SB 45-FEE/TAX EXEMPTION FOR CERTAIN VEHICLES  9:02:37 AM CHAIR DYSON announced that the first order of business would be SB 45 . GENEVIEVE WOJTUSIK, staff to Senator Lesil McGuire, introduced SB 45 on behalf of the sponsor. SENATOR GIESSEL moved to adopt SB 45, labeled 28-LS0411\A, as the working document before the committee. There being no objection, it was so ordered. MS. WOJTUSIK explained the SB 45 is an Act setting special registration fees for alternative fuel vehicles and providing for an effective date. It is a progressive approach to providing incentives to the public for this new technology. It will help air quality issues and promote additional jobs through the application of this new technology and line of products. Compressed natural gas (CNG) vehicles will also help to displace petroleum and reduce emissions. They can help Alaska diversify energy requirements and help insulate the state from potential shocks to the state's oil supply. She said promoting the sale of CNG vehicles will lower operating costs for consumers at a time when fuel costs represent an increasing portion of Alaskan family and small business budgets. This bill reduces registration costs from $100 bi-annually to $20 for electric, CNG, liquid natural gas, liquefied petroleum gas, and hydrogen vehicles. SENATOR WIELECHOWSKI said he supports the concept of alternative fuel vehicles. He wondered if saving $75 would have a big impact on someone planning to buy an electric car. He asked about the high programming costs found in the fiscal note. It provides for an estimated 250 hours of programming at $143 per hour, plus $25,000 every year. He surmised that the cost to the state would be more than the savings incurred to the population. MS. WOJTUSIK deferred to the Department of Motor Vehicles to answer. AMY ERICKSON, Director, Division of Motor Vehicles (DMV), Department of Administration, stated that there were programming costs in the fiscal note due to the need to create several new fields in DMV's database. The initial cost for the VIN decoding software is $75,000. The recurring subscription is $25,000. She explained that DMV does not currently track fuel types and the VIN decoder would be necessary to do so. 9:06:22 AM CHAIR DYSON complimented the DMV on how well they administer services to the public. MS. ERICKSON said thank you. CHAIR DYSON stated that he has been following the issue of alternative fuel vehicles for a long time. He thought the bill may be a bit premature, but it is part of a plan to encourage the use of alternative fuel vehicles. He suggested there may need to be more discussion if it triggers continuing high costs on the part of DMV. 9:07:41 AM MS. WOJTUSIK agreed. She hoped the costs would even out over time. CHAIR DYSON asked for more information about the timing of the bill. MS. WOJTUSIK offered to find out. CHAIR DYSON said he plans to hold the bill pending that information. SENATOR GIESSEL shared a concern about electric cars and the need for batteries in cold climates such as Fairbanks. She wondered how realistic the technology is for Alaska. She termed it a big expenditure for something that may not be implementable for a long time. MS. WOJTUSIK noted that Juneau is currently trying an experimental program through AEL&P that allows ten users to drive electric cars with meter readers. SENATOR COGHILL asked if dual fuel would be in the same coding range. MS. ERICKSON said yes. 9:09:48 AM CHAIR DYSON suggested a conceptual amendment on page 1, line 14, to add after (2) "power train and fuel supply may not be modified". He did not want someone to add modifications that negatively affect the efficiency of alternative fuels. CHAIR DYSON held SB 45 in committee.