Legislature(2021 - 2022)BARNES 124
04/06/2021 11:00 AM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM
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| Presentation: the New Frontier of the Last Frontier - Economic Development in Modern Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ARCTIC POLICY,
ECONOMIC DEVELOPMENT, AND TOURISM
April 6, 2021
11:03 a.m.
MEMBERS PRESENT
Representative Grier Hopkins, Chair
Representative Sara Hannan
Representative Liz Snyder
Representative Josiah Patkotak
Representative Harriet Drummond
Representative Mike Prax
Representative Tom McKay
MEMBERS ABSENT
No members absent
COMMITTEE CALENDAR
PRESENTATION: THE NEW FRONTIER OF THE LAST FRONTIER - ECONOMIC
DEVELOPMENT IN MODERN ALASKA
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MARK BILLINGSLEY, Director
Alaska Center for Innovation, Commercialization and
Entrepreneurship ("Center ICE") and
Office of Intellectual Property and Commercialization
University of Alaska Fairbanks (UAF)
Fairbanks, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation, entitled
"The Impact and Opportunity of Alaska R&D" during the overall
presentation, entitled "The New Frontier of the Last Frontier -
Economic Development in Modern Alaska."
CINDY MITTLESTADT, Manager
Bristol Bay Development Fund
Bristol Bay Native Corporation
Bristol Bay, Alaska
POSITION STATEMENT: Gave a PowerPoint, entitled "Strengthening
Bristol Bay" during the Presentation, entitled "The new Frontier
of the Last Frontier - Economic Development in Modern Alaska."
ROMINA BENTZ, Senior Program Manager
Small Business Administration
Bristol Bay Native Corporation
Bristol Bay, Alaska
POSITION STATEMENT: co-presented a PowerPoint, entitled
"Strengthening Bristol Bay" during the Presentation, entitled
"The new Frontier of the Last Frontier - Economic Development in
Modern Alaska."
POLLY WATSON, Analyst
Small Business Administration
Bristol Bay Native Corporation
City & State
POSITION STATEMENT: Co-presented a PowerPoint during, entitled
"Strengthening Bristol Bay" during the Presentation, entitled
"The new Frontier of the Last Frontier - Economic Development in
Modern Alaska."
ISAAC VANDERBURG, CEO
Launch Alaska
No address provided
POSITION STATEMENT: Gave a PowerPoint regarding Launch Alaska
during the overall presentation, entitled "the New Frontier of
the Last Frontier - Economic Development in Modern Alaska."
ACTION NARRATIVE
11:03:27 AM
CHAIR GRIER HOPKINS called the House Special Committee On Arctic
Policy, Economic Development, and Tourism meeting to order at
11:03 a.m. Representatives Hannan, Patkotak, Drummond, and
Chair Hopkins were present at the call to order.
Representatives Snyder (via teleconference), Prax, and McKay
arrived as the meeting was in progress.
^PRESENTATION: The new Frontier of the Last Frontier - Economic
Development in Modern Alaska
PRESENTATION: The new Frontier of the Last Frontier - Economic
Development in Modern Alaska
11:04:15 AM
CHAIR HOPKINS announced that the only order of business would be
a presentation, entitled "The new Frontier of the Last Frontier
- Economic Development in Modern Alaska."
11:05:59 AM
MARK BILLINGSLEY, Director, Alaska Center for Innovation,
Commercialization and Entrepreneurship ("Center ICE") and Office
of Intellectual Property and Commercialization, University of
Alaska Fairbanks (UAF), Gave a PowerPoint presentation, entitled
"The Impact and Opportunity of Alaska R&D" [hard copy included
in the committee packet] during the overall presentation,
entitled "The New Frontier of the Last Frontier - Economic
Development in Modern Alaska." He defined R&D as research and
development. He directed attention to slide 2, which showed his
presentation topics would include background information, the
current status of technological ("tech") transfer in Alaska, and
opportunity in the state. He noted that he is one of few patent
attorneys in Alaska.
11:08:11 AM
MR. BILLINGSLEY directed attention to a slide naming the
University of Alaska Fairbanks (UAF) as a leader in Arctic
research, and he acknowledged that research is also being done
in private industry. He then moved on to the next slide, "From
Research to Reality," which shows the process of "Tech Transfer"
from the beginning through to a patent. There is an
illustration showing the steps, which are also written along an
upward trajectory on the slide as: Identify Technologies,
Research the Market, Search for Prior Art, IP Protection,
Marketing/Sales, and Licensing. He described his process as
existing between "the research machine and real world
implementation." He added, "So, my job is to capture that value
and make sure the public actually benefits from the university's
research." He further explained that his office "sets things
up" so industry partners "have the opportunity to use the
university's invention" and "maximize the economic and social
impacts of the research."
11:11:31 AM
REPRESENTATIVE HANNAN asked for clarification regarding the term
"search for prior art."
MR. BILLINGSLEY answered that it is a legal terms in patent law
describing "anything that's been published that already
describes the invention."
CHAIR HOPKINS asked about the process of identifying new
technology.
MR. BILLINGSLEY answered that the balance between his office
doing outreach and people coming to his office is 50/50. He
said a challenge is to constantly educate people about what his
office does.
11:13:38 AM
MR. BILLINGSLEY returned to the PowerPoint, to a slide, entitled
"PFAS destruction solutions for environmental remediation,
industrial filtration, and solid waste management," and he
related that someone had an idea that took a long time and the
feedback of over 100 potential customers to make a reality. The
slide indicates the company is Aquagga.
11:14:48 AM
REPRESENTATIVE HANNAN related that she has been working on the
issue of perfluoroalkyl substances (PFAS) and expressed keen
interest in solutions to PFAS.
MR. BILLINGSLEY said he would put Representative Hannan in touch
with this Alaska-grown company. He said there is potential for
this to be a long-term solution, and he remarked on the new jobs
and revenue that would be brought into Alaska.
MR. BILLINGSLEY moved on to the next slide, entitled "Erasing
Death and Disability from Brain and Spinal Cord Injury." He
said this is another example of the long time it takes to build
up technology- and research-based startups. He offered his
understanding that there had never been a drug developed in
Alaska, but BeCool Pharmaceuticals, begun by a UAF researcher,
has come close. He remarked on the length of time it takes to
get a drug approved by the U.S. Federal Drug Administration
(FDA).
CHAIR HOPKINS asked, "Is this the research that has been spurred
by the ground squirrel hibernation?"
MR. BILLINGSLEY answered that is correct. He indicated this
research could help in the transportation of someone with a
spinal cord or brain injury to a hospital before paralysis "set
in." He said the federal government is interested in BeCool
Pharmaceuticals. He said Alaska needs to be doing all it can to
build the ecosystem that supports companies like this, and that
requires researchers, industry partners, entrepreneurs, and
investors.
11:19:20 AM
MR. BILLINGSLEY moved to the slide, entitled "Vision." The
slide shows the names of institutions that have supported great
startup companies. He remarked that although UAF is not one of
them, it has a strong research and development operation. The
other institutions provide models for UAF. He said innovation
"rarely thrives in isolation," and universities "rarely explode
with innovation and entrepreneurialism" unless they have the
support of a communities with shared values.
MR. BILLINGSLEY directed attention to the next, which lists what
Alaska Center ICE is doing to "reach this vision," as follows
[original punctuation provided]:
? Encourage Entrepreneurialism, and Teach the Skills
? Seed Funding for Research with Commercial Potential
? Supporting Industry Involvement
? Seed Funding for Startups
11:22:46 AM
MR. BILLINGSLEY addressed the slide that addresses "Where we're
going." He said he would like to see a venture capital firm in
Alaska investing in Alaska companies and multiple startup
companies that each create 100 or more jobs. He advised
legislators of the need for them to not only share, but also
lead, that vision.
MR. BILLINGSLEY directed attention to the final slide, entitled
"What Else Can Be Done?" The list provided read as follows
[original punctuation provided]:
? General Awareness and Support!
Make this part of your vision / the plan for Alaska
? Policies
? SBIR Matching
? Build a Pre-Seed Fund
? Entrepreneurs-in-Residence
? Who: Legislature, SOA, Municipalities, ARDORs, UA
MR. BILLINGSLEY said there are multiple options he could share
regarding best practices and policy options. He talked about
federal grants and matching grants from states.
11:26:35 AM
REPRESENTATIVE PRAX asked whether the goal is for Center ICE to
become self-funding.
MR. BILLINGSLEY responded that that is a policy decision, and
that is how it is done at some universities.
11:27:50 AM
CHAIR HOPKINS asked whether Mr. Billingsley's office has been
involved in the recent advances in polymer fracking on the North
Slope, in partnership with Hilcorp, Inc., and UAF research.
MR. BILLINGSLEY answered yes. He said that "the petroleum
department" has nondisclosure agreements with some of the
companies operating on the North Slope "in that context." He
said nondisclosure agreements go through his office, and he
expressed his hope that inventions result, and that his office
can work with those companies on the North Slope.
MR. BILLINGSLEY returned to the slide and talked about
entrepreneurs at the university. He concluded, stating that
"we're all stakeholders" with "a role to play."
11:30:56 AM
CINDY MITTLESTADT, Manager, Bristol Bay Development Fund,
Bristol Bay Native Corporation, gave a presentation, entitled
"Strengthening Bristol Bay" [hard copy included in the committee
packet]. She began by offering a land acknowledgement to Native
peoples of Bristol Bay, which corresponded with showing a slide,
which read as follows [original punctuation provided]:
LAND ACKNOWLEDGEMENT
"Land is the gift of our ancestors and the guarantee
of our right to continue our subsistence lifestyle.
Land is the heart of our culture. Without land, we are
nothing."
Harvey Samuelsen, 1926-2004
"Culture is a reflection of all the ways of knowing,
doing, and being in the world. Our culture encompasses
allhow we interact with the world, our stories,
wisdom, beliefs, and connection to the land and our
ancestors."
Atkiq Snyder, BBNC Culture Camp Project Director
MS. MITTLESTADT turned to the next slide and informed the
committee that she would be assisted by two co-presenters,
Romina Bentz and Polly Watson. She then directed attention to
another slide, entitled "Investing in Bristol Bay," which read
as follows [original punctuation provided]:
Bristol Bay Development Fund (BBDF) is a catalyst for
in-region business start-up, survival, success and
growth through effective deployment of financial and
nonfinancial capital.
MS. MITTLESTADT said the fund offers financial capital in the
form of micro equity, which ranges from $1,000 to $10,000. Its
maximum investment is $500,000. The fund is able to invest in
businesses located in Bristol Bay, as well as those outside, so
long as those outside add significant benefit to the residents
of Bristol Bay. She named three focus areas of her own design:
to offer a broader range of tiered products; to expand the
investment approach; and to enhance marketing efforts.
11:33:30 AM
MS. MITTLESTADT moved on to the next slide, entitled "Non-
Financial Capital, and said she included a Covid Task Force in
the report. She said BBNC conducted a survey of shareholders,
of which 2,700. The results: 55 percent said they were
interested in starting a business; 22 percent said they were
"highly interested" in starting a business; 49 percent
identified that writing a business plan was a barrier; 42
identified a need for financial planning; 41 percent identified
a need for financial support and connection; and 40 percent
identified a need for finding the right business structure. She
noted all this is in addition to the number one need, which is
capital. She said the portfolio of financial support mirrors
the efforts of companies present to today is doing to break
barriers. She talked about "live plan," which offers more than
200 business plan templates; a business plan competition, called
"Path to Prosperity"; and social media outlets.
MS. MITTLESTADT showed a slide, entitled "BUSINESS "BOOT CAMP"
AND BUSINESS PLAN COMPETITION," which read as follows [original
punctuation provided, with some formatting changes]:
Business "Boot Camp"
club In-region (hosted) event for 10-12 selected
applicants
club Multi-day, intensive cohort immersion learning
club Enlist Alaska Start Up community, practitioners,
mentors, consultants at various stages of the
competition
club Curriculum comprised of TBL metrics,
accounting/finance, HR, brand identity, marketing and
messing, value proposition, personal strengths and
action planning, small business panels
club Nurture business readiness and capacity to accept
capital
Business Plan Competition
club Competitive event that applicants will vie for grant
monies to use for technical assistance or consulting
services
club Top two winning business plan receive $20,000 and
third receives $10,000
club Prize money for top business plan winners + travel
and registration scholarships to "Innovation Summit"
in Juneau in CY21
Business Advising
club Competition winners use proceeds for technical
assistance, third party services (marketing,
accounting, legal, website design, or relevant start-
up costs), or equipment acquisition
club Minimum quarterly support calls for competition
prize winners
club Warm introductions and publicity
club Support/socialize/network finalists who are
advancing business plan objectives
MS. MITTLESTADT said approximately two years ago, Bristol Bay
Development Fund partnered with Spruce Root, a community lending
entity in Juneau, Alaska, to blueprint "Path to Prosperity," a
business plan competition. The slide shows the three distinct
phases.
11:38:20 AM
MS. MITTLESTADT turned to the next slide, entitled
"ELIGIBILITY," which read as follows [original punctuation
provided]:
checkbld Must be for-profit
checkbld Bristol Bay-based businesses
checkbld Tribal entities
checkbld Start-ups
checkbld Inventors
checkbld Existing businesses considering a growth initiative
(e.g. new product or service expansion
checkbld Social Enterprise
checkbld Businesses located outside the region that demonstrate
clear, tangible benefits to residents of the Bristol
Bay
11:39:02 AM
CHAIR HOPKINS asked about the source of the fund seed money and
whether it is sustainable.
MS. MITTLESTADT answered that it is an allocation from BBNC.
MS. MITTLESTADT continued to the next few slides addressing
"Path to Prosperity" (P2P). She said a metric is used to
capture a company's social or ecological benefit. One of the
slides regarding P2P read as follows [original punctuation
provided]:
Collective Program Impact:
? 2 cycles of program delivery
? 63 Applications
? 15 communities
? 22 Finalists
? 11 Live Plan Sponsored Subscriptions
? 6 Awardees
? $100,000 financial awards to startup or growth
companies supporting the economic vitality in the
region
11:41:12 AM
MS. MITTLESTADT, in response to Representative Hannan, said the
awards began in 2019, and she explained the lengthy process. In
response to a follow-up question, she said that in 2019, 10 out
of 10 bootcamp participants submitted business plans; in 2020, 5
out 10 participants submitted business plans; but she could not
say with certainty whether the COVID-19 pandemic influenced that
outcome. She proffered anecdotally that there has been an
uptick in interest in startups.
11:44:26 AM
MS. MITTLESTADT concluded her portion of the PowerPoint by
played a video.
11:46:28 AM
ROMINA BENTZ, Senior Program Manager, Small Business
Administration, Bristol Bay Native Corporation, said she is
responsible for BBNC's government contracting compliance.
Picking up where Ms. Mittlestadt had left off, she said in 2014,
BBNC's Board of Directors directed management to find innovative
ways to invest in Bristol Bay. She said BBNC launched its In-
Region Government Contracting Initiative, an in-house
mentor/prot?g? program that offers village corporations in the
Bristol Bay region with federal contracting mentorship,
training, and joint venture opportunities. She listed the goals
of the program, shown on the slide, entitled "BBNC's In-Region
Government Contracting Program Goals," which read as follows
[original punctuation provided]:
Goals:
club Utilize BBNC's subsidiary capacity in experience,
relationships, networks, geographical positioning, and
business sense.
club Mentorship that's mutually profitable to BBNC,
tribes, and village corporations.
club Develop and provide training programs for IGC
participant boards and management.
club Build knowledge baseline and encourage business best
practices.
MS. BENTZ said BBNC wants village corporations to have a solid
governance foundation as they enter into government contracting.
She then related the information on the next slide, entitled
"CHALLENGES TO SUCCESS," which read as follows:
club Geographically isolated
club Lack of Best Business Practices and for profit
models
club Not enough skilled managers or staff and lack of
resources to hire them
club Little to no business background, English second
language, limited internet, high insurance costs, and
limited business concepts and practices
club Villages with certified 8(a) companies lack capacity
most importantly contract performance funds the
Float
MS. BENTZ deferred to her colleague, Polly Warson, to address
the next two slides.
11:48:55 AM
POLLY WATSON, Analyst, Small Business Administration, Bristol
Bay Native Corporation, stated that since the inception of the
initiative, BBNC has had the participation of approximately nine
village corporations and tribes. [Shown on a slide, entitled
"PREVIOUS AND CURRRENT PARTICIPANTS," which read as follows,
original punctuation provided]:
club Alaska Peninsula Corporation
club Aleknagik Natives Limited
club Chignik Lagoon Native Corporation
club Choggiung Limited
club Far West Inc.
club Levelock Natives Limited
club Oceanside Corporation
club Pedro Bay Corporation
club Togiak Natives Limited
MS. WATSON relayed that the program is typically a year in
length; when a participant is close to graduating, an assessment
will be done; based on the assessment, a mutual agreement will
be made whether to extend the participation agreement. She
noted that in 2018, BBNC sold its majority interest in one of
the construction companies, Bristol Industries, to Choggiung
Limited, a Dillingham village corporation. She said BBNC
continues to look for unique development opportunities in
Bristol Bay. She stated, "This historic partnership
demonstrates the potential value the In-region Government
Contracting Initiative can bring to the Bristol Bay [Native]
Corporation."
MS. WATSON covered a slide, entitled "Going Forward," which read
as follows [original punctuation provided]:
? BBNC will continue to provide mentorship to IGC
participants
? Individual board trainings for village corporations
and tribes
? Monthly virtual trainings for all current and
previous participants and business leaders
MS. WATSON called the program fluid because she said BBNC
continues to refine it.
11:51:10 AM
CHAIR HOPKINS what about anticipated changes as the project is
developed.
MS. BENTZ said it varies depending on the participant; some are
more sophisticated than others. She said "we" partner with
Transcend Strategic Consulting to determine where the program
needs to be directed according to the participants.
MS. MITTLESTADT returned to the PowerPoint presentation, to
slide 15, "On the Horizon," which read as follows [original
punctuation provided]:
club Tribal Energy Development Capacity Grant Program:
award of $99,000 to define organizational options that
would allow smaller Bristol Bay utilities to share
essential resources and personnel and thereby improve
each utility's reliability and reduce local power
costs.
club Conduct evaluation of Path to Prosperity
club Support all winners and prior finalists to advance
business readiness
club Support tribal entities to advance Tribal Spectrum
Broadband (2.5ghz) Implementation Projects
MS. MITTLESTADT talked about a recent award to BBNC, a tribal
energy development capacity grant of $99,000 to be used to
define organizational option that would allow smaller Bristol
Bay utilities to share resources and personnel to increase
reliability and reduce power costs. A second project will
support tribal entities in advancing tribal spectrum broadband
implementation projects.
MS. MITTLESTADT brought attention to the final slide, 16,
entitled "Request for Support," which read as follows [original
punctuation provided]:
Concept of a statewide network of Fund Managers and
Practitioners to develop an outreach and deployment
model for ongoing and future economic disruptions or
emergencies.
This might include:
club Consult and/or contract with regional fund operators
for outreach, and deployment of American Rescue Plan
Act resources
club Support (seed) the design of statewide economic
continuity network that: Evaluates, identifies, and
invests in a unified, cloud-based platform for all
entities to monitor deployment, aid in ARA [American
Rescue Act] deployment, perform outreach, and support
or enhance a community navigator program.
MS. MITTLESTADT said that concluded her remarks.
11:56:05 AM
ISAAC VANDERBURG, CEO, Launch Alaska, gave a PowerPoint relating
to Launch Alaska during the overall presentation, entitled "The
new Frontier of the Last Frontier - Economic Development in
Modern Alaska." He drew attention to a slide showing the Launch
Alaska team members. He covered the information on the next
slide, which read as follows [original punctuation provided]:
Launch Alaska is a non-profit that supports the
development of projects by compressing the time,
proximity and focus needed to forge productive
relationships, identify opportunities and deploy
solutions with tangible results.
MR. VANDERBURG said Launch Alaska partners young companies with
Alaska "asset owners," such as utilities and municipalities. He
likened this to "pointing the firehose of innovation at some of
Alaska's most intractable problems." He said Launch Alaska's
mission is to "accelerate the resource revolution by deploying
game-changing technologies." To clarify, he moved to the next
slide, "The Challenges," which lists the following talking
points: climate changes; local economic headwinds; second
highest cost of energy in the U.S.; and "Alaska has untapped
potential to lead the resource revolution." He said climate
change is affecting disrupting many things, including the
seafood industry, electric infrastructure that is "starting to
bend and sway on the North Slope," and ice roads. He noted that
Alaska has a high consumption rate of energy, ranking second-
highest in the U.S. He explained the headwinds as being caused
by the price of oil, as well as the challenges to tourism
resulting from the pandemic. Even so, he said, Alaska has
untapped potential "to lead the resource revolution."
11:59:22 AM
MR. VANDERBURG, in response to Representative Hannan, said in
terms of high energy consumption ranking, Alaska goes "toe to
toe" with Hawai'i and Connecticut. He turned to the next slide,
"Opportunity," which read as follows [original punctuation
provided]:
Alaska as deployment ground for energy,
transportation, food and water solutions
Declining cost curves on renewables, storage
Global transition to microsystems and the
electrification of everything
MR. VANDERBURG explained microsystems as microgrid systems or
local food distributions systems or local water utilities -
smaller systems that are not as vulnerable. He said the world
is moving "island" or "distributed" solutions; he noted that
over 250 communities in Alaska already have expertise in
developing island systems for distribution of food and water.
As shown on the following four slides, the focus is on food,
water, transportation, and energy. Each slide shows the
portfolio companies with which Launch Alaska has worked over the
past three years; the largest share of companies have been in
the realm of energy. He described an eight-month process by
which an initial pool of 40-50 companies are thinned down to
seven or eight that become part of Launch Alaska's portfolio.
12:02:54 PM
MR. VANDERBURG played a video. After that he showed the next
slide, "Tech Deployment Track," which illustrates the
aforementioned process of choosing companies. He talked about
the need for proof that a technology works and "traction in a
real-world setting." He said Launch Alaska manages some small
investment funds and partners with a venture capital (VC) fund.
The next slide showed a group of panelists that include a mix of
researchers, investors, and private and public entities. The
ensuing slide showed new panelists. He explained that the
Launch Alaska logo showed on photos of those individuals
involved in external review committee; they are technical
experts that vet the applicants to verify the claims companies
are making are feasible.
12:09:16 PM
MR. VANDERBURG continued to the next slide, which read as
follows [original punctuation provided, with some formatting
changes]:
FACILITATE
Through a close collaborative process, Launch Alaska
works with our partners to identify opportunities for
innovation.
Mission-aligned stakeholder facilitation at no- or
low-cost to your organization.
PLAN
Strategic plans are carefully developed to ensure
alignment with organizational goals and optimal
outcomes.
Launch Alaska identifies and applies for funding to
support the defined scope of the planning process.
DEPLOY
Launch Alaska works with our network of experts to
package technical design with financing & contracts.
Launch Alaska recommends a financial structure that
will maximize project benefits.
IMPACT
Launch Alaska verifies project performance against
intended outcomes and reports results.
Impact and ESG reporting included for the first five
years of your project.
MR. VANDERBURG emphasized the importance of measuring the
impact. He continued to the next slide, which states that
Launch Alaska's objective is to facilitate $1 billion in
projects by 2030. He admitted this seems like a lofty goal, but
said the next slide shows that a lot of progress is already
being made. The slide relates to Blue Planet Energy, which is
backed up by Ageto, and the information on the slide read as
follows [original punctuation provided]:
? the first solar+storage power purchase agreement
(PPA)
? the first solar PPA in a remote community
? and the first solar and first energy storage
installed in an AVEC community.
MR. VANDERBURG talked about companies with promising
innovations, shown on the next slide: Dynamhex MDA, working
with the Municipality of Anchorage with its climate action plan;
Biomass Controls a company listed on the slide as "Teck" working
with Biomass Controls on a combined power solution; and
Shorelock working with the City of Homer using a glue that
prevents coastal erosion.
12:14:09 PM
MR. VANDERBURG moved on to another slide, "Port of Alaska," and
said 80 percent of goods to Alaska come through the port, and
the Port of Alaska has asked for Launch Alaska's help in
becoming an island or microgrid to guard against interruptions
to power from natural disasters and to stabilize power costs, as
shown in the list of objectives, which read as follows [original
punctuation provided]:
? Stabilize & reduce power costs
? Increase system reliability
? Optimize operations
? Ensure business continuity
? Reduce environmental impact
CHAIR HOPKINS asked whether these efforts are included in the
designs coming forward for the new Port of [Alaska].
MR. VANDERBURG replied that there are several projects related
to the port that are happening simultaneously. He said this one
is focused on creating storage backup, a solar array, and adding
a couple of circuits between the Port of Alaska and the civilian
grid. There are other, larger port renovation projects that are
separate from this, he explained. He named other companies
shown on an ensuing slide, "Innovation Scope."
12:17:16 PM
MR. VANDERBURG directed attention to another slide, "Kotzebue
Electric Association," which lists the following objectives
[original punctuation provided]:
? Develop long-term strategies for electrification
? Assess the technical and economic benefits of a
clean energy strategy
? Map the transition to 100% clean energy generation
? Identify a financing and capital structure roadmap
to achieve 100% clean energy
MR. VANDERBURG said the next slide, "Innovation Scope," shows
the companies involved. In response to Representative Drummond,
he explained the term "diesel off" as a push to reduce the use
of diesel as a response to climate change.
MR. VANDERBURG continued with slide 24 Impact and spoke of doing
this in a reliable and environmentally responsible way. He
mentioned Senate Bill 123, which formed an electricity
reliability organization on the Alaska Railbelt, and he noted
that "the rule-making process of that is moving forward with the
RCA [Regulatory Commission of Alaska]." He encouraged members
of the legislature to ensure that rule-making process is not
delayed. He said Launch Alaska currently has 21 companies in
its portfolio, and in the next week will have 10 more. All the
companies spend a lot of time in Alaska; five of them are from
Alaska. He pointed out that it matters that Alaska embraces its
role in as a leader in energy transmission, and having a single
point of negotiation with all the Railbelt utilities to allow
for resiliency, single interconnection standards, and region-
wide cybersecurity is a big signal to companies about whether
Alaska is open to doing business with some of the most exciting
technology firms.
12:24:17 PM
REPRESENTATIVE HANNAN asked for confirmation that Mr.
Vanderburg, when mentioning Senate Bill 123, was referring to a
bill passed in the last legislature, but not as a Senate bill.
CHAIR HOPKINS confirmed that the legislation mentioned [passed]
and is currently what is "in front of the RCA right now."
REPRESENTATIVE HANNAN asked if there was some indication that
the rule-making process is not on track to being implemented by
July.
CHAIR HOPKINS proffered that currently there is some concern
that it might be delayed because of discussions between the
utilities and the RCA about the exact structure of the board and
who will be on the Electric Reliability Operative (ERO), so
there has been some discussion about possible delay, although he
said he thinks that may not happen. He said if nobody applies
under the regulations that should be done by July 1, then
starting October 2021, the RCA will create its own ERO and
governance board in order to move forward quickly. Chair
Hopkins asked Mr. Vanderburg whether he or any of the companies
interested in seeing the ERO move forward have sent in comments
to the RCA.
MR. VANDERBURG responded that Launch Alaska and two of its
companies would be submitting comments today in response to the
recent request by the utilities to delay the rule-making
process. The comments being sent will urge the RCA to deny the
request. He said all of Launch Alaska's companies are aware of
the rule-making process as a whole and are planning on
submitting comments two weeks from now.
CHAIR HOPKINS thanked Mr. Vanderburg for the efforts being made.
12:27:15 PM
MR. VANDERBURG brought attention to a "Thank You" slide, which
in addition to Senate Bill 123, mentions "Green Bank" and
renewable portfolio standards (RPS). He urged support of the
Green Bank. He mentioned Launch Alaska's role in connection
with a solar array developer and an investor and the need for
incentive for utilities to build out renewable generation. He
encouraged the legislature to support a renewable portfolio
standard for the state, which he predicted would encourage
public and private investors. He offered his understanding that
40 other states have done so thus far.
MR. VANDERBURG turned to the final three slides, which list
mission partners, infrastructure partners, and community
partners. He said Launch Alaska works hard to ensure only a
small fraction of its budget comes from public dollars. He
thanked the committee for hearing his part of the presentation.
12:30:59 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee On Arctic Policy, Economic Development, and
Tourism meeting was adjourned at 12:31 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Center ICE and OIPC for AET 21.04.06 MCBillingsley.pdf |
HAET 4/6/2021 11:00:00 AM |
|
| BBNC Legislative Presentation April 2021.pdf |
HAET 4/6/2021 11:00:00 AM |
|
| Launch Alaska_House Arctic Policy, Economic Development and Tourism Committee.pdf |
HAET 4/6/2021 11:00:00 AM |