HCR 9-STATE ENERGY PRODUCTION WORKING GROUP  4:39:58 PM CO-CHAIR PASKVAN announced the consideration of HCR 9. REPRESENTATIVE LANCE PRUITT introduced HCR 9 on behalf of the House Special Committee on Energy saying that the resolution seeks to establish a working group within the Alaska State Legislature to work with other producing states on matters of energy production. DIRK CRAFT, Staff to Representative Pruitt and the House Special Committee on Energy, explained that the goal of the working group is to develop a proposal for an inter-legislature agreement to facilitate collaboration in efforts to influence federal energy-related law and policy and to discourage delay or cancelation of economically viable energy projects in Alaska and other states. The intent is to discuss issues of mutual concern, share information, and identify areas for possible collaboration. He directed attention to page 2, line 10, and noted the resolution states that the working group shall consist of four members, two of which will be appointed by the President of the Senate and two appointed by the Speaker of the House. On page 2, line 14, the resolution states that the working group can meet during and between regular legislative sessions and members may travel to meetings, subject to approval by the presiding officer of each body. On page 2, line 20, the resolution states that the working group will terminate on January [18], 2013. On page 2, line 22, the resolution directs that the working group shall issue a report by January 17, 2012, and allow for additional reports as the group sees fit. 4:42:20 PM MR. CRAFT explained that this working group will be a little different than others but the resolution is modeled after legislation in other states. He said the majority leader from the Wyoming State Legislature brought it to the sponsor's attention that these issues were discussed during the Western States Energy and Environment Symposium that was held in Wyoming in 2009. Feedback from that symposium indicated that consumer states dominated that discussion and had different missions for resource development and extraction than states that align with Alaska. Hopefully, he said, this working group will be more specific for developing one voice to lead the discussion on a national scale. SENATOR STEDMAN observed that this appears to potentially duplicate a lot of Energy Council efforts. He explained that Energy Council is a group of energy-producing states, provinces, Venezuela, and potentially Mexico; he didn't recall that Wyoming was a member. The group meets four times a year on energy issues and to help with the federal energy policy. The upcoming meeting will be in Anchorage and one meeting is held every year in Washington D.C. during which time the Alaska State Legislature virtually pauses. He reiterated his belief that this will be a duplication of effort. 4:45:09 PM SENATOR MCGUIRE suggested the sponsor take time to respond to Senator Stedman to explain the need for the proposed working group and how it differs from both the Energy Council and the Pacific NorthWest Economic Region (PNWER). She said that when she participated in the Wyoming project, her understanding was that instead of the Venezuela model, the focus was on states and how individual states could be a part of bringing energy independence to the U.S. REPRESENTATIVE PRUITT said this group provides a unique opportunity to focus solely on energy production within U.S. states and what is being done at the federal level. By contrast, the Energy Council consists of producing states within the U.S. as well as provinces in Canada, the country of Venezuela, and potentially Mexico. The proposed working group will limit the discussion so that states can focus on specific issues with the federal government. Wyoming and Utah have passed similar resolutions and several other states are in the process of proposing legislation. 4:48:39 PM SENATOR STEDMAN clarified that Mexico isn't currently an Energy Council member and Venezuela seldom attends the meetings. The discussion from energy-producing states and provinces at Energy Council relates to state and provincial issues and cross-border relationships. He observed that some of the states that are interested in the proposed working group are energy-consuming states rather than energy-producing states, and stated his belief that Alaska is better off working with producing states. SENATOR STEDMAN pointed out that a lot of time is spent on federal issues during Energy Council meetings. Federal agencies are brought in at virtually every meeting and of course provincial agencies are brought in when the meetings are in Canada. This is appropriate because the oil and gas relationship between the two countries runs very deep. Canada is probably the U.S.'s largest trading partner in both gas and oil so it's not possible to have a U.S. energy policy without working with Canada and vice versa. 4:50:54 PM CO-CHAIR PASKVAN asked what purpose the 2013 termination date serves. REPRESENTATIVE PRUITT replied the idea is to lay the foundation for initial discussions with other states. The sunset limits the state's involvement should the initial discussion prove to be unsatisfactory. If the discussions are satisfactory the group can decide if it wants to participate on a long-term basis. SENATOR FRENCH noted that the enabling legislation from Utah ensured that the group of four would have political diversity by directing that no more than three of the four members shall be from the same political party. He asked the sponsor if he would entertain the idea of inserting a similar provision. REPRESENTATIVE PRUITT replied he decided to leave the appointments to the discretion of the leaders of the House and Senate because he didn't want any hint that he was calling their integrity into question. 4:53:39 PM SENATOR FRENCH referred to the "whereas" clause on page 1, lines 13-16, and asked for an example in the energy arena of federal law and federal law enforcement overreaching the federal government's constitutional authority. MR. CRAFT cited the Colville Bridge in Prudhoe Bay as a potential example. SENATOR FRENCH asked if he was suggesting that the federal government doesn't have the constitutional authority to make a decision about a bridge. REPRESENTATIVE PRUITT responded the "wild lands" designation that HJR 23 addresses is an example of the federal government pushing the limit. That executive branch decision disregards the legislative branch and is arguably unconstitutional. SENATOR FRENCH pointed out that neither Wyoming nor Utah felt the urge to claim that the federal government was acting unconstitutionally when they passed their enabling legislation. 4:55:53 PM SENATOR STEVENS highlighted that Alaska spends a lot of money to belong to the National Conference of State Legislatures (NCSL), the Council of State Governments (CSG) and the Energy Council when many states are cutting back and trying to decide which organizations are most valuable. He asked if the proposed working group would duplicate those efforts and potentially need staff and perhaps see the need to impose membership dues. REPRESENTATIVE PRUITT answered that is not his intent. There will potentially be costs and some travel, but probably not for staff. The costs wouldn't be anywhere near as much as for some of the previously mentioned memberships. 4:57:48 PM SENATOR WIELECHOWSKI questioned how the group would travel and pay for costs in light of the fact that the House Finance Committee zeroed out the initial $20,000 fiscal note. REPRESENTATIVE PRUITT said the House Finance Committee zeroed the fiscal note after it determined that the costs and travel fell within the cost of doing business day-to-day in the Legislature. CO-CHAIR PASKVAN announced he would hold HCR 9 in committee.