SB 176-TAX CREDIT CERT. BOND CORP; ROYALTIES                                                                      
                                                                                                                                
3:31:04 PM                                                                                                                    
CHAIR GIESSEL  announced the consideration of  SB 176, introduced                                                               
by  the Rules  Committee  at  the request  of  the Governor.  She                                                               
opened public testimony.                                                                                                        
                                                                                                                                
3:31:45 PM                                                                                                                    
BRANDON  BREFCZYNSKI, External  Affairs Manager,  Alaska Oil  and                                                               
Gas Association  (AOGA), Anchorage, Alaska, testified  in support                                                               
of SB  176. AOGA supports  an expedited resolution to  this issue                                                               
this  year,  he said.  Companies  have  earned these  credits  by                                                               
investing hundreds  of millions of  dollars to hire  Alaskans for                                                               
the exploration and production of  oil. The delay in the payments                                                               
damages the  state's reputation and chills  future investment. It                                                               
has  caused  projects  to  be  shelved,  which  has  resulted  in                                                               
negative  economic impacts  to the  state and  local communities,                                                               
and now many Alaskans are out  of work, especially within the oil                                                               
and gas industry.                                                                                                               
                                                                                                                                
AOGA  believes  the state  should  honor  all outstanding  earned                                                               
credits  in  full  in  the most  expeditious  way  possible.  The                                                               
Governor's bill is  an innovative approach and seeks  to refund a                                                               
portion  of the  earned credits  via bonding  to raise  money and                                                               
then refunding the credits at a reduced rate.                                                                                   
                                                                                                                                
MR. BREFCZYNSKI said  the proposal lowers the  refunding rates to                                                               
cover  the state's  bond  finance costs,  but  AOGA has  concerns                                                               
about the steep  discount rate and some other  provisions in this                                                               
bill and is committed to  working with the administration and the                                                               
legislature  to  find an  equitable  solution.  "It's simply  too                                                               
important."                                                                                                                     
                                                                                                                                
3:34:15 PM                                                                                                                    
CHAIR  GIESSEL,  finding  no   further  comments,  closed  public                                                               
testimony on SB 176.                                                                                                            
                                                                                                                                
3:34:40 PM                                                                                                                    
SENATOR  COGHILL moved  to report  SB  176, version  30-GS2863\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s). There were no objections and it was so ordered.