Legislature(2023 - 2024)BARNES 124
04/23/2024 10:15 AM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| HB328 | |
| HB349 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 349 | TELECONFERENCED | |
| *+ | HB 328 | TELECONFERENCED | |
| + | SB 152 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 328-COMMUNITY ENERGY FACILITIES; NET METERING
10:18:00 AM
CHAIR RAUSCHER announced that the first order of business would
be HOUSE BILL NO. 328 "An Act relating to community energy
facilities."
10:19:22 AM
DAVID GOFF, Staff, Representative Mike Tomaszewski, Alaska State
Legislature, On behalf of Representative Tomaszewski, prime
sponsor, Introduced and gave a Presentation on HB 328.
10:19:57 AM
MR. GOFF began the sponsor statement on HB 328, which read as
follows [original punctuation provided]:
Sponsor Statement
House Bill 328: Community Energy
This bill will increase options for renewable energy
development, allow Alaskan ratepayers to lower their electric
costs, and offset natural gas usage by establishing a virtual
net metering program for small scale renewable energy
generation. Currently, ratepayers for economically regulated
utilities can utilize net metering, which lowers their electric
bills based on the amount of electricity they generate from
generators like solar panels or wind turbines. Unfortunately,
many ratepayers including renters and condo owners are not able
to take advantage of net metering because they do not have space
available on-site. HB 328 will allow multiple ratepayers to pool
their resources to receive net metering benefits from a single
project. HB 328 will allow power generated from a single
centralized and efficient renewable energy source to be
purchased through a subscription for multiple utility customers.
This subscription allows homeowners and tenants who might not
have access to consistent solar or renewable energy sources to
reap the benefits of cost savings, reliability, and other
benefits to the community. Twenty states have established formal
community energy programs, with several more that operate at the
utility regulation level. This new effort could generate 7.3 GW
of new solar capacity nationwide by 2030. Utility customers who
subscribe to community energy projects save between 5 and 15% on
their utility bill through monthly credits. Creating a community
energy program in Alaska will allow the state to capture
millions of dollars in investment for new renewable energy
projects. It will lead to hundreds of new jobs in the energy
industry. The announcement of $7 Billion in federal funding for
residential and community solar projects will help pay for
community energy projects. Several private investors in
community solar projects have already reached out to express
interest. Through this bill, an 8 percent increase in renewable
energy on the Railbelt could help offset natural gas usage and
address the supply issues for Cook Inlet natural gas. This bill
will only apply to utilities that are economically regulated by
the Regulatory Commission of Alaska, who will be responsible for
reviewing and approving utilities' community energy programs.
The RCA will have the authority to modify or waive the
requirements of this bill to meet the needs of specific
utilities. SB 152 will help utility customers save money,
attract millions in investment, and help offset natural gas use
in Cook Inlet while creating good jobs for Alaskans.
Staff Contact: David Goff
907-465-4955
10:23:01 AM
CHAIR RAUSCHER asked if there was a sectional analysis related
to HB 328.
10:23:13 AM
MR. GOFF began the sectional analysis on HB 328, which read as
follows [original punctuation provided]:
HB 328
Community Energy Facilities
Sectional Analysis
Section 1 adds new statutory sections relating to community
energy facilities:
AS 42.05.725 is a conforming section for applicability.
AS 42.05.727 requires utilities to submit a community energy
plan to the Regulatory Commission of Alaska for approval and to
make their community energy program available to all subscriber
organizations that request interconnection subject to a
50megawatt limit.
AS 42.05.729 establishes bill procedures for community energy
subscribers.
Subsection (a) allows utilities to bill subscribers for all
charges authorized by the utility's tariff.
Subsection (b) prohibits utilities from charging subscribers
additional fees without approval from the commission.
Subsection (c) allows utilities to petition the commission to
change their rates designs for community energy subscribers.
Subsection (d) allows electrical cooperatives to invest in
renewable energy projects, with the approval of their member
owners.
AS 42.05.731 establishes the authority of the commission to
modify this program and adopt additional requirements by
regulation.
Subsection (a) allows the commission to waive or modify the
requirements of this bill.
Subsection (b) allows the commission to adopt regulations
governing safety, power quality, and interconnection standards
for community energy projects.
AS 42.05.733 establishes community energy facilities and
outlines the parameters for how these facilities can operate.
Subsection (a) sets criteria for who may own a community energy
facility.
Subsection(b) sets procedures for enrolling and billing
subscribers.
Subsection (c) sets criteria for what must be included in a
utilities community energy plan.
Subsection (d) requires the commission to ensure that community
energy plans that are targeted to low- to moderate income
households are crafted to achieve tangible cost savings.
Subsection (e) provides that a subscriber or subscription
organization is not considered an electric utility.
Subsection (f) establishes criteria for community energy
facilities to be eligible.
Subsection (g) establishes requirements for subscriber
organizations.
Subsection (h) defines "low-to moderate-income" household.
AS 42.05.735 provides definitions of terms used in the bill.
Section 2 requires the commission to adopt regulations necessary
to implement this bill within one year of its effective date.
10:26:39 AM
MR GOFF moved to the associated presentation on HB 328. He
defined what community energy is and explained that it is
popular and the fastest growing sector in the renewable energy
sector. He explained how the current net metering program works,
and how HB 328 would target users without net metering access.
10:28:29 AM
CHAIR RAUSCHER asked for the source of the claims made on slide
4 and asked for a qualification of the numbers on the slide.
10:29:10 AM
MR. GOFF responded that his assumption is correct and added that
each utility is only allowed 50 Megawatts of energy from
community solar.
CHAIR RAUSCHER asked if Alaska has an expectation of the numbers
used in the formula.
MR. GOFF said he doesn't think there is a number secured yet
because the bill sponsor is waiting for utilities companies to
figure out their expectations/limits in regards to community
energy.
10:30:27 AM
MR. GOFF resumed his presentation on slide 6, and quickly moved
to slide 7 to explain how HB 328 would expand options for net
metering. He explained how the Regulatory Commission of Alaska
would have oversight of a community energy program and said that
the RCA may waive any requirement or law established by HB 328
in order to regulate community energy. He explained the process
in order of start to finish of establishing a community energy
project and explained the benefits of community energy.
10:33:49 AM
CHAIR RAUSCHER asked Mr. Goff to explain each part of slide 10.
MR. GOFF, in response to Chair Rauscher, broke down and
explained net metering and how it is performed from ratepayer to
utility company. He continued his answer by running through the
slide.
10:35:54 AM
MR. GOFF continued his presentation on the latter half of slide
10, which detailed the benefits of using community energy.
10:37:08 AM
REPRESENTATIVE WRIGHT asked if there is a continuous benefit
with a proposed tax credit or if it is a one-time benefit.
MR. GOFF answered that it is a one-time credit, and the
percentage of the cost credited varies year by year.
10:38:01 AM
REPRESENTATIVE ARMSTRONG asked if a new 125-million-dollar
Federal grant has been taken into account with regards to HB
349.
MR. GOFF said he himself has not yet considered that grant.
10:38:51 AM
MR. GOFF continued his presentation on slide 11, which detailed
how HB 328 and community energy projects can lower energy bills
in Alaska. He explained how HB 328 would create more jobs in
investment, and that renewable energy sector has more jobs than
fossil fuels. He said it would offset natural gas and improve
grid resiliency and reliability by creating a system of
redundancies.
10:42:09 AM
CHAIR RAUSCHER asked if the presentation would be added to
BASIS.
10:42:53 AM
REPRESENTATIVE PRAX asked if the regulations would dictate how
the utilities would pay their avoided cost or would that be
negotiated for each project.
10:43:34 AM
MR. GOFF answered that if someone is using the energy in a net
metering scenario, the person is credited the price per Kilowatt
(Kw) because they are not using the energy to begin with. He
added that whatever excess energy they would produce would come
at a much lower cost at the end of the month.
10:44:36 AM
REPRESENTATIVE PRAX asked if Mr. Goff has checked with the
utilities about his previous answer.
MR. GOFF responded that he currently has a solar array at his
house, so that is how he knows.
REPRESENTATIVE PRAX said that on a large scale, renewables
aren't reliable and expressed a concern that using renewables
could increase costs to ratepayers.
MR. GOFF said that HB 328 limits the amount that each utility
company would be able to go into a certain sector of energy
generation, so there would still be redundancies in the energy
grid.
10:48:01 AM
CHAIR RAUSCHER opened public testimony.
10:49:04 AM
MIKE JONES, representing self, Testified in opposition to HB
328. He said that this bill would penalize people who use more
traditional utilities options, criticized the reliability of
renewable energy, and said that the net metering clause of the
bill is flawed. He gave a series of perceived flaws and
encouraged committee members to vote no on HB 328.
10:51:39 AM
DYANI CHAPMAN, State Director, Alaska Environment, Testified in
support of HB 328. She said this bill would allow individuals
who can't afford energy on their own to obtain reliable and
affordable energy.
10:52:44 AM
CHAIR RAUSCHER closed public testimony.
10:53:02 AM
The committee took an at-ease from 10:53 a.m. to 10:56 a.m.
10:56:28 AM
CHAIR RAUSCHER announced that HB 328 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB328 sponser statement.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 328 |
| HB0328A.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 328 |
| HB 328 Sectional Analysis.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 328 |
| CSHB 349(RES) 33-LS1325R.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 349 |
| HB349.HRES CS Version R Sectional Analysis.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 349 |
| HB349.Sponsor Statement.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 349 |
| CSHB349.HRES.D.sectional.history.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 349 |
| HB 328 Pre4sentation.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 328 |