04/13/2010 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 306(RES)                                                                                                
                                                                                                                                
     "An Act declaring a state energy policy."                                                                                  
                                                                                                                                
Representative  Bryce Edgmon,  Sponsor,  explained that  the                                                                    
bill would create  a statewide energy policy. The  bill is a                                                                    
product  of  a  working  group from  the  energy  sector  of                                                                    
Alaska. It  ties together  all the  facets of  energy moving                                                                    
forward  in   the  21st  Century,   including  conservation,                                                                    
efficiency,   renewable   and  non-renewable   energy,   and                                                                    
community-level  involvement. The  bill  addresses the  fact                                                                    
that Alaska  is a resource  development state and  energy is                                                                    
tied   to  economic   development.   He   pointed  out   the                                                                    
legislative  intent language  in the  bill. The  bill passed                                                                    
the House unanimously and has a zero fiscal note.                                                                               
                                                                                                                                
Co-Chair Stedman  noted one  zero fiscal  note by  the House                                                                    
Energy Committee.                                                                                                               
                                                                                                                                
10:04:51 AM                                                                                                                   
                                                                                                                                
CHRIS  ROSE,  EXECUTIVE  DIRECTOR, RENEWABLE  ENERGY  ALASKA                                                                    
PROJECT  (REAP),   testified  in  support  of   HB  306.  He                                                                    
explained  the  process  of  working on  the  bill  and  how                                                                    
consensus was  attained. He stressed  the importance  of the                                                                    
bill due to the fact that  the state does not have an energy                                                                    
policy. The goal  of the bill was to provide  a framework or                                                                    
vision in which  to put strategic goals. Those  goals can be                                                                    
implemented through projects. He  listed the benefits of the                                                                    
bill,  which  promotes   both  renewable  and  non-renewable                                                                    
alternative  fuels. Energy  efficiency  and conservation  is                                                                    
foremost.  The bill  also  supports  training and  workforce                                                                    
development and  works on coordinating  government functions                                                                    
so that the goals can be efficiently implemented.                                                                               
                                                                                                                                
10:07:48 AM                                                                                                                   
                                                                                                                                
STEVE   HAAGENSON,   EXECUTIVE   DIRECTOR,   ALASKA   ENERGY                                                                    
AUTHORITY, testified in favor of HB 306.                                                                                        
                                                                                                                                
Co-Chair  Stedman  pointed  out  that the  bill  targets  50                                                                    
percent  of the  state's  electrical generation  to be  from                                                                    
renewable energy  sources by 2025.  He questioned  where the                                                                    
state currently is and how that goal might be attained.                                                                         
                                                                                                                                
Mr. Haagenson  reported that  the state  is currently  at 24                                                                    
percent  energy  from  renewable  sources,  including  hydro                                                                    
electricity.  He stated  that it  was a  realistic goal.  He                                                                    
talked about the Railbelt's renewable resource plan.                                                                            
                                                                                                                                
Co-Chair  Stedman commented  that  there  was currently  $10                                                                    
million in  the capital budget for  hydro electric projects.                                                                    
Mr.  Haagenson agreed.  He added  that  there is  a goal  to                                                                    
develop  renewable  energy  plans   for  each  community  in                                                                    
Alaska, not just Southeast and the Railbelt.                                                                                    
                                                                                                                                
10:11:19 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman  asked if there  had been  much integration                                                                    
with the idea of a bullet line  or a major gas line and gas-                                                                    
fired  electric  turbines.   Mr.  Haagenson  responded  with                                                                    
information on natural gas energy  in the Railbelt. He noted                                                                    
that the bill does not include bullet lines or pipelines.                                                                       
                                                                                                                                
Senator  Thomas  requested  further explanation  of  the  24                                                                    
percent. Mr. Haagenson state that only .3 percent is non-                                                                       
hydro; the majority is hydro-driven.                                                                                            
                                                                                                                                
BRIAN BJORKQUIST,  SENIOR ASSISTANT ATTORNEY  GENERAL, LABOR                                                                    
AND   STATE  AFFAIRS   SECTION,  DEPARTMENT   OF  LAW   (via                                                                    
teleconference), introduced himself.                                                                                            
                                                                                                                                
Co-Chair Stedman  asked what exposure  Alaska has if  the 50                                                                    
percent goal  is not  met by  2025. Mr.  Bjorkquist reported                                                                    
that that  information is  found in Section  1 of  the bill,                                                                    
which is  part of the  legislative intent. If the  state did                                                                    
not  meet that  goal,  there isn't  a  statutory mandate  or                                                                    
liability  that could  arise. The  legislative intent  would                                                                    
not have been  met and the consequences  would be political,                                                                    
rather than legal in nature.                                                                                                    
                                                                                                                                
Mr.  Bjorkquist made  two additional  comments.  He said  on                                                                    
page  3, line  22, the  word "national"  is problematic.  He                                                                    
suggested deleting that word,  otherwise the word may impose                                                                    
upon the state an obligation to meet federal targets.                                                                           
                                                                                                                                
Mr.  Bjorkquist  addressed  the   goal  of  50  percent.  He                                                                    
suggested  it  could be  used  to  suggest that  the  policy                                                                    
points would  affect litigation.  He suggested  codifying it                                                                    
in order to prevent unintended consequences.                                                                                    
                                                                                                                                
10:16:51 AM                                                                                                                   
                                                                                                                                
Senator Thomas  asked about national  issues and  its affect                                                                    
throughout the bill. He cited page  2, lines 15 and 16 as an                                                                    
example. Mr. Bjorkquist concurred.  He said that obligations                                                                    
could cross over  to other state agencies  and be unintended                                                                    
consequences.                                                                                                                   
                                                                                                                                
HB  306  was  heard  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
10:18:20 AM