Legislature(2021 - 2022)SENATE FINANCE 532

05/04/2021 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 27 NAMING IRENE WEBBER BRIDGE TELECONFERENCED
Heard & Held
-- Invited & Public Testimony
-- <Time Limit May Be Set> --
+ SB 123 ENERGY INDEPENDENCE PROGRAM & FUND: AIDEA TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
+= SB 97 STATE LAND SALES AND LEASES; RIVERS TELECONFERENCED
<Bill Hearing Canceled>
+= HB 69 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Scheduled but Not Heard
<Pending Referral>
+= HB 71 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Scheduled but Not Heard
<Pending Referral>
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 123                                                                                                           
                                                                                                                                
     "An  Act establishing  the  Alaska energy  independence                                                                    
     program and the Alaska  energy independence fund in the                                                                    
     Alaska  Industrial  Development and  Export  Authority;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
9:22:48 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:26:23 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:27:34 AM                                                                                                                    
                                                                                                                                
ALAN    WEITZNER,    EXECUTIVE    DIRECTOR,    AIDEA    (via                                                                    
teleconference),   introduced   his    support   staff.   He                                                                    
highlighted  that Alaska  Industrial Development  and Export                                                                    
Authority  (AIDEA) was  a self-funding,  public corporation.                                                                    
He  announced  that he  would  begin  with  slide 6  of  the                                                                    
presentation, "Alaska Energy Independence Fund (AK EIF)."                                                                       
                                                                                                                                
9:27:49 AM                                                                                                                    
                                                                                                                                
Mr. Weitzner addressed slide 6, "AIDEA and AEA":                                                                                
                                                                                                                                
     Alaska  Industrial  Development  and  Export  Authority                                                                    
     (AIDEA)                                                                                                                    
     Mission:  To  promote,  develop, and  advance  economic                                                                  
     growth  and  diversification  in  Alaska  by  providing                                                                    
     various means of financing and investment.                                                                                 
                                                                                                                                
     Alaska Energy Authority                                                                                                    
     Mission: To reduce the cost of energy in Alaska.                                                                         
     AEA  is  Alaska's energy  office  and  lead agency  for                                                                    
     statewide energy policy and program development.                                                                           
                                                                                                                                
     The  purpose and  function of  the AK  EIF aligns  with                                                                    
     AIDEA's  existing  scope  establishing  loan  programs,                                                                    
     working  with  Alaska's  financial sector  and  private                                                                    
     investors, as  well as managing capital  funds, such as                                                                    
     the Loan Participation  Program (Enterprise Development                                                                    
     Account)  and Development  Project Financing  (Economic                                                                    
     Development Account).                                                                                                      
     AIDEA  would   oversee  loan  programs   and  financial                                                                    
     management  in   partnership  with  AEA's   energy  and                                                                    
     technical   subject    matter   expertise,   leveraging                                                                    
     existing shared infrastructure and services.                                                                               
     An  independent,   five-person  advisory   board  would                                                                    
     provide guidance  on investment opportunities  to AIDEA                                                                    
     and  AEA.  The  advisory board's  authority  would  not                                                                    
     supersede  the  governing  authority of  the  AIDEA/AEA                                                                    
     Board.                                                                                                                     
                                                                                                                                
9:29:19 AM                                                                                                                    
                                                                                                                                
Mr. Weitzner  pointed to slide 7,  "Total Energy Consumption                                                                    
Per  Capita,   2018  (million   Btu),"  which   offered  the                                                                    
following  top  5  energy  consumers  in  the  country,  per                                                                    
capita:                                                                                                                         
                                                                                                                                
   1. Wyoming  967MMBtu                                                                                                         
   2. Louisiana  945MMBtu                                                                                                       
   3. North Dakota 872MMBtu                                                                                                     
   4. Alaska  830MMBtu                                                                                                          
   5. Iowa 513MMBtu                                                                                                             
     Average 358                                                                                                                
                                                                                                                                
Mr.   Weitzner   noted   that   Alaskas    consumption   was                                                                    
approximately twice  that of the national  average, which he                                                                    
suggested was  due to  Alaskas  unique  energy requirements,                                                                    
such  as the  high energy  demand in  winter and  the energy                                                                    
intensive focused  industry in  the state. He  proposed that                                                                    
embracing renewable  fuel sources like  hydroelectric power,                                                                    
wind power, and solar energy,  Alaska was in the position to                                                                    
be a leader in energy independence in the country.                                                                              
                                                                                                                                
9:30:38 AM                                                                                                                    
                                                                                                                                
Senator  Wielechowski surmised  that  the  North Slope  used                                                                    
1bcf  per day,  or 40  percent of  the states   total energy                                                                    
consumption.                                                                                                                    
                                                                                                                                
9:30:59 AM                                                                                                                    
                                                                                                                                
Mr. Weitzner replied in the affirmative.                                                                                        
                                                                                                                                
9:31:06 AM                                                                                                                    
                                                                                                                                
Co-Chair  Bishop wondered  whether Senator  Wielechowski was                                                                    
considering the fuel gas on the North Slope.                                                                                    
                                                                                                                                
9:31:09 AM                                                                                                                    
                                                                                                                                
Senator Wielechowski replied in the affirmative.                                                                                
                                                                                                                                
9:31:25 AM                                                                                                                    
                                                                                                                                
Mr. Weitzner  looked at slide 8,  "Total Energy Expenditures                                                                    
Per Capita, 2018 (U.S. dollars),   which listed the top five                                                                    
states  in the  category  of total  energy expenditures  per                                                                    
capita:                                                                                                                         
                                                                                                                                
   1. Wyoming - $8,651                                                                                                          
   2. North Dakota - $8,097                                                                                                     
   3. Alaska - $8,060                                                                                                           
   4. Louisiana - $7,537                                                                                                        
   5. Texas - $5,345                                                                                                            
     Average - $4,291                                                                                                           
                                                                                                                                
Mr.  Weitzner related  that Alaskan  consumers paid  some of                                                                    
the highest energy  rates in the country. He  noted that the                                                                    
                                      th                                                                                        
cost of energy  in the state ranked 11   nationally but when                                                                    
                                                       rd                                                                       
broken down on a  per capita basis, the state ranked  3  and                                                                    
was  nearly  twice  the national  average.  He  stated  that                                                                    
roughly 11 percent of Alaskas   gross domestic product (GDP)                                                                    
went  to  energy expenditures.  He  contended  that the  EIF                                                                    
could have significant positive impacts for Alaska.                                                                             
                                                                                                                                
9:32:47 AM                                                                                                                    
                                                                                                                                
MORGAN  NEFF, CIO,  AIDEA  (via  teleconference), looked  at                                                                    
slide 9, "What is the AK EIF?"                                                                                                  
                                                                                                                                
        • The Alaska Energy Independence Fund (AK EIF)                                                                          
          serves a public purpose in meeting the unique                                                                         
          energy needs of Alaska to promote sustainable                                                                         
          clean energy projects through loan programs.                                                                          
                                                                                                                                
        • Often referred to as a "green bank", the AK EIF                                                                       
          functions  as a  public-private  entity that  uses                                                                    
          modest  amounts  of  public  funding  to  leverage                                                                    
          private capital to  accelerate investment in clean                                                                    
          energy projects.                                                                                                      
                                                                                                                                
        • AK EIF meets the criteria to receive and manage                                                                       
          funds anticipated to become available through                                                                         
          pending federal legislation.                                                                                          
                                                                                                                                
Mr. Neff noted that  green  banks  were not actual banks and                                                                    
did not  compete with actual  banks. He said that  they were                                                                    
designed  to  work  collaboratively  with  the  banking  and                                                                    
private  sector   of  Alaska   to  accelerate   and  enhance                                                                    
investment  across the  state.  He shared  that every  green                                                                    
bank  was designed  around a  purpose  and was  a  paint  by                                                                    
numbers   approach to  addressing  critical  needs for  each                                                                    
individual  state and  community. He  furthered that  unique                                                                    
energy   needs  and   cost  burdens   would  be   identified                                                                    
throughout  the  state to  deploy  a  program with  multiple                                                                    
tools  that  would  incentivize borrowers  and  the  private                                                                    
sector. He  noted that once the  anticipated federal dollars                                                                    
came  through, they  would  offset administrative  operating                                                                    
costs.                                                                                                                          
                                                                                                                                
9:35:18 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  emphasized the  importance of  working with                                                                    
private banks in the state when executing the EIP program.                                                                      
                                                                                                                                
9:35:40 AM                                                                                                                    
                                                                                                                                
Senator  Olson  surmised  that   the  green  bank  would  be                                                                    
available to  private individuals  that wanted  to construct                                                                    
alternative energy sources in their private home.                                                                               
                                                                                                                                
9:35:57 AM                                                                                                                    
                                                                                                                                
Mr. Neff agreed, and explained  that the green back would be                                                                    
available for all residents of the state.                                                                                       
                                                                                                                                
9:36:08 AM                                                                                                                    
                                                                                                                                
Senator Olson wondered  who he should direct  members of his                                                                    
constituency to for more information an applying.                                                                               
                                                                                                                                
9:36:12 AM                                                                                                                    
                                                                                                                                
Mr. Neff  explained that  the full  program would  be rolled                                                                    
out  with   an  application   process.  He  said   that  any                                                                    
accessibility   limitations   to   applications   would   be                                                                    
addressed.                                                                                                                      
                                                                                                                                
9:36:39 AM                                                                                                                    
                                                                                                                                
Senator Olson asked when people would be able to apply.                                                                         
                                                                                                                                
9:36:42 AM                                                                                                                    
                                                                                                                                
Mr.  Neff responded  that SB  123 had  an effective  date of                                                                    
January 2022.                                                                                                                   
                                                                                                                                
9:36:52 AM                                                                                                                    
                                                                                                                                
Senator  Wielechowski  wondered   whether  the  low-interest                                                                    
loans would be available to for-profit corporations.                                                                            
                                                                                                                                
9:37:05 AM                                                                                                                    
                                                                                                                                
Mr. Weitzner  replied that the  funds would be  available to                                                                    
for-profit  corporations.  He  said  that  the  program  was                                                                    
intended to  target industrial, commercial,  and residential                                                                    
programs across the state.                                                                                                      
                                                                                                                                
9:37:25 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  asked whether guidelines  of the  amount of                                                                    
funds available to applicants versus  need of those applying                                                                    
would be considered.                                                                                                            
9:37:47 AM                                                                                                                    
                                                                                                                                
Mr.  Weitzner  replied   that  flexibility  on  establishing                                                                    
programs  would help  to that  end.  He said  that they  had                                                                    
looked to other green banks in the country for guidance.                                                                        
                                                                                                                                
9:38:32 AM                                                                                                                    
                                                                                                                                
Senator Wielechowski  asked whether  there was  any language                                                                    
in the bill that would  prohibit a significant amount of the                                                                    
loans or grants going to large industries.                                                                                      
                                                                                                                                
9:38:51 AM                                                                                                                    
                                                                                                                                
Mr. Weitzner corrected that the  programs were for loans and                                                                    
not grants.  He furthered  that at  the current  stage there                                                                    
were no  limitations in the  legislation as it  was believed                                                                    
that  program   flexibility  was  paramount.  He   said  the                                                                    
advisory bord  would provide guidance  for the  programs. He                                                                    
added that green  banks that had experienced  success in the                                                                    
country had not included such limitations on industry.                                                                          
                                                                                                                                
9:40:10 AM                                                                                                                    
                                                                                                                                
Mr.  Neff looked  at slide  10, "Initial  Capitalization and                                                                    
Funding":                                                                                                                       
                                                                                                                                
     .notdefProposed initial capitalization:   $10   million                                                                    
     appropriation from State of Alaska UGF with an                                                                             
     anticipated federal match.                                                                                                 
                                                                                                                                
Mr. Neff  relayed that like  the underlying  financing tools                                                                    
and need  to work with  the private sector community  in the                                                                    
state drove  the methodically designed  aspect of  the fund,                                                                    
so  was  the  initial  capitalization. He  stated  that  the                                                                    
numbers on the  slide were derived from  extensive study and                                                                    
analysis of  existing green banks  in the country  and their                                                                    
initial  capitalization, and  were meant  to ensure  against                                                                    
over, and under, capitalization.                                                                                                
                                                                                                                                
9:40:59 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:42:09 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Mr.  Neff continued  to discuss  slide 10.  He related  that                                                                    
initial  capitalization was  critically  important. He  said                                                                    
that   the  initial   capitalization   of   the  New   York,                                                                    
Connecticut,  and  Maryland  green banks  had  been  studied                                                                    
based on their GDP, GDP  per capita, total population, total                                                                    
energy   expenditures   per   capita,  and   their   initial                                                                    
capitalization  based  on  those   factors,  He  added  that                                                                    
private capital  leverage was critical.  He noted  that each                                                                    
of  the  green banks  had  been  successful in  deploying  a                                                                    
modest   amount   of    green   bank   capitalization   into                                                                    
substantial,  multi-leverage component  of financial  sector                                                                    
capital;  from  approximately  $6 to  $8  private  financial                                                                    
capital to each  green bank dollar. He shared  that in 2020,                                                                    
Connecticut  was  able  to deploy  $36  million  green  bank                                                                    
dollars to  leverage over $312  million in  total investment                                                                    
for the year. He noted the  two fiscal notes attached to the                                                                    
legislation   one for the  initial capitalization of the $10                                                                    
million  and another  for the  Operating  Budget from  ADIEA                                                                    
receipts. He  said that  the fund was  designed so  that the                                                                    
return  would offset  expenses  and be  in  the position  to                                                                    
accept  operational  capital   from  the  proposed  national                                                                    
legislation.                                                                                                                    
                                                                                                                                
9:44:32 AM                                                                                                                    
                                                                                                                                
Mr. Weitzner  interjected that the  benefits of the  fund to                                                                    
the state was economic development  in the state   and jobs.                                                                    
He  said that  in 2019  the  green bank  in Connecticut  had                                                                    
generated  significant   opportunity  for   investment  than                                                                    
previous grant programs. He added  that 13,000 jobs had been                                                                    
created and $1.5 billion in  investment. He pointed out that                                                                    
a  definition  for  sustainable energy  development  in  the                                                                    
legislation. He  stressed that the  fund could only  be used                                                                    
for sustainable energy projects.                                                                                                
                                                                                                                                
9:46:44 AM                                                                                                                    
                                                                                                                                
Mr. Weitzner looked  at slide 12, "Economic  Benefits to the                                                                    
AK EIF.":                                                                                                                       
                                                                                                                                
    Average annual cost of energy per Alaskan - $8,060                                                                        
                                                                                                                                
     Modest public funds + private investment in clean                                                                          
     energy  Create AK EIF                                                                                                    
                                                                                                                                
     10 percent - $806: average annual energy savings per                                                                     
     Alaskan                                                                                                                    
     20 percent - $1,612:  average annual energy savings per                                                                  
     Alaskan                                                                                                                    
                                                                                                                                
     30 percent - $2,418:  average annual energy savings per                                                                  
     Alaskan                                                                                                                    
                                                                                                                                
     Injects Hundreds  of Millions of Dollars  into Alaskas                                                                   
     Economy                                                                                                                  
     Frees  up  approx.  $589 million  to  $1.7  billion  in                                                                    
     discretionary spending every year                                                                                          
                                                                                                                                
9:47:49 AM                                                                                                                    
                                                                                                                                
Mr. Neff addressed slide 13, "National Green Bank and                                                                           
Accelerator":                                                                                                                   
                                                                                                                                
     HR 806    Clean  Energy and  Sustainability Accelerator                                                                    
     Act                                                                                                                        
     S 283  National Climate Bank Act                                                                                           
                                                                                                                                
        o Congress has introduced the Accelerator Act that                                                                      
          would form a national "green bank" capitalized                                                                        
          with $100 billion.                                                                                                    
             square4 Bipartisan co-sponsors, including Alaska                                                                   
               Rep. Don Young.                                                                                                  
        o If/when   passed,   these   acts   would   provide                                                                    
          investment and operational capital.                                                                                   
             square4 Creation of the AK EIF would allow Alaska to                                                               
               receive     additional     investment     and                                                                    
               operational capital for a "green bank".                                                                          
        o The Clean Energy and Sustainability Accelerator                                                                       
          is part of the Biden Administration's American                                                                        
          Jobs Plan ("The Infrastructure Bill").                                                                                
                                                                                                                                
9:49:04 AM                                                                                                                    
                                                                                                                                
Mr. Neff pointed to slide 14, "Alaska Energy Independence                                                                       
Fund (AK EIF)":                                                                                                                 
                                                                                                                                
     OVERVIEW                                                                                                                 
     "An Act  creating the  Alaska energy  independence fund                                                                    
     in  the   Alaska  Industrial  Development   and  Export                                                                    
     Authority; and providing for an effective date."                                                                           
             square4 Make capital more accessible to borrowers                                                                  
               for sustainable energy development projects.                                                                     
                  • Partner with private capital to fund                                                                        
                    businesses   and   projects,   including                                                                    
                    energy-efficiency,    renewable   power,                                                                    
                    micro-grid, transportation, sustainable                                                                     
                    agriculture, and more.                                                                                      
                                                                                                                                
             square4 Incentivize co-investment in the non-fossil                                                                
               fuel  energy sector  between the  public (the                                                                    
               State of Alaska  through AIDEA in partnership                                                                    
               with   Alaska  Energy   Authority),  Alaska's                                                                    
               financial  sector,   private  investors,  and                                                                    
               philanthropic donors.                                                                                            
                                                                                                                                
             square4 AK EIF bill aligns with the proposed federal                                                               
               bills, including the new definition of                                                                           
               "sustainable energy development".                                                                                
                                                                                                                                
9:50:03 AM                                                                                                                    
                                                                                                                                
Mr. Neff discussed slide 15, "Alaska Energy Independence                                                                        
Fund (AK EIF)":                                                                                                                 
                                                                                                                                
     Financing and Investments                                                                                                
                                                                                                                                
        • The Fund would leverage its capital alongside                                                                         
          Alaska's   financial  sector   to  enhance   total                                                                    
          investment  in Alaskan  clean energy  programs and                                                                    
          projects.                                                                                                             
                                                                                                                                
        • Eligible to    make   loans,    provide   credit                                                                      
          enhancement  structures,  purchase loans,  provide                                                                    
          development funding  and other forms  of financing                                                                    
          for  sustainable  energy development  in  Alaska's                                                                    
          commercial,  residential,  and  industrial  market                                                                    
          sectors.                                                                                                              
                                                                                                                                
        • The Fund would consist of appropriations made by                                                                      
          the   legislature,    loans   or    other   assets                                                                    
          transferred  to the  Fund  by AIDEA,  unrestricted                                                                    
          loan  payments, interest,  or other  income earned                                                                    
          on loans,  investments or assets of  the fund, and                                                                    
          available federal funding.                                                                                            
                                                                                                                                
9:50:50 AM                                                                                                                    
                                                                                                                                
Mr. Neff addressed slide 16, "Program Workflow." The slide                                                                      
presented a flow chart illustrating the program workflow.                                                                       
                                                                                                                                
9:51:39 AM                                                                                                                    
Mr. Neff  pointed to slide  17, "Alaska  Energy Independence                                                                    
Fund (AK EIF)."  The slide highlighted the  various ways the                                                                    
green bank  fund functions would improve  independent energy                                                                    
investment:                                                                                                                     
                                                                                                                                
     Functions of the Fund                                                                                                    
                                                                                                                                
     The  AK EIF  prioritizes  affordable, local,  reliable,                                                                    
     sustainable, and independent energy.                                                                                       
                                                                                                                                
     Barrier to Investment  Perceived project risk                                                                            
     Solution  Credit enhancement                                                                                             
     Examples    Provide a loan  loss reserve;  can mitigate                                                                  
     risk and  allow investment  to flow  at longer  term of                                                                    
     lower rate                                                                                                                 
                                                                                                                                
     Barrier to Investment  Inefficiencies of scale                                                                           
     Solution  Aggregation and warehousing                                                                                    
     Examples    Aggregate small projects  to meet  scale to                                                                  
     attract private capital                                                                                                    
                                                                                                                                
     Barrier to Investment  First-in-kind transaction                                                                         
     Solution  Technical assistance                                                                                           
     Examples    Put  in technical  legwork that  comes with                                                                  
     closing more labor intensive, innovative transactions                                                                      
                                                                                                                                
     Barrier to Investment  Marginal economics                                                                                
     Solution  Co-investment                                                                                                  
     Examples     Lend  to  project,  in  senior  or  junior                                                                  
     position,  to improve  overall economics  for investors                                                                    
     and customers                                                                                                              
                                                                                                                                
9:53:37 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  wondered whether there would  be electronic                                                                    
and  paper applications  available,  particularly for  those                                                                    
without computer access.                                                                                                        
                                                                                                                                
9:54:03 AM                                                                                                                    
                                                                                                                                
Mr. Neff replied that while  the program was being developed                                                                    
into  its full  comprehensive  nature, the  ability for  all                                                                    
communities to access applications  had been identified as a                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:54:27 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman   spoke  of  the  success   of  the  Alaska                                                                    
weatherization  programs.  He  thought that  if  homes  were                                                                    
going to have clean energy for  heat   it was also important                                                                    
that the homes be properly weatherized for efficiency.                                                                          
                                                                                                                                
9:57:51 AM                                                                                                                    
                                                                                                                                
Mr.  Weitzner  replied  that one  of  the  largest  programs                                                                    
offered  by  green   banks  in  the  lower   48  was  energy                                                                    
efficiency.   He   said   that  the   proposed   legislation                                                                    
contained,  within  the  definition of   sustainable  energy                                                                    
development,   several elements  that concentrate  on energy                                                                    
efficiency. He believed that programs  could be developed to                                                                    
address Senator Hoffmans concerns.                                                                                              
                                                                                                                                
9:58:53 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman  responded  that   the  state  had  several                                                                    
successful loan programs. He thought  that the proposed loan                                                                    
program was good if the  recipient could repay the loan, but                                                                    
people in rural Alaska paid  the highest costs for energy in                                                                    
the world, while having the  lowest incomes in the state. He                                                                    
did  not think  that the  proposed loan  program would  help                                                                    
those people.                                                                                                                   
                                                                                                                                
10:01:17 AM                                                                                                                   
                                                                                                                                
Senator   Wielechowski  understood   that  as   the  program                                                                    
developed  it  could  be   used  to  provide  weatherization                                                                    
programs or provide low-income loans  to huge and profitable                                                                    
corporations. He  pointed out that  the advisory  board that                                                                    
would be set  up did not have to  have legislative approval.                                                                    
He  thought it  could  be beneficial,  and wondered  whether                                                                    
AIDEA would support, that one of  the chairs on the board be                                                                    
someone from  rural Alaska, a  utility co-op, or  a consumer                                                                    
protection  organization to  ensure that  the funds  went to                                                                    
Alaskan  consumers, who  desperately needed  low-cost energy                                                                    
solutions.                                                                                                                      
                                                                                                                                
10:02:29 AM                                                                                                                   
                                                                                                                                
Mr. Neff replied that the  bill was introduced based off the                                                                    
advisory  board.   He  suggested   AIDEA  was   amenable  to                                                                    
suggestions from  the legislature on how  the advisory board                                                                    
should be developed to best serve the fund and communities.                                                                     
                                                                                                                                
10:02:49 AM                                                                                                                   
Senator Wilson  thought that the economic  benefits on slide                                                                    
12 were possibly misstated. He  wondered whether the numbers                                                                    
reflected the total  cost, across the state,  per family. He                                                                    
pondered whether  the average  family of  5 paid  $40,000 on                                                                    
annual energy costs.                                                                                                            
                                                                                                                                
10:03:13 AM                                                                                                                   
                                                                                                                                
Mr. Neff responded that the  calculation was on a per capita                                                                    
basis.  He said  that a  10 to  30 percent  reduction in  $6                                                                    
billion in  annual expenditures would result  in the numbers                                                                    
reflected  on the  slide. He  conceded that  an  all  things                                                                    
being equal data set had been used.                                                                                             
                                                                                                                                
10:03:50 AM                                                                                                                   
                                                                                                                                
Senator  Wilson  thought  that  the  $589  million  to  1.7.                                                                    
billion  in  freed up  discretionary  spending  was a  false                                                                    
statement.                                                                                                                      
                                                                                                                                
10:04:11 AM                                                                                                                   
                                                                                                                                
Mr. Neff replied  that the analysis was correct  based off a                                                                    
10  to  30  percent  reduction across  the  EIA  numbers  of                                                                    
approximately   $8,000  per   capita,  based   on  a   total                                                                    
population of 730,000, which equated  to under $6 billion in                                                                    
annual energy expenditures  per year, and was  just under 11                                                                    
percent of the annual GDP.                                                                                                      
                                                                                                                                
10:04:36 AM                                                                                                                   
                                                                                                                                
Senator Wilson  argued that if  all things were not  equal                                                                      
the  number was  wrong. He  maintained that  the figure  was                                                                    
inaccurate  of  the  actual benefits  that  the  bill  would                                                                    
provide for Alaskans.                                                                                                           
                                                                                                                                
10:04:49 AM                                                                                                                   
                                                                                                                                
Senator  Wielechowski  cited  Page   4,  section  5  of  the                                                                    
legislation,  which gave  the  authority  to create  limited                                                                    
liability corporations  (LLC), or limited  partnerships, not                                                                    
only for  the purpose of  the program but seemingly  for any                                                                    
AIDEA purpose. He wondered why AIDEA needed the authority.                                                                      
                                                                                                                                
10:05:19 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner replied that under  AS 44.88.172, AIDEA already                                                                    
had  the authority  to  create  subsidiary corporations.  He                                                                    
said that  the additional language  in the bill  would allow                                                                    
for those same subsidiaries to  be created under the EIF. He                                                                    
clarified  that the  language currently  in the  legislation                                                                    
was in the previously cited statute.                                                                                            
                                                                                                                                
10:06:24 AM                                                                                                                   
                                                                                                                                
Mr. Neff concluded his presentation.                                                                                            
                                                                                                                                
10:06:41 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner addressed the Sectional Analysis (copy on                                                                          
file):                                                                                                                          
                                                                                                                                
     Section  1  Amends  AS  44.88.070      Purpose  of  the                                                                    
     authority    to  add  "sustainable energy  development"                                                                    
     under  the  various means  of  financing  and means  of                                                                    
     facilitating financing provided.                                                                                           
                                                                                                                                
     Section  2  Amends  AS 44.88.159(a)     under  Interest                                                                    
     rates    to  add "the  Alaska energy  independence fund                                                                    
     (AS 44.88.452) under AS 44.88.450-44.88.456."                                                                              
                                                                                                                                
     Section  3  Amends  AS 44.88.159(b)     under  Interest                                                                    
     rates    to  add "the  Alaska energy  independence fund                                                                    
     (AS 44.88.452) under AS 44.88.450-44.88.456."                                                                              
                                                                                                                                
     Section  4  Amends  AS 44.88.159(g)     under  Interest                                                                    
     rates     to  add   reference  to  "sustainable  energy                                                                    
     development".                                                                                                              
                                                                                                                                
     Section   5  Amends   AS   44.88.178      Creation   of                                                                    
     subsidiaries   to allow the  authority to create one or                                                                    
     more  subsidiaries "for  the purpose  of administering,                                                                    
     operating, or expanding  the Alaska energy independence                                                                    
     program." It  also states, "Subject to  limitations for                                                                    
     the use  of the  economic development account  under AS                                                                    
     44.88.172  and  the  Alaska  energy  independence  fund                                                                    
     under  AS  44.88.450-44.88.456,"  in reference  to  the                                                                    
     authority's ability to transfer  assets to a subsidiary                                                                    
     created under this section.                                                                                                
                                                                                                                                
10:08:16 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop solicited questions from the committee.                                                                         
10:08:20 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski said that he would research the                                                                            
statutes in Section 5 offline.                                                                                                  
                                                                                                                                
10:08:28 AM                                                                                                                   
                                                                                                                                
Mr. Neff continued with the Sectional Analysis:                                                                                 
                                                                                                                                
     Section 6 Amends AS 44.88 by adding four (4) new                                                                           
     sections:                                                                                                                  
                                                                                                                                
          AS 44.88.450    Alaska energy independence program                                                                    
            creates  the program within AIDEA  to make loans                                                                    
          and   provide  other   forms   of  financing   for                                                                    
          sustainable  energy development  in the  state and                                                                    
          establishes an Advisory  Board, consisting of five                                                                    
          members  appointed   by  the  Governor,   to  make                                                                    
          recommendations to AIDEA on  the fund programs and                                                                    
          best practices.                                                                                                       
                                                                                                                                
          AS 44.88.452    Alaska energy independence  fund                                                                      
          establishes  the fund  within AIDEA  for the  uses                                                                    
          and purposes  of AS 44.88.450-.456. It  states the                                                                    
          fund  consist   of  appropriations  made   by  the                                                                    
          legislature, loans or  other assets transferred to                                                                    
          the fund  by AIDEA, unrestricted  loan repayments,                                                                    
          interest,  or   other  income  earned   on  loans,                                                                    
          investments, or assets of  the fund, and available                                                                    
          federal  funding. The  fund is  not an  account in                                                                    
          the  revolving   loan  fund  (AS   44.88.060)  and                                                                    
          requires AIDEA to account  for the fund separately                                                                    
          from  the revolving  fund.  Finally, this  section                                                                    
          allows AIDEA to create  additional accounts in the                                                                    
          fund; and to transfer  amounts between accounts in                                                                    
          the  funds (subject  to agreements  made with  the                                                                    
          holders of AIDEA's bonds or with other persons).                                                                      
          AS  44.88.454    Sustainable  energy  development;                                                                    
          powers  and duties  of  the  authority    outlines                                                                    
          AIDEA's abilities, subject to AS 44.88.450-.456:                                                                      
                                                                                                                                
               ? Establish a subsidiary corporation subject                                                                     
               to the requirements of AS 44.88.178;                                                                             
               ? Establish  financing programs  and products                                                                    
               that AIDEA  deems necessary to  encourage and                                                                    
               promote  sustainable  energy  development  in                                                                    
               the state;                                                                                                       
               ?  Invest  in   eligible  sustainable  energy                                                                    
               development  alone  or with  other  investors                                                                    
               (including private capital providers);                                                                           
               ?  Provide  capital  and fund  management  to                                                                    
               eligible  sustainable energy  development and                                                                    
               specifies in what forms this is allowable;                                                                       
               ?  Make  and   execute  contracts  and  other                                                                    
               instruments to implement AS 44.88.450-.456;                                                                      
               ?  Acquire  real   or  personal  property  by                                                                    
               purchase, transfer,  or foreclosure  when the                                                                    
               acquisition is  necessary to  protect AIDEA's                                                                    
               interest  in   a  loan  or   other  financial                                                                    
               product;                                                                                                         
               ?   Enter   into  lease-purchase   agreements                                                                    
               (subject to AS 36.30.085);                                                                                       
               ?  Defer  principal  payments  or  capitalize                                                                    
               interest on loans;                                                                                               
               ?   Provide   financing   and   services   to                                                                    
               municipal   energy   improvement   assessment                                                                    
               programs  established in  accordance with  AS                                                                    
               29.55.100; and                                                                                                   
               ?  Exercise  any  other  power  necessary  to                                                                    
               implement AS 44.88.450-.456.                                                                                     
                                                                                                                                
          This section  (AS 44.88.454) also allows  AIDEA to                                                                    
          adopt regulations to  implement AS 44.88.450-.456,                                                                    
          including:                                                                                                            
                                                                                                                                
               ?  An   application  process   for  acquiring                                                                    
               financing    under    the    Alaska    energy                                                                    
               independence program;                                                                                            
               ? Qualifications for  applicants applying for                                                                    
               financing under the program;                                                                                     
               ? Record  keeping requirements  to accumulate                                                                    
               and  track  measurable  data related  to  the                                                                    
               fund; and                                                                                                        
              ? Fiscal controls for the fund.                                                                                   
                                                                                                                                
          AS 44.88.456    Limitations  on financing;  use as                                                                    
          security    prohibits  AIDEA from  using the  fund                                                                    
          established  in  AS  44.88.452   to  make  a  loan                                                                    
          guarantee  if  the   amount  exceeds  $20  million                                                                    
          unless  AIDEA has  obtained legislative  approval.                                                                    
          It states financing under  AS 44.88.454 is limited                                                                    
          to  the   life  of  eligible   sustainable  energy                                                                    
          development,   with  financing   limited  by   the                                                                    
          estimated useful life of  the project. Finally, it                                                                    
          states AIDEA  may use the  fund established  in AS                                                                    
          44.88.452  as security  for  a  bond guarantee  as                                                                    
          long as  it doesn't  conflict with  subsection (1)                                                                    
          of this section.                                                                                                      
                                                                                                                                
     Section 7 Amends AS 44.88.900  Definitions  to add                                                                         
     definitions for "sustainable energy development" and                                                                       
     "eligible sustainable energy development".                                                                                 
                                                                                                                                
     Section 8 Provides a January 1, 2022 effective date                                                                        
     for this Act.                                                                                                              
                                                                                                                                
10:13:33 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski looked at Section  7, line 9, and asked                                                                    
for an example of industrial decarbonization.                                                                                   
                                                                                                                                
10:13:51 AM                                                                                                                   
                                                                                                                                
Mr.  Weitzner replied  that much  of  the language  mimicked                                                                    
what was in the national act. He listed some examples.                                                                          
                                                                                                                                
10:14:24 AM                                                                                                                   
                                                                                                                                
Senator  von  Imhof thought  that  there  should be  further                                                                    
conversation  regarding small  versus  large companies.  She                                                                    
said that  assurances need  to be made  that the  loans were                                                                    
paid  back to  the green  bank. She  assumed that  the green                                                                    
banks would not compete with commercial banks.                                                                                  
                                                                                                                                
10:14:58 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner  replied that the  green banks would  work hand                                                                    
in hand with commercial banks.                                                                                                  
                                                                                                                                
10:15:05 AM                                                                                                                   
                                                                                                                                
Senator von  Imhof wondered how  the green banks  would work                                                                    
with the commercial banks.                                                                                                      
                                                                                                                                
10:15:19 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner  reiterated that the  programs would  work hand                                                                    
in hand with the financial sector.                                                                                              
                                                                                                                                
10:16:20 AM                                                                                                                   
                                                                                                                                
Senator von  Imhof wondered how  quickly the money  could be                                                                    
deployed.                                                                                                                       
                                                                                                                                
10:16:35 AM                                                                                                                   
                                                                                                                                
Mr.  Weitzner  responded  that   first  regulation  for  the                                                                    
programs would need  to be put in place with  input from the                                                                    
advisory board, banks, and credit unions.                                                                                       
                                                                                                                                
10:17:12 AM                                                                                                                   
                                                                                                                                
Mr. Neff  furthered that talks  with the Coalition  of Green                                                                    
Capital  had identified  $5  billion that  could  go into  a                                                                    
program  in   Anchorage  that  would   generate  substantial                                                                    
savings and job growth. He                                                                                                      
                                                                                                                                
10:18:22 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner added that the  capitalization from the general                                                                    
fund  was  to  initiate   some  of  the  credit  enhancement                                                                    
programs  that  would bring  in  the  financial sector.  The                                                                    
capital was to leverage programs for future investment.                                                                         
                                                                                                                                
10:18:57 AM                                                                                                                   
                                                                                                                                
Senator  von Imhof  noted that  deploying $10  million would                                                                    
take time.  She noted the  four new positions listed  on the                                                                    
fiscal  note. She  asked why  the  loan servicing  processor                                                                    
already employed  by AIDEA could  not absorb the  extra work                                                                    
generated by the bill.                                                                                                          
                                                                                                                                
10:19:47 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner  said that  the fiscal  note positions  were in                                                                    
anticipation  of the  growth of  the  program. He  explained                                                                    
that  the  EIF  would  deal   with  more  loans  than  other                                                                    
programs,  which would  create more  work and  the necessity                                                                    
for more positions.                                                                                                             
                                                                                                                                
10:21:17 AM                                                                                                                   
                                                                                                                                
Mr. Neff  added that  the new  positions would  also receive                                                                    
anticipated federal  appropriations and  help to  target the                                                                    
critical leverage ratio.                                                                                                        
                                                                                                                                
Co-Chair  Bishop asked  whether there  was a  possibility to                                                                    
leverage $130 million in federal funds.                                                                                         
Mr. Neff replied in the affirmative.                                                                                            
                                                                                                                                
10:22:16 AM                                                                                                                   
                                                                                                                                
Senator    Wielechowski    asked   whether,    instead    of                                                                    
appropriating  $10  million  from the  general  fund,  would                                                                    
there  be  anything that  would  stop  the legislature  from                                                                    
reappropriating  the  $10  million  from  the  already  $400                                                                    
million in liquid assets currently held by AIDEA.                                                                               
                                                                                                                                
10:22:46 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner referred to AS 44.88.020:                                                                                          
                                                                                                                                
     There is created the  Alaska Industrial Development and                                                                    
     Export   Authority.   The   authority   is   a   public                                                                    
     corporation  of  the state  and  a  body corporate  and                                                                    
     politic  constituting  a political  subdivision  within                                                                    
     the  Department of  Commerce,  Community, and  Economic                                                                    
     Development,  but with  separate and  independent legal                                                                    
     existence.                                                                                                                 
                                                                                                                                
                                                                                                                                
Mr. Weitzner referred to AS 44.88.190(b):                                                                                       
                                                                                                                                
     (b) The  funds, income,  or receipts  of the  authority                                                                  
     may  not  be  considered  or constitute  money  of  the                                                                    
     state,  nor may  real property  in which  the authority                                                                    
     has an interest be considered  land owned in fee by the                                                                    
     state or to  which the state may become  entitled or in                                                                    
     any  way land  belonging to  the state,  or state  land                                                                    
     referred to in Art. VIII of the Alaska Constitution.                                                                       
                                                                                                                                
Mr. Weitzner cited AS 44.88.120(b):                                                                                             
                                                                                                                                
     (b) The   bonds  issued   by  the   authority  do   not                                                                  
     constitute an  indebtedness or  other liability  of the                                                                    
     state  or  of a  political  subdivision  of the  state,                                                                    
     except the authority, but shall  be payable solely from                                                                    
     the income and  receipts or other funds  or property of                                                                    
     the authority.  The authority may not  pledge the faith                                                                    
     or credit  of the state  or of a  political subdivision                                                                    
     of the state,  except the authority, to  the payment of                                                                    
     a  bond and  the issuance  of a  bond by  the authority                                                                    
     does  not   directly  or  indirectly   or  contingently                                                                    
     obligate the  state or a  political subdivision  of the                                                                    
     state to apply money from, or levy or pledge any form                                                                      
     of taxation whatever to the payment of the bond.                                                                           
                                                                                                                              
Mr. Weitzner contended that the  statutes ensured that AIDEA                                                                    
could act as a public  corporation and a development finance                                                                    
authority  for  the  state.  He  argued  that  directing  an                                                                    
appropriation  out of  AIDEAs  funds  would directly  impact                                                                    
its  ability to  interact with  the private  sector for  the                                                                    
leverage  within the  EIF. He  said that  other green  banks                                                                    
used   appropriated   funds.    He   stated   that   Senator                                                                    
Wielechowskis    suggestion   would  also   affect   bonding                                                                    
capacity. He  highlighted that in 2019,  an appropriation of                                                                    
$2  million  had  directly  impacted  the  way  that  credit                                                                    
agencies   viewed  AIDEAs    credit  rating   and  financial                                                                    
integrity.  He  said that  this  resulting  in a  four-level                                                                    
reduction  of  their  credit   rating  and  credit  agencies                                                                    
questing the management of capital reserves by AIDEA.                                                                           
                                                                                                                              
10:25:15 AM                                                                                                                   
                                                                                                                                
Mr.  Weitzner hoped  he  had  sufficiently answered  Senator                                                                    
Wielechowskis question.                                                                                                         
                                                                                                                                
10:25:42 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski  thought that the argument  made by Mr.                                                                    
Weitzner was one of why AIDEA  should be opposing the use of                                                                    
tens of millions  of their funds to pay oil  tax credits. He                                                                    
wondered whether there was a distinction.                                                                                       
                                                                                                                                
10:26:01 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner  believed that  there was  an amendment  of the                                                                    
governors  budget  that addressed  the use of  general funds                                                                    
to pay the credits.                                                                                                             
                                                                                                                                
10:26:20 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski asked whether  Mr. Weitzner would agree                                                                    
that it was inappropriate to use  AIDEA funds to pay oil tax                                                                    
credits.                                                                                                                        
                                                                                                                                
10:26:29 AM                                                                                                                   
                                                                                                                                
Mr.  Weitzner replied  that  he had  cited  the statutes  to                                                                    
reply  directly  to  Senator Wielechowskis   question  about                                                                    
using  AIDEA  funds  to  fund  the EIF.  He  said  that  the                                                                    
administration had put forth  legislation concerning the use                                                                    
of general funds.                                                                                                               
                                                                                                                                
10:26:50 AM                                                                                                                   
                                                                                                                                
Senator Wilson pointed to Page 5, lines 16 through 19:                                                                          
                                                                                                                                
     (b)  The fund  consists of  appropriations made  by the                                                                    
     legislature, loans  or other assets transferred  to the                                                                    
     fund  by the  authority, unrestricted  loan repayments,                                                                    
     interest,   or   other    income   earned   on   loans,                                                                    
     investments,  or  assets  of the  fund,  and  available                                                                    
     federal funding.                                                                                                           
                                                                                                                                
Senator  Wilson   wondered  which   other  funds   could  be                                                                    
transferred by AIDEA.                                                                                                           
                                                                                                                                
10:27:20 AM                                                                                                                   
                                                                                                                                
Mr.  Weitzner replied  that the  intent  was to  be able  to                                                                    
transfer existing  energy loans  that fit the  definition of                                                                    
sustainable energy development under the EIF.                                                                                   
                                                                                                                                
10:27:46 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski  noted that  there were $60  million in                                                                    
AIDEA funds  for oil  tax credits  in the  current operating                                                                    
budget crafted by  the other body. He pointed  Section 7 and                                                                    
asked whether there was a  scenario where low interest loans                                                                    
for fossil fuel development would be acceptable.                                                                                
                                                                                                                                
10:28:17 AM                                                                                                                   
                                                                                                                                
Mr.  Weitzner   responded  that   the  EIF   was  addressing                                                                    
sustainable  energy  in the  state,  which  would require  a                                                                    
unique  approach,  particularly  in rural  areas  that  were                                                                    
reliant on diesel generation.                                                                                                   
                                                                                                                                
10:28:55 AM                                                                                                                   
                                                                                                                                
Senator Olson thought that the  provisions of the bill would                                                                    
be helpful  to rural Alaska.  He expressed concern  that the                                                                    
bill could overly benefit corporations.  He wondered why his                                                                    
constituents should support the legislation.                                                                                    
                                                                                                                                
10:29:40 AM                                                                                                                   
                                                                                                                                
Mr.  Weitzner believed  that the  bill addressed  the unique                                                                    
energy needs of the state. He  did not believe that the bill                                                                    
focused  on  large corporations  working  in  the state  but                                                                    
built  on  the  capacity  for clean,  renewable  energy  and                                                                    
energy efficiency throughout the state.                                                                                         
                                                                                                                                
10:30:39 AM                                                                                                                   
                                                                                                                                
Senator Olson looked at Sections  5 and 6. He contended that                                                                    
the   definitions   addressed   many   of   the   for-profit                                                                    
corporations working in  the state. He spoke of  the HR 806,                                                                    
on  the  federal level,  and  wondered  how  SB 123  was  in                                                                    
parallel with the federal legislation.                                                                                          
                                                                                                                                
10:31:36 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner responded that HR  806 and SB 123 were aligned.                                                                    
He  deferred  further  response  to  a  representative  from                                                                    
Coalition for Green Capital.                                                                                                    
                                                                                                                                
10:32:16 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop  looked at Section  7, line 19.  He wondered                                                                    
whether  snow  machines  would   qualify  under  the  bills                                                                     
definition of clean transportation.                                                                                             
                                                                                                                                
10:33:04 AM                                                                                                                   
                                                                                                                                
Mr. Neff  responded that the  program was designed  to serve                                                                    
the public  purpose and address  the unique energy  needs of                                                                    
the state.  He said that  regulations and programs  would be                                                                    
defined by the advisory board.                                                                                                  
                                                                                                                                
10:33:33 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner cited Section 7, lines 14 and 15:                                                                                  
                                                                                                                                
     (ii)    other   sustainable    technologies   including                                                                    
     distributed generation, advanced battery, and combined                                                                     
     heat and power;                                                                                                            
                                                                                                                                
Mr. Weitzner cited Section 7, lines 19 through 21:                                                                              
                                                                                                                                
     (F)  clean transportation,  including battery  electric                                                                    
     vehicles,  hydrogen vehicles,  plug-in hybrid  electric                                                                    
     vehicles,   and  other   zero-emissions  vehicles   for                                                                    
     consumers, businesses, government, and public transit;                                                                     
Mr.   Weitzner  surmised   that  snow   machines  would   be                                                                    
applicable under the language in Section 7.                                                                                     
                                                                                                                                
10:34:21 AM                                                                                                                   
                                                                                                                                
Senator Wilson  countered that under the  language, the loan                                                                    
program  would be  in  competition  for a  car  loan from  a                                                                    
commercial bank.                                                                                                                
                                                                                                                                
10:34:49 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner  reiterated that the  programs would  work with                                                                    
the commercial  banks and would  not be in  competition with                                                                    
them.                                                                                                                           
                                                                                                                                
10:35:28 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski  looked at Section 7,  lines 23 through                                                                    
25:                                                                                                                             
                                                                                                                                
     (H) any other emissions reduction or energy efficiency                                                                     
     technology the authority determines to be consistent                                                                       
     with the Alaska energy independence program;                                                                               
                                                                                                                                
Senator Wielechowski  thought the  language was  quite broad                                                                    
and wondered whether it could  include a coal burning plant,                                                                    
provided the plant was run as clean as possible.                                                                                
                                                                                                                                
10:35:51 AM                                                                                                                   
                                                                                                                                
Mr. Weitzner  noted that  the language  defining sustainable                                                                    
energy  development, on  the federal  level and  in SB  123,                                                                    
would  allow for  coal  burning plants.  He  added that  the                                                                    
focus would  be on improving energy  efficiency and reducing                                                                    
greenhouse gasses.                                                                                                              
                                                                                                                                
10:37:14 AM                                                                                                                   
                                                                                                                                
BERT  HUNTER,  CONNECTICUT  GREEN BANK,  STAMFORD,  CT  (via                                                                    
teleconference), spoke in support of the bill.                                                                                  
                                                                                                                                
10:43:37 AM                                                                                                                   
                                                                                                                                
CHRIS   ROSE,   EXECUTIVE   DIRECTOR,  REAP,   SUTTON   (via                                                                    
teleconference), testified in support of the legislation.                                                                       
                                                                                                                                
10:48:48 AM                                                                                                                   
Co-Chair Bishop OPENED public testimony.                                                                                        
                                                                                                                                
10:49:03 AM                                                                                                                   
                                                                                                                                
LIZZIE NEWELL, AFACT,  ANCHORAGE (via teleconference), spoke                                                                    
in support of  the bill. She believed  the legislation would                                                                    
help with  climate change, energy costs,  and job insecurity                                                                    
in the state.  She relayed a personal  story about acquiring                                                                    
affordable energy.                                                                                                              
                                                                                                                                
10:51:58 AM                                                                                                                   
                                                                                                                                
HEATHER  KOPONEN,  SELF,   FAIRBANKS  (via  teleconference),                                                                    
echoed the  concerns of Senator Wielechowski,  and the make-                                                                    
up  of the  advisory  board.  She stressed  the  need for  a                                                                    
transparent public process.                                                                                                     
                                                                                                                                
10:53:39 AM                                                                                                                   
                                                                                                                                
ROBERT VENABLES,  EXECUTIVE DIRECTOR,  SOUTHEAST CONFERENCE,                                                                    
JUNEAU  (via  teleconference),  spoke   in  support  of  the                                                                    
legislation.  He  stressed  that   energy  issues  had  been                                                                    
paramount in  the state  for decades.  He believed  that the                                                                    
bill  was  consistent with  the  states   energy policy  and                                                                    
would help  to finance  energy solutions  for the  state. He                                                                    
stressed   that   reducing   energy  costs   would   produce                                                                    
significant savings to Alaskans.                                                                                                
                                                                                                                                
10:56:27 AM                                                                                                                   
                                                                                                                                
JOMO  STEWART,  FAIRBANKS  ECONOMIC  DEVELOPMENT,  FAIRBANKS                                                                    
(via   teleconference),   testified   in  support   of   the                                                                    
legislation. He  noted that capital  was often a  barrier to                                                                    
the viability of energy projects.  He believed that the bill                                                                    
filled  the gap  between  grants and  traditional loans.  He                                                                    
thought that the most important  part of the legislation was                                                                    
allowing AIDEA  to deviate  form traditional  investor rules                                                                    
and financing criteria.                                                                                                         
                                                                                                                                
10:58:47 AM                                                                                                                   
                                                                                                                                
TIM   DILLON,   EXECUTIVE   DIRECTOR,   PENINSULA   ECONOMIC                                                                    
DEVELOPMENT DISTRICT,  KENAI (via teleconference),  spoke in                                                                    
support of  the legislation. He highlighted  the benefits of                                                                    
the EIF. He urged committee support for the legislation.                                                                        
                                                                                                                                
11:00:10 AM                                                                                                                   
MARGI  DASHEVSKY,  SELF,   ANCHORAGE  (via  teleconference),                                                                    
spoke in  support of Green Bank,  but felt that AIDEA  had a                                                                    
long-standing  record  of  public  distrust  and  mismanaged                                                                    
investments. She believed that  legislative oversight of the                                                                    
intent  of  the  legislation  was  paramount  and  that  all                                                                    
projects  receiving loans  specify how  their project  would                                                                    
reduce  greenhouse  gas  emissions. She  believed  that  the                                                                    
legislation required further amending.                                                                                          
                                                                                                                                
11:01:52 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop CLOSED public testimony.                                                                                        
                                                                                                                                
SB  123  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
Sponsor Statement HB 27 vA 03.03.2021.pdf HTRA 3/11/2021 1:30:00 PM
SFIN 5/4/2021 9:00:00 AM
HB 27
HB 27 Supporting Resolutions from City of Cordova and Native Village of Eyak.pdf HFIN 3/26/2021 2:00:00 PM
SFIN 5/4/2021 9:00:00 AM
HB 27
SB 123 Sponsor Statement-Transmittal Letter 4.14.21.pdf SFIN 5/4/2021 9:00:00 AM
SL&C 4/14/2021 1:30:00 PM
SB 123
SB 123 Supporting - Green Banks in the U.S..pdf SFIN 5/4/2021 9:00:00 AM
SL&C 4/14/2021 1:30:00 PM
SB 123
SB 123 Letter of Support Spengler.pdf SFIN 5/4/2021 9:00:00 AM
SB 123
SB 123 CT Green Bank - Bert Hunter - (S)FIN Presentation (5.4.21).pdf SFIN 5/4/2021 9:00:00 AM
SB 123
SB 123 REAP - Chris Rose - (S)FIN Presentation (5.4.21).pdf SFIN 5/4/2021 9:00:00 AM
SB 123
SB 123 Coalition for Green Capital - Jeffrey Schub - (S)FIN Presentation (May 2021).pdf SFIN 5/4/2021 9:00:00 AM
SB 123
SB 123 Sectional Analysis (Version A).pdf SFIN 5/4/2021 9:00:00 AM
SL&C 4/14/2021 1:30:00 PM
SB 123
SB 123 REAP - HB 170 SB 123 Letter of Support - 4.11.21.pdf SFIN 5/4/2021 9:00:00 AM
HB 170
SB 123
SB 123 (S)FIN Presentation - Alaska Energy Independence Fund - May 2021 (002).pdf SFIN 5/4/2021 9:00:00 AM
SB 123