Conservation Watch #26 4/06/2010

In this Issue

• Our Acid Oceans
• Legislative Potpourri
• From the Blog
• Bill Spotlight
• This Week in Committee
• New in Town
• Tweet of the Week

It's nearly 24-hour rule time. Check the Conservation Blog and Legislative web site  for rapid updates.

Our Acid Oceans

By Caitlin Higgins, Executive Director of Alaska Conservation Voters

Did you know that Alaska’s seafood industry contributed a total of $5.8 billion to Alaska’s economic output in 2007, including an estimated $3.6 billion in wholesale value and $2.2 billion in indirect and induced economic output? I didn’t. I had heard that the seafood industry was the largest industry employer in Alaska and but I had no idea that Alaska has 8 of the 20 largest seafood ports in the United States (based on ex-vessel value of product), and in 2007, Alaska accounted for over 62 percent, by volume, of the commercial seafood harvested in the United States.  That’s an impressive and valuable contribution to Alaska’s economy.  Alaska’s ocean waters are not only an economic resource, but a part of our cultural identity interwoven into the daily lives of many Alaskans.

What scientists are learning is that not only is climate change impacting Alaska’s lands, but it’s oceans too.  The world’s oceans have absorbed more than a quarter of the carbon dioxide released into the atmosphere since the start of the Industrial Revolution and that CO2 has altered the water chemistry making ocean surface waters 30% more acidic on average.  This process, known as ocean acidification, is likely more severe and is happening more rapidly in Alaska than in tropical waters. In Arctic waters carbon dioxide is more soluble due to the colder temperatures and lower salinity levels diminish the capacity of oceans to buffer against acidification.

More acidic water threatens carbonate-forming species such as coral, shellfish, and many species of marine plankton.  Changes to these species may cause major ripple effects throughout marine ecosystems and food webs, ultimately affecting the largest marine organisms and many commercial fisheries.

The effects of ocean acidification could create conditions

detrimental to marine ecosystems in Alaska within decades, including King, tanner and Dungeness crabs; deep-sea coral gardens; pteropods, which are important prey for whales, salmon, and other animals; and other types of plankton that helps form the base of the food web.

Unfortunately, scientists and fisheries experts don’t have a lot of data as to the potential impacts of ocean acidification in Alaska. Fortunately this dearth of data may be remedied as the North Pacific Fishery Management Council has recommended ocean acidification be a research priority.  More information is needed to determine not only how ocean acidification will impact ocean ecosystems, but the people who depend on them.

Make sure your elected official is aware of this issue and ask them to consider devoting resources to determine potential effects on Alaska’s economy, and assess opportunities to address the impacts of ocean acidification on Alaska.

For more information on Ocean Acidification and sources for the information noted in this document, please read the Ocean Acidification Resolution as drafted by Oceana and the Alliance.

Legislative Potpourri

Potentially Long Trail Ahead for Dalton Highway Bill

The House Resources Committee took its first look at HB 267 this week. The bill is sponsored by Representatives Mike Kelly and Mark Neuman, and would allow snowmachine use on part of the Dalton Highway for a two-year trial period.

The bill came over with a lot of work needed. The version passed out of the Transportation Committee still needed a plan for how to pay for the increase in safety and regulatory services associated with increased access. And the Act, which proposes arguably expensive management, has yet to receive a fiscal note. Representative Craig Johnson told his colleagues and the public that he would address those concerns as the chair of the Resources Committee.

HB 267 drew a great deal of attention and public testimony during its first round of hearings, with opposition far outweighing support. Major issues with opening access to the highway included interference with industrial traffic, negative impact on Dahl Sheep and caribou, the reduction of game for local subsistence hunters, and potential degradation of the tundra over which the road travels.

The Resources Committee hearing last Wednesday was brief, crowded out by debate over gas legislation, causing the committee to postpone public input. The bill is not yet scheduled for another hearing.


24-Hour Rule: the What and When

For most of the session, committees must provide the chief clerk or secretary written notice of the time, place, and subject matter of all committee meetings and the chief clerk or secretary must receive the request by Thursday at 4:00 p.m. of the week before the hearing. All hearings must be publicly noticed for at least five days before the hearing; however, this can be waived by a majority vote of the house membership.

The 24-hour rule goes into effect once the House and the Senate have both appointed conference committee members for the operating budget to reconcile the differences in the operating budgets that passed the Senate and the House.. When the 24-hour rule goes into effect, committees only have to notice meetings and their content 24 hours in advance. During this time, you will want to rely on the committee schedule posted in BASIS.

Both chambers have passed an operating budget and as of the writing of this article, the House has appointed its members to the conference committee. Some have said the 24-hour rule will go into effect a little earlier this year than last.

From the Blog

Friday, April 02, 2010

12:40 PM -- Week in Review
It was a busy week for natural gas with hearings on at least seven separate gas related bills.

• HCR 2: the Rules Committee added a (H) Finance referral to HCR2. (H) Finance moved SCS CSHCR 2(FIN) Out of Committee
  
• SB 305 moved out of (S) Finance Committee on the last day of March and passed through the Senate yesterday with only 3 No votes. It is scheduled for a hearing in House Resources on Wednesday, April 7.
  
• HB 377: (S)L&C: heard and held
• HB 229: (H) FIN: heard and held
• HB 414: (H) RES: heard and held
• SB 309: (S) RES: heard and held. Is scheduled for a hearing in Senate Resources on Monday, April 5.
• HB 369: (S) RES: heard and held

Legislators and the public were treated to a presentation in House Finance called "Federal Perspective on the Natural Gas Pipeline," by Larry Persily, Federal Natural Gas Pipeline Coordinator.

Persily asked Alaskans to be realistic when contemplating the impact to state coffers of selling Alaska natural gas to the world market. And completion of the complex project won't be easy. However, the benefits to Alaskans of a large diameter pipeline are worth the effort, Persily said.

The U.S. natural gas market is 3X the size of the India, China and Japan markets combined. "There is the very large U.S. Market. And then there is the LNG market," Persily said.

Persily's commments pointed toward a recommendation to pipe Alaska gas through Canada to the lower 48.

Hip hip hooray! Priority bills get their day in Committee
Senate Bill 220: Energy Efficiency / Alternative Energy has another hearing scheduled in Senate Finance, April 5 at 10:00 AM in Senate Finance Rm 532 [It has since been postponed until at least Wednesday or Thursday of this week]. (S) Finance is the final Senate Committee to which SB 220 was referred.

House Bill 306: State Energy Policy has its first Senate hearing scheduled after passing the House of Representatives on March 17. Senate Resources Committee on Tuesday, April 6 at 3:30 PM in Butrovich Rm 205.

Senate Bill 152: Regional Transit Authority is scheduled to be heard the second time in Senate Transportation Committee on Thursday, April 8 at 1:00 PM in Butrovich Rm 205.

Bills to Watch
Senate Bill 143: Railbelt Energy and Transmission Corp was heard in (S) Resources on Thursday April 1. Sen. McGuire and Sen. Wielechowski voted Do Pass and moved CSSB 143(RES) out of Committee

House Bill 182: Railbelt Energy and Transmission Corp was heard and held in (H) Energy Committee on Thursday, April 1.

House Bill 267: Snowmachine use on Dalton Highway was heard and held on March 31.

House Concurrent Resolution 22: Alaska Northern Waters Task Force passed (H) Community and Regional Affairs Committee on Wednesday, March 31. It is scheduled for a hearing on Tuesday, April 6 in (H) Finance.

12:33 PM -- Campaign Corner
Alaska Conservation Voters is pleased to announce that we have endorsed Paul Honeman in the East Anchorage Assembly Race.

We encourage conservation voters living in East Anchorage to VOTE for Paul Honeman in the Tuesday, April 6th Municipal Election.

For additional information about the candidate, please visit his website www.paulhoneman.com or view this profile from the Anchorage Daily News.

Please click HERE if you need information about assembly districts and polling places. If you are unable to vote on Tuesday, April 6th between 7:00 am – 8:00 pm at your polling place, please vote early or absentee. Early voting is available at City Hall in Downtown Anchorage. Information about early  and special needs voting is available HERE or by calling (907) 243-8683.

Please join me in supporting Paul Honeman for Assembly from East Anchorage!

For more information, please contact Susanna Orr, Political Director for the Alaska Conservation Voters, at susanna@akvoice.org

Wednesday, March 31, 2010

4:41 PM -- FY2011 Community Services Block Grant (CSBG) Alaska state plan
The Plan was discussed in (H) Community and Regional Affairs (audio) on Tuesday, March 30.

Among many other provisions, the CSBG plan covers energy efficiency and weatherization education and upgrades for low income families.

CSBG funds are allocated to the State for Alaska’s only Community Action Program, RurAL CAP, Inc. The objective of the program is to impact the causes and conditions of poverty.

The State Plan describes how the State administers the program and the activities to be undertaken during the federal fiscal year.

Copies of the Plan will be available at the Fairbanks, Anchorage or Juneau LIO’s or may be requested by contacting Jill Davis, Department of Commerce, Community, and Economic Development, 211 Cushman, Fairbanks, AK 99701-4639. Phone 907-451-2717.

10:36 AM -- Today in the Legislature
HB 267 Snow Machine use in Dalton Highway Corridor

• Today at 1:00 PM in (H)Resources Standing Committee, BARNES Rm 124

Annual Address by the Honorable Mark Begich, U.S. Senator

• Today at 11:00 AM in (S)(H)Joint Session, House Chamber

Bill Spotlight

HB 306 State Energy Policy: An Act declaring a state energy policy.

Sponsored by the House Energy Committee, the bill passed the House on March 17. CSHB 306(RES) was referred to (S) Resources then (S) Finance Committees.

HB 306 is scheduled to be heard today in (S) Resources Committee at 3:30 PM in Butrovich Rm 205.

SB 152 Transportation; Transit Authorities: An Act relating to municipal transportation systems and to regional transit authorities.

The bill is sponsored by Sens. Charlie Huggins, Johnny Ellis, Bettye Davis. Referred to (S) Transportation then (S) Finance, it was head and held in (S) Transportation Committee on March 18.

SB 152 is scheduled to be heard in (S) Transportation on Thursday, April 8 at 1:00 PM in Butrovich Rm 205.

HB 333 Naturally Occurring Asbestos in Gravel : An Act directing the Department of Transportation and Public Facilities to develop and implement standards and operating procedures allowing for the use in the construction and maintenance of transportation projects and public facilities and in the construction of projects by public and private entities of gravel or aggregate materials that contain naturally occurring asbestos, and authorizing use on an interim basis of those materials for certain transportation projects and public facilities; and relating to certain claims arising out of or in connection with the use of gravel or aggregate materials.

Sponsored by Rep. Reggie Joule, the bill passed (H) Transportation and referred to (H) Finance on March 31. (H) Finance is the bill’s final referred committee in the House.

Sponsor Statement

HCR 2 In-State Gas Pipeline: Urging the Governor to commit to providing energy security for all Alaskans by supporting the in-state gas pipeline project and assisting the project in its efforts to secure needed permits, rights-of-way, engineering specifications, and other approvals necessary or desirable, to bundle the approvals for sale on the market to interested private sector pipeline companies, and in all other ways to act in due haste to move the in-state natural gas pipeline to a construction phase; urging the Governor to support the persons working on the in-state gas pipeline project in discussions with and obtaining of letters of intent from potential industrial users of natural gas, including the Agrium U.S., Inc., facility, the ConocoPhillips/Marathon facility, mining companies, and other businesses interested in value-added processing of petroleum gases transported in a natural gas pipeline from the North Slope or Brooks Range foothills for the purpose of providing jobs for Alaskans and ensuring the economic viability of the pipeline; urging the Governor to pursue the renewal of the license issued by the United States Department of Energy to export natural gas produced on the North Slope or in the Brooks Range foothills that exceeds the needs and demands of Alaskans for affordable natural gas; urging the Governor to continue negotiations with one or more entities capable of producing and supplying natural gas from the North Slope or Brooks Range foothills to Southcentral and Interior Alaska on commercially reasonable terms and in sufficient quantities to support the energy needs of Alaskans and the economic viability of a pipeline; urging the Governor to expedite the permits necessary or desirable to construct and operate a gas-to-liquids facility at Point Mackenzie if a feasibility document shows that it is economically viable; and urging the Governor to take the actions requested in this resolution, as necessary and appropriate, immediately and with all reasonable speed and effort.

This descriptively named bill was sponsored by Rep. Jay Ramras. The bill passed the House on February 9 and then the Senate on April 5. Version SCS CSHCR 2(FIN) has been transmitted to the House as Amended.

Sponsor Statement

Geothermal energy bill passes Senate
The Senate yesterday passed Senate Bill 243, sponsored by Senator Lesil McGuire, R-Anchorage, which reduces the royalty rate on geothermal resources and establishes a regulatory regime for geothermal exploration and development. The vote was unanimous.

“We can look to Iceland to see the power geothermal resources bring to a society,” said Senator McGuire. “Geothermal power is a consistent, clean, renewable power that could transform the energy picture in Alaska.”

The bill enacts a royalty regime on geothermal resources similar to the federal one, with geothermal resources paying 1.75% of gross revenues for the first ten years and then 3.5% thereafter.

Current geothermal royalty rates in Alaska are some of the highest in the nation, on par with royalties for extracting oil. Unlike oil, geothermal energy is not likely to be exported and, if properly maintained, the resource is renewable.
“And since the royalties are just passed on to ratepayers, really were just a tax on Alaskans,” McGuire said.

Major Geothermal projects are currently being evaluated in the Akutan, Naknak and Southcentral regions. The energy company OrMat has been studying the feasibility of an up to 100MW geothermal project on Mt. Spurr near Anchorage.
SB 243 goes next to the House of Representatives for consideration.

SB243 has a sister bill, SB 242, also sponsored by Sen. McGuire. SB 242 offered business tax credits for geothermal resource exploration and development. SB242 was moved to (S) Finance in late March, it has not yet had a hearing in that committee.

HB 162 Southeast State Forest: An Act establishing the Southeast State Forest and relating to the Southeast State Forest; and providing for an effective date. Sponsored by (H) Rules by Request of the Governor, the bill passed the House last year and passed its first Senate referral, (S) Resources, on March 31. It was heard and held today in (S) Finance at 9:00 AM.

HCR 22 Alaska Northern Waters Task Force: Establishing and relating to the Alaska Northern Waters Task Force. Sponsored by (H) Community & Regional Affairs, the bill passed (H) Community and Regional Affairs last week. The bill is moving fast.

HCR 22 is scheduled to be heard in (H) Finance today at 1:30 PM in House Finance Rm 519.

HJR 49 Opposing Environmental Protection Agency Clean Air Act Regulations:  Urging the United States Congress to enact S.J. Res. 26, a resolution disapproving the Environmental Protection Agency's imposition of climate regulations that would harm Alaska's economy and the livelihoods of the state's citizens.

Sponsored by Reps. Bill Stoltze, Mike Chenault, Carl Gatto, Wes Keller, Cathy Munoz, Mark Neuman, Mike Hawker, Charisse Millett, Craig Johnson, Jay Ramras, Peggy Wilson, Tammie Wilson, Kurt Olson, Mike Kelly, Nancy Dahlstrom, Kyle Johansen.

HJR 49 passed the House on Reconsideration on March 30. No Votes: Reps. Sharon Cissna, Les Gara, Berta Gardner, Max Gruenberg, David Guttenberg, Lindsey Holmes, Beth Kerttula, Woodie Salmon. The resolution was referred to (S) Resources where it has not yet had a hearing.

Also:

HJR 45 Oppose Federal Cap and Trade Legislation: Urging the United States Congress not to enact Cap and Trade legislation. Sponsored by Rep. Bill Stoltze, the resolution passed the House on March 17 and referred to (S) Resources then Finance. It has not been heard in the Senate.

SB 143 Railbelt Energy & Transmission Corporation: an Act establishing the Greater Railbelt Energy and Transmission Corporation and relating to the corporation; relating to transition, financial plan, and reporting requirements regarding planning for the initial business operations of the Greater Railbelt Energy and Transmission Corporation; relating to a report on legislation regarding the Regulatory Commission of Alaska and the Greater Railbelt Energy and Transmission Corporation; authorizing the Alaska Energy Authority to convey the Bradley Lake Hydroelectric Project and the Alaska Intertie to the Greater Railbelt Energy and Transmission Corporation; and providing for an effective date.

Sponsored by (S) Rules Committee by Request of the Governor, the bill passed (S) Resources on Thursday April 2nd. Do Pass: Sens. Lesil McGuire, Bill Wielechowski. No Recommendation: Sens. Charlie Huggins, Gary Stevens, Hollis French. The bill is referred to (S) Finance.

Alaska Conservation Voters is advocating for Regulatory Commission of Alaska oversight of the proposed generation and transmission corporation.

Fate of the bill is uncertain.

SB 277 Public Utility Exemption: Renewable Energy: An Act exempting from regulation by the Regulatory Commission of Alaska and by municipalities certain generators of electricity from renewable energy resources that sell electricity to regulated utilities.

Sponsored by (S) Energy Committee, the bill passed the Senate on Thursday, April 2. It has been referred to (H) Energy then (H) Resources then (H) Labor & Commerce Committees.

SB 284 Campaign Expenditures: An Act relating to state election campaigns, the duties of the Alaska Public Offices Commission, the reporting and disclosure of expenditures and independent expenditures, the filing of reports, and the identification of certain communications in state election campaigns; prohibiting expenditures and contributions by foreign nationals in state elections; and providing for an effective date.

Sponsored by (S) Judiciary Committee, the bill passed the Senate on April 1. It was referred to (H) Judiciary the (H) Finance Committees.

SB284 is scheduled for Wednesday, April 7 at 1:00 PM in Capitol Rm 120.

SB 305 Separate Oil & Gas Production Tax: an Act providing that the tax rate applicable to the production of oil as the average production tax value of oil, gas produced in the Cook Inlet sedimentary basin, and gas produced outside of the Cook Inlet sedimentary basin and used in the state increases above $30 shall be 0.4 percent multiplied by the number that represents the difference between that average monthly production tax value and $30, or the sum of 25 percent and the product of 0.1 percent multiplied by the number that represents the difference between that average monthly production tax value and $92.50, except that the total rate determined in the calculation may not exceed 50 percent; providing for an increase in the rate of tax on the production of gas as the average production tax value on a BTU equivalent barrel basis of gas produced outside of the Cook Inlet sedimentary basin and not used in the state increases above $30; relating to payments of the oil and gas production tax; relating to availability of a portion of the money received from the tax on oil and gas production for appropriation to the community revenue sharing fund; relating to the allocation of lease expenditures and adjustments to lease expenditures; and providing for an effective date.

Sponsored by (S) Finance, the bill passed the Senate on April 1. It was referred to (H) Resources then (H) Finance Committees.

SB 305 is scheduled to be heard on Wednesday, April 7 in (H) Resources at 1:00 PM in Barnes Rm 124.

SCR 17 Alaska Northern Waters Task Force: establishing and relating to the Alaska Northern Waters Task Force.
Sponsored by (S) Community & Regional Affairs Committee, the bill passed (S) Community and Regional Affairs Committee on March 30. It is referred to (S) Finance Committee.

This Week in Committee

Tuesday, April 6, 2010

Wednesday, April 7, 2010

Thursday, April 8, 2010 

Friday, April 9, 2010

Saturday, April 10, 2010

New in Town

No New Legislation Introduced 3/30-4/5

Tweet of the Week

## Just testified before the Regulatory Commission of Alaska on the importance of consumer protections in GRETC legislation. 3:33 PM Mar 31st via UberTwitter

## The RCA is hearing details on GRETC. They'll make recommendations to the legislature after hearing from drafters and the public. 3:50 PM Mar 31st via UberTwitter

## RCA recessed until 9 am on Thursday when they get the drafters detailed overview of the bill. 3:53 PM Mar 31st via UberTwitter