Legislature(2007 - 2008)BARNES 124
03/03/2008 04:00 PM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
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| Start | |
| Work Group on Hb 404 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
March 3, 2008
4:07 p.m.
MEMBERS PRESENT
Representative Anna Fairclough, Co-Chair
Representative Gabrielle LeDoux, Co-Chair
Representative Sharon Cissna
Representative Woodie Salmon
MEMBERS ABSENT
Representative Nancy Dahlstrom
Representative Mark Neuman
Representative Kurt Olson
OTHER LEGISLATORS PRESENT
Representative Craig Johnson
Representative Bryce Edgmon
COMMITTEE CALENDAR
WORK GROUP ON HB 404
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SARA FISHER-GOAD, Acting Executive Director
Alaska Energy Authority (AEA) and Alaska Industrial Development
& Export Authority (AIDEA)
Department of Commerce, Community, & Economic Development
(DCCED)
Anchorage, Alaska
POSITION STATEMENT: During hearing, answered questions.
PETER CRIMP
Project Manager
Alaska Energy Authority
(AEA) and Alaska Industrial Development & Export Authority
(AIDEA)
Department of Commerce, Community, & Economic Development
(DCCED)
Anchorage, Alaska
POSITION STATEMENT: During hearing, answered questions.
ACTION NARRATIVE
CO-CHAIR ANNA FAIRCLOUGH called the House Community and Regional
Affairs Standing Committee meeting to order at 4:07:17 PM.
Representatives Fairclough, LeDoux, and Salmon were present at
the call to order. Representative Cissna arrived as the meeting
was in progress. Representatives Johnson and Edgmon were also
in attendance.
^Work Group on HB 404
[Contains discussion of HB 404]
CO-CHAIR FAIRCLOUGH announced that the only order of business
would be a working group on HB 404, which addresses affordable
energy. She pointed out that over the years, the state has
discussed the need for affordable energy throughout the state.
She expressed concern that without bipartisan support for [HB
404] in both houses, the legislation would languish.
Furthermore, it would behoove the legislature, over the course
of next summer, to review projects throughout the state and help
move those projects forward.
4:10:11 PM
REPRESENTATIVE BRYCE EDGMON, Alaska State Legislature, related
his support for HB 404 and the concept of a task force that
returns to the legislature with recommendations and guiding
commentary to narrow the statewide energy plan. He related his
understanding that everyone wants a statewide energy plan, but
no one seems to know what it is or who is coordinating it. He
mentioned that many organizations are tackling the issue of
affordable energy on their own, and thus it would be more
beneficial to have a group effort that results in findings and
recommendations that are presented to the legislature. He
expressed the need to have an ongoing effort in the area of
alternative energy and to perform substantive work that results
in surplus funds that can be utilized.
4:14:05 PM
CO-CHAIR LEDOUX asked if representatives of those organizations
specified as members of the proposed task force are on line.
CO-CHAIR FAIRCLOUGH replied no. She then related the resistance
she has experienced in relation to [this proposal].
4:15:45 PM
CO-CHAIR FAIRCLOUGH inquired as to the mission of [the Alaska
Energy Authority (AEA)] and what it's doing with regard to
affordable energy.
4:15:54 PM
SARA FISHER-GOAD, Acting Executive Director, Alaska Energy
Authority (AEA) and Alaska Industrial Development & Export
Authority (AIDEA), Department of Commerce, Community, & Economic
Development (DCCED), related that the mission of AEA is to
reduce the cost of energy in Alaska. The AEA primarily deals
with electrical generation. She acknowledged that the
legislature is concerned with the cost of heating fuel and
transportation fuel. One of AEA's areas of primary focus has
been the request for proposal (RFP) processes for the energy
cost reduction program. In fact, AEA has just closed the fifth
RFP and is in the process of evaluating the energy cost
reduction proposals. Furthermore, the first RFP specific to
alternative energy projects has been closed. For the RFP
specific to alternative energy projects, the AEA received a $118
million request for projects and the AEA has just started phase
one of the evaluation of the projects. Ms. Fisher-Goad noted
that the AEA web site includes a list of the projects that have
been submitted with a brief description of them. The
legislation, HB 404, seems to evaluate the costs and benefits of
renewable energy. She related that in a conversation with the
Bob Swenson, Acting Director, Division of Geological &
Geophysical Surveys, Department of Natural Resources (DNR), he
suggested that it may be appropriate to expand the legislation
such that the costs and benefits of energy, not just renewable
energy, are reviewed. Ms. Fisher-Goad informed the committee
that this year AEA has an energy project appropriation request
for $10 million in general funds to match federal programs
related to wind, biomass, geothermal, and hydropower projects.
Additionally, a portion of those funds are to be used for some
additional RFPs for other energy efficiency and alternative
energy projects.
4:19:11 PM
REPRESENTATIVE CISSNA expressed the need to maximize the
usefulness of what already exists
4:20:05 PM
CO-CHAIR FAIRCLOUGH related frustration with what's referred to
as "silo projects" that lack [specifics] as to how to address
issues throughout Alaska. Co-Chair Fairclough acknowledged that
although one size doesn't fit all, and explained that she's
trying to bring together those with like minds who want to see a
systemwide plan for the cost benefits of energy. Co-Chair
Fairclough clarified that one possibility within the review of
energy needs to be a renewable or alternative energy component.
She then inquired as to other members' thoughts on the proposal
in HB 404 and whether the task should be taken on by the
legislative body itself since the legislature is the
appropriating body.
4:22:55 PM
REPRESENTATIVE EDGMON said that the notion to downsize the task
force and even have all the meetings in Anchorage so that the
fiscal note is as small as possible certainly makes sense. He
inquired as to whether a statewide energy plan would serve any
purpose, especially knowing that in the next few days there will
be a new energy coordinator.
MS. FISHER-GOAD opined that there are two aspects to this
planning, including describing the policy [AEA] should follow
with respect to the planning desired. The AEA reviews life
cycle savings when it analyzes projects for the energy cost
reduction program. The aforementioned is the anticipated
direction that AEA would follow with the alternative energy
solicitation that AEA is reviewing. She related that AEA would
anticipate using this same process with the development of the
HB 152 advisory committee. If HB 152 passes and the proposed
fund is capitalized, it would be a valid process to bring
forward. She noted that AEA has been involved in some planning
projects such as the Southeast project for the AKBC Intertie.
She also noted that AEA is involved in a Railbelt study
regarding the utilities that provide power to Railbelt
communities and what the organization should look like. With
appointment of the new energy coordinator and AEA executive
director, AEA would look to those two individuals to lead the
effort on the statewide policy and planning that everyone
understands should be done.
4:26:16 PM
REPRESENTATIVE EDGMON asked if AEA is the repository of all the
various efforts [related to energy].
4:26:41 PM
PETER CRIMP, Project Manager, Alaska Energy Authority, (AEA) and
Alaska Industrial Development & Export Authority (AIDEA),
Department of Commerce, Community, & Economic Development
(DCCED), related that AEA has found that there is a large demand
for developing renewable, alternative energy projects in the
state. He noted that upwards of 90-95 projects were submitted,
which would cost over $1 billion for all. The projects were
fairly equally distributed between rural, Railbelt, and Four Dam
Pool communities. Mr. Crimp suggested that policies for a
statewide energy plan may be best assessed by going through
these projects and reviewing them for common themes. For
instance, one state policy factor may be regarding how much
resource is allocated to rural areas versus the Railbelt and
Four Dam Pool areas. Another factor may be whether the
legislature and administration want to address development in a
portfolio approach. With a new executive director starting, he
opined that AEA will want to work with utilities and reach out
to others to answer some of these questions. He mentioned that
the advisory group within HB 152 that guides the development of
alternative energy projects would likely address some of those
issues.
4:29:26 PM
REPRESENTATIVE EDGMON highlighted that the aforementioned
assumes that HB 152 passes and is capitalized. Therefore, he
questioned what would happen if HB 152 and the $250 million
don't materialize.
4:29:54 PM
REPRESENTATIVE SALMON emphasized the need to focus on sources of
energy beyond wind and solar power, such as hydro power from the
Yukon River. There are about 30 villages on the Yukon River
that could tap into the river. In fact, he related his
understanding that Eagle is going to place a 95 kilowatt (kW)
river turbine in the Yukon River. Even if the river power can
be used for four to five months a year, it would provide some
energy relief during those periods. He expressed concern with
the size of the board because if it's too large, it will likely
move away from the goal. Therefore, he suggested having a
smaller group that concentrates on renewable energy only and
consists of members with expertise in the area.
4:32:19 PM
CO-CHAIR LEDOUX inquired as to the staffing envisioned for the
task force.
CO-CHAIR FAIRCLOUGH answered that legislative staff would be
used.
CO-CHAIR LEDOUX, referring to Section 2(c)(1)-(4), opined that
the task of the task force seems large without staff,
researchers, etcetera. Although the idea of the proposed task
force is well-intentioned, she questioned whether doing so with
a light fiscal note really accomplishes what's desired. To
accomplish the goal of the task force it almost takes an entire
department.
CO-CHAIR FAIRCLOUGH noted her agreement, but pointed out there
hasn't been much movement on this matter for generations. The
long-term goal is the development of the framework for a
statewide energy plan. She opined that forwarding individual
projects fractures the [plan].
4:34:33 PM
CO-CHAIR LEDOUX recalled that there have been some fairly
successful task forces in the legislature's history, such as the
Joint Salmon Industry Task Force and the Joint Legislative
Education Task Force. She inquired as to why some task forces
have been successful and others not.
4:35:43 PM
REPRESENTATIVE CISSNA said that the leadership in an
organization relates to its success. She recalled a Legislative
Legal and Research Services report that addressed citizen
boards. The report related that without all the stakeholders
involved, it can be a difficult process. She then related her
travels and participation in meetings using polycoms and [video
conferencing]. She identified one of the problems in the state
as the large size of the state and the significant differences
throughout the state. Although Representative Cissna said that
she agreed with legislative involvement, she agreed that others
need to be involved as well.
4:39:10 PM
CO-CHAIR FAIRCLOUGH asked if members would recommend only having
the state legislature involved with acquiring information first.
She explained that she's trying to pen legislation that reaches
the House Finance Committee.
4:40:34 PM
REPRESENTATIVE EDGMON related that he views energy as a life,
health, and safety issue. With regard to making the [task
force] successful, Representative Edgmon suggested stripping the
legislation and limiting the scope of the task force. He then
expressed the need for all entities to come to the table and
develop a comprehensive statewide energy policy and determine
the value of such a policy to policymakers and the
administration in terms of addressing energy. Representative
Edgmon mentioned that the task force should realize that it's
not going to solve the problem but rather is setting the stage
for further development of statewide energy.
4:42:49 PM
REPRESENTATIVE CRAIG JOHNSON, Alaska State Legislature,
expressed concern with the task force and the lack of knowledge
regarding where the state stands with capability and
interconnectivity. Therefore, there needs to be knowledge with
regard to the projected needs of energy in the future. Until
the aforementioned is known, it's difficult to know how to get
there, he opined. He emphasized that a critical part of this
process needs to be an assessment of where the state is and
where it needs to be prior to determining how to achieve the
goal. He suggested using all the resources and plugging them in
the region that best fits each region's needs. Representative
Johnson said he wholeheartedly supports the concept [of HB 404],
but reiterated the need to know the projected energy needs of
the state in the future.
4:45:15 PM
CO-CHAIR LEDOUX said Representative Johnson's comments make
sense, but she questioned who would have this knowledge.
REPRESENTATIVE JOHNSON answered that AEA seems to be the best
entity. He opined that individual utilities seem to be
developing energy plans, but no entity is charged with
coordinating these assessments. He expressed the need for an
umbrella group to coordinate all these individual assessments.
The AEA seems to be the best umbrella group at this time.
MR. CRIMP interjected that AEA, with the Institute of Social and
Economic Research (ISER), is planning to resume producing the
Alaska Energy Statistics publication, and thus there would be
knowledge regarding the current prices and use of energy
statewide. The aforementioned is basic information that's
necessary for planning. Load forecasts are another step, he
mentioned. In further response to Representative Johnson, Mr.
Crimp confirmed that projected usage isn't part of the
aforementioned publication. However, part of any planning will
involve the load forecast for various energies. He said that
the place for those [load forecasts] are in the regional plans.
4:48:10 PM
REPRESENTATIVE JOHNSON inquired as to whether individual
utilities are performing forecasts beyond five- and ten-year
thresholds.
MR. CRIMP said he can't answer that. However, he opined that
load forecasts are part of the integrated resource planning that
some Railbelt and Southeast utilities have to perform when
planning. In further response to Representative Johnson, Mr.
Crimp said he didn't know whether it's proprietary information.
However, he related that the Railbelt Energy Grid Authority
planning and the necessary integrated planning will require
forecasts for the Railbelt.
4:49:41 PM
CO-CHAIR FAIRCLOUGH noted her agreement with Representative
Johnson, but also noted her agreement with Mr. Crimp that thus
far it has been a "silo" approach rather than a collaborative
effort that includes urban and rural areas.
4:50:16 PM
REPRESENTATIVE JOHNSON, returning to the question of why some
task forces are successful and others not, indicated that
success is tied to urgency of the matter. He reiterated the
importance of the assessment of where the state is and is going.
4:51:16 PM
REPRESENTATIVE CISSNA remarked that one of the important
questions is to whom is energy important. She related her
belief that the state is moving towards the end of the [oil]
boom and thus the state needs to find sustainable energy and
jobs that outlast oil. Furthermore, the state needs to find and
review more than a single source of energy.
4:53:46 PM
REPRESENTATIVE SALMON suggested focusing HB 404 on renewable
energy. He pointed out that the interties between Anchorage and
Fairbanks do have renewable energy in the form of dams.
Representative Salmon emphasized the need to bring the goal of
HB 404 to a finer point. He then questioned whether there is
enough renewable energy to supply the future needs of the state.
4:55:57 PM
REPRESENTATIVE EDGMON expressed the need, along with the sense
of urgency, to create a sense of momentum in the 2009
legislative session. He expressed the need to take a holistic
view of energy.
4:57:44 PM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 4:58:01 PM.
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