Legislature(2007 - 2008)
03/13/2008 09:05 AM House CRA
| Audio | Topic |
|---|---|
| Start | |
| HB404 | |
| HB388 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 404-ALTERNATIVE ENERGY TASK FORCE CO-CHAIR LEDOUX announced that the first order of business would be HOUSE BILL NO. 404 "An Act establishing an Alaska Renewable Energy Task Force." 9:05:54 AM CO-CHAIR FAIRCLOUGH, speaking as the sponsor of HB 404, read from the Alaska Energy Authority (AEA) "Renewable Energy Atlas of Alaska", as follows: As concerns about rising fossil fuel prices, energy security, and climate changes increase, renewable energy can play a key role in producing local, clean, and inexhaustible energy to supply Alaska's growing demand for electricity, heat, and transportation fuel. Because there is little to no fuel cost associated with generating electricity from renewable resources, more Alaskans are looking to resources like wind, geothermal, hydroelectric, oceans, and biomass to hedge against the increasing cost of natural gas in diesel fuels. Renewable energy resources provide low risk energy that over the long term can lower costs. With some of the best renewable energy resources in the country, Alaska has an opportunity to be a leader in the development and bring new revenue streams to the state's economy. CO-CHAIR FAIRCLOUGH pointed out that the committee packet should include a proposed committee substitute (CS) that narrows the scope of the proposed task force as well as who would serve on it almost entirely to a legislative body. With regard to AEA, Co-Chair Fairclough opined that the mission of AEA doesn't really define what she desires for the task force to do, although it's a component of it. Under AS 44.83.070, the purpose of AEA is specified as follows: "The purpose of the authority is to promote, develop, and advance the general prosperity and economic welfare of the people of the state by providing a means of financing and operating power projects and facilities that recover and use waste energy and by carrying out the powers and duties assigned to it under AS 42.45." Co-Chair Fairclough related her belief that the legislature, the appropriating body, must be involved in order for renewable energy to be a priority for all of Alaska. 9:09:08 AM REPRESENTATIVE NEUMAN moved to adopt CSHB 404, Version 25- LS1514\E, Bullard, 3/7/08, as the working document. There being no objection, Version E was before the committee. 9:10:01 AM STEVEN HAAGENSON, Executive Director, Alaska Industrial Development & Export Authority (AIDEA) and Alaska Energy Authority (AEA), Department of Commerce, Community, & Economic Development (DCCED), informed the committee that AEA is currently developing a detailed [energy] plan. He explained that first the locally available resources will be determined, which involves going to individual subregional areas and communities. The AEA then plans to evaluate existing technology to determine if the available resources can be converted to usable energy. The goal, he opined, is to replace electricity as well as liquid fuel. Therefore, this relates to space heating, transportation, and electricity. The next step will be to evaluate the energy delivery systems and identify the cost of delivery, he related. Furthermore, the energy needs for each community will be identified in order to match the need with the lowest cost and cleanest option available in the area. Mr. Haagenson characterized the aforementioned as a holistic process. 9:12:54 AM REPRESENTATIVE NEUMAN reminded the committee that Galena was recently approached for a nuclear power plant, and requested comment from Mr. Haagenson. MR. HAAGENSON said that he would evaluate all technologies. He stated that a community may determine that it wants to use a certain resource and prefers not to use another, which Mr. Haagenson opined they should have the ability to do. REPRESENTATIVE NEUMAN noted his agreement. 9:14:08 AM REPRESENTATIVE NEUMAN inquired as to whether Mr. Haagenson believes nuclear energy is safe. MR. HAAGENSON answered that he didn't know, but safety should be reviewed prior to deploying any technology. He related that he has spoken with Marvin Yoder from the City of Galena, who says that the technology has been around for 30 years. In fact, it was used in the Idaho National Labs for many years. Therefore, it's the "next generation prototype" technology. He pointed out the need to evaluate the source of the energy, its safety, and any unintended consequences of having nuclear waste in Alaska. 9:15:15 AM REPRESENTATIVE NEUMAN then requested that Mr. Haagenson discuss the Susitna hydro project. MR. HAAGENSON related that the Susitna hydro project was identified as a good resource that would provide reduced CO 2 emissions and cheaper energy. After a quick "back of the napkin" analysis, Mr. Haagenson said that using a $5,000 kilowatt (kW) install cost, 8/10ths of a cent operation and maintenance (O&M) costs, the cost of a 600 megawatt Susitna hydro plant would amount to about $250 million a year. The aforementioned would result in about $.05 a kW hour. However, the cost of highly efficient gas turbines to produce 600 megawatts in Anchorage or Fairbanks would be about $500 million a year. Therefore, due to the $250 million savings, the Susitna hydro project is of interest and should be reviewed in terms of the size necessary and what the resource can provide. He also mentioned the need to make sure such a project would work for Alaska. In further response to Representative Neuman, Mr. Haagenson stated that the savings of $250 million a year would need to be verified because the aforementioned numbers are rough estimates. 9:16:50 AM REPRESENTATIVE NEUMAN related his understanding that the proposed task force will specify its goals and/or action items to reach those goals. He asked if there is a plan or mission statement. CO-CHAIR FAIRCLOUGH referred to page 2, line 7, which specifies that the task force would prepare a report that includes the assessment of future statewide renewable energy needs and make recommendations for a statewide energy plan to fulfill the state's renewable energy needs. 9:17:57 AM REPRESENTATIVE DAHLSTROM commented that the state is lucky to have Mr. Haagenson serve in this capacity for the state. Drawing from her experience with the military in Alaska, she related that Fort Greely has much data regarding nuclear energy. She further related that she is confident that nuclear won't be placed in Alaska until after full research has occurred into the possible consequences of such. 9:19:36 AM REPRESENTATIVE CISSNA asked if communities that may have local solutions, such as wind power or geothermal, would be considered although they're not a statewide solution. MR. HAAGENSON answered that all possibilities would be considered, and that's why the communities will be approached regarding what resources are available in the area. Mr. Haagenson said that he would like to see Alaska become self- reliant with regard to energy because a local job providing local resources helps the local economy. He reiterated that he would embrace any available technology to find the best option to deploy in a particular community. 9:22:47 AM REPRESENTATIVE NEUMAN recalled that there has been discussion of development of mines in Alaska that would put in electric generation plants for their own electricity and make the transmission lines large enough to provide power to the local villages as well as. He asked if the aforementioned would help reduce some of the costs of rural electricity. MR. HAAGENSON responded that he isn't sure that the mines will reduce the cost of electricity, and thus that would need to be evaluated. The delivered cost will be a factor because if the community is too far away, it may not be economic to deliver the electricity over certain distances. In most parts of Alaska, the target as far as energy costs is fairly big. Mr. Haagenson said that he would speculate that energy costs [from the mines' electric plants] may be cheaper. With regard to the earlier comment about self-reliance, Mr. Haagenson pointed out that Alaska is using its own crude oil, but the problem is that "it's crushing the economy." Therefore, he said he would like to look for local resources to build the economy, which he characterized as self-reliance because local fuels and local businesses would be used to provide local energy. 9:25:12 AM BEN ELLIS, Managing Director, Institute of the North, informed the committee that the Institute of the North was founded in 1974 by former Governor Wally Hickel. The Institute of the North is a 501(c)(3) that focuses on Alaska and Arctic issues. He then mentioned that in October 2007, the Institute of the North held the Arctic Energy Summit Technology Conference in Anchorage. Over 300 delegates from 14 different nations participated in that conference. The three areas the conference reviewed were renewable energy, extractive energy, and the challenge of providing affordable energy in rural communities. The aforementioned is an International Polar Year (IPY) project. To follow-up that IPY project, the Institute of the North has an action team to review the aforementioned three areas and challenges to develop specific road maps. One [road map] deals with renewable energy and review of the use of tidal in both non-ice and ice covered waters and the techniques and technologies throughout the Arctic that would be applicable in Alaska. These recommendations would [be presented] to the Arctic Council Ministerial meetings, which are the eight nations of the Arctic. The meeting will be next spring. Mr. Ellis related that the Institute of the North is supportive of the proposed task force and would offer to help, particularly to bring an international perspective regarding what other Arctic nations are doing in these areas. 9:27:15 AM REPRESENTATIVE NEUMAN inquired as to how the Institute of the North could work with the proposed task force. He inquired as to how many groups are already working on this matter. MR. ELLIS confirmed that many groups are already working on renewable energy. He opined that the sponsor of HB 404 has captured the majority of the players within the state. The Institute of the North would be able to bring the Arctic perspective, such as what's occurring in Sweden and Norway. Furthermore, the Institute of the North could contribute to the renewable energy issues. 9:28:34 AM REPRESENTATIVE NEUMAN surmised that the proposed task force would be beneficial as it would bring all groups together to work on renewable energy. MR. ELLIS noted his agreement. He then opined that the proposed task force provides a structure for a lot of people to come together to work on the energy challenges in Alaska. The aforementioned is one of Alaska's biggest challenges. 9:29:56 AM CO-CHAIR LEDOUX, upon determining no one else wished to testify, closed public testimony. REPRESENTATIVE DAHLSTROM moved to report CSHB 404, Version 25- LS1514\E, Bullard, 3/7/08, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 404(CRA) was reported from the House Community and Regional Affairs Standing Committee. The committee took an at-ease from 9:30 a.m. to 9:33 a.m.
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