HB 143-AIDEA BONDS, LOANS, FUND; AEA LOAN  3:38:18 PM CO-CHAIR MICCICHE announced the consideration of HB 143, the companion bill to SB 193. He specified that [CSHB 143(FIN), version: 29-LS0599\S] was before the committee. REPRESENTATIVE CATHY MUNOZ, Alaska State Legislature, Juneau, Alaska, explained that the bill would allow Alaska Industrial Development and Export Authority (AIDEA) to consider conduit- financing of up to $120 million, and conduit-bonding for the Sweetheart Lake Hydroelectric Project (SLHP). REPRESENTATIVE MUNOZ detailed SLHP as follows: · 43 miles south of Juneau. · Ties into the Snettisham powerline and brings power to Juneau. · Increases Juneau's power capacity by 20 percent. · 60 percent of SLHP's power would go to the Kensington Mine. · SLHP would allow the Kensington Mine to displace between 7,000 to 9,000 gallons of diesel fuel per day. · SLHP would power the Juneau District Heating Project (JDHP). She noted that SLHP was in its final stages of permitting. She specified that permits from the Federal Energy Regulatory Commission (FERC), US Army Corps of Engineers, and the Environmental Impact Statement (EIS) were due in the summer of 2016. 3:40:04 PM TERRY HARVEY, Staff, Representative Munoz, Alaska State Legislature, Juneau, Alaska, stated that he would go over the changes made in House Finance to HB 143 and detail the differences with its companion bill, SB 193. MR. HARVEY explained that Section 1 was amended to specify exactly the type of bonding that would be used by AIDEA. He specified that conduit-issuance bonds would be used, also known as pass-through or standalone bonds. He pointed out that AIDEA and the State of Alaska would not be exposed to any further debt. He added that conduit-issuance bonding would not count against Alaska's annual bonding cap of $400 million. He said Section 2 addressed the Lynn Canal transmission line, an important component to the project. He disclosed that the bill originally proposed bonding for the transmission line through the Power Project Loan Fund (PPF) that was administered by the [Alaska Energy Authority (AEA).] He explained that the PPF was determined to not be appropriately capitalized for the project and other means of financing would be used. He specified that accessing the PPF was removed from the bill. He explained that a third change was made where the repeal date was extended from June 30, 2019 to June 30, 2020. 3:44:07 PM At ease 3:44:14 PM CO-CHAIR MICCICHE called the committee back to order. He announced that public testimony was open. KEITH COMSTOCK, CEO and President, Juneau Hydropower, Inc., Juneau, Alaska, stated that HB 143 was important to Juneau Hydropower. He detailed that Juneau Hydropower started SLHP in 2009, most of the environmental aspects had been addressed, and the hope was for the project's construction to start in 2016. He conceded that further due diligence would be required and the bill was for the possibility of funding, not a commitment. CO-CHAIR MICCICHE closed public testimony. He announced that HB 143 would be held in committee. 3:46:08 PM At ease 3:48:38 PM CO-CHAIR MICCICHE called the committee back to order. He announced that the committee meeting was the second hearing on HB 143 and the changes to the bill were minimal. He summarized that Section 1 was amended to specify the type of bonding, Section 2 eliminated the Lynn Canal project, and Section 3 extended the [repeal] date by one year. CO-CHAIR BISHOP moved to report CSHB 143(FIN), [version: 29- LS0599\S], from committee with individual recommendations and attached zero-fiscal note from DCCED. CO-CHAIR MICCICHE announced that seeing no objections, CSHB 143(FIN) passed from committee.