Legislature(2007 - 2008)BUTROVICH 205

04/30/2007 03:30 PM Senate RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 220 BAN COMPUTER-ASSISTED REMOTE HUNTING TELECONFERENCED
Heard & Held
-- Testimony <Time Limit May be Set> --
*+ SJR 6 OPPOSE WILDERNESS DESIGNATION FOR ANWR TELECONFERENCED
Moved CSSJR 6(RES) Out of Committee
-- Testimony <Time Limit May be Set> --
+= HB 152 ESTABLISH RENEWABLE ENERGY FUND/ACCOUNT TELECONFERENCED
Moved SCS CSHB 152(RES) Out of Committee
-- Testimony <Time Limit May be Set> --
+ HB 229 KENAI GASIFICATION PROJECT; RAILROAD BOND TELECONFERENCED
Moved HB 229 am Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                                
     CSHB 152(FIN)-ESTABLISH RENEWABLE ENERGY FUND/ACCOUNT                                                                  
4:47:07 PM                                                                                                                    
CHAIR   HUGGINS   announced   CSHB   152(FIN)  to   be   up   for                                                               
consideration.                                                                                                                  
                                                                                                                                
REPRESENTATIVE BILL THOMAS,  sponsor of HB 152, said  in 2003 the                                                               
Alaska   Task  Force   recommended   that   the  state   increase                                                               
development of  renewable resources. Further, with  the high cost                                                               
of fuel in  Alaska it has been very difficult  for rural Alaskans                                                               
to prosper  and many have  to decide if  they want to  heat, have                                                               
heat,  fuel  or  health  care.  He said  the  time  has  come  to                                                               
seriously  explore  other renewable  sources  of  energy such  as                                                               
wind, geothermal, solar and hydro.  Many communities have already                                                               
been researching ways  to secure cleaner and  more cost efficient                                                               
energy  and they  need funding  to help  harness these  renewable                                                               
sources of power.                                                                                                               
                                                                                                                                
REPRESENTATIVE THOMAS  said that  HB 152 establishes  a renewable                                                               
energy  fund which  will be  administrated by  the Alaska  Energy                                                               
Authority  (AEA).   AEA  would  take  advice   from  an  advisory                                                               
committee  with members  appointed by  the governor  from various                                                               
utilities,  environmental  businesses,   and  Native  stakeholder                                                               
groups.  The fund  will offer  both  loan and  grant options  for                                                               
Alaskans  to develop  renewable  energy  projects throughout  the                                                               
state.                                                                                                                          
                                                                                                                                
4:49:42 PM                                                                                                                    
CHERISSE MILLETT,  staff to Representative Harris,  presented the                                                               
sectional analysis. She highlighted  that grants are eligible for                                                               
new  projects only  and can  use a  renewable energy  resource or                                                               
natural  gas. Natural  gas is  used as  a last  resort for  those                                                               
communities  in rural  Alaska that  don't  have renewable  energy                                                               
sources. Any natural gas project  has to benefit a community with                                                               
a population of 10,000 or less.                                                                                                 
                                                                                                                                
She said  that the loan fund  is revolving so it  doesn't deplete                                                               
itself and the grant fund was  designed as a percentage of market                                                               
value making it sustainable once the money is appropriated.                                                                     
                                                                                                                                
4:52:48 PM                                                                                                                    
PETER  CRIMP,   Alaska  Energy  Authority  (AEA),   said  he  was                                                               
available to answer questions.                                                                                                  
                                                                                                                                
4:53:15 PM                                                                                                                    
CAITLIN HIGGENS,  Acting Executive Director,  Alaska Conservation                                                               
Alliance,  strongly supported  HB  152. She  said, "Blessed  with                                                               
unparalleled   renewable  energy   resources,   Alaska  has   the                                                               
opportunity to lead American and  the world in the development of                                                               
clean renewable energy resources...."                                                                                           
                                                                                                                                
4:54:46 PM                                                                                                                    
WILLIAM   PUTNAM,  Acting   Forestry   Director,  Tanana   Chiefs                                                               
Conference,   said  the   Conference  is   a  non-profit   Native                                                               
corporation  which provides  a variety  of services  to about  40                                                               
villages  scattered  around  Interior  Alaska  and  as  such  its                                                               
primary clients are  the village and tribal  governments. Many of                                                               
the  programs  the  Tanana  Chiefs  direct  try  to  improve  the                                                               
economic  and social  sustainability  of  those communities.  The                                                               
increasing cost of  using fossil fuels has made  it imperative to                                                               
develop  renewable alternative  resources  for  energy. He  fully                                                               
supported  HB  152 saying  that  many  of  the villages  lack  to                                                               
resources to pursue some of  these options themselves and many of                                                               
them  are   interested  in   bio-energy  and   bio-mass  resource                                                               
development in achieving self sufficiency.                                                                                      
                                                                                                                                
SARA FISHER-GOAD,  Deputy Director  of Operations,  Alaska Energy                                                               
Authority, said she had prepared an amendment.                                                                                  
                                                                                                                                
CHAIR HUGGINS moved to adopt Amendment 1 as follows:                                                                            
                                                                                                                                
     On page 1, line 11: delete the comma after "river."                                                                        
                                                                                                                                
       On page 3, line 9: insert "..., which shall be the                                                                       
        fiduciary of the fund under AS 37.10.071." after                                                                        
     "Revenue," (requested by the Department of Revenue)                                                                        
                                                                                                                                
      On page 3, lines 7 & 8, delete the first instance of                                                                      
     "energy" and insert "electricity," and delete "run on"                                                                     
     and insert "use hydrogen from"                                                                                             
                                                                                                                                
      On page 3, lines 9 & 10: delete (D) in its entirety                                                                       
     because it is covered in (E)                                                                                               
                                                                                                                                
     On page 5, line 21: delete the comma after "river"                                                                         
                                                                                                                                
4:57:30 PM                                                                                                                    
MS. MILLETT said that the changes in Amendment 1 were all minor.                                                                
                                                                                                                                
SENATOR  STEVENS  asked  for  the  rationale  used  to  make  the                                                               
eligibility for 10,000 people or less.                                                                                          
                                                                                                                                
4:59:28 PM                                                                                                                    
REPRESENTATIVE  THOMAS  explained  that  they  followed  the  gas                                                               
pipeline  from Prudhoe  Bay to  Fairbanks, took  a left  and came                                                               
down  the Highway.  There are  no communities  in between  and he                                                               
didn't want to encourage people to  use natural gas since that is                                                               
the last  option. That  area also  has no river,  no wind  and no                                                               
hydro energy. He  wanted to keep some communities  from using all                                                               
the natural  gas the state is  trying to sell down  south as well                                                               
as encourage alternative energy sources.                                                                                        
                                                                                                                                
CHAIR HUGGINS  found no  further objections  and Amendment  1 was                                                               
adopted.                                                                                                                        
                                                                                                                                
4:59:51 PM4:59:51 PM                                                                                                          
CHAIR HUGGINS asked if HB 152 had met any resistance.                                                                           
                                                                                                                                
REPRESENTATIVE THOMAS  responded that he found  no resistance and                                                               
has rather received  compliments; he pointed out  that the Denali                                                               
Commission is also one of the designees.                                                                                        
                                                                                                                                
5:00:54 PM                                                                                                                    
SENATOR  STEVENS moved  to  pass SCS  HB  152(RES) with  attached                                                               
fiscal  note  and  individual   recommendations.  There  were  no                                                               
objections and it was so ordered.                                                                                               

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