Legislature(2021 - 2022)BARNES 124
04/26/2022 10:15 AM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| HB301 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 301 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 301-UTILITIES: RENEWABLE PORTFOLIO STANDARD
10:23:16 AM
CHAIR SCHRAGE announced that the only order of business would be
HOUSE BILL NO. 301, "An Act relating to the establishment of a
renewable portfolio standard for regulated electric utilities;
and providing for an effective date."
10:23:35 AM
REPRESENTATIVE ZULKOSKY moved to adopt proposed committee
substitute (CS), Version 32-GH2546\G, Klein, 4/22/22, as a
working document.
CHAIR SCHRAGE objected for the purpose of discussion.
10:24:00 AM
RYAN JOHNSTON, Staff, Representative Calvin Schrage, offered the
summary of changes to Version G, [included in the committee
packet, and which read as follows]:
Page 1, Lines 1 3: amends the title to read "clean
energy standard" and adds "relating to the Alaska
Energy Authority and clean energy projects;" to the
title of the bill. The title change was done to
conform with the twenty-seven times of "renewable
portfolio standard" is replaced with "clean energy
standard" throughout the bill.
Page 1, Lines 9 11: after "energy resources" adds to
the purpose section of the bill, "in order to minimize
costs to consumers, increase stability for economic
development, maximize grid resiliency, and minimize
the state's carbon emissions."
Page 2, Line 8: amends subsection (B) to be more
aligned with utility industry language.
Page 3, Lines 20 22: amends the benchmarks for the
clean energy standard from four to three. The first
being 25% by December 31, 2030. The second being 55%
by December 31, 2040. And finally, the third being 80%
by December 31, 2050.
Page 4, Lines 6 11: adds a new section to AS
42.05.900 that would allow for construction that has
begun prior to the end of a compliance period to be
counted towards fulfilling the clean energy standard
if the project will begin providing energy no later
than two years after the compliance period or the end
of a period determined by the Regulatory Commission of
Alaska.
Page 4, Line 21: adds a new section to AS 42.05.900
whereby a load serving entity may satisfy the clean
energy standard using the sale of clean energy
credits.
Page 4, Line 23: adds a new section to AS 42.05.900
that a project located on state lands is exempted from
state lease fees for a period of 10 years.
Page 5, Lines 9 21: amends the previous energy
credit system into "clean energy credits". A clean
energy credit may only be used once. A credit may be
used to comply with the clean energy standard without
purchase or use of the electrical generation from
which the credit is derived.
Page 6, Line 24: after "commission" changed the word
"may" to "shall".
Page 7, Lines 3 7: amends the previous exemptions
section to a single exemption. The new exemption
states that if the as a whole the Railbelt achieves
the clean energy standard then the individual load
serving entities are exempted.
Page 7, Lines 9 16: adds a definition of a "clean
energy credit".
Page 7, Lines 17 19: amends the previous definition
of "renewable energy standard" and reordered it in the
definitions section.
Page 7, Line 20: amends the compliance period to a 10-
year period.
Page 8, Line 2: the definition of "renewable energy
resource" was cleaned up by Legislative Legal to be
more in line with their drafting standards.
Page 8, Line 15: adds a new subsection to AS
44.83.940. The new subsection would require that the
Alaska Energy Authority shall provide a report to the
legislature every two years on the progress of
developing renewable and clean energy resources in
rural parts of the state.
Page 8, Line 25 27: the regulations language for the
RCA of Alaska was cleaned up by Legislative Legal to
be more in line with their drafting standards.
10:30:11 AM
REPRESENTATIVE KAUFMAN asked if the two-year report on rural
parts of the state would provide a general report of overall
performance.
MR. JOHNSTON explained that the Railbelt is extensively studied,
and the reports are supplemental to focus on rural areas.
REPRESENTATIVE KAUFMAN asked how the terms "renewable" and
"clean" energy are being used throughout the bill.
MR. JOHNSTON explained that renewable was not changed to "clean"
and addressed the change to the clean energy standard.
REPRESENTATIVE KAUFMAN asked what would happen if the
"grandfathered in" construction permits could not close within
the stated window.
MR. JOHNSTON explained that that event is covered in the bill
and went on to explained that it is possible, for reason outside
of the contractor's control, that a project would be delayed,
and, in that case, it still would be covered by the bill so long
as an earnest effort was made.
10:34:22 AM
REPRESENTATIVE RAUSCHER talked about the shift from "renewable"
to "clean" and asked if the committee is stepping away from
national standards.
MR. JOHNSTON explained that the clean energy standard is a
standard used across the country, and both are used.
10:35:44 AM
REPRESENTATIVE KAUFMAN asked what the various clean energy
productions methods are.
MR. JOHNSTON said he did not have it ready but could provide a
list later.
10:36:36 AM
CHAIR SCHRAGE removed his objection to the motion to adopt the
CS for HB 301, Version G, as a working document. There being no
further objections, Version G was before the committee.
10:36:55 AM
CHAIR SCHRAGE announced the committee would hear invited
testimony on HB 301, Version G.
10:37:41 AM
BRIAN HICKEY, Chief Operating Officer, Chugach Electric
Association, began his presentation on behalf of the Rail belt
Utilities. He started by stating that the utilities believe
that "the purpose section" of Version G is well written. He
reiterated the time and effort spent creating the Electric
Reliability Organization (ERO). He went on to explain the ideal
implementation of renewable portfolio standards (RPS),
reiterating that the Railbelt Utilities believe that it must
include caps on user rates, that it must include provisions that
allow the RCA to modify or extend or waive certain portions of
the RPS if they find that the execution of the RPS is not in the
public's interest. He stated second priority of the Railbelt
Utilities is that fines that are incurred must be includable in
rates and stated that membership is the only income for the
energy co-ops. Mr. Hickey stated that the Railbelt Utilities
believes those fines should go to infrastructure improvements.
He explained the third priority is aligning the target dates
with the retirement dates of their current plants. Mr. Hickey
finished by stating that a periodic review of the list of
allowed "clean energy sources" should be reviewed and analyzed
by third parties and updated. He reemphasized that significant
transmission projects will be needed for a transition to clean
energy and explained that currently the Railbelt Utilities is
only capable of transmitting 10 percent of its peak load. He
also stated that there will be a need for state funds to improve
transmission infrastructure.
10:48:40 AM
CHAIR SCHRAGE opened public testimony on HB 301, Version G.
10:49:03 AM
CHRIS ROSE, Executive Director, Renewable Energy Alaska Project
(REAP), stated his support of HB 301 but expressed concerns
about the timeline. He said that 2050 is "too far out" for any
immediate movement from the utilities. He stated further
concern over the title change, citing the lack of definition of
"clean energy". He opined that while the exemption that allows
the utilities to comply as a unit is a good thing, it does raise
questions about a clean energy credit market. He addressed Mr.
Hickey's comments, saying that there is no reason to align the
dates with retirement of currently running plants; they would
support the extension of the lease fee waiver but explained that
it raises the issue that not all these projects have to be built
by the utilities citing non-utility energy producers.
10:54:08 AM
JENN MILLER, CEO, Renewable Independent Power Producers
("Renewable IPP"), testified in support of HB 301. She began
her testimony by describing the Renewable IPP and stated the key
to its success was transparent cooperation with the utility
companies. She stated that the goal of 50 percent clean energy
by 2025 does not have enough commitment and is "quickly passing
us by" and she opined that the state needs an energy standard
and a clear roadmap. She also asked the committee to clarify
the definition of clean energy credit. She explained that the
current definition is problematic because the power purchase
agreement sets the ownership rights, and she advised that the
definition should include ownership rights to the load serving
entity.
10:56:49 AM
ERIN MCKITTRICK, representing self, began her testimony by
urging the committee to move back to "the older timeline." She
talked about the necessity of cooperation between utility
companies and pointed out upgrades to transmission
infrastructure recommended in the National Renewable Energy
Laboratory ("NREL") study looking at the feasibility of clean
energy. She concluded by talking about the need for a unified
transmission tariff on the Railbelt.
10:58:50 AM
MATTHEW PERKINS, Alaska Renewables, testified in support of HB
301. He talked about his experience with General Electric and
venture capital and said Alaska Renewables has a "keen
understanding of what's real and what's experimental." He
stated that he believes the bill is a step in the right
direction but urged the committee to move up the timeline. He
emphasized the need for new transmission projects and stated
that private capital should be available as well.
11:01:27 AM
CHAIR SCHRAGE closed public testimony on HB 301.
[HB 301 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 301 ver G adpoted CS.pdf |
HENE 4/26/2022 10:15:00 AM HENE 4/28/2022 10:15:00 AM |
HB 301 |
| HB 301 Ver G workdraft.pdf |
HENE 4/26/2022 10:15:00 AM |
HB 301 |
| HB301. Version A.PDF |
HENE 3/8/2022 10:15:00 AM HENE 4/26/2022 10:15:00 AM |
HB 301 |
| HB 301 ver. G Summary of Changes 4.25.2022.pdf |
HENE 4/26/2022 10:15:00 AM |
HB 301 |