Legislature(2007 - 2008)HOUSE FINANCE 519
04/13/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB28 | |
| HB229 | |
| HB152 | |
| HB133 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 133 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 28 | TELECONFERENCED | |
| += | HB 229 | TELECONFERENCED | |
| += | HB 152 | TELECONFERENCED | |
HOUSE BILL NO. 152
"An Act establishing a renewable energy fund and
describing its uses and purposes."
CHARISSE MILLET, STAFF, SPEAKER JOHN HARRIS, sponsor,
explained the purpose behind HB 152. The high cost of fuel
in Alaska has made it increasingly difficult for Alaskan
residents to prosper. Home heating fuel and gasoline prices
have skyrocketed in recent years leaving some Alaska
families, who already struggle to make ends meet, left to
prioritize between basic necessities of life: heat, food, or
health care. The bill contains recommendations from the
Alaska Energy Policy Task Force formed in 2003.
With the bill, Alaska would be one of 40 states to institute
a policy on renewable energy.
Ms. Millet reported that the bill accomplishes two things:
provides for a revolving loan fund under the Alaska Energy
Authority (AEA) and has a grant component. There is
currently no funding mechanism for the fund. The bill seeks
only to establish the fund in statute.
2:33:37 PM
KACI SCHROEDER-HOTCH, STAFF, REPRESENTATIVE THOMAS, co-
sponsor, explained the sections of the bill. She mentioned
that a natural gas project could also qualify for a grant.
She explained the makeup of the advisory committee.
2:36:38 PM
SARAH FISHER-GOAD, DEPUTY DIRECTOR OF OPERATIONS, ALASKA
ENERGY AUTHORITY, testified in support of HB 152. She spoke
of the intentions of the renewable energy fund. She
suggested an amendment which would allow the Department of
Revenue to be the investment manager of the new fund.
2:38:14 PM
CHRIS ROSE, EXECUTIVE DIRECTOR, RENEWABLE ENERGY ALASKA
PROJECT (REAP), testified in support of HB 152. He
explained that there are no fuel costs related to generating
renewable energy. The bill would create a fund similar to
ones in 15 other states, and will attract capital to the
state.
KATHERINE LAMAL, VICE PRESIDENT OF POWER, GOLDEN VALLEY
ELECTRIC ASSOCIATION, testified in support of the
legislation, which would help jumpstart renewable energy in
Alaska and show that Alaska is a forward-looking state.
2:41:27 PM
CONNIE FREDENBERG, COMMUNITY DEVELOPMENT, ALEUTIAN PRIBILOF
ISLANDS ASSOCIATION (APIA), testified in support of the
legislation. She noted that the Aleutian Islands have had
renewable energy for the past four years. She maintained
that the technology exists and that much of Alaska could
benefit from renewable resources. Displacing diesel fuel
with renewable resources is a long-term solution. She
stressed the need for the political will to make it happen.
She maintained that establishing a renewable grant fund
would benefit all of Alaska.
2:44:15 PM
MEERA KOHLER, PRESIDENT & CEO, ALASKA VILLAGE ELECTRIC
COOPERATIVE, testified in support of the legislation. She
provided examples of renewable resources used in the
villages. She maintained that Alaska has a large potential
for renewable resources.
Representative Kelly expressed concern that the members of
the advisory committee would end up gridlocked most of the
time. Ms. Kohler explained that the committee has great
potential, is small, and workable. The committee is needed
to focus on renewable resources.
2:48:35 PM
GWEN HOLDMANN, VICE PRESIDENT OF NEW DEVELOPMENT, CHENA HOT
SPRINGS RESORT, testified in support of the legislation.
She noted that their power plant has won awards. She
reported that in seven months, they were able to offset
$280,000 in diesel fuel costs. She provided other details
of their use of renewable resources and the resulting
savings. She observed that they would not have been able to
make the advances without grant funding.
2:51:47 PM
Co-Chair Meyer MOVED to ADOPT Amendment 1:
Page 3, line 19
After "balance"
Insert "of"
There being NO OBJECTION, it was so ordered.
Representative Thomas MOVED to ADOPT Amendment 2:
Page 3, line 17:
Delete "and"
Page 3, line 20, following "section":
Insert "; and
(4) apply for and be able to receive
contributions from other sources for distribution as
grants to eligible applicants"
Representative Crawford noted that other funding sources are
available for renewable energy systems.
2:56:49 PM
Ms. Millet explained that there is nothing in the bill that
prohibits AEA from seeking other funding. Some fund sources
are weighted higher than others due to the possibility of
matching funds.
Representative Crawford emphasized the wording "apply for"
in the amendment. He agreed that there is nothing in the
bill that would prevent that, but there is also nothing that
states that "they should" apply for other sources of funds.
Representative Thomas said he has no problem with Amendment
#2.
2:58:22 PM
Representative Hawker asked if Speaker Harris would agree
with Amendment #2. Ms. Millet said he would have no problem
with it.
Co-Chair Meyer WITHDREW his objection. There being NO
OBJECTION, Amendment #2 was adopted.
Representative Thomas MOVED to ADOPT Amendment #3:
Page 5, lines 14-17
Delete after (g): [as applicable to licensing water-
power development projects, unless the authority adopts
a different definition based on a determination made by
a nationally recognized independent nonprofit
corporation that considers the environmental effects of
hydropower practices;]
Co-Chair Meyer OBJECTED.
Representative Thomas pointed out that the amendment would
keep the definition as defined under AS 42.45.350(g). Ms.
Millet said the sponsor has no objection to the amendment.
Co-Chair Meyer WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
2:59:57 PM
Representative Thomas MOVED to ADOPT Amendment # 4:
Page 3, line 9
Add: (4) investments to be managed by the Department of
Revenue
Co-Chair Meyer OBJECTED.
Representative Thomas explained that the amendment was at
the recommendation of Ms. Fisher-Goad from AEA. Ms. Millet
agreed with the amendment.
Co-Chair Meyer WITHDREW his objection. There being NO
OBJECTION, Amendment #4 was adopted.
Co-Chair Meyer questioned fiscal note #2. He thought
$126,000 should be general fund money rather than renewable
energy fund money. Ms. Millet did not have a problem with
that.
3:03:47 PM
Representative Hawker mentioned that either the account or
the fund will require a separate appropriation before there
is any money available. He suggested that both fiscal notes
be indeterminate, rather than a fixed number.
Ms. Millet suggested consulting with AEA about the fiscal
notes.
Representative Kelly commented that the full-time position
is not needed. He agreed with Representative Hawker.
Co-Chair Meyer thought both fiscal notes should be
indeterminate fiscal notes. Ms. Millet agreed.
Ms. Fisher-Goad explained that the reason for the amount
under the renewable energy fund was because of the
assumption that there would be an appropriation to make the
program move forward. She said she would comply with the
will of the committee.
Representative Hawker spoke about travel, which he thought
AEA could absorb.
3:09:55 PM
Representative Hawker MOVED that Fiscal Notes #1 and #2 be
indeterminate. There being NO OBJECTION, it was so ordered.
Co-Chair Meyer wanted to move the bill.
Representative Hawker stated willingness to move the bill,
but emphasized that this legislation is no assurance for
funding for the program.
Representative Crawford spoke in support of moving the bill
and finding private sources of money to fund it.
Representative Thomas agreed to move the bill and find
funding later.
3:13:00 PM
Representative Hawker MOVED to REPORT CSHB 152 (FIN), as
amended, with individual recommendations and with the
accompanying amended fiscal notes. There being NO
OBJECTION, it was so ordered.
CSHB 152 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with two new indeterminate fiscal
notes by the Department of Commerce, Community and Economic
Development.
3:13:59 PM
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