CSHB 512(FIN)-HYDROGEN ENERGY RESEARCH PROGRAM                                                                     
                                                                                                                                
CHAIR  CON   BUNDE  announced   CSHB  512(FIN)   to  be   up  for                                                               
consideration.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  HARRY CRAWFORD,  sponsor, explained  that HB  512                                                               
sets  up an  hydrogen energy  partnership. He  related how  Wayne                                                               
Gretski, a great  hockey player, said the  difference between him                                                               
and all the other highly  talented skaters in the National Hockey                                                               
League is  that he  always tried  to skate  where he  thought the                                                               
puck  was going  to  be, not  where it  was.  Even though  Alaska                                                               
depends on  its natural gas and  oil now, the fuel  of the future                                                               
is going to be hydrogen - and Alaska has great potential.                                                                       
                                                                                                                                
CHAIR BUNDE asked if he thought  this would undermine the need to                                                               
develop ANWR.                                                                                                                   
                                                                                                                                
REPRESENTATIVE CRAWFORD  replied no.  He thought opening  ANWR is                                                               
necessary  now  to  address the  country's  energy  concerns  and                                                               
lessen  dependency  on  foreign   oil.  He  noted  that  Governor                                                               
Schwarzeneger  is putting  together a  network of  hydrogen pumps                                                               
that are no further than 20 miles apart in California.                                                                          
                                                                                                                                
SENATOR SEEKINS  asked what statute  paragraph 44 would  be added                                                               
to.                                                                                                                             
                                                                                                                                
MR. JAY  HARDENBROOK, staff  to Representative  Crawford, replied                                                               
that it  would be  placed under the  Department of  Community and                                                               
Economic Development.                                                                                                           
                                                                                                                                
SENATOR SEEKINS  asked if the state  was supposed to take  up the                                                               
slack in funding if it wasn't forthcoming.                                                                                      
                                                                                                                                
MR.  HARDENBROOK replied  that the  bill is  designed so  that if                                                               
funding is  not in place by  2009, the program will  go away. The                                                               
Department of Community & Economic  Development (DCED) set up the                                                               
fiscal note so that it would  be funded by program receipts and a                                                               
partnership  with   Alaska  Industrial  Development   and  Export                                                               
Authority (AIDEA).                                                                                                              
                                                                                                                                
MR. JERRY MCCUTCHEON, Anchorage,  supported the idea behind using                                                               
hydrogen as an energy source  in California, but noted that there                                                               
is  no hydrogen  in  the  state. It  takes  three  times as  much                                                               
natural  gas to  produce the  hydrogen to  run something  than it                                                               
would to  just use the natural  gas in the first  place. He said,                                                               
"Guess  what! Alaska  has the  only  game in  town." The  nearest                                                               
source  of  energy  for  California is  the  Susitna  project  in                                                               
Alaska.  He, therefore,  suggested  adding  California to  market                                                               
evaluation language on page 3.                                                                                                  
                                                                                                                                
REPRESENTATIVE CRAWFORD commented that he supported that idea.                                                                  
                                                                                                                                
SENATOR SEEKINS  said he  wasn't convinced  that hydrogen  is the                                                               
wave of the future in energy.  "If it was something that vital, I                                                               
think that private industry would take care of it."                                                                             
                                                                                                                                
SENATOR BETTYE DAVIS moved to  pass CSHB 512(FIN) from committee.                                                               
Senators French, Gary  Stevens, Davis and Chair  Bunde voted yea;                                                               
Senator  Seekins   voted  nay;  and  CSHB   512(FIN)  moved  from                                                               
committee.