Legislature(2007 - 2008)HOUSE FINANCE 519

04/13/2007 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 133 ELECTRONIC MONITORING OF GANG PROBATIONER TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 28 POWER SOURCE DISCLOSURE TELECONFERENCED
Moved CSHB 28(FIN) Out of Committee
+= HB 229 KENAI GASIFICATION PROJECT; RAILROAD BOND TELECONFERENCED
Moved Out of Committee
+= HB 152 ESTABLISHING A RENEWABLE ENERGY FUND TELECONFERENCED
Moved CSHB 152(FIN) Out of Committee
HOUSE BILL NO. 152                                                                                                            
                                                                                                                                
     "An Act establishing a renewable energy fund and                                                                           
     describing its uses and purposes."                                                                                         
                                                                                                                                
CHARISSE  MILLET,   STAFF,  SPEAKER  JOHN   HARRIS,  sponsor,                                                                   
explained the purpose  behind HB 152.  The high  cost of fuel                                                                   
in  Alaska has  made it  increasingly  difficult for  Alaskan                                                                   
residents to prosper.  Home heating  fuel and gasoline prices                                                                   
have  skyrocketed   in  recent  years  leaving   some  Alaska                                                                   
families,  who already struggle  to make  ends meet,  left to                                                                   
prioritize between basic necessities  of life: heat, food, or                                                                   
health  care.   The bill  contains  recommendations from  the                                                                   
Alaska Energy Policy Task Force formed in 2003.                                                                                 
                                                                                                                                
With the bill, Alaska would be  one of 40 states to institute                                                                   
a policy on renewable energy.                                                                                                   
                                                                                                                                
Ms. Millet  reported that the  bill accomplishes  two things:                                                                   
provides for  a revolving loan  fund under the  Alaska Energy                                                                   
Authority  (AEA)  and  has  a  grant  component.    There  is                                                                   
currently no funding mechanism  for the fund.  The bill seeks                                                                   
only to establish the fund in statute.                                                                                          
                                                                                                                                
2:33:37 PM                                                                                                                    
                                                                                                                                
KACI  SCHROEDER-HOTCH,  STAFF,   REPRESENTATIVE  THOMAS,  co-                                                                   
sponsor, explained  the sections of the bill.   She mentioned                                                                   
that a  natural gas project could  also qualify for  a grant.                                                                   
She explained the makeup of the advisory committee.                                                                             
                                                                                                                                
2:36:38 PM                                                                                                                    
                                                                                                                                
SARAH  FISHER-GOAD,  DEPUTY DIRECTOR  OF  OPERATIONS,  ALASKA                                                                   
ENERGY AUTHORITY, testified in  support of HB 152.  She spoke                                                                   
of  the  intentions  of  the  renewable  energy  fund.    She                                                                   
suggested an  amendment which  would allow the  Department of                                                                   
Revenue to be the investment manager of the new fund.                                                                           
                                                                                                                                
2:38:14 PM                                                                                                                    
                                                                                                                                
CHRIS  ROSE,  EXECUTIVE  DIRECTOR,  RENEWABLE  ENERGY  ALASKA                                                                   
PROJECT  (REAP),  testified  in   support  of  HB  152.    He                                                                   
explained that there are no fuel  costs related to generating                                                                   
renewable energy.   The bill would  create a fund  similar to                                                                   
ones in  15 other  states, and  will attract  capital to  the                                                                   
state.                                                                                                                          
                                                                                                                                
KATHERINE  LAMAL,  VICE  PRESIDENT OF  POWER,  GOLDEN  VALLEY                                                                   
ELECTRIC   ASSOCIATION,   testified   in   support   of   the                                                                   
legislation, which  would help jumpstart renewable  energy in                                                                   
Alaska and show that Alaska is a forward-looking state.                                                                         
                                                                                                                                
2:41:27 PM                                                                                                                    
                                                                                                                                
CONNIE FREDENBERG,  COMMUNITY DEVELOPMENT,  ALEUTIAN PRIBILOF                                                                   
ISLANDS  ASSOCIATION  (APIA),  testified  in support  of  the                                                                   
legislation.   She noted that  the Aleutian Islands  have had                                                                   
renewable  energy for the  past four  years.  She  maintained                                                                   
that  the technology  exists and  that much  of Alaska  could                                                                   
benefit  from renewable  resources.   Displacing diesel  fuel                                                                   
with  renewable  resources  is  a long-term  solution.    She                                                                   
stressed the need  for the political will to  make it happen.                                                                   
She  maintained  that  establishing a  renewable  grant  fund                                                                   
would benefit all of Alaska.                                                                                                    
                                                                                                                                
2:44:15 PM                                                                                                                    
                                                                                                                                
MEERA  KOHLER,  PRESIDENT  &  CEO,  ALASKA  VILLAGE  ELECTRIC                                                                   
COOPERATIVE, testified  in support  of the legislation.   She                                                                   
provided  examples   of  renewable  resources   used  in  the                                                                   
villages.  She  maintained that Alaska has a  large potential                                                                   
for renewable resources.                                                                                                        
                                                                                                                                
Representative  Kelly expressed concern  that the  members of                                                                   
the advisory  committee would end  up gridlocked most  of the                                                                   
time.   Ms.  Kohler explained  that the  committee has  great                                                                   
potential, is small,  and workable.  The committee  is needed                                                                   
to focus on renewable resources.                                                                                                
                                                                                                                                
2:48:35 PM                                                                                                                    
                                                                                                                                
GWEN HOLDMANN,  VICE PRESIDENT OF NEW DEVELOPMENT,  CHENA HOT                                                                   
SPRINGS  RESORT, testified  in  support  of the  legislation.                                                                   
She  noted  that their  power  plant  has  won awards.    She                                                                   
reported  that in  seven  months, they  were  able to  offset                                                                   
$280,000 in  diesel fuel costs.   She provided  other details                                                                   
of  their  use  of  renewable  resources  and  the  resulting                                                                   
savings. She observed  that they would not have  been able to                                                                   
make the advances without grant funding.                                                                                        
                                                                                                                                
2:51:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED to ADOPT Amendment 1:                                                                                      
                                                                                                                                
     Page 3, line 19                                                                                                            
     After "balance"                                                                                                            
     Insert "of"                                                                                                                
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Thomas MOVED to ADOPT Amendment 2:                                                                               
                                                                                                                                
     Page 3, line 17:                                                                                                           
     Delete "and"                                                                                                               
                                                                                                                                
     Page 3, line 20, following "section":                                                                                      
     Insert "; and                                                                                                              
               (4) apply for and be able to receive                                                                             
     contributions from other sources for distribution as                                                                       
     grants to eligible applicants"                                                                                             
                                                                                                                                
Representative Crawford noted  that other funding sources are                                                                   
available for renewable energy systems.                                                                                         
                                                                                                                                
2:56:49 PM                                                                                                                    
                                                                                                                                
Ms. Millet explained  that there is nothing in  the bill that                                                                   
prohibits AEA from seeking other  funding.  Some fund sources                                                                   
are weighted  higher than  others due  to the possibility  of                                                                   
matching funds.                                                                                                                 
                                                                                                                                
Representative  Crawford emphasized  the wording "apply  for"                                                                   
in the  amendment.  He  agreed that  there is nothing  in the                                                                   
bill that would prevent that,  but there is also nothing that                                                                   
states that "they  should" apply for other sources  of funds.                                                                   
Representative Thomas  said he has no problem  with Amendment                                                                   
#2.                                                                                                                             
                                                                                                                                
2:58:22 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked  if Speaker  Harris would  agree                                                                   
with Amendment #2.  Ms. Millet  said he would have no problem                                                                   
with it.                                                                                                                        
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  objection.   There  being  NO                                                                   
OBJECTION, Amendment #2 was adopted.                                                                                            
                                                                                                                                
Representative Thomas MOVED to ADOPT Amendment #3:                                                                              
                                                                                                                                
     Page 5, lines 14-17                                                                                                        
     Delete after (g): [as applicable to licensing water-                                                                       
     power development projects,  unless the authority adopts                                                                   
     a different definition based  on a determination made by                                                                   
     a    nationally   recognized    independent    nonprofit                                                                   
     corporation that considers  the environmental effects of                                                                   
     hydropower practices;]                                                                                                     
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Thomas pointed out  that the amendment  would                                                                   
keep the  definition as defined  under AS 42.45.350(g).   Ms.                                                                   
Millet said the sponsor has no objection to the amendment.                                                                      
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  objection.   There  being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
2:59:57 PM                                                                                                                    
                                                                                                                                
Representative Thomas MOVED to ADOPT Amendment # 4:                                                                             
                                                                                                                                
     Page 3, line 9                                                                                                             
     Add: (4) investments to be managed by the Department of                                                                    
     Revenue                                                                                                                    
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Thomas explained  that the  amendment was  at                                                                   
the recommendation  of Ms. Fisher-Goad from AEA.   Ms. Millet                                                                   
agreed with the amendment.                                                                                                      
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  objection.   There  being  NO                                                                   
OBJECTION, Amendment #4 was adopted.                                                                                            
                                                                                                                                
Co-Chair  Meyer  questioned  fiscal  note  #2.    He  thought                                                                   
$126,000 should  be general fund money rather  than renewable                                                                   
energy fund  money.  Ms. Millet  did not have a  problem with                                                                   
that.                                                                                                                           
                                                                                                                                
3:03:47 PM                                                                                                                    
                                                                                                                                
Representative  Hawker mentioned that  either the  account or                                                                   
the fund will  require a separate appropriation  before there                                                                   
is any money available.  He suggested  that both fiscal notes                                                                   
be indeterminate, rather than a fixed number.                                                                                   
                                                                                                                                
Ms. Millet  suggested  consulting with  AEA about the  fiscal                                                                   
notes.                                                                                                                          
                                                                                                                                
Representative  Kelly commented  that the full-time  position                                                                   
is not needed.  He agreed with Representative Hawker.                                                                           
                                                                                                                                
Co-Chair   Meyer  thought   both  fiscal   notes  should   be                                                                   
indeterminate fiscal notes.  Ms. Millet agreed.                                                                                 
                                                                                                                                
Ms.  Fisher-Goad explained  that  the reason  for the  amount                                                                   
under  the   renewable  energy   fund  was  because   of  the                                                                   
assumption that there  would be an appropriation  to make the                                                                   
program move  forward.   She said she  would comply  with the                                                                   
will of the committee.                                                                                                          
                                                                                                                                
Representative  Hawker spoke about  travel, which  he thought                                                                   
AEA could absorb.                                                                                                               
                                                                                                                                
3:09:55 PM                                                                                                                    
                                                                                                                                
Representative Hawker  MOVED that Fiscal  Notes #1 and  #2 be                                                                   
indeterminate.  There being NO  OBJECTION, it was so ordered.                                                                   
                                                                                                                                
Co-Chair Meyer wanted to move the bill.                                                                                         
                                                                                                                                
Representative  Hawker stated willingness  to move  the bill,                                                                   
but  emphasized that  this legislation  is  no assurance  for                                                                   
funding for the program.                                                                                                        
                                                                                                                                
Representative Crawford  spoke in support of  moving the bill                                                                   
and finding private sources of money to fund it.                                                                                
                                                                                                                                
Representative  Thomas  agreed  to  move the  bill  and  find                                                                   
funding later.                                                                                                                  
                                                                                                                                
3:13:00 PM                                                                                                                    
                                                                                                                                
Representative  Hawker MOVED  to  REPORT CSHB  152 (FIN),  as                                                                   
amended,  with   individual  recommendations  and   with  the                                                                   
accompanying   amended  fiscal   notes.     There  being   NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB  152 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation  and with  two new indeterminate  fiscal                                                                   
notes by the  Department of Commerce, Community  and Economic                                                                   
Development.                                                                                                                    
                                                                                                                                
3:13:59 PM                                                                                                                    
                                                                                                                                

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