Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/07/2016 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB193 | |
| HB268 | |
| HB305 | |
| SB118 | |
| HB314 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 193 | TELECONFERENCED | |
| += | HB 268 | TELECONFERENCED | |
| + | HB 305 | TELECONFERENCED | |
| += | SB 118 | TELECONFERENCED | |
| + | HB 314 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 193-EXTEND EXEMPTION FOR SMALL POWER PLANTS
1:49:26 PM
CHAIR COSTELLO announced the consideration of SB 193. She stated
the intention is to close public testimony, adopt a committee
substitute (CS), and look to the will of the committee.
1:49:52 PM
SENATOR GIESSEL moved to adopt the CS for SB 193, labeled 29-
LS1513\H, as the working document.
CHAIR COSTELLO objected for discussion purposes.
1:50:08 PM
WESTON EILER, Staff, Senate Labor and Commerce Standing
Committee and Senator Costello, Alaska State Legislature,
informed the committee that the CS for SB 193 removes the
January 1, 2020 sunset date on the exemption of small power
production plants and facilities from regulation by the
Regulatory Commission of Alaska (RCA). The original version of
the bill extended the exemption, however, after conversation
with stakeholders and the sponsor, the sunset was removed. The
exemption was enacted in 2010 to align with federal tax credits
and has been very successful. Version H will allow the exemption
to continue without a sunset.
He noted that Alaska regulates power projects of this size more
strictly than the federal government. The bill will provide more
certainty for independent power producers, allow for long-term
planning, increase competition, and reduce rates for consumers.
1:52:19 PM
CHAIR COSTELLO removed her objection. Finding no further
objection, the CS was adopted.
SENATOR STEVENS commented that this bill is needed and asked if
rate payers are protected.
MR. EILER deferred the question to the sponsor.
1:53:52 PM
JESSE LOGAN, Staff, Senator Lesil McGuire, Alaska State
Legislature, explained that rate payers are protected through
the Regulatory Commission of Alaska (RCA). The bill pertains
only to facilities that sell to regulated utilities. The RCA
approves any power purchasing agreement between a non-regulated
facility and a regulated utility.
SENATOR MEYER asked how many small independent power producers
there are throughout the state.
MR. LOGAN said he didn't have an exact number, but there are
quite a few. There are more than 20 wind projects and at least
one active geothermal project. Currently, about 23 percent of
the state's energy is produced by hydroelectricity, most of
which is in Southeast Alaska.
SENATOR MEYER offered his belief that that Kodiak uses about 99
percent renewable energy.
SENATOR STEVENS agreed that the City of Kodiak uses about 99
percent renewable energy. Many small communities are in good
locations for renewable energy opportunities.
1:55:37 PM
KEITH COMSTOCK, Vice President and CEO, Juneau Hydropower Inc.,
testified in support of SB 193. He informed the committee that
the Sweetheart Lake hydroelectric project is in the final stages
of permitting and hopes to be in production later this year. He
thanked the sponsor and the committee for amending the bill. He
described the timeline for the project and said the change helps
projects that take a long time.
1:57:54 PM
THERESA CLEMMER, Attorney, testified in support of SB 193. She
said she is testifying on behalf of Alaska Environmental Power
(AEP), which operates a windfarm in Delta Junction. AEP is one
of the small renewable energy producers that will greatly
benefit from the bill.
1:58:35 PM
ROBERT GRIMM, President and CEO, Alaska Power and Telephone
Company (APTC), testified in support of SB 193. He related that
APTC is unique because it is both a public utility and an
independent power producer (IPP). He applauded the bill,
particularly removing the sunset date.
1:59:49 PM
SENATOR GIESSEL moved to report the CS for SB 193, labeled 29-
LS1513\H, from committee with individual recommendations and
attached zero fiscal note.
CHAIR COSTELLO announced that without objection, CSSB 193(L&C)
is reported from the Senate Labor and Commerce Standing
Committee.