Legislature(2015 - 2016)SENATE FINANCE 532

04/13/2015 09:00 AM Senate FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 34 Presentation: Overview FY17 Operating Budget TELECONFERENCED
Moved CSSB 34(FIN) Out of Committee
Moved CSSB 70(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 70                                                                                                            
     "An Act  relating to exceptions  from designation  as a                                                                    
     special purpose  site under  art. VIII,  sec. 7  of the                                                                    
     Constitution  of the  State of  Alaska for  portions of                                                                    
     Denali State Park, Captain  Cook State Recreation Area,                                                                    
     Nancy  Lake State  Recreation  Area,  and Willow  Creek                                                                    
     State Recreation  Area to allow leasing  a right-of-way                                                                    
     for a natural gas pipeline."                                                                                               
9:10:43 AM                                                                                                                    
Co-Chair MacKinnon read the title of SB 70.                                                                                     
Vice-Chair  Micciche  MOVED   to  ADOPT  proposed  committee                                                                    
substitute  for  SB  70,  Work  Draft  29-GS1820\N  (Shutts,                                                                    
Co-Chair MacKinnon OBJECTED for purpose of discussion.                                                                          
9:11:24 AM                                                                                                                    
Ms. Shine  outlined the changes  to the bill. She  noted the                                                                    
memos  between the  division of  Legislative  Legal and  the                                                                    
Department  of Law  (DOL) that  spoke to  amendment language                                                                    
that had  been incorporated  into the  CS crafted  in Senate                                                                    
Resources. She  shared that Legislative Legal  felt that the                                                                    
language had  been ambiguous and  the Department  of Natural                                                                    
Resources (DNR) and DOL had disagreed.                                                                                          
9:12:16 AM                                                                                                                    
Ms. Shine  spoke to Page 1,  line 6 through Page  2, line 3,                                                                    
which   incorporated  clarifying   language  that   DOL  had                                                                    
suggested. The next  change was on Page 4, lines  21 and 22,                                                                    
which  was   the  amended  language  from   Senate  Resource                                                                    
Committee.   She  deferred   any   questions   to  DOL   and                                                                    
Legislative Legal. Ms. Shine continued  with the next change                                                                    
on Page 5,  lines 6 through 7, from "operation  and 5 years"                                                                    
to "construction and 10 years."  She furthered that the next                                                                    
change on  Page 5, line  11 changed the effective  date from                                                                    
January 1, 2020 to January 1, 2025.                                                                                             
9:14:19 AM                                                                                                                    
Ms. Shine noted the  aforementioned changes as they appeared                                                                    
throughout the bill.                                                                                                            
9:14:52 AM                                                                                                                    
Co-Chair   MacKinnon  commented   that   the  changes   were                                                                    
9:14:58 AM                                                                                                                    
Senator Dunleavy queried  the change from five  years to ten                                                                    
Ms.  Shine  replied  that  the  change  was  generated  from                                                                    
feedback  that   the  committee  had  received   from  AKLNG                                                                    
partners,  and  had  been  clarified by  DNR,  it  had  been                                                                    
decided that  the timeline  was too  short for  the previous                                                                    
9:15:53 AM                                                                                                                    
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
9:16:09 AM                                                                                                                    
BEN  ELLIS,  DIRECTOR,  ALASKA STATE  PARKS,  DEPARTMENT  OF                                                                    
NATURAL  RESOURCES,  commented   that  the  department  felt                                                                    
comfortable with the changes in the bill.                                                                                       
9:17:27 AM                                                                                                                    
JOHN  HUTCHINS, CIVIL  DIVISION, DEPARTMENT  OF LAW,  echoed                                                                    
Mr. Ellis's response.                                                                                                           
Co-Chair  MacKinnon  noted  that  the  leases  would  become                                                                    
effective before January 1, 2025.                                                                                               
Mr. Ellis stated that the department supported the change.                                                                      
9:17:57 AM                                                                                                                    
Senator Dunleavy  asked whether the  administration believed                                                                    
that gas would be online by 2025, even with the change.                                                                         
Mr.  Ellis   related  that   he  had   not  spoken   to  the                                                                    
administration,  yet  had  clarified   the  issue  with  the                                                                    
governor's legislative director - who had given approval.                                                                       
Senator  Dunleavy asked  whether the  extension in  the bill                                                                    
would translate  into an extension  on when the  state could                                                                    
expect gas to be online.                                                                                                        
Mr. Ellis deferred the question  to the DNR commissioner. He                                                                    
said that  to his knowledge  the change would not  alter the                                                                    
horizon for gas.                                                                                                                
Mr.  Hutchins added  that the  extension had  nothing to  do                                                                    
with  when  gas  was  expected  to be  online,  but  was  an                                                                    
estimate of how  long it would take to get  certainty on the                                                                    
corridor. He said  that the time period had been  a guess to                                                                    
begin with.                                                                                                                     
9:20:10 AM                                                                                                                    
Vice-Chair  Micciche spoke  to the  fiscal note  attached to                                                                    
the  bill and  noted that  it would  need to  be updated  to                                                                    
reflect the CS version.                                                                                                         
9:21:17 AM                                                                                                                    
AT EASE                                                                                                                         
9:21:39 AM                                                                                                                    
Vice-Chair Micciche  MOVED to report  CS SB 70 (FIN)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
CSSB 70(FIN) was REPORTED out of committee with a "do pass"                                                                     
recommendation and with a previously published zero fiscal                                                                      
note: FN1 (DNR).                                                                                                                
9:22:06 AM                                                                                                                    
AT EASE                                                                                                                         
9:24:28 AM                                                                                                                    
Co-Chair MacKinnon discussed housekeeping.                                                                                      

Document Name Date/Time Subjects
SB 34 CSSB 34 (FIN) ver H.pdf SFIN 4/13/2015 9:00:00 AM
SB 34
SB 70 Work Draft Version N.pdf SFIN 4/13/2015 9:00:00 AM
SB 70