Legislature(2015 - 2016)BARNES 124

03/09/2015 01:00 PM RESOURCES



* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 105 AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ HB 14 BAN PLASTIC MICROBEADS IN COSMETICS TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ HB 92 LABEL GENETICALLY MODIFIED FOOD TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
*+ HJR 8 FEDS ALLOW STATE TO MAKE ENERGY CHOICES TELECONFERENCED
Moved CSHJR 8(ENE) Out of Committee
-- Public Testimony --
         HJR  8-FEDS ALLOW STATE TO MAKE ENERGY CHOICES                                                                     
                                                                                                                                
1:03:50 PM                                                                                                                    
                                                                                                                                
CO-CHAIR NAGEAK  announced that  the first  order of  business is                                                               
HOUSE JOINT  RESOLUTION NO. 8,  Urging the federal  government to                                                               
empower the  state to  protect the  state's access  to affordable                                                               
and reliable  electrical generation.   [Before the  committee was                                                               
CSHJR 8(ENE).]                                                                                                                  
                                                                                                                                
1:05:27 PM                                                                                                                    
                                                                                                                                
JOSHUA BANKS, Staff, Representative  David Talerico, Alaska State                                                               
Legislature,   introduced  HJR   on   behalf   of  the   sponsor,                                                               
Representative  Talerico.   He  said  HJR  8  is in  response  to                                                               
opposition to  the Environmental Protection Agency's  (EPA) Clean                                                               
Power Plan rule, which is  intended to reduce carbon emissions in                                                               
the U.S. by 30 percent, and  specifically in Alaska by 26 percent                                                               
by the year 2030.  This rule  will apply to all fossil fuel fired                                                               
plants greater than  25 megawatts, except for  plants on military                                                               
bases and  the university.   While well intentioned,  the sponsor                                                               
believes this plan  will likely lead to  higher electricity costs                                                               
without  meeting the  EPA's carbon  reduction goals.   The  Clean                                                               
Power  Plan is  based  on inaccurate  assumptions  that can  have                                                               
major effects  on the state of  Alaska.  The first  assumption is                                                               
that  the  largest  source  of carbon  emissions  is  from  power                                                               
plants.  While  this may be the  case in some areas  of the Lower                                                               
48, power plants  in Alaska only account for about  25 percent of                                                               
carbon  emissions  and the  remaining  75  percent of  stationary                                                               
sourced carbon  comes from  operations on the  North Slope.   The                                                               
sponsor  believes  that the  Clean  Power  Plan puts  unrealistic                                                               
expectations on Alaska's power plants.   The second assumption is                                                               
that low cost  natural gas and renewable energy is  ready for use                                                               
for major  energy consumption.   While this  may be  available in                                                               
most of Southcentral  Alaska and parts of  Southeast Alaska, this                                                               
would not be  feasible for Interior Alaska.  He  said EPA's claim                                                               
that Alaskans will  save on energy costs will not  be realized as                                                               
long  as natural  gas is  not available  at affordable  prices in                                                               
Interior Alaska.                                                                                                                
                                                                                                                                
1:07:18 PM                                                                                                                    
                                                                                                                                
MR. BANKS said  the fundamental reason for bringing  HJR 8 before                                                               
the  committee is  to protect  Alaska's sovereignty.   The  Tenth                                                               
Amendment of  the United States Constitution  clearly states that                                                               
the  powers   not  delegated   to  the   United  States   by  the                                                               
constitution, nor  prohibited by it  to the states,  are reserved                                                               
for the  states respectively or to  the people.  He  related that                                                               
in  reading the  constitution, he  fails to  find the  enumerated                                                               
power  with the  Executive Branch  to regulate  carbon emissions.                                                               
If  the  constitution  does  not clearly  say  that  the  federal                                                               
government  has the  ability to  regulate carbon  emissions, then                                                               
the  sponsor believes  that this  power resides  with the  state.                                                               
The sponsor  believes that the State  of Alaska has the  means to                                                               
make  effective decisions  through the  Regulatory Commission  of                                                               
Alaska (RCA),  as well as  various state agencies, that  not only                                                               
can deal with  any problems relating to climate  change, but also                                                               
do so in a way that does not  hurt Alaskans.  He said HJR 8 urges                                                               
the  federal government  to exempt  Alaska from  the Clean  Power                                                               
Plan and  to leave decisions  about regulating  energy production                                                               
to the State  of Alaska in order to protect  access to affordable                                                               
and reliable electrical generation.                                                                                             
                                                                                                                                
MR. BANKS offered to address the  changes made to HJR 8 that were                                                               
made by  the House Special  Committee on Energy if  the committee                                                               
desires.   He said  the changes  made in  CSHJR 8(ENE)  were made                                                               
based  on  feedback from  the  Alaska  Power Association,  Golden                                                               
Valley Electric Association, and the RCA.                                                                                       
                                                                                                                                
1:08:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  offered his understanding that  in July                                                               
2014 the  [Supreme Court  of the United  States] cleared  the way                                                               
for the EPA's  announcement in Section 111(d).   He asked whether                                                               
he is correct in this regard.                                                                                                   
                                                                                                                                
MR. BANKS  replied he is  not aware  of that court  decision, but                                                               
will look into it.                                                                                                              
                                                                                                                                
REPRESENTATIVE  JOSEPHSON stated  the Tenth  Amendment debate  is                                                               
something he  has spent a  lot of  time looking at  and teaching.                                                               
While  he  hears  the  sponsor's  argument,  he  said  the  Tenth                                                               
Amendment also  doesn't say that "we  can have an air  force, but                                                               
we have an  air force."  He inquired whether  it is the sponsor's                                                               
position that if  it isn't written there  very specifically, that                                                               
there is  no breadth of  power under  the Commerce Clause  or the                                                               
Necessary  and Proper  Clause or  any  of the  other clauses  the                                                               
founders wrote.                                                                                                                 
                                                                                                                                
MR. BANKS  responded that while  perhaps the  Interstate Commerce                                                               
Clause could  be applied  for the Lower  48 because  the electric                                                               
grid  goes  through various  state  lines,  Alaska is  completely                                                               
isolated  and so  he  does not  believe  the Interstate  Commerce                                                               
Clause would be in effect here.                                                                                                 
                                                                                                                                
1:10:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TALERICO said  he appreciates Representative Josephson's                                                               
question  because he  thinks the  representative is  referring to                                                               
Title 42 of  the U.S. Code, Section 111(d).   He said his biggest                                                               
concern  is   that  five  power   plants  in  Alaska   have  been                                                               
tentatively put on the list  for carbon reductions of 26 percent:                                                               
Unit  1  in  Healy;  George   M.  Sullivan  Generation  Plant  in                                                               
Anchorage, an  Anchorage Municipal Light &  Power's plant; Beluga                                                               
Power  Plant,   a  Chugach  Electric  Association   power  plant;                                                               
Southcentral  Power  Plant, a  Chugach  Municipal  Light &  Power                                                               
combo-plant; and Nikiski Co-Generation Plant  in Nikiski.  To the                                                               
best of his knowledge, those plants  are very well run.  Hundreds                                                               
of thousands  of Alaskans rely on  those power plants.   As those                                                               
prices go up,  he is concerned because many of  the people in his                                                               
district  rely   on  overhead  costs  remaining   consistent  and                                                               
reasonably  low in  order  for  their goods  and  services to  be                                                               
delivered.    Even  people  not  connected to  the  grid  can  be                                                               
impacted by those costs.                                                                                                        
                                                                                                                                
REPRESENTATIVE JOSEPHSON inquired what  the timeline is for these                                                               
requirements  and what  costs  can be  anticipated  if the  state                                                               
complies with the requirements.                                                                                                 
                                                                                                                                
CO-CHAIR  TALERICO answered  he is  unsure there  is anything  in                                                               
concrete  as far  as  the  actual compliance  to  the  plan.   He                                                               
deferred to Mr. Banks in regard to the timeframe.                                                                               
                                                                                                                                
MR. BANKS offered his belief that  the EPA will finalize its plan                                                               
by the  end of summer 2016  and from there he  believes the state                                                               
will have a  year to create its  plan.  He said he  is unaware of                                                               
any anticipated costs for compliance.                                                                                           
                                                                                                                                
REPRESENTATIVE  JOSEPHSON surmised  there surely  are some  costs                                                               
and said he suspects they're likely in the millions.                                                                            
                                                                                                                                
1:14:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NAGEAK opened  public testimony,  then closed  it after                                                               
ascertaining no one wished to testify.                                                                                          
                                                                                                                                
1:15:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NAGEAK  inquired  whether  there is  any  objection  to                                                               
reporting CSHJR 8(ENE) from committee.                                                                                          
                                                                                                                                
REPRESENTATIVE JOSEPHSON  stated he will not  object to reporting                                                               
the  resolution  because  he  thinks  it will  be  moved  by  the                                                               
committee.    However, he  said,  he  comes  from the  school  of                                                               
thought, "Is an  Alaskan first, and I guess  an American second?"                                                               
Alaska joined  the union and  has its representation.   The state                                                               
has  a clean  air problem,  a carbon  footprint problem,  and the                                                               
state must  contribute to  finding a  solution.   He said  he has                                                               
respect for  the concern  and the uniqueness  of Alaska  and that                                                               
Alaska is obviously not the  greatest contributor, but he will be                                                               
marking the resolution as "do not pass."                                                                                        
                                                                                                                                
CO-CHAIR NAGEAK  again asked  whether there  is any  objection to                                                               
reporting  the  resolution  from   committee.    There  being  no                                                               
objection,  he  said he  will  entertain  a  motion to  move  the                                                               
resolution.                                                                                                                     
                                                                                                                                
1:18:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TALERICO moved  to report CSHJR 8(ENE)  out of committee                                                               
with  individual  recommendations  and  the  accompanying  [zero]                                                               
fiscal  notes].   There  being  no  objection, CSHJR  8(ENE)  was                                                               
reported from the House Resources Standing Committee.                                                                           
                                                                                                                                

Document Name Date/Time Subjects
3.9.15 HRES HB 105 Transmittal Letter.pdf HRES 3/9/2015 1:00:00 PM
HB 105
3.9.15 HRES CSHB 105(ENE), version H.pdf HRES 3/9/2015 1:00:00 PM
HB 105
3.9.15 CSHB 105(ENE) Explaination of changes version A to version H.pdf HRES 3/9/2015 1:00:00 PM
HB 105
3.9.15 HRES CSHB 105(ENE) Ver H Sectional Analysis.pdf HRES 3/9/2015 1:00:00 PM
HB 105
3.9.15 HRES HB 105 Fiscal Note.pdf HRES 3/9/2015 1:00:00 PM
HB 105
3.9.15 HRES HB 105 Fact Sheet.pdf HRES 3/9/2015 1:00:00 PM
HB 105
3.9.15 HRES CSHB 105(ENE) FBX North Star Borough R2015-08.pdf HRES 3/9/2015 1:00:00 PM
HB 105
3.9.15 HRES HB 105 News Story Hilcorp not worried about Pentex Purchase.pdf HRES 3/9/2015 1:00:00 PM
HB 105
3.9.15 HRES HB 105 Sectional Analysis.pdf HRES 3/9/2015 1:00:00 PM
HB 105
3.9.15 HRES HB 92 Sponsor Statement.pdf HRES 3/9/2015 1:00:00 PM
HB 92
3.9.15 HRES HB 92 Fiscal Note.pdf HRES 3/9/2015 1:00:00 PM
HB 92
3.9.15 HRES HB 92 Sectional Analysis.pdf HRES 3/9/2015 1:00:00 PM
HB 92
3.9.15 HRES HB 92 GMO Q & A.pdf HRES 3/9/2015 1:00:00 PM
HB 92
3.9.15 HRES HB 14 Sponsor Statement.pdf HRES 3/9/2015 1:00:00 PM
HB 14
3.9.15 HRES HB 14 work draft, version W.pdf HRES 3/9/2015 1:00:00 PM
HB 14
3.9.15 HRES HB 14, version A.pdf HRES 3/9/2015 1:00:00 PM
HB 14
3.9.15 HRES HB 14 Fiscal Note.pdf HRES 3/9/2015 1:00:00 PM
HB 14
3.9.15 HRES HB 14 Sectional Analysis.pdf HRES 3/9/2015 1:00:00 PM
HB 14
3.9.15 HRES HB 14 Graphic Page.pdf HRES 3/9/2015 1:00:00 PM
HB 14
3.9.15 HRES HB 14 News Article.pdf HRES 3/9/2015 1:00:00 PM
HB 14
3.9.15 HRES HB 14 5 Gyres Institute Position Paper.pdf HRES 3/9/2015 1:00:00 PM
HB 14
3.9.15 HRES HB 14 - Oppose Letter.docx HRES 3/9/2015 1:00:00 PM
HB 14
3.9.15 HRES HB 14 CS Explanation of Changes.docx HRES 3/9/2015 1:00:00 PM
HB 14
HB 105 HRES Fairbanks Chamber LOS.pdf HRES 3/9/2015 1:00:00 PM
HB 105
HB 105 HRES - Furie, LLC LOS.pdf HRES 3/9/2015 1:00:00 PM
HB 105
HB 105 HRES Fbks Economic Development Corp. LOS.pdf HRES 3/9/2015 1:00:00 PM
HB 105
HB 105 HRES Fbks North Star Borough Resolution R2015-08 - LOS.pdf HRES 3/9/2015 1:00:00 PM
HB 105
3.9.15 HRES HB 92 D Stevens LOS.pdf HRES 3/9/2015 1:00:00 PM
HB 92
3.9.15 HRES HB 105 - Interior Gas Utility LOS.pdf HRES 3/9/2015 1:00:00 PM
HB 105