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." 2:06:40 PM Co-Chair Hoffman MOVED to ADOPT proposed committee substitute for SB 203, Work Draft 27-LS1363\E, (Nauman, 4/3/12). Co-Chair Stedman OBJECTED for purpose of discussion. 2:07:22 PM Senator Thomas explained that SB 203 would provide Alaskans with relief from the effects of high 2011 energy costs through distribution of energy vouchers in the fall. The voucher program would recognize and address the disparate cost of energy depending on the type of fuel and the community in which it was used. The bill would direct the governor to evaluate options and make a recommendation for the best energy relief program to be instituted in FY 14. Senator Thomas noted that the current work draft, version E, incorporated suggestions made by the Department of Law and the Alaska Housing Finance Corporation (AHFC) for the purpose of addressing legal issues. 2:08:18 PM CATHERINE REARDON, STAFF, SENATOR JOE THOMAS, explained the changes to the legislation. With one exception, the changes included in the CS had been suggested by the Department of Law or AHFC in order to address legal concerns. The three substantive changes were: 1. Allow people who did not apply for the 2012 Permanent Fund Dividend (PFD), but would have qualified for that PFD, to apply separately for the energy voucher. Many veterans do not apply for the PFD to avoid reductions in their veterans' benefits. This amendment would allow them as well as others to receive the voucher. A voucher denial appeal process was also provided; 2. Expand the hold-harmless section to cover reductions in federal supplemental security income (SSI) benefits and food assistance through WIC (Women, Infants and Children) and the federal Commodity Supplemental Food program. The change would result in a fiscal note from the Department of Health and Social Services; and 3. Add 31 million British thermal units of hot water or steam district heat to the voucher. District heat is piped to houses in downtown Fairbanks in a manner similar to natural gas distribution in Anchorage. Thirty-one mmbtu represented approximately 2 months of district heat used by the average residential consumer, which was the focus of the voucher. 2:09:50 PM Ms. Reardon observed that there were four minor technical changes: 1. Changing "state" to "corporation" on page 2, lines 23 & 29 to clarify that AHFC is responsible for issuing voucher payments to distributors and for receiving any unused voucher credit when utility accounts are closed; 2. Specifically authorizing the Department of Revenue to share the physical addresses, as well as the mailing addresses, of PFD applicants with AHFC for the purpose of administering the energy voucher program, on page 7, lines 22-23; 3. Inserting "physical" in the eight locations where the bill refers to the voucher recipient's "primary residence in the state." The purpose of this change is to clarify that the energy provided by the voucher must be used in the place the recipient physically occupies; and 4. Replacing "incompetent" with "incapacitated" in subsections (j) and (k), which relate to legal guardians signing vouchers for people who cannot act on their own behalf. Ms. Reardon concluded that "incapacitated" would be the more appropriate term. A definition of incapacitated had been incorporated into the bill. 2:11:14 PM Co-Chair Stedman WITHDREW his OBJECTION. There being NO further OBJECTION, Work Draft 27-LS1363\E was ADOPTED. Senator Thomas explained that the bill would allow the opportunity for an energy voucher that could be turned into a verified registered dealer that dealt in natural gas or fuel oil on a regular basis. The Alaska Permanent Fund Corporation (APFC) would provide data to AHFC to keep track of vouchers, which would be sent to the head of every household throughout the state. The voucher would provide compensation for heating costs that individuals could submit to their supplier. Most of the natural gas supplied in Anchorage was through Enstar. The Alaska Housing Finance Corporation would administer the multiple distributors that supplied fuel oil throughout other areas of the state. Distributors would be able to create accounts, which would simplify the process. The maximum amount would be 250 gallons of fuel oil. Those that did not use fuel oil could seek a $250 payment in lieu of fuel. 2:13:39 PM Co-Chair Stedman reviewed the three new fiscal impact notes attached to the bill: Department of Revenue for $15 million in CIP receipts for FY 13 and 10 full-time positions to administer the program (The fiscal note assumed a $465 million appropriation in the FY 13 capital budget to pay for vouchers); Department of Revenue for $219,000 from the Alaska Permanent Fund Dividend Division and two new temporary positions for increases in appeals and auditing expenses; and Department of Administration for $113,600 in interagency receipts for the anticipated increase in administrative hearings. 2:14:38 PM Co-Chair Hoffman MOVED to report CSSB 203(FIN) out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSSB 203(FIN) was REPORTED out of Committee with two new fiscal impact notes from the Department of Revenue and one new fiscal impact note from the Department of Administration. 2:15:14 PM AT EASE 4:18:56 PM RECONVENED