Legislature(2007 - 2008)
04/09/2008 10:24 AM Senate FIN
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 152(FIN)
"An Act establishing a renewable energy project account
and a renewable energy fund and describing their uses
and purposes."
Senator Elton MOVED to ADOPT SCS CSHB 152(FIN), labeled 25-
LS0413\J, Kane, 4/8/08. There being NO OBJECTION, it was so
ordered.
3:10:29 PM
DARWIN PETERSON, STAFF, CO-CHAIR STEDMAN, highlighted the
changes in the new SCS. On page 1, there was a change in
the title to accommodate the changes made in the bill. On
page 1, line 9, the word "electrical" was removed. On page
2, line 19, the words "zero fuel costs" were removed. On
page 2, line 21, the word "can" was previously "should". On
page 2, lines 23-25, language was inserted to say that it is
the intent of the legislature to appropriate $50 million in
capital funds per year for the next five years, which is the
sunset date of the bill. On page 2, line 26, Section 2 was
added. The previous section created the renewable energy
fund. Mr. Peterson emphasized that this change was the most
substantive change in the bill. The references to the fund
were removed and, instead, a renewable energy grant
recommendation program was created. On page 2, line 31, the
words "achieve a statewide balance of grant funds" were
added.
Mr. Peterson continued to explain that on page 3, line 5, a
new subsection was added to require that the Alaska Energy
Authority make recommendations to the legislature for grants
to eligible renewable power projects. On page 3, lines 7-
10, a new subsection says that the recommendations will be
provided no later than 10 days after the first regular
session of each legislative session. On page 3, line 12,
after the words "the authority shall", the words "make
recommendations to the legislature" were added.
Mr. Peterson related that page 4, line 11, deals with the
make up of the advisory committee. It removes the Governor
from the process so that the President of the Senate and the
Speaker of the House will make all of the appointments. On
page 4, lines 14 and 15, the word "electric" was inserted
prior to the word "utilities". Page 4, lines 21 & 23, deals
with appointments of a member of the House and of the
Senate. The two appointments that were removed were from
non-profit environmental groups and non-profit consumer
groups.
Mr. Peterson addressed page 5, line 10, after the word
"animal" the words "or fish products" were inserted. Page
5, line 13, determines a five-year sunset. Page 5, Section
4, is a temporary law section that provides for grants to be
made in FY 09. The Alaska Energy Authority would submit
their list of recommendations to the Legislative Budget and
Audit (LB & A) Committee up to $50 million. LB & A would
have 45 days to review those recommendations. Page 6, lines
7-9, is transition language that creates a tier for the
appointments to the board.
3:15:39 PM
Senator Dyson asked why coal is not included. He referred
to page 2, line 4, cost of fuels, and maintained that the
cost of coal is also going up. He also said that coal could
be included in line 21. He maintained that the list on page
5, line 9, was not renewable energy sources. He argued the
merits of the inclusion of coal.
Mr. Peterson reported that the sponsor continues to object
to the inclusion of coal. He called the list on page 5,
line 9, energy sources, but not necessarily renewable energy
sources.
Senator Dyson maintained that he does not understand the
logic of the argument. Co-Chair Stedman suggested he make
an amendment to the bill.
3:18:48 PM
Co-Chair Stedman MOVED to ADOPT Amendment 1:
Page 4, lines 11 - 12:
Delete "jointly by the speaker of the house of
representatives and the president of the senate"
Insert "by the governor"
Co-Chair Stedman OBJECTED for discussion purposes. He
explained that the amendment returns to the previous version
of the bill where the governor appoints five members of the
council.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
AT-EASE: 3:19:27 PM
RECONVENED: 3:20:39 PM
Co-Chair Hoffman MOVED to ADOPT Amendment 2:
Page 1, line 1:
Delete "and,"
Page 1, line 4, following "grants":
Insert "; establishing a state heating assistance
program in addition to the federal heating assistance
program; and providing for an effective date"
Page 2, line 25, following "in":
Insert "secs. 3 and 6 of"
Page 2, following line 25:
Insert a new bill section to read:
"* Sec. 2. AS 36.30.850(b) is amended by adding a new
paragraph to read:
(46) contracts for delivery of home heating
assistance under AS 47.25.626."
Renumber the following bill sections accordingly.
Page 5, following line 12:
Insert a new bill section to read:
"* Sec. 4. AS 47 is amended by adding new sections to
read:
Article 3A. Alaska Heating Assistance Program.
Sec. 47.25.621. Alaska heating assistance program.
(a) The Alaska heating assistance program is
established in the Department of Health and Social
Services to provide expanded eligibility for Alaska
residents for home heating assistance, to the extent
funds are appropriated by the legislature for that
purpose.
(b) The heating assistance program established
under this section is in addition to the federal low-
income heating and energy assistance provided under 42
U.S.C. 8621 - 8629 (Low-Income Home Energy Assistance
Act of 1981), as amended, and implementing regulations.
Sec. 47.25.622. Duties. The department shall
(1) administer the Alaska heating assistance
program provided under AS 47.25.621;
(2) adopt regulations under AS 44.62
(Administrative Procedure Act) to carry out the purpose
of the program;
(3) coordinate payments among other heating
assistance programs to avoid duplication of payments.
Sec. 47.25.623. Eligibility. An individual is
eligible for home heating assistance payments under the
Alaska home heating assistance program if the
individual
(1) is a resident of the state;
(2) is physically present and resides in a
home in the state when the home heating costs are
incurred;
(3) has gross household income above 150
percent but that does not exceed 225 percent of the
federal poverty guideline for Alaska set by the United
States Department of Health and Human Services and
revised under AS 42 U.S.C. 9902(2);
(4) meets other eligibility requirements
specified in regulations adopted under AS 47.25.622.
Sec. 47.25.624. Appeal rights. Except as provided
in AS 47.25.626(e), an individual who receives a
determination from the department that denies, limits,
or modifies home heating payments under AS 47.25.621 -
47.25.626, other than a determination based on
insufficient funding of the program, may request a
hearing before the department under regulations adopted
by the department.
Sec. 47.25.625. Ability to recover or recoup
improper home heating assistance payments. An
individual is liable to the department for the value of
assistance improperly paid under AS 47.25.623 if the
improper payment was based on inaccurate or incomplete
information provided by the individual. In a civil
action brought by the state to recover from the
individual the value of the assistance improperly paid,
the state may recover from the individual the costs of
investigation and prosecution of the civil action,
including attorney fees as determined under court
rules.
Sec. 47.25.626. Regional heating assistance
program. (a) The department may develop a regional
Alaska heating assistance program for the
administration of AS 47.25.621 - 47.25.626 to provide
home heating assistance in a uniform and cost-effective
manner in a region of this state if an Alaska Native
organization is authorized to implement a federally
approved tribal family assistance plan that includes
that region and has been awarded a tribal energy
assistance grant for a program that includes that
region under 42 U.S.C. 8623(d).
(b) The department may award contracts to
implement a program developed under (a) of this
section. A contract authorized for delivery of home
heating assistance under a regional Alaska heating
assistance program under this section is exempt from
the competitive bid requirements of AS 36.30 (State
Procurement Code). Subject to appropriation, a contract
under this section must be in an amount that represents
a fair and equitable share of the money appropriated
for the Alaska heating assistance program under
AS 47.25.621 - 47.25.626 to serve the state residents
specified in (a) of this section. The authority
provided under this section to contract is in addition
to the authority to contract in AS 47.05.015 or other
law.
(c) The department may award a contract under
this section only to an organization that
(1) has been awarded a tribal energy
assistance grant under 42 U.S.C. 8623(d) for a program
that includes that region;
(2) agrees to administer home heating
assistance under AS 47.25.621 - 47.25.626 to state
residents in the region; and
(3) agrees to implement an appeals process
as described in (e) of this section.
(d) Records pertaining to recipients of home
heating assistance under a contract awarded under this
section are confidential and not subject to disclosure
under AS 40.25.100 - 40.25.220.
(e) An organization that receives a contract
under this section shall provide an appeals process to
applicants for or recipients of home heating assistance
covered by the contract awarded under this section. The
appeals process must be the same as the method
available under AS 47.25.624, except that the decision
reached shall be considered a recommended decision to
the department. Within 30 days after receiving a
recommended decision, the department shall review the
recommended decision and issue a decision accepting or
rejecting the recommended decision. If the department
rejects the recommended decision, the department shall
independently review the record and issue its final
decision. The final decision of the department on the
matter is appealable to the courts of this state.
(f) If the department establishes a regional
Alaska heating assistance program and awards a contract
to provide home heating assistance under this section,
a person applying for home heating assistance under
AS 47.25.621 - 47.25.626 in the region of the state
covered by the regional home heating assistance program
may obtain home heating assistance from the department
only through the organization designated by the
department to serve the region."
Renumber the following bill section accordingly.
Page 5, line 20:
Delete "sec. 2"
Insert "sec. 3"
Page 5, line 21:
Delete "sec. 2"
Insert "sec. 3"
Page 5, line 23:
Delete "sec. 2"
Insert "sec. 3"
Page 6, line 8:
Delete "sec. 2"
Insert "sec. 3"
Page 6, following line 9:
Insert new bill sections to read:
"* Sec. 8. The uncodified law of the State of Alaska is
amended by adding a new section to read:
TRANSITION: RETROACTIVITY OF REGULATIONS.
Notwithstanding a contrary provision of AS 44.62.240,
if the Department of Health and Social Services
expressly designates in a regulation adopted under
AS 47.25.622(2), enacted by sec. 4 of this Act, that
the regulation applies retroactively to November 1,
2007, and is necessary to implement, interpret, make
specific, or otherwise carry out AS 47.25.621 and
47.25.623, enacted by sec. 4 of this Act, the
regulation may apply retroactively to November 1, 2007.
* Sec. 9. The uncodified law of the State of Alaska is
amended by adding a new section to read:
RETROACTIVITY OF CERTAIN PROVISIONS OF THIS ACT.
AS 47.25.621 and 47.25.623, enacted by sec. 4 of this
Act, are retroactive to November 1, 2007.
* Sec. 10. This Act takes effect immediately under
AS 01.10.070(c)."
Co-Chair Hoffman OBJECTED.
ROB EARL, STAFF, REPRESENTATIVE MARY NELSON, explained
Amendment 2:
Amendment #2 establishes the Alaska Heating Assistance
Program within the Department of Health and Social
Services (DHSS) to expand eligibility for Alaska
residents for home heating assistance. The program is
specifically in addition to the federal LIHEAP or Low-
Income Home Energy Assistance Program. Thirty-three
states currently contribute LIHEAP money in addition to
the federal assistance dollars - Alaska is not yet one
of them.
Currently, only Alaskans earning less than 150% of the
federal poverty guideline for Alaska are eligible for
the federal LIHEAP assistance program. Eligible
households receive grants averaging $780 per household
per winter.
Amendment #2 will serve an estimated 3800 additional
households state-wide with incomes between 150-225% of
the poverty guideline.
This amendment is intended to give the Department the
authority to provide a lump-sum, retroactive payment to
eligible recipients to assist with heating costs
incurred during the winter of 2007-2008.
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
3:22:52 PM
Senator Elton MOVED to ADOPT Amendment 3:
Page, 5, lines 7-8 are amended to read:
(A) wind, solar, geothermal, hydrothermal, wave, tidal,
river in-stream, or hydropower;
Co-Chair Stedman OBJECTED.
Senator Elton explained that the amendment takes away some
of the ambiguity in the list of renewable energy resources
beginning on page 5, line 7.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
Co-Chair Stedman reported that Amendment 4 was withdrawn by
Senator Olson.
3:24:58 PM
Co-Chair Stedman MOVED to ADOPT Amendment 5:
Page 3, line 1:
Add "and matching funds," after "eligibility"
Page 3, lines 3 and 4:
After legislature, delete rest of line 3 and 4.
(1) develop a methodology for determining the order of
projects that may receive assistance and will achieve a
statewide balance of grant funds, including separate
requirements for grant eligibility and matching funds,
and adopt regulations identifying criteria to evaluate
the benefit and feasibility of projects for which an
applicant applies for support from the legislature
[WITH SIGNIFICANT WEIGHT BEING GIVEN TO THE AMOUNT OF
MATCHING FUNDS AN APPLICANT IS ABLE TO MAKE AVAILABLE].
Co-Chair Stedman OBJECTED.
SARAH FISHER-GOAD, DEPUTY DIRECTOR OF OPERATIONS, ALASKA
INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY AND ALASKA
ENERGY AUTHORITY, DEPARTMENT OF COMMERCE, COMMUNITY AND
ECONOMIC DEVELOPMENT, explained that the amendment clarifies
that matching funds should be required for the project. The
intent is to avoid determining what a significant weight
would be.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
3:25:36 PM
Senator Olson MOVED to ADOPT Amendment 6:
Page 1, line 1:
Delete "and,"
Page 1, line 4, following "grants":
Insert "; and establishing an Alaska Renewable Energy
Task Force"
Page 1, line 8:
Delete "The"
Insert "For secs. 2, 3, 5, and 6 of this Act, the"
Page 2, line 25, following "in":
Insert "secs. 2 and 5 of"
Page 2, following line 25:
Insert a new subsection to read:
"(c) For sec. 4 of this Act, the legislature finds that
(1) energy issues are among the most critical
issues in the state; and
(2) a thorough assessment of present and future
state energy needs and requirements is necessary."
Page 5, following line 13:
Insert a new bill section to read:
"* Sec. 4. The uncodified law of the State of Alaska is
amended by adding a new section to read:
ALASKA RENEWABLE ENERGY TASK FORCE. (a) There is
established in the legislative branch of state
government the Alaska Renewable Energy Task Force. The
task force consists of seven voting members appointed
as follows:
(1) the speaker of the house of representatives shall
appoint three members from the house of
representatives;
(2) the president of the senate shall appoint three
members from the senate; and
(3) the governor shall appoint one member.
(b) The chair of the task force shall be a legislative
member selected by a majority vote of the members of
the task force. The staff of the members who are
legislators shall serve as staff to the task force.
(c) The task force shall prepare a report that
includes
(1) an assessment of future statewide renewable
energy needs; and
(2) recommendations for a statewide energy plan to
fulfill the state's renewable energy needs.
(d) Members of the task force are entitled to
transportation expenses and per diem allowances
provided by law.
(e) The task force shall meet at least four times. The
task force may meet in communities in the state that
are using or considering sources of renewable energy.
(f) The task force shall submit written reports of its
findings and recommendations to the legislature
(1) before March 1, 2009; and
(2) before March 1, 2010.
(g) The Alaska Renewable Energy Task Force is
terminated on April 16, 2010."
Renumber the following bill section accordingly.
Page 6, following line 9:
Insert a new bill section to read:
"* Sec. 7. Sections 1(c) and 4 of this Act are repealed
April 16, 2010."
Co-Chair Stedman OBJECTED.
Senator Olson explained the amendment rolls the CS for HB
404, as it came out of Community and Regional Affairs
Committee, into HB 152. It establishes an Alaska Renewable
Energy Task Force.
Co-Chair Stedman asked how long the task force would run.
Senator Olson said two years.
Co-Chair Stedman REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
3:26:46 PM
Senator Olson MOVED to ADOPT a Conceptual Amendment to allow
Legislative Legal to conform language as needed.
There being NO OBJECTION, it was so ordered.
3:27:46 PM
Co-Chair Stedman noted a fiscal note which reflected a $50
million appropriation to the Alaska Energy Authority. He
asked if AEA anticipates the need for additional money to
operate the program.
Ms. Sarah Fisher-Goad recommended that the appropriation be
a capital expense, rather than an operating expense. She
reported that she has provided a version J fiscal note,
which changed the funding source to general fund away from
the new renewable energy fund. With $50 million worth of
projects, there will be a need for additional outside
consultants for project evaluation. The fiscal note
reflects an additional $100,000 for a consultant for FY 2009
and $250,000 for FY 2010 - 2013.
Co-Chair Stedman MOVED to ADOPT new fiscal note CED, 4/9/08,
9:16 am.
AT-EASE: 3:29:40 PM
RECONVENED: 3:32:23 PM
There being NO OBJECTION, the fiscal note was adopted.
AT-EASE: 3:32:45 PM
RECONVENED: 3:40:45 PM
Senator Dyson MOVED to ADOPT Conceptual Amendment 7:
Page 2, line 4, after "natural gas" add ", clean coal"
Page 2, line 21, after "natural gas" add "and clean
coal"
Page 3, line 15, after "projects" add "and clean coal"
Page 5, move lines 9 & 10 to a new subparagraph (5) Bio
Mass Fuels
Renumber as necessary
Page 5, line 12, add "shallow gas"
Co-Chair Stedman OBJECTED.
Senator Dyson explained that the amendment brings
consistency to the bill. Clean coal is added throughout the
bill. Alaska has enough coal to supply all of North America
for the next 400 years. Senator Dyson maintained that bio
mass fuels are not renewable and should be in a new
subparagraph.
3:43:50 PM
Senator Elton objected to the page 5, line 9, change in the
conceptual amendment. He addressed the issue of renewable
resources. He used fish waste as an example of a renewable
resource. Senator Dyson said he didn't remove the category,
just moved it to another area in the bill. He commented
that stewardship was needed when considering renewable
energy sources.
Co-Chair Stedman MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Dyson
OPPOSED: Elton, Thomas, Stedman, Olson
The MOTION failed (1-4).
AT-EASE: 3:47:00 PM
RECONVENED: 6:18:58 PM
CSHB 152(FIN) was heard and HELD in Committee for further
consideration.
6:20:16 PM
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