditure" definition to ensure it's clear, concise, and achieves the desired outcome. Since DOR, according to the fiscal note, doesn't intend on adopting regulations as a result of the passage of HB 287, the statute has to be very clear and understandable. 9:29:13 AM JOE BALASH, Commissioner, Department of Natural Resources, ensured the committee that DNR will get DOR to review the definition. He then thanked Representative Chenault for Amendment 1 since DNR, in principle, supports the intention as it's important to grow the gas-demand side in the Cook Inlet Basin as it will drive exploration and development dollars. He then committed to reviewing the language. 9:30:30 AM REPRESENTATIVE OLSON moved to report CSHB 287(FIN), as amended, out of committee with individual recommendations and the forthcoming fiscal notes. There being no objection, CSHB 287(RLS) was reported from the House Rules Standing Committee and is available for calendaring.