SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE April 12, 2000 1:39 p.m. MEMBERS PRESENT Senator Tim Kelly, Chair Senator Jerry Mackie, Vice Chair Senator Randy Phillips Senator Lyman Hoffman MEMBERS ABSENT Senator Jerry Ward COMMITTEE CALENDAR HOUSE BILL NO. 25 "An Act relating to a municipal river habitat protection tax credit." -MOVED OUT OF COMMITTEE SPONSOR SUBSTITUTE FOR SENATE BILL NO. 181 "An Act directing sale of the four dam pool hydroelectric facilities." -MOVED CS FOR SSSB 181 OUT OF COMMITTEE SPONSOR SUBSTITUTE FOR SENATE BILL NO. 182 "An Act establishing a power cost equalization endowment; and providing for an effective date." -SCHEDULED BUT NOT HEARD SENATE BILL NO. 306 "An Act establishing and relating to the power cost equalization endowment fund; relating to the power cost equalization and rural electric capitalization fund; authorizing and relating to the sale of the four dam pool hydroelectric project; establishing and relating to joint action agencies created to purchase power projects; and providing for an effective date." -MOVED CS FOR SSSB 181 OUT OF COMMITTEE SENATE BILL NO. 307 "An Act making appropriations relating to power cost equalization and the sale of the four dam pool hydroelectric project and to capitalize funds; and providing for an effective date." -MOVED OUT OF COMMITTEE PREVIOUS SENATE COMMITTEE ACTION HB 25 - No previous Senate action. SB 181- No previous Senate action. SB 182- No previous Senate action. SB 306- No previous Senate action. SB 307- No previous Senate action. WITNESS REGISTER Representative John Davies Alaska State Capitol Juneau, AK 99811 POSITION STATEMENT: Sponsor of HB 25. Mr. Dale Bondurant 31864 Moonshine Drive Soldotna, AK 99669 POSITION STATEMENT: Supports HB 25. Mr. Charles Walls CEO of Alaska Rural Electric Company 4831 Eagle Street Anchorage, AK 99503 POSITION STATEMENT: Supports SB 306, and SB 307. Senator Robin Taylor Alaska State Capitol Juneau, AK 99811 POSITION STATEMENT: Sponsor of SSSB 181, and SSSB 182. Mr. Eric Yould (ph) Executive Director Alaska Rural Electric Company 4831 Eagle Street Anchorage, AK 99503 POSITION STATEMENT: Supports SB 306, and SB 307. Mr. Dave Carlson Council Member from Petersburg Address Not Provided Petersburg, AK 99833 POSITION STATEMENT: Commented on SB 306, and SB 307. ACTION NARRATIVE TAPE 00-05, SIDE A Number 001 CHAIRMAN TIM KELLY called the Senate Community & Regional Affairs Committee meeting to order at 1:39 p.m. Present were Senators T. Kelly, Mackie, Phillips, and Hoffman. The first order of business to come before the committee was HB 25. HB 25-RIVER HABITAT PROTECTION TAX CREDIT REPRESENTATIVE JOHN DAVIES stated in 1996, the legislature granted the Kenai River this optional tool to encourage river habitat protection. This is a tax credit the municipality is authorized, but not mandated to give. HB 25 would just extend the tax credit to the other municipalities in the State. MR. DALE BONDURANT, representing himself, stated support for HB 25. Alaska has thousands of miles of river that need protection, and HB 25 could help protect them. SENATOR MACKIE moved HB 25 out of committee with individual recommendations. Without objection, the motion carried. SB 181-SALE OF THE FOUR DAM POOL Number 060 SENATOR ROBIN TAYLOR stated this is the culmination of 16 years of efforts, since the creation of the four dam pool in 1985. The power sales agreement is encompassed within SSSB 181, so the members of the four dam pool communities have protection for future utility rates. Senator Taylor referred to SSSB 182. SSSB 181, and SSSB 182 provide for a stabilized funding source for the power cost equalization program. Because of difficulties, funding over the past few years has been in jeopardy. MR. CHARLES WALLS, CEO of the Alaska Rural Electric Company (AREC), stated AREC provides electric service to 51 villages in Western Alaska. The power cost equalization program is important to these villages. Mr. Walls stated support for SSSB 181. MR. ERIC YOULD (ph), Executive Director of Alaska Rural Electric Company (AREC), stated AREC generates approximately 90 percent of the electricity in Alaska. Mr. Yould (ph) stated support for SSSB 181, SSSB 182, SB 306, and SB 307. Power cost equalization was the biggest initiative AREC supported, and the resolution was adopted unanimously by the board of director's for AREC. Sixty-one percent of the population not served by AREC support continued long-term funding by the State for the power cost equalization program. CHAIRMAN KELLY asked if all of the communities affected by the four dam pool are supportive. MR. DAVE CARLSON, Council Member from Petersburg, stated all five communities affected by the four dam pool support all legislation. SENATOR MACKIE moved SB 307 out of committee with individual recommendations. Without objection, the motion carried. SENATOR MACKIE asked Senator Taylor if he supported the Governor's bill as it was drafted. SENATOR TAYLOR replied yes. SENATOR MACKIE moved to delete the contents of SSSB 181, and replace the contents of SB 306 into the body of SSSB 181; thus creating CSSSSB 181. Without objection, the motion carried. SENATOR MACKIE moved CSSSSB 181 out of committee with individual recommendations. Without objection, the motion carried. There being no further business to come before the committee CHAIRMAN KELLY adjourned the meeting at 1:49 p.m.