SB 337-ENERGY PROGRAMS & FUNDS                                                                             
                                                                                                                                
CHAIR CON  BUNDE called  the Senate  Labor and  Commerce Standing                                                             
Committee meeting  to order  at 1:43  p.m. Present  were Senators                                                               
Bettye Davis,  Hollis French  and Chair  Con Bunde.  Senator Gary                                                               
Stevens  arrived at  1:50 and  Senator Ralph  Seekins arrived  at                                                               
2:35. The  first order of  business to come before  the committee                                                               
was SB 337. This was its second hearing.                                                                                        
                                                                                                                                
SENATOR HOLLIS FRENCH moved to adopt amendment 1.                                                                               
                                                                                                                                
                                                             23G-2                                                              
                      A M E N D M E N T  1                                                                                  
                                                                                                                                
OFFERED IN THE SENATE LABOR                                                                                                     
       AND COMMERCE COMMITTEE                                                                                                   
     TO:  SB 337                                                                                                                
Page 7, line 9:                                                                                                                 
     Delete ", 42.45.200,"                                                                                                      
                                                                                                                                
Page 7, following line 9:                                                                                                       
     Insert new bill sections to read:                                                                                          
   "* Sec. 12.  AS 42.45.200 is repealed.                                                                                     
    * Sec.  13.   The uncodified  law of the  State of  Alaska is                                                             
amended by adding a new section to read:                                                                                        
     TRANSITION:  ELECTRICAL SERVICE EXTENSION FUND.  Subject to                                                                
appropriation,  the money  in  the  electrical service  extension                                                               
fund established  in former AS 42.45.200, repealed  by sec. 12 of                                                               
this Act, is transferred to the general fund."                                                                                  
                                                                                                                                
 Renumber the following bill sections accordingly.                                                                              
                                                                                                                                
Page 7, following line 12:                                                                                                      
     Insert a new bill section to read:                                                                                         
   "*  Sec. 15.   Sections  12  and 13  of this  Act take  effect                                                             
July 1, 2004."                                                                                                                  
                                                                                                                                
Renumber the remaining bill section accordingly.                                                                                
                                                                                                                                
Page 7, line 13:                                                                                                                
     Delete "This"                                                                                                              
     Insert "Except as provided in sec. 15 of this Act, this"                                                                   
                                                                                                                                
CHAIR BUNDE objected for discussion purposes.                                                                                   
                                                                                                                                
MS. SARA FISHER-GOAD, Financial  Analyst, Alaska Energy Authority                                                               
(AEA), explained that amendment  1 repeals the Electrical Service                                                               
Extension Fund  effective July  1, 2005 and  makes it  subject to                                                               
appropriation.                                                                                                                  
                                                                                                                                
CHAIR BUNDE removed his objection and amendment 1 was adopted.                                                                  
                                                                                                                                
SENATOR FRENCH moved to adopt amendment 2.                                                                                      
                                                                                                                                
                                                             23G-2                                                              
                      A M E N D M E N T  2                                                                                  
                                                                                                                                
OFFERED IN THE SENATE LABOR                                                                                                     
       AND COMMERCE COMMITTEE                                                                                                   
     TO:  SB 337                                                                                                                
Page 1, line 2:                                                                                                                 
     Following "loans":                                                                                                       
          Delete "and"                                                                                                        
          Insert ", to"                                                                                                       
                                                                                                                                
     Following "contracts":                                                                                                   
          Insert ", and to improve, equip, operate, and maintain                                                              
     bulk fuel, waste energy, energy conservation, energy                                                                     
     efficiency, and alternative energy facilities and                                                                        
     equipment"                                                                                                               
                                                                                                                                
CHAIR BUNDE objected for an explanation.                                                                                        
                                                                                                                                
MS. GOAD explained that it expands the title to contain the                                                                     
subject of the whole bill.                                                                                                      
                                                                                                                                
CHAIR BUNDE  removed his objection  and amendment 2  was adopted.                                                               
He recapped that  SB 337 would change the AEA  to make additional                                                               
loans  for  waste  energy,  energy  conservation  and  efficiency                                                               
projects.                                                                                                                       
                                                                                                                                
MS. GOAD agreed that was a good explanation of that section.                                                                    
                                                                                                                                
SENATOR FRENCH said his questions were cleared up.                                                                              
                                                                                                                                
CHAIR BUNDE said CSSB 337(L&C) would be set aside until other                                                                   
members of the committee arrived.                                                                                               
                 SB 337-ENERGY PROGRAMS & FUNDS                                                                             
                                                                                                                                
CHAIR CON  BUNDE announced  CSSB 337(L&C) to  be back  before the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR RALPH SEEKINS moved to  pass CSSB 337(L&C) from committee                                                               
with  individual   recommendations  and  attached   fiscal  note.                                                               
Senators  Gary  Stevens,  Bettye   Davis,  Hollis  French,  Ralph                                                               
Seekins and  Chair Con Bunde  voted yea; and CSSB  337(L&C) moved                                                               
from committee.