CS FOR HOUSE CONCURRENT RESOLUTION NO. 21(FIN) Relating to establishing the Alaska Energy Policy Task Force. This was the first hearing for this bill in the Senate Finance Committee. TOM WRIGHT, Staff to Representative John Harris, the bill's sponsor, informed the Committee that this bill would establish a nine-member energy policy task force to develop long-term energy plans for the State. He continued that the nine member task force would be comprised of one member from the Alaska Energy Authority Board of Directors, the Commissioner of the Department of Revenue, two persons chosen by the Governor, two persons chosen by the Speaker of the House of Representatives, and three persons chosen by the Senate President, one of whom would be appointed from a list provided to the Senate President by the House and Senate Minority. Additionally, he noted that task force members would select the task force's chairperson. Mr. Wright explained that the task force would be charged with developing two long-term energy plans: one specifically for the Railbelt area of the State and the other being a statewide energy plan. Reports for these plans, he continued, must be submitted to the Legislature by December 31, 2003 and March 31, 2004, respectfully. Amendment #1: This amendment allows the Commissioner of the Department of Revenue to select a designee to represent the Commissioner on the task force. Senator B. Stevens moved for the adoption of Amendment #1. He explained that the numerous obligations of the Commissioner of the Department of Revenue might prevent regular attendance at task force meetings; therefore, he continued, this amendment would allow the Commissioner to appoint a representative "if and when" necessary. LANDA BAILY, Legislative Liaison and Special Assistant, Office of the Commissioner, Department of Revenue affirmed that, while the Commissioner wishes to serve on this board, his current obligations to the Board of Trustees of the Alaska Permanent Fund, the Alaska Pension Investment Board, the Alaska Energy Authority, and numerous other boards and commissions might prohibit regular attendance. She assured that the Department supports this amendment. ERIC YOULD, Executive Director, ARECA, testified via teleconference from Mat-Su that ARECA, the trade association for the electric utility industry in the State and whose membership generates approximately 90 percent of the electricity in the State, supports the merit of this legislation. He commented that the potential for large electric energy field projects exist; however, he noted, that the development of these projects exceeds the abilities of the various individual electric entities. He asserted that the development of these projects would benefit the overall infrastructure of the State and stimulate the economy. He stated that this resolution is strongly supported, as it would provide a means to further these potential projects. Co-Chair Green asked for examples of these projects. Mr. Yould responded that a strong power intertie project from Fairbanks to Kenai or a transmission line from Nenana to the Donlin Creek Gold Mine and continuing to Bethel and the Illiamna area are being discussed. He listed another potential project as a transmission line from Delta to Tok to Glenallen to Palmer, which might eventually integrate with transmission lines from Valdez. He expressed that, were the natural gas pipeline to come to fruition and terminate in Valdez, the process of liquefying the natural gas for export purposes would generate sufficient waste heat to generate power that would otherwise be stranded. He continued that other projects could include a Southeast intertie system. Additionally, he noted that the task force could address alternative energy projects as well. Co-Chair Green asked whether these alternative energy projects are ongoing or in the experimental stage of development. Mr. Yould responded that these alternate energy projects are both ongoing and experimental. He informed that these projects might include such things as the wind projects that are currently being researched in the Fairbanks area or tapping the tremendous hydropower potential in the State. He noted that small projects could involve fuel cell research as well as a large coal-fired generation plant project being considered in the Healy area. Co-Chair Green asked whether the coal-fired generation plant is separate from the current Healy clean-coal plant project. Mr. Yould responded yes. He noted that the power utilities anticipate a resolution to the Healy clean-coal project that would enable it to come online and feed into the power system in the near-term. He continued that the coal-fired generation plant is a separate project, and because it is in a conceptual stage, it might be ten years before it becomes a reality. Co-Chair Green ordered the bill SET ASIDE. [Note: HCR 21 is readdressed later in the meeting.] CS FOR HOUSE CONCURRENT RESOLUTION NO. 21(FIN) Relating to establishing the Alaska Energy Policy Task Force. This bill was again before the Committee. Senator Taylor moved to report the bill from Committee with individual recommendations and attached fiscal note. There being no objections, SCS CS HCR 21 (FIN) was REPORTED from Committee with previous fiscal note #1 from the Legislative Affairs Agency.