SENATE BILL NO. 203 "An Act establishing an energy assistance program in the Department of Revenue to issue an energy voucher to Alaska permanent fund dividend recipients; and relating to the analysis and recommendation of an energy assistance program by the governor." 10:46:37 AM Co-Chair Hoffman noted that the meeting was the second hearing for SB 203, regarding an energy assistance program. 10:47:00 AM Co-Chair Stedman MOVED to ADOPT the proposed committee substitute for SB 203, Work Draft 27-LS1363\D (Neuman, 3/26/12). There being NO OBJETION it was so ordered. 10:47:32 AM Senator Thomas provided a brief introduction to SB 203. He explained that the CS retained major elements of the original bill, which incorporated changes intended to make the energy voucher program simpler for field distributers and state agencies to administer. The most significant change is for redeeming the energy voucher. He referred to "Senate Bill 203: Energy Relief for Alaskans" (copy on file). Purpose: To provide Alaskans with relief from the effects of high energy costs and create a program to help residents deal with high energy costs during the transition to an affordable energy source. Section 1: The state will send a voucher to every adult PFD recipient in the fall of 2012. This can be redeemed at a fuel distributor or utility of your choice for the value of 250 gallons of heating oil, 350 CCF of natural gas, or for 1,500 KWH of electricity. • The recipient decides whether to use the voucher for heating oil or natural gas or electricity, then gives the voucher to the distributor of their choice. If the recipient does not already have an account with the distributor, they open an account. • Distributors send the vouchers to the state and submit claims for payment that list the voucher number, name of voucher owner, the delivery address and other information. • Upon receipt of a claim from a distributor, the state sends payment to the distributor to be credited to the voucher recipient's account. • The amount of the state payment will be calculated by multiplying the quantity of fuel provided by the voucher, by the distributor's retail price on a specific date in 2012. • The credit may be used only for energy at the recipient's primary residence in Alaska, and may not be transferred to another account or paid in cash to the account holder. • The credit may be used to pay a recipient's debt with the distributor. • Each voucher may only be used at one distributor. • Distributors can decide whether to deliver fuel immediately after they receive a voucher, or to wait until they receive payment from the state. • The credit remains in the account until it is spent on energy delivered to the recipient's home. • If the account is closed before all the credit is used, the distributor sends the balance back to the state. • Vouchers state the recipient's name, may not be sold or transferred, and require signature by both the recipient and the distributor. • Recipients who certify that they do not pay directly for heating oil, natural gas or electricity at their primary residence may return their vouchers to the state and receive either: a replacement voucher in the name of their landlord, or a check for $250. Individuals may also qualify for $250 if they do not have a qualified distributor in their community. • Participation by distributors is voluntary, and interested businesses can apply to be added to the list of qualified distributors. • The program will be administered by the Alaska Housing Finance Corporation (AHFC). Section 2: The Governor must evaluate options and make a recommendation for the best energy relief program that can be instituted in 2013 and beyond. This recommendation is due October 1, 2012. This analysis must include an evaluation of a "fuel price reduction" program, an "individual account" program, and alternate options. Section 3: AHFC may adopt emergency regulations and is exempt from procurement law for the purpose of implementing the energy voucher program rapidly. Section 4: This legislation takes effect immediately. 10:50:08 AM AT EASE 10:51:40 AM RECONVENED Co-Chair Hoffman turned the gavel to Co-Chair Stedman.