Legislature(2021 - 2022)BELTZ 105 (TSBldg)

04/14/2021 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed until 2:00 PM --
*+ SB 123 ENERGY INDEPENDENCE PROGRAM & FUND: AIDEA TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 6 RIP FOR PUBLIC EMPLOYEES/TEACHERS TELECONFERENCED
Scheduled but Not Heard
-- Testimony <Invitation Only> --
**Streamed live on AKL.tv**
      SB 123-ENERGY INDEPENDENCE PROGRAM & FUND: AIDEA                                                                      
                                                                                                                                
2:00:46 PM                                                                                                                    
CHAIR  COSTELLO announced  the consideration  of  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."                                                                                               
                                                                                                                                
She invited Morgan Neff to introduce the bill.                                                                                  
                                                                                                                                
2:01:56 PM                                                                                                                    
MORGAN  NEFF,  Chief  Investment Officer,  Alaska  Industrial                                                                   
Development   and   Export  Authority,   Anchorage,   Alaska,                                                                   
delivered a  PowerPoint to  introduce SB  123 and  the Alaska                                                                   
Energy  Independence Fund  (Alaska EIF).  He advised  that he                                                                   
would  start by  reviewing Alaska's  unique energy  needs and                                                                   
its consumption profile. He  pointed out that as of 2018, the                                                                   
U.S. Energy  Information  Administration (EIA)  ranked Alaska                                                                   
fourth in the nation for  total energy consumption per capita                                                                   
and  eleventh in  personal  income per  capita.  In addition,                                                                   
electrical rates for  residential, commercial, and industrial                                                                   
use averaged  twice the  national average  on a  kilowatt per                                                                   
hour (KWh) basis.                                                                                                               
                                                                                                                                
He reported that  the combination of the  high cost of energy                                                                   
and among the  highest rates of  consumption burdens Alaska's                                                                   
economy with the third  highest total energy expenditures per                                                                   
capita.  This  amounts  to  about $8,000  per  person,  which                                                                   
translates to  about $6 billion  spent per year  on energy or                                                                   
approximately  11 percent of  Alaska's annual  gross domestic                                                                   
product (GDP).                                                                                                                  
                                                                                                                                
2:03:39 PM                                                                                                                    
SENATOR REVAK joined the committee.                                                                                             
                                                                                                                                
MR. NEFF  directed attention  to slide  4 that  describes the                                                                   
Alaska  Energy  Independence Fund.  Often  referred  to as  a                                                                   
"green  bank,"  Alaska  EIF  functions  as  a  public-private                                                                   
entity  that uses  some  public funding  to leverage  private                                                                   
sector  capital to  accelerate  investments  in clean  energy                                                                   
projects.   Specifically,   Alaska's   banks   will   be   an                                                                   
instrumental  partner to Alaska  EIF for  the benefit  of all                                                                   
Alaskan communities. He advised  that every green bank can be                                                                   
modeled  to fit  the needs  of the  expected  demographic and                                                                   
geographic region but they  all serve the public purpose. The                                                                   
Alaska EIF proposes  to meet the public  purpose by promoting                                                                   
sustainable and  clean energy projects that  fill market gaps                                                                   
and  removing   barriers  to   green  energy   investment  in                                                                   
partnership with  the financial  sector and  other investors.                                                                   
The idea  is to  meet criteria to  access federal  funds that                                                                   
may become available through pending federal legislation.                                                                       
                                                                                                                                
2:05:33 PM                                                                                                                    
MR. NEFF  reported that  the proposed  initial capitalization                                                                   
is  a $10  million  UGF  appropriation.  This benchmark  came                                                                   
through  comparison  against  several existing  Green  Banks,                                                                   
primarily  from  New  York, Connecticut,  and  Maryland.  The                                                                   
comparisons at the state  and county levels were GDP, GDP per                                                                   
capita, population, and total  energy consumption per capita.                                                                   
He  highlighted that  as  each of  these  Green Banks  gained                                                                   
scale,  they   successfully  leveraged  private   capital  to                                                                   
accelerate  their programs.  He pointed  out that  New York's                                                                   
leverage  ratio was  $6 in  private capital  for  every green                                                                   
bank  dollar.  Connecticut's  ratio  was 8:1  and  Montgomery                                                                   
County  Maryland's ratio  was  7:1. He  said  the Alaska  EIF                                                                   
anticipates  a   similar  ratio   as  it  gains   scale.  For                                                                   
perspective, the Connecticut  Green Bank leveraged nearly $37                                                                   
million  initially  to provide  over  $312  million in  total                                                                   
investments for FY2020.                                                                                                         
                                                                                                                                
MR.   NEFF  pointed   out  that   the  initial   $10  million                                                                   
capitalization  was weighed  against the  coalition  of green                                                                   
capital  2020 study  of  the Municipality  of Anchorage  that                                                                   
estimated that  $5 million  could be deployed  into Anchorage                                                                   
through  a directed  program that  would ultimately  create a                                                                   
significant  amount of  energy savings  and job  growth. That                                                                   
being said,  he assured the  committee that the  proposed $10                                                                   
million  capitalization  is for  the  benefit  of the  entire                                                                   
state, not just for Anchorage.                                                                                                  
                                                                                                                                
MR. NEFF directed attention  to the two fiscal notes attached                                                                   
to  SB 123.  One is  for  the initial  capitalization  of $10                                                                   
million and the  second is for an increase  in AIDEA's budget                                                                   
for  operating  expenses.  He  explained  that  the  fund  is                                                                   
designed  to be  a self-sufficient  entity where  the returns                                                                   
will  more than  offset the  proposed expenses  and operating                                                                   
costs.  It will  also be  in a  position to  accept operating                                                                   
capital and  additional funding from  the federal legislation                                                                   
that he would discuss later.                                                                                                    
                                                                                                                                
2:08:21 PM                                                                                                                    
SENATOR  GRAY-JACKSON asked  how the  line  item "Population"                                                                   
relates to the numbers.                                                                                                         
                                                                                                                                
MR. NEFF explained:                                                                                                             
                                                                                                                                
     We   backed  into   the   population  per   initial                                                                        
     capitalization for each  one of the Green Banks and                                                                        
     then weighted the  capital expenditures per capita,                                                                        
     which,  again is  a population-driven  number, into                                                                        
     figuring  out  where  the  ultimate  capitalization                                                                        
     should be for the Alaska Energy Independence Fund.                                                                         
                                                                                                                                
MR. NEFF  said the  expectation is  that the Alaska  EIF will                                                                   
generate  many economic  benefits.  It has  the  potential to                                                                   
provide a  meaningful economic  effect through lower  cost of                                                                   
energy,  lower cost  of living,  creation of  substantial new                                                                   
jobs and businesses, and  increased discretionary income that                                                                   
can  help  drive  long-term  compounded  GDP growth  for  the                                                                   
state.                                                                                                                          
                                                                                                                                
MR.  NEFF directed  attention  of slide  7  to highlight  the                                                                   
economic benefits of the Alaska  EIF. He said this fund is an                                                                   
opportunity for the $8,000  average annual cost of energy per                                                                   
Alaskan  to be  offset and  the savings  redeployed  into the                                                                   
Alaska economy  as discretionary spending. He  pointed to the                                                                   
examples on the  slide that show the savings  for Alaskans if                                                                   
their  average energy  costs were  10 percent  to  30 percent                                                                   
lower. He noted that this  could free up from $589 million to                                                                   
$1.7 billion in discretionary spending every year.                                                                              
                                                                                                                                
2:10:40 PM                                                                                                                    
MR. NEFF turned  to slide 8 and reiterated  that this fund is                                                                   
aligned with  federal legislation  H.R. 806 Clean  Energy and                                                                   
Sustainability  Accelerator Act and  S. 283  National Climate                                                                   
Bank  Act so  it can  receive  capital to  enhance  the total                                                                   
investments in  the Alaska Energy Independence  Fund. Current                                                                   
estimates  indicate  that  Alaska  could receive  about  $130                                                                   
million in aggregate.                                                                                                           
                                                                                                                                
MR.  NEFF stated  that the  mission of  the  fund is  to make                                                                   
capital more  accessible to borrowers  for sustainable energy                                                                   
development projects.  It also  emphasizes the  incentive for                                                                   
co-investment  in the  non-fossil-fuel energy  sector through                                                                   
partnerships  with  AIDEA   and  AEA,  the  Alaska  financial                                                                   
sector, private investors, and philanthropic donors.                                                                            
                                                                                                                                
2:12:39 PM                                                                                                                    
MR. NEFF directed  attention to slide  10 regarding financing                                                                   
and  investments and  paraphrased  the  bulleted points  that                                                                   
read as follows:                                                                                                                
                                                                                                                                
   • 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.                                                                                                           
                                                                                                                                
2:13:06 PM                                                                                                                    
SENATOR STEVENS joined the committee.                                                                                           
                                                                                                                                
MR.  NEFF  discussed  the  functions  of  the  Alaska  Energy                                                                   
Independence Fund  from slide 11.  He stated that  the market                                                                   
for  loans  for  sustainable energy  development  is  greatly                                                                   
underserved and  a foreign  concept to  conventional lenders.                                                                   
Alaska EIF  thus will  play a  pivotal role  in incentivizing                                                                   
private sector  participation. He suggested  that the various                                                                   
financing  structures  will  help  address  the  conventional                                                                   
barriers  and mitigate  the perceived  risk.  Ultimately, the                                                                   
typical investments  of the  fund will  look and feel  like a                                                                   
loan  or  credit  enhancement structure,  which  aligns  with                                                                   
AIDEA's current and historical management expertise.                                                                            
                                                                                                                                
He reviewed  the  barriers to  investment, the  solution, and                                                                   
examples.  The first  barrier  is perceived  credit  risk. In                                                                   
that  situation,  the  fund   can  offer  credit  enhancement                                                                   
through a loan-loss reserve  that can provide risk mitigation                                                                   
and incentivize private  capital to lend at  a lower rate for                                                                   
a longer time.  He highlighted that the  fund can address the                                                                   
administrative   burden   associated   with  multiple   small                                                                   
projects by aggregation of  small loans until they meet scale                                                                   
to  attract  private capital.  He  said  one  of the  largest                                                                   
barriers is  that most  conventional private  capital lenders                                                                   
do  not  have the  technical  expertise  to  fund more  labor                                                                   
intensive or innovative transactions.  Due to Alaska's unique                                                                   
energy  landscape, the  combination  of AIDEA,  AEA,  and the                                                                   
proposed  five-member  advisory board  will  able to  provide                                                                   
technical legwork that ultimately  will add incremental value                                                                   
and  partnership  relationships  through  Alaska's  financial                                                                   
community.  Ultimately,  this  will  further  enhance  energy                                                                   
investments in  communities throughout  Alaska. The  fund can                                                                   
address  the   final  barrier   to  investment   of  marginal                                                                   
economics  by stepping  in to  improve the  overall economics                                                                   
for both private capital  investors and the borrower. He said                                                                   
this  will  help  promote  the  scale  and  adoption  of  the                                                                   
program's initiatives.                                                                                                          
                                                                                                                                
2:16:17 PM                                                                                                                    
MR. NEFF directed  attention to the  program workflow graphic                                                                   
on slide  12. He  said it exemplifies  how the  Alaska Energy                                                                   
Independence  Fund would  deploy  its financing  tools  as it                                                                   
interacts  with   the  private  lending   sector,  borrowers,                                                                   
lenders, and  contractors. This  relationship will  require a                                                                   
full  training, certification,  and  engagement program  with                                                                   
approved contractors  and vendors  to enhance  compliance and                                                                   
efficiency  of the  program. He  noted that  on  the proposed                                                                   
advisory board,  AIDEA and AEA will continue  to run parallel                                                                   
studies to  identify leading  edge technologies  and critical                                                                   
relationships to advance the  fund and serve communities more                                                                   
effectively.                                                                                                                    
                                                                                                                                
2:17:10 PM                                                                                                                    
MR. NEFF  displayed the mission  statements of AIDEA  and AEA                                                                   
at the  top of slide  13. He read  the following text  in the                                                                   
first paragraph on the slide:                                                                                                   
                                                                                                                                
     The purpose and function  of the AK EIF aligns with                                                                        
     AIDEA's existing  scope managing  investment funds,                                                                        
     such  as  the   Arctic  Infrastructure  Development                                                                        
     Fund,  Sustainable Energy  Transmission  and Supply                                                                        
     Development   Fund,   Loan  Participation   Program                                                                        
     (Enterprise  Development Account),  and Development                                                                        
     Project Financing (Economic Development Account).                                                                          
                                                                                                                                
He highlighted that  since 1967, AIDEA has been  a financially                                                                  
self-sustaining  public  corporation that  has  directed  more                                                                  
than $3  billion into economic  development throughout  Alaska                                                                  
while returning about  $40 million in dividends to  the state,                                                                  
which is well  in excess of its initial capitalization.  AIDEA                                                                  
ended  2020  with  $1.4  billion  in  assets.  AIDEA's  sister                                                                  
company, the Alaska  Energy Authority, currently  serves about                                                                  
197   communities   in  rural   Alaska,   provides   technical                                                                  
assistance to entities through the  circuit rider program, and                                                                  
provides engineering and project management expertise.                                                                          
                                                                                                                                
MR. NEFF stated that SB 123 factors in  the combined effort of                                                                  
AIDEA as  investment and  management expertise in  partnership                                                                  
with AEA's  energy and  technical expertise.  This allows  the                                                                  
fund to leverage the combined existing  infrastructure to help                                                                  
service  and   keep  the   Alaska  Energy  Independence   Fund                                                                  
operating   costs   low,  which   could   benefit   borrowers.                                                                  
Additionally, the  bill proposes a five-member  board selected                                                                  
by the  Governor to  provide guidance  and information but  it                                                                  
would not  supersede the  governing authority  of AIDEA's  and                                                                  
AEA's independent board.                                                                                                        
                                                                                                                                
MR.   NEFF   concluded   the   presentation    displaying   AS                                                                  
44.88.010(a)(10).  It  is  the  primary   driver  for  AIDEA's                                                                  
mission  and   goals  and  aligns   with  the  Alaska   Energy                                                                  
Independence Fund.                                                                                                              
                                                                                                                                
2:19:25 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:19:42 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting and asked Mr. Neff to                                                                     
walk through the sectional analysis.                                                                                            
                                                                                                                                
2:2007 PM                                                                                                                     
MR. NEFF read the following sectional analysis for SB 123:                                                                      
                                                                                                                                
     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.                                                                                     
                                                                                                                                
1:44:52 PM                                                                                                                    
     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;                                                                                             
                                                                                                                                
2:24:25 PM                                                                                                                    
   • 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 does                                                                        
     not 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.                                                                                                                  
                                                                                                                                
2:25:57 PM                                                                                                                    
CHAIR COSTELLO referred to the language on page 1, lines 10-                                                                    
13, and asked for examples  of sustainable energy development                                                                   
and if there was a definition  in statute. She also asked for                                                                   
examples of  the energy projects  AIDEA has been  involved in                                                                   
prior to this proposal.                                                                                                         
                                                                                                                                
MR. NEFF  replied the definition  is on page  8, lines 26-28,                                                                   
under AS  4.88.900. He explained  that it is  written broadly                                                                   
to  address both  urban  and  rural access  to  this type  of                                                                   
program.  To the  second  question, he  said  AIDEA has  been                                                                   
involved in multiple energy  projects, most recently with oil                                                                   
and gas  developments. They  have also collaborated  with the                                                                   
Alaska Energy Authority under  the SETS program, which is the                                                                   
statutory  transmission  and   supply  program  for  the  SSQ                                                                   
transmission  line.  He   restated  that  the  Alaska  Energy                                                                   
Independence  Fund focuses  specifically on  non-hydrocarbon,                                                                   
renewable   energy  sources   typically  used   for  scalable                                                                   
sustainable projects throughout Alaska.                                                                                         
                                                                                                                                
CHAIR  COSTELLO   asked  him   to  read  the   definition  of                                                                   
"sustainable energy development" into the record.                                                                               
                                                                                                                                
2:28:32 PM                                                                                                                    
MR. NEFF  read the definition  in Section  7 of the proposed                                                                    
paragraph in AS 44.88.900. It read as follows:                                                                                  
                                                                                                                                
         Sec. 7. AS 44.88.900 is amended by adding new                                                                          
     paragraphs to read:                                                                                                        
                                                                                                                                
        (20) "sustainable energy development" means                                                                             
          (A) renewable  energy generation from sources                                                                         
          that  are continually  replenished by nature,                                                                         
          such as the  sun, wind, water, and biological                                                                         
          6 processes;                                                                                                          
          (B)  building  energy  efficiency,  including                                                                         
          fuel  switching  to  8  renewable  fuels  and                                                                         
          electrification;           (C)     industrial                                                                         
          decarbonization;                                                                                                      
          (D) electrical infrastructure incorporating                                                                           
          (i)  energy storage  to support  clean energy                                                                         
          distribution,   including  remote   and  non-                                                                         
          remote    microgrids   and    smart-grid    13                                                                        
          applications; and                                                                                                     
          (ii)     other    sustainable    technologies                                                                         
          including  distributed  generation,  advanced                                                                         
          battery, and combined heat and power;                                                                                 
          (E)   greenhouse   gas   emissions  reduction                                                                         
          through   processes   including  regenerative                                                                         
          agriculture,   reforestation,  afforestation,                                                                         
          and forestry 18 management;                                                                                           
          (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;                                                                         
          (G)  electric  vehicle  charging  and fueling                                                                         
          infrastructure; and                                                                                                   
          (H) any  other emissions  reduction or energy                                                                         
          efficiency     technology    the    authority                                                                         
          determines  to be consistent  with the Alaska                                                                         
          energy 25 independence program;                                                                                       
                                                                                                                                
2:30:01 PM                                                                                                                    
SENATOR  STEVENS  noted  that  the  definition  seems  to  be                                                                   
applicable to business  and perhaps municipalities. He  asked                                                                   
if a  percentage of the  funds would be  allocated for  loans                                                                   
to homeowners or if they might be left out.                                                                                     
                                                                                                                                
MR. NEFF  replied the  design is to  benefit homeowners  with                                                                   
weatherization   and   rooftop  solar   type   projects.   He                                                                   
emphasized  that the  definition  provides broad  access  for                                                                   
sustainable  energy  projects.  He  added  that  Green  Banks                                                                   
typically are available  for the residential community.  That                                                                   
is one reason for  the tool to aggregate small loans to  make                                                                   
it more attractive to the private investment community.                                                                         
                                                                                                                                
SENATOR STEVENS said he appreciated hearing that.                                                                               
                                                                                                                                
CHAIR COSTELLO  thanked Mr. Neff and  invited Chris Rose to  start                                                              
his presentation.                                                                                                               
                                                                                                                                
2:32:04 PM                                                                                                                    
CHRIS ROSE,  Executive Director, Renewable Energy  Alaska Project                                                               
(REAP), Juneau, Alaska,  stated support for SB  123 and applauded                                                               
Governor Dunleavy  for introducing  the legislation  to establish                                                               
the Alaska  Energy Independence  Fund (AK  EIF). He thanked  Bert                                                               
Hunt for  the hours  he spent explaining  the green  bank concept                                                               
over the last 4.5 years and Jeff  Schub for his tireless advocacy                                                               
of clean energy  financing and both for their time  and effort to                                                               
understand Alaska's unique energy landscape.                                                                                    
                                                                                                                                
2:33:12 PM                                                                                                                    
MR. ROSE  began his  presentation by giving  a brief  overview of                                                               
REAP. He paraphrased the text on slide 2 that read as follows:                                                                  
                                                                                                                                
     Founded  in   2004,  REAP  is   a  statewide  nonprofit                                                                    
     coalition of over  60 electric utilities, Alaska  Native                                                                   
     Corporations,  clean energy  developers, businesses  and                                                                   
     other NGOs                                                                                                                 
                                                                                                                                
     REAP's   mission  is   to  increase   renewable   energy                                                                   
     development and promote energy efficiency in Alaska                                                                        
                                                                                                                                
MR.  ROSE   described  the  education   and  programs  that   REAP                                                              
supports, focusing  on the  people who will  operate and  maintain                                                              
the energy projects.                                                                                                            
                                                                                                                                
   • Three K-12 educators, with support from the Office of                                                                      
     Naval Research  (ONR), work with  teachers and students                                                                    
     statewide  on STEM  [Science,  Technology, Engineering,                                                                    
     and Math] education.                                                                                                       
   • With ONR support, REAP helped launch the Alaska                                                                            
     Network for Energy  Education and Employment (ANEEE)  to                                                                   
     fill  gaps in  sustainable energy  education throughout                                                                    
     the state.                                                                                                                 
   • REAP is involved in the Sustainable Southeast                                                                              
     Partnership (SSP)  with small  communities in Southeast                                                                    
     Alaska.                                                                                                                    
   • REAP is a new partner in the national Energy                                                                               
     Transition  Initiative Partnership  Program. As  one  of                                                                   
     five   subcontractors,   REAP  is   helping   the   U.S.                                                                   
     Department  of  Energy  bring  the  expertise  of   four                                                                   
     national  labs to  Alaska  and other  rural communities                                                                    
     nationwide.                                                                                                                
                                                                                                                                
MR. ROSE  displayed examples  of REAP  Advocacy from  2008 to  the                                                              
present. The list included the following:                                                                                       
                                                                                                                                
        2008: Renewable Energy Fund, $100 million ($270                                                                         
     million total)                                                                                                             
                                                                                                                                
       2008: $360 million to AHFC for home weatherization                                                                       
     ($640 million total)                                                                                                       
                                                                                                                                
      2010: Emerging Energy Technology Fund House Bill 306                                                                      
     (State Energy Policy)                                                                                                      
                                                                                                                                
     2016: SB 196 (PCE Endowment)                                                                                               
                                                                                                                                
       2017: Property Assessed Clean Energy (C-PACE) 2014-                                                                      
     2021: Railbelt Electric Grid Reform                                                                                        
                                                                                                                                
     2017-2021: Green Bank                                                                                                      
                                                                                                                                
MR.  ROSE  related  that  REAP  was  a  primary  advocate  of  the                                                              
Renewable  Energy   Fund,  which  helped   put  renewable   energy                                                              
projects on  the map, particularly in  rural Alaska. The fund  has                                                              
financed the building of more than 80 projects over the last 12-                                                                
13 years.  Last year,  REAP  supported legislation  to create  the                                                              
Electric Reliability Organization  mandate for the Railbelt.  REAP                                                              
also  has been  working  on the  green  bank concept  for  several                                                              
years.                                                                                                                          
                                                                                                                                
2:35:30 PM                                                                                                                    
MR. ROSE  displayed a graphic that  illustrates how much  Alaskans                                                              
collectively  spend  on  electric,  heating,  and  transportation                                                               
energy each year. He  noted that when an intern created the  slide                                                              
several  years  ago,  Alaskans  were  spending  approximately   $5                                                              
billion  annually and  Mr. Neff  pointed out  that the  figure  is                                                              
close to $6 billion  today. Importantly, about 20 percent of  that                                                              
energy is wasted.  Thus the title  on the slide, "Alaska's  Annual                                                              
Billion  Dollar  Bonfire."  This translates  to  each  of  730,000                                                              
Alaskans per year throwing  away more than $1,000. He agreed  with                                                              
Mr. Neff that a goal is to redeploy that money into the economy.                                                                
                                                                                                                                
He  pointed  to  the next  slide  that  warns  against  waste  and                                                              
describes  energy  efficiency   as  the  "First  Fuel."  He   said                                                              
employing efficiency  measures is always  the fastest and  easiest                                                              
way to achieve energy  independence. To Senator Stevens'  question                                                              
about whether  homeowners would be included,  he said he  believes                                                              
that one of the  first programs will be for residential  consumers                                                              
and commercial  consumers who are  more rural  and unable to  take                                                              
advantage  of  programs  like  the  commercial  property-assessed                                                               
clean  energy (CSPACE)  that the  legislature authorized  and  the                                                              
Municipality of Anchorage developed.                                                                                            
                                                                                                                                
MR. ROSE  described the  weatherization and  rebate programs  that                                                              
the   Alaska   Housing  and   Finance   Corporation   (AHFC)   has                                                              
administered  since  2008  as the  catalyst  for  financing  clean                                                              
energy.  The initial  program  allowed more  than  50,000  Alaskan                                                              
homeowners  to  make  their  homes  more  energy  efficient.  AHFC                                                              
estimated  that the  average  cost-saving  for homeowners  was  30                                                              
percent. Collectively,  the average annual  savings is  equivalent                                                              
to  more  than  25  million  gallons  of  home  hearing  fuel.  He                                                              
acknowledged  that  the  state  cannot  afford  to  continue   the                                                              
weatherization program.                                                                                                         
                                                                                                                                
2:38:21 PM                                                                                                                    
MR.  ROSE highlighted  that the  Renewable  Energy Grant  Fund  is                                                              
responsible for  more than  80 projects since  inception in  2008.                                                              
AEA  estimates   that  collectively,  these   projects  save   the                                                              
equivalent  of 30  million gallons  of diesel  fuel on  an  annual                                                              
basis.  He  noted  that  the  legislature  has  not   appropriated                                                              
significant funds  to this  fund for  a number of  years. This  is                                                              
another  illustration   of  the   need  for   the  Alaska   Energy                                                              
Independence Fund; grants cannot do it all.                                                                                     
                                                                                                                                
He  displayed the  chart  of  Lazard's Levelized  Cost  of  Energy                                                              
Analysis  -  version  12.0.  He  said  this  is  an   unsubsidized                                                              
analysis  that  looks at  the  cost  of generating  power  from  a                                                              
number   of  different   alternative   energy   and   conventional                                                              
resources. He  pointed out  that in  the last decade  the cost  of                                                              
solar has dropped 90  percent and the cost of wind has dropped  70                                                              
percent.  REAP  would   like  people  to  have  access  to   these                                                              
resources whenever possible.                                                                                                    
                                                                                                                                
2:39:51 PM                                                                                                                    
MR. ROSE  reviewed  the following  points to  explain why  private                                                              
financing for clean energy is lacking:                                                                                          
                                                                                                                                
   • Currently, clean energy financing has a relatively                                                                         
     short  track record.  His analogy  is people  could  not                                                                   
     get a  car loan  when cars were  first invented  because                                                                   
     banks were unfamiliar  with cars and did not understand                                                                    
     how  to price  the risk.  Now,  a loan  for a  car  that                                                                   
     depreciates  when driven off  the lot  is available  for                                                                   
     about 3  percent. However,  somebody might  have to  pay                                                                   
     8-10  percent  for  a loan  to  make  their  house  more                                                                   
     energy efficient or to install rooftop solar.                                                                              
   • Clean energy projects of $10,000 to $20,000 are  small                                                                     
     for  banks, but  they become  more interested  when  the                                                                   
     loans are aggregated so there is volume.                                                                                   
   • The secondary market for these types of loans has been                                                                     
     lacking.                                                                                                                   
   • Human and organizational inertia. Things do not change                                                                     
     very fast  but a green  bank or a  fund like the  Alaska                                                                   
     Energy Independence Fund can accelerate change.                                                                            
                                                                                                                                
MR. ROSE reviewed the following elements of Green Banks:                                                                        
                                                                                                                                
   • A focus on commercial technologies.  This is  not  for                                                                     
     experimental or emerging technologies.                                                                                     
   • A dedicated  source  of  capital.   The  Governor   is                                                                     
     recommending a $10 million initial appropriation.                                                                          
   • A focus on leveraging private investment. The idea  is                                                                     
     to  leverage  the   initial  $10  million  and   perhaps                                                                   
     achieve an  8:1 ratio of private  capital to green  bank                                                                   
     dollars like Connecticut has done.                                                                                         
   • A relationship with government. This is  why it  makes                                                                     
     sense   for   AIDEA   to   house   the   Alaska   Energy                                                                   
     Independence Fund.                                                                                                         
                                                                                                                                
2:42:24 PM                                                                                                                    
MR. ROSE listed the following functions of Green Banks:                                                                         
                                                                                                                                
   • Design Loan Products & Programs to De-Risk and draw in                                                                     
     the private sector                                                                                                         
   • Educate Private Banks on the Opportunity                                                                                   
   • Market Loan Products and Programs  so people  actually                                                                     
     use it                                                                                                                     
   • Leverage Private Investment Capital                                                                                        
                                                                                                                                
MR. ROSE concluded his presentation listing the things that SB
123 would do, should it pass:                                                                                                   
                                                                                                                                
   • Lower the energy burden for Alaskans                                                                                       
   • Develop new  investment   opportunities  for   Alaskan                                                                     
     lending institutions                                                                                                       
   • Create jobs and promote business development, just  as                                                                     
     the AHFC Weatherization program did                                                                                        
   • Keep precious  energy  dollars   circulating  in   the                                                                     
     economy.  Saving a billion  dollars per  year in  energy                                                                   
      costs and redeploying the savings will be a boon to                                                                       
     the economy                                                                                                                
   • Having the Alaska Energy Independence Fund will                                                                            
      position the state to receive federal operating and                                                                       
     investment capital                                                                                                         
                                                                                                                                
CHAIR COSTELLO  thanked him for his  efforts to make energy  costs                                                              
in Alaska more affordable.                                                                                                      
                                                                                                                                
SENATOR  HOLLAND asked  when the  Green Bank  programs started  in                                                              
New York, Connecticut, and Maryland.                                                                                            
                                                                                                                                
MR. NEFF replied the  Connecticut Green Bank started in 2012,  the                                                              
New York  Green Bank started  in 2014, and  the Montgomery  County                                                              
Maryland Green Bank started in 2018.                                                                                            
                                                                                                                                
SENATOR   HOLLAND   commented  on   the   potential   difficulties                                                              
associated  with starting  a Green  Bank in  Alaska and  asked  if                                                              
there would be tracking  or the ability to review the progress  of                                                              
the program in 5-10 years.                                                                                                      
                                                                                                                                
MR. NEFF answered  yes; it will be  analyzed and reported on  like                                                              
other AIDEA funds.                                                                                                              
                                                                                                                                
SENATOR HOLLAND asked for the projected length of the loans.                                                                    
                                                                                                                                
MR.  NEFF  replied  it depends  on  the  underlying  project,  the                                                              
ability  to  aggregate  small  loans,  delineate  the   risk,  and                                                              
replenish the capital to reinvest into Alaskan communities.                                                                     
                                                                                                                                
CHAIR COSTELLO invited Bert Hunter to give his presentation.                                                                    
                                                                                                                                
2:48:55 PM                                                                                                                    
BERT  HUNTER,  Executive  Vice  President  and  Chief   Investment                                                              
Officer, Connecticut  Green Bank,  Stamford, CT,  stated that  his                                                              
overview of the state-sponsored  Green Bank would talk about  what                                                              
a Green  Bank does,  how  it interacts  with the  market, and  the                                                              
effect it  has had. He suggested  that it could  serve as a  frame                                                              
of reference for the proposed Alaska Energy Independence Fund.                                                                  
                                                                                                                                
MR.  HUNTER  reviewed   the  following  points  to  describe   the                                                              
Connecticut Green Bank: [Includes some formatting changes.]                                                                     
                                                                                                                                
       Quasi-public organization      Created in 2011 and                                                                   
     successor to the Connecticut Clean Energy Fund.                                                                            
                                                                                                                                
     Focus    Finance  clean energy  (i.e. renewable  energy,                                                               
     energy  efficiency,  energy  storage,  alternative  fuel                                                                   
     vehicles and infrastructure, etc.).                                                                                        
                                                                                                                                
     Balance Sheet    Approximately $77 million net position                                                                
     & $213 million assets in FY20                                                                                              
                                                                                                                                
     Revenue  &  Funding      from  a  variety  of  sources,                                                                
     including:                                                                                                                 
        State  Support    $0.001/kWh  surcharge  on  electric                                                               
     ratepayer bills (about  $7-$10 per household per year  ˜                                                                   
     $24-26M   per   year)  and   Regional   Greenhouse   Gas                                                                   
     Initiative about  $3-5 million per  year (for renewable                                                                    
     energy)    Federal Support    competitive solicitations                                                                
     (e.g.,   SunShot,  USDA,   etc.)   and  non-competitive                                                                    
     resources (e.g., ARRA-SEP)                                                                                                 
       Portfolio Cash Flow  Approximately $8 million/year                                                                   
        Bonds &  Borrowing    issue  "green  liberty  bonds,"                                                               
     bank  loan   facilities,  tax   equity  investors,   and                                                                   
     foundations (e.g., PRI's)                                                                                                  
                                                                                                                                
MR.   HUNTER   displayed  the   organizational   chart   for   the                                                              
Connecticut  Green  Bank  Board  of  Directors  on  slide  3.  The                                                              
governor and legislative  leaders appoint the members in  addition                                                              
to three  ex officio members. They  are quasi-independent but  the                                                              
state  is  active  in  the  governance  process.  Four  committees                                                              
support the  governance of the Green  Bank, one of which  approves                                                              
the transactions.  The board meetings are  open to the public  and                                                              
all materials and videos from the meetings are posted online.                                                                   
                                                                                                                                
2:52:41 PM                                                                                                                    
MR. HUNTER explained that  the general idea of all Green Banks  is                                                              
to leverage  limited public resources  with private capital.  Each                                                              
Green  Bank is formed  to address  the sustainable  energy  issues                                                              
relative  to the area  where it  is formed  and the  needs of  the                                                              
particular  demographic. He  advised  that the  Connecticut  Green                                                              
Bank had  five key energy  challenges to address  when it  formed.                                                              
These were  very high energy costs,  a majority of buildings  over                                                              
50 years  old, an  unreliable grid, over-reliance  on nuclear  and                                                              
natural   gas  energy   sources,   and   perennially   constrained                                                              
government spending.                                                                                                            
                                                                                                                                
The  Connecticut  Green  Bank was  established  to  take  over  an                                                              
existing clean energy  fund. They used that fund's revenue  stream                                                              
to fund operations and investments.                                                                                             
                                                                                                                                
MR. HUNTER  turned to the  chart on slide  5 that illustrates  the                                                              
three distinct ways  Green Banks leverage public capital to  bring                                                              
in  private  capital.  First,  they  co-invest  in  transactions,                                                               
usually  as a  subordinated  lender, which  makes  the  investment                                                              
more  attractive by  reducing risk  and/or enhancing  returns  for                                                              
the co-investor.  Second, they  offer credit  support, usually  in                                                              
the form of a loan  loss reserve, by shouldering a portion of  the                                                              
credit  loss  with   private  capital.  Finally,  they   warehouse                                                              
smaller  transactions and  aggregate them  until they  attain  the                                                              
critical size for investment by others.                                                                                         
                                                                                                                                
He  directed  attention  to  the  examples  of  the  programs  and                                                              
products on  slide 6 of the three  methodologies described in  the                                                              
previous slide  for leveraging  public capital  with more  private                                                              
capital.                                                                                                                        
                                                                                                                                
2:57:34 PM                                                                                                                    
MR. HUNTER explained that  the graphics on slide 7 are a  reminder                                                              
that  the Connecticut  Green Bank  works with  its energy  utility                                                              
partners  through  a  home  energy  services  program,  a  similar                                                              
program for  multi-families, and a  program for small  businesses.                                                              
Those  programs  are   also  available  to  state  and   municipal                                                              
governments.                                                                                                                    
                                                                                                                                
2:58:04 PM                                                                                                                    
MR. HUNTER  directed attention  to the  charts on slide  8 of  the                                                              
Green  Bank  aggregate   investments  by  source  from   inception                                                              
through  2020. He  highlighted that  it took  a year  to  organize                                                              
staff  familiar  with  lending  practices,  private  capital,  and                                                              
marketing.  As of 2020,  they have  deployed $2  billion into  the                                                              
market using about $300  million of public capital for a  leverage                                                              
ratio of more than 6:1.                                                                                                         
                                                                                                                                
He described  the graphics on  slide 9 as  an illustration of  the                                                              
social and  environmental impact  of the Green  Bank working  with                                                              
its  partners.  Two  billion  in  investment  has  generated  $100                                                              
million  in  state  tax  revenues  from  individual,   state,  and                                                              
corporate  taxes.  Over  23,000  jobs  have  been  created   while                                                              
reducing the  energy burden on more  than 55,000 families and  375                                                              
businesses.  Nearly  9  million  metric  tons  of  greenhouse  gas                                                              
emissions have been avoided.                                                                                                    
                                                                                                                                
MR. HUNTER said  the charts on slide  10 illustrate the growth  of                                                              
the  loans and  investments  overtime.  In 2012,  the  investments                                                              
totaled $13  million or  14 percent whereas  the cash  represented                                                              
70 percent  of the balance sheet.  In 2020, loans and  investments                                                              
totaled  $180 billion.  Slide 11  shows an  overview  of the  loan                                                              
portfolio.  He   listed  C-PACE,  Commercial   Solar  &  EE,   the                                                              
discontinued  Residential Solar  Funds,  and Grid  Tied  Projects.                                                              
The latter are larger  projects like fuel cells, wind, hydro,  and                                                              
micro grids.                                                                                                                    
                                                                                                                                
He described  slide 12  as a  somewhat complicated organizational                                                               
overview  of the  Connecticut Green  Bank. He  noted  that SB  123                                                              
authorizes  the  Alaska   Energy  Independence  Fund  to  set   up                                                              
subsidiary entities  and advised that  the Connecticut Green  Bank                                                              
has made  good use  of such  entities  to protect  cash flows  for                                                              
investors. The slide  shows an array of funds and transactions  as                                                              
well  as  banks  that  participated  in  different  ways   in  the                                                              
programs and investments.                                                                                                       
                                                                                                                                
3:01:42 PM                                                                                                                    
MR. HUNTER  said slide  13 shows the  public private  partnerships                                                              
of  the  Connecticut  Green  Bank  that  represent  nearly   every                                                              
conceivable  investor or  lender  in the  marketplace.  He  listed                                                              
credit unions,  community banks,  community development  financial                                                              
institutions, private  equity, major global  banks, and  insurance                                                              
companies.  He   assured  the  committee   that  these  types   of                                                              
investors would find their way to Alaska.                                                                                       
                                                                                                                                
3:02:27 PM                                                                                                                    
MR.  HUNTER turned  to  slide  14 that  highlights  Green  Liberty                                                              
Bonds.     He      noted     the      investor     website      at                                                              
www.greenlibertybonds.com/  provides  updated information  on  the                                                              
issuance activity. He  turned to slide 15 and reported that  their                                                              
bond  issuances over  the last  three years  total more  than  $80                                                              
million. They are proud to have won three awards.                                                                               
                                                                                                                                
CHAIR  COSTELLO thanked  Mr. Hunter  and  asked Jeffrey  Schub  to                                                              
begin his presentation.                                                                                                         
                                                                                                                                
3:03:39 PM                                                                                                                    
JEFFREY  SCHUB, Executive  Director, Coalition  for Green  Capital                                                              
(CGC),  Washington,   D.C.,  stated  that   CGC  is  a   nonprofit                                                              
organization    that   works   nationwide    with   stakeholders,                                                               
governments,  market   participants,  and  capital  providers   to                                                              
design and  launch public clean energy  finance entities like  the                                                              
Alaska  EIF  and   the  Connecticut  Green  Bank.  CGC  has   been                                                              
delivering  technical assistance  for more  than a  decade at  the                                                              
state and federal level and multiple countries.                                                                                 
                                                                                                                                
MR. SCHUB  stated  that the  model of  Green Banks  is proven  and                                                              
repeatable.  The   cumulative  investment  mobilized  by   similar                                                              
institutions totaled more  than $5 billion in 2019 and the  latest                                                              
numbers  bring the  total  investment  to more  than  $7  billion.                                                              
These  kinds  of   institutions  are  mobilizing  $3  of   private                                                              
investment,  on average,  for  each public  dollar.  The  leverage                                                              
ratio varies  by state,  product, and  investment. He  highlighted                                                              
that a  number of Green Banks  particularly focus on  underserved,                                                              
low-income communities  chronically left  out either  due to  lack                                                              
of access to capital  or lack of marketing to those households  so                                                              
the benefits of transitioning  to clean energy are sometimes  hard                                                              
to  access.  Institutions  around  the  country  like  the  Energy                                                              
Independence Fund have  had noteworthy success driving  investment                                                              
into these underserved communities.                                                                                             
                                                                                                                                
He displayed a color-coded  map of the U.S. that shows the  states                                                              
with  existing  Green  Banks,  Green  Banks  in  development,  and                                                              
states  that do  not have  Green  Banks. The  map shows  that  the                                                              
Green Bank model is  spreading across the country irrespective  of                                                              
politics. He said  it turns out that  in any state, using  limited                                                              
public  funds efficiently  to drive  private sector  activity  has                                                              
widespread appeal  for lowering energy  costs, creating new  jobs,                                                              
increasing resilience,  and sparking new  business creates  value.                                                              
He  acknowledged that  Alaska's energy  needs are  different  from                                                              
states that have proven  track records, but assured the  committee                                                              
that the  Alaska Energy  Independence Fund  will finance  projects                                                              
and  drive economic  activity that  fits the  state.  That is  the                                                              
fundamental reason  the model  has been so  successful. The  tools                                                              
and mechanisms  are portable, but  the markets  to which they  are                                                              
applied, the  customers they serve, and  the energy needs vary  by                                                              
state.  That is  why the  proposed EIF  must be  Alaska-based  and                                                              
directed by Alaska experts.                                                                                                     
                                                                                                                                
3:07:14 PM                                                                                                                    
MR. SCHUB reported that  in 2020 CGC analyzed the opportunity  for                                                              
a  Green  Bank  in   the  Municipality  of  Anchorage  and   found                                                              
significant  investment need  and  opportunity in  three  markets.                                                              
These were  a small-scale  solar generation,  residential  heating                                                              
and electric efficiency,  and commercial building upgrades via  C-                                                              
PACE financing. He  agreed with the previous presenters that  this                                                              
is representative  of the  opportunities statewide  to fill  needs                                                              
and gaps in areas with different energy profiles.                                                                               
                                                                                                                                
MR.  SCHUB directed  attention  to  slide 6  that  highlights  the                                                              
bipartisan legislation  co-sponsored by  Representative Don  Young                                                              
to  establish  a $100  billion  Clean  Energy  and Sustainability                                                               
Accelerator to  provide capital  to entities  nationwide like  the                                                              
Alaska Energy  Independence Fund.  There has  been strong  support                                                              
from key  Alaska stakeholders and just  last week 250  businesses,                                                              
capital  providers,  trade groups,  organizations,  and  utilities                                                              
across the  nation signed a  letter urging  Congress to pass  this                                                              
policy.  Importantly,  President  Biden  expressly  endorsed   the                                                              
"Accelerator"  in   his  proposed   infrastructure  package,   The                                                              
American Jobs Plan.                                                                                                             
                                                                                                                                
3:09:36 PM                                                                                                                    
MR. SCHUB  explained that slide  7 [that has  images of  renewable                                                              
power,  buildings,  grid,  transportation,  industry,  sustainable                                                              
agriculture, and  climate resilience] highlights  the broad  scope                                                              
of potential uses of  the Alaska Energy Independence Fund to  meet                                                              
Alaska's  energy  needs. He  concluded  the  presentation  stating                                                              
that  the Alaska  EIF would  provide a  new pathway  to invest  in                                                              
disadvantaged  and   underserved  remote  communities  to   ensure                                                              
equitable access to  lower energy costs and economic development.                                                               
He summarized his  intention in the brief presentation to  provide                                                              
broad context  for what is  happening across  the country on  this                                                              
policy,  express  strong support  specifically  for  SB  123,  and                                                              
thank Alaska  leaders for their  support of  the Green Bank  model                                                              
and creation of the Alaska Energy Independence Fund.                                                                            
                                                                                                                                
3:11:21 PM                                                                                                                    
CHAIR COSTELLO  asked if the timing  of the legislation  coincides                                                              
with the  anticipated receipt  of American Recovery  Act funds  to                                                              
provide the seed for the Alaska EIF.                                                                                            
                                                                                                                                
MR. SCHUB  answered  yes; the  expected timeline  for passing  The                                                              
American Jobs  Plan or "infrastructure package"  is by the end  of                                                              
September. If  that becomes law,  it is highly  likely to  include                                                              
the accelerator legislation.                                                                                                    
                                                                                                                                
3:12:47 PM                                                                                                                    
CHAIR COSTELLO  opened public testimony  on SB 123; finding  none,                                                              
she closed public  testimony. She welcomed letters of support  and                                                              
said she would share them with the committee.                                                                                   
                                                                                                                                
[CHAIR COSTELLO held SB 123 in committee.]                                                                                      

Document Name Date/Time Subjects
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 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 AIDEA Presentation 4.14.21.pdf SL&C 4/14/2021 1:30:00 PM
SB 123
SB 123 REAP - Chris Rose - Presentation 4.14.21.pdf SL&C 4/14/2021 1:30:00 PM
SB 123
SB 123 Coalition for Green Capital - Jeffrey Schub - Presentation 4.14.21.pdf SL&C 4/14/2021 1:30:00 PM
SB 123
SB 123 CT Green Bank - Bert Hunter - Presentation 4.14.21.pdf SL&C 4/14/2021 1:30:00 PM
SB 123
SB 123 Supporting - A Green Bank for Alaska - REAP.pdf SL&C 4/14/2021 1:30:00 PM
SB 123
SB 123 Supporting - Green Bank Opportunity Report - MOA.pdf 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 - REAP 4.14.21.pdf SL&C 4/14/2021 1:30:00 PM
SB 123
CSSB 6 (L&C) Version I.pdf SL&C 4/14/2021 1:30:00 PM
SB 6
CSSB 6 (L&C) Version I Explanation of Changes 4.14.21.pdf SL&C 4/14/2021 1:30:00 PM
SB 6