Legislature(2011 - 2012)BARNES 124

03/22/2011 03:00 PM House ENERGY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HJR 20 ROADLESS RULE & CHUGACH AND TONGASS HYDRO TELECONFERENCED
Moved CSHJR 20(ENE) Out of Committee
*+ HJR 23 HYDROELECTRIC POWER; RENEWABLE ENERGY TELECONFERENCED
Heard & Held
*+ HCR 9 STATE ENERGY PRODUCTION WORKING GROUP TELECONFERENCED
Moved Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                         March 22, 2011                                                                                         
                           3:06 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Lance Pruitt, Co-Chair                                                                                           
Representative Bob Lynn                                                                                                         
Representative Dan Saddler                                                                                                      
Representative Pete Petersen                                                                                                    
Representative Chris Tuck                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kurt Olson                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 20                                                                                                   
Urging  the President  of  the United  States,  the United  States                                                              
Congress, and  the Secretary  of the  United States Department  of                                                              
Agriculture not  to implement  protection of inventoried  roadless                                                              
areas  under  the  "roadless  rule"   or  otherwise  restrict  the                                                              
development  of necessary  hydroelectric projects  in the  Tongass                                                              
National Forest and the Chugach National Forest.                                                                                
                                                                                                                                
     - MOVED CSHJR 20(ENE) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 23                                                                                                   
Urging  the  United  States  Congress  to  classify  hydroelectric                                                              
power as a renewable and alternative energy source.                                                                             
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 9                                                                                               
Establishing in  the Alaska State  Legislature the  Alaska Working                                                              
Group on Interstate Energy Production.                                                                                          
                                                                                                                                
     - MOVED HCR 9 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HJR 20                                                                                                                  
SHORT TITLE: ROADLESS RULE & CHUGACH AND TONGASS HYDRO                                                                          
SPONSOR(s): REPRESENTATIVE(s) JOHANSEN                                                                                          
                                                                                                                                
03/09/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/09/11       (H)       ENE, RES                                                                                               
03/17/11       (H)       ENE AT 3:00 PM BARNES 124                                                                              
03/17/11       (H)       Scheduled But Not Heard                                                                                
03/22/11       (H)       ENE AT 3:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HJR 23                                                                                                                  
SHORT TITLE: HYDROELECTRIC POWER; RENEWABLE ENERGY                                                                              
SPONSOR(s): ENERGY                                                                                                              
                                                                                                                                
03/16/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/16/11       (H)       ENE                                                                                                    
03/22/11       (H)       ENE AT 3:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HCR  9                                                                                                                  
SHORT TITLE: STATE ENERGY PRODUCTION WORKING GROUP                                                                              
SPONSOR(s): ENERGY                                                                                                              
                                                                                                                                
03/16/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/16/11       (H)       ENE, FIN                                                                                               
03/22/11       (H)       ENE AT 3:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE KYLE JOHANSEN                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Speaking as the prime sponsor, presented                                                                 
HJR 20.                                                                                                                         
                                                                                                                                
SHELLY WRIGHT, Executive Director                                                                                               
Southeast Conference                                                                                                            
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HJR 20.                                                                          
                                                                                                                                
GARRY WHITE                                                                                                                     
Executive Director                                                                                                              
Sitka Economic Development Association (SEDA)                                                                                   
Sitka, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in support of HJR 20.                                                                          
                                                                                                                                
CHRISTOPHER BREWTON, Utility Director                                                                                           
Electric Department                                                                                                             
City and Borough of Sitka                                                                                                       
Sitka, Alaska                                                                                                                   
POSITION STATEMENT:  Answered questions during the hearing on                                                                 
HJR 20.                                                                                                                         
                                                                                                                                
HAP SYMMONDS, Chair                                                                                                             
Board of Directors                                                                                                              
Cordova Electric Cooperative, Inc.                                                                                              
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HJR 20.                                                                          
                                                                                                                                
TIMOTHY ROONEY, Borough Manager                                                                                                 
City and Borough of Wrangell; Second Vice-President                                                                             
Southeast Conference; Alternate board member                                                                                    
Southeast Alaska Power Agency (SEAPA)                                                                                           
Wrangell, Alaska                                                                                                                
POSITION STATEMENT:  Testified in support of HJR 20.                                                                          
                                                                                                                                
MARILYN LELAND, Executive Director                                                                                              
Alaska Power Association (APA)                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HJR 20.                                                                          
                                                                                                                                
CHARLES FREEMAN, Chair                                                                                                          
Board of Directors                                                                                                              
Southeast Alaska Power Agency (SEAPA)                                                                                           
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HJR 20.                                                                          
                                                                                                                                
DIRK CRAFT, Staff                                                                                                               
Representative Lance Pruitt; House Special Committee on Energy                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HJR 23 and HCR 9 on behalf of                                                                 
the House Special Committee on Energy, Alaska State Legislature.                                                                
                                                                                                                                
HAP SYMMONDS, Chair                                                                                                             
Board of Directors                                                                                                              
Cordova Electric Cooperative, Inc.                                                                                              
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Testified during the hearing on HJR 20.                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:06:11 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  NEAL  FOSTER  called  the  House  Special  Committee  on                                                            
Energy  meeting to  order at  3:06 p.m.   Representatives  Foster,                                                              
Pruitt, Petersen, and  Saddler were present at the  call to order.                                                              
Representatives  Lynn  and Tuck  arrived  as  the meeting  was  in                                                              
progress.                                                                                                                       
                                                                                                                                
        HJR 20-ROADLESS RULE & CHUGACH AND TONGASS HYDRO                                                                    
                                                                                                                                
3:07:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FOSTER  announced that the first order  of business                                                              
would be  HOUSE JOINT RESOLUTION  NO. 20, Urging the  President of                                                              
the United States,  the United States Congress,  and the Secretary                                                              
of the  United States Department  of Agriculture not  to implement                                                              
protection  of  inventoried  roadless areas  under  the  "roadless                                                              
rule"  or   otherwise  restrict   the  development   of  necessary                                                              
hydroelectric  projects in  the  Tongass National  Forest and  the                                                              
Chugach National Forest.                                                                                                        
                                                                                                                                
3:07:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KYLE  JOHANSEN, Alaska State  Legislature, speaking                                                              
as the prime  sponsor, presented HJR 20.   Representative Johansen                                                              
advised HJR  20 was  being presented to  the committee  because of                                                              
its relevance to  energy policies.  The resolution  is specific to                                                              
the  effects of  the  Roadless  Area Conservation  Rule  (roadless                                                              
rule) on  the interconnection  of Southeast hydroelectric  (hydro)                                                              
projects to  energy grids.  However,  his larger concern  is about                                                              
energy  assets  statewide,  and  how to  connect  those  to  grids                                                              
considering  the issues  of  land ownership  surrounding  upcoming                                                              
large hydro  projects.   Representative Johansen called  attention                                                              
to page 1, line  7, of the resolution, and noted  that inventoried                                                              
roadless  areas   constitute  approximately  57  percent   of  the                                                              
acreage  in the  Tongass  National Forest,  and  an additional  35                                                              
percent  is  defined  as wilderness.    Furthermore,  federal  law                                                              
states that  the Secretary of  the U.S. Department  of Agriculture                                                              
has the  right to approve or  disapprove road construction  in the                                                              
Tongass  and Chugach  National  Forests.   As  an  example of  the                                                              
impact of this  situation, Representative Johansen  stated that in                                                              
the '90s,  a route was selected  for the construction of  the Swan                                                              
Lake/Lake Tyee  intertie to connect  two large dams  and electrify                                                              
part  of Southeast  Alaska.   The cost  for the  chosen route  was                                                              
based on road  access; however, litigation ensued and  a new route                                                              
was   selected   with   no   road   access,   thus   construction,                                                              
maintenance,  and  operation was  supported  by helicopter  for  a                                                              
much higher  cost.  He opined  these decisions should not  be made                                                              
by  one person.   Continuing  to page  2, line  6, the  resolution                                                              
indicates  that 14 of  the 15  hydro projects  in the Tongass  and                                                              
Chugach  National Forest  are  subject to  the  protection of  the                                                              
roadless rule.   Constraints by the roadless rule  can also affect                                                              
the issuance  of hydro licenses  by the Federal  Energy Regulatory                                                              
Commission (FERC),  and one of the  goals of the resolution  is to                                                              
clarify  the effect  of the roadless  rule on  projects that  have                                                              
already been permitted.                                                                                                         
                                                                                                                                
3:14:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOHANSEN   reminded   the  committee   that   the                                                              
President  has set  a  goal of  having  25 percent  of  electrical                                                              
generation  come from  renewable sources  by 2025  - although  the                                                              
federal government  does not recognize hydro power  as renewable -                                                              
and the  state goal  is 50  percent renewable  by 2025.   However,                                                              
these  goals  are thwarted  by  the  difficulties created  by  the                                                              
roadless rule, and  other mechanisms that cause  conflicts between                                                              
federal agencies.                                                                                                               
                                                                                                                                
3:17:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  asked whether the President's  goal should be                                                              
added to the resolution.                                                                                                        
                                                                                                                                
REPRESENTATIVE JOHANSEN  surmised this  addition could be  made by                                                              
this committee or by the House Resources Standing Committee.                                                                    
                                                                                                                                
3:18:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  referred to page 2, and asked  for a brief                                                              
description of  the 15 hydro projects  in the Tongass  and Chugach                                                              
National Forests.                                                                                                               
                                                                                                                                
REPRESENTATIVE JOHANSEN  said he  was unfamiliar with  projects in                                                              
the  Chugach National  Forest; however,  in  Southeast there  are:                                                              
Whitman  Lake, two  projects in  Metlakatla, Blue  Lake, and  many                                                              
more potential sites.   Southeast is perfect for  hydro because of                                                              
its high alpine lakes that do not affect salmon.                                                                                
                                                                                                                                
3:20:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER opened public testimony.                                                                                        
                                                                                                                                
3:21:02 PM                                                                                                                    
                                                                                                                                
SHELLY   WRIGHT,   Executive   Director,   Southeast   Conference,                                                              
referred  members   to  her  written  comments  provided   in  the                                                              
committee  packet.   In  addition,  she  relayed  a quote  from  a                                                              
proclamation by  President [not  provided] Roosevelt.   Ms. Wright                                                              
stated that the  Ninth Circuit Court of Appeals has  put a padlock                                                              
on communities and  their progress.  Furthermore,  the U.S. Forest                                                              
Service  (Forest   Service),  U.  S.  Department   of  Agriculture                                                              
(USDA),  is developing  a proposed  new  planning rule  containing                                                              
priorities  for the conservation  of trees,  plants, animals,  and                                                              
water.   When asked about  the importance of socioeconomic  issues                                                              
and the science  within the forest, representatives  of the Forest                                                              
Service told  her they  have no  influence over  that.   She noted                                                              
that the Forest  Service owns 98 percent of the land,  and said it                                                              
is important to "get our forest back."  She remarked:                                                                           
                                                                                                                                
     In   the  past   10  years   Southeast  Conference,   in                                                                   
     partnership    with    many     other    agencies    and                                                                   
     organizations,  have put an  extensive amount of  effort                                                                   
     into  the development  of  affordable,  self-sustaining,                                                                   
     renewable,  green, energy projects  in our region.   And                                                                   
     it  is  fairly  obvious  that  the  federal  government,                                                                   
     controlling  such vast  amounts of  the region, and  the                                                                   
     energy  resources within,  and that  access is  critical                                                                   
     to this issue.   It's equally obvious that  during these                                                                   
     past  few  years the  forest  was  adequately  protected                                                                   
     during  development  of  energy  resources  without  the                                                                   
     roadless  enforcement.    We  have  managed  to  develop                                                                   
     several   major  hydro  projects   that  are   providing                                                                   
     affordable, renewable,  green energy to a  small portion                                                                   
     of  our people.   Unfortunately,  we  still have  entire                                                                   
     communities paying  up to 90  cents a kilowatt  hour for                                                                   
     electricity.   Our small businesses are the  hardest hit                                                                   
     and, as  you know, have quite  a ripple effect  in these                                                                   
     communities.     Lack   of  access   to  land  and   the                                                                   
     paralyzing   permitting    process   of    the   federal                                                                   
     government  are killing  our  communities.   People  are                                                                   
     not able to  heat their homes and turn on  their lights,                                                                   
     much less  start or  maintain a  business.  A  financial                                                                   
     obligation  to heat schools  and community buildings  is                                                                   
     crippling in  these communities, jobs are at  a premium,                                                                   
     and there is no good news in sight.                                                                                        
                                                                                                                                
MS. WRIGHT stated  that two other hydro projects  not mentioned by                                                              
Representative  Johansen are  the  Angoon project  at Thayer  Lake                                                              
and the Kake-Petersburg Intertie project.                                                                                       
                                                                                                                                
3:25:34 PM                                                                                                                    
                                                                                                                                
GARRY  WHITE,  Executive  Director,   Sitka  Economic  Development                                                              
Association (SEDA),  expressed his  organization's support  of the                                                              
resolution.   He said  SEDA has  an active  FERC permit  to expand                                                              
the hydro  capacity to  Blue Lake  dam, and  the roadless  rule is                                                              
hurting  the  project.    Sitka  is at  the  maximum  capacity  of                                                              
electricity  that  can  be  generated  from  its  dams,  and  this                                                              
situation  is  inhibiting  the   growth  of  the  fish  processing                                                              
industry  and  new  projects  for  the  use of  fish  waste.    In                                                              
addition, a shortage  of power limits the quality of  life for the                                                              
residents of  Sitka.  Mr. White  opined the roadless rule  is very                                                              
detrimental to the future of hydro projects in this area.                                                                       
                                                                                                                                
3:27:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  for  more information  on how  this                                                              
policy  is  affecting  the  expansion   of  the  Blue  Lake  hydro                                                              
project.                                                                                                                        
                                                                                                                                
MR. WHITE  explained there  is an existing  road to the  Blue Lake                                                              
facility; however,  the project will raise the existing  dam by 83                                                              
feet,  thus  the level  of  the  lake will  then  encumber  Forest                                                              
Service property.   Removal of the timber from the  area that will                                                              
be flooded  by the lake is in  violation of the roadless  rule and                                                              
FERC  suggested that  permission to  harvest the  trees must  come                                                              
from  the  Secretary  of  Agriculture.   If  the  trees  are  left                                                              
standing, the  water will be turbid,  and a filtration  plant will                                                              
have to be built at a cost of millions of dollars.                                                                              
                                                                                                                                
3:29:43 PM                                                                                                                    
                                                                                                                                
CHRISTOPHER BREWTON,  Utility Director, Electric  Department, City                                                              
and Borough  of Sitka, stated that  the City and Borough  of Sitka                                                              
has  been working  on  a  FERC license  application  for  capacity                                                              
amendments  in order  to increase  the system  capacity from  Blue                                                              
Lake by  27 percent.   During the FERC  licensing process,  it was                                                              
pointed out that  the roadless rule would impact  the project, and                                                              
a request  to address the harvesting  issue was sent  in September                                                              
2010, but  there has been no  response.  Mr. Brewton  continued to                                                              
explain that the  community has overwhelmingly approved  bonds for                                                              
the project, but  the bonds have an expiration date  that leaves a                                                              
very short  window for construction.   This has created  a serious                                                              
deadline for  the bond  requirements, and  the city cannot  afford                                                              
to  wait  on  the  Forest  Service  for  the  resolution  of  this                                                              
critical issue for the community.                                                                                               
                                                                                                                                
3:32:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SADDLER   asked   for  Mr.   Brewton's   previous                                                              
experience with responses from the Forest Service.                                                                              
                                                                                                                                
MR. BREWTON  said very poor.   The city  is not privy  to internal                                                              
Forest  Service  communications   from  the  local  level  to  the                                                              
national  level.   He  restated the  project's  importance to  the                                                              
community.                                                                                                                      
                                                                                                                                
3:33:50 PM                                                                                                                    
                                                                                                                                
HAP  SYMMONDS,   Chair,  Board  of  Directors,   Cordova  Electric                                                              
Cooperative, Inc.,  stated that  the Cordova Electric  Cooperative                                                              
has a proposed project  at Snyder Falls Creek, which  is on Forest                                                              
Service  property,  thus the  Forest  Service  will have  a  major                                                              
impact on the FERC licensing process.                                                                                           
                                                                                                                                
3:35:05 PM                                                                                                                    
                                                                                                                                
TIMOTHY ROONEY,  Borough  Manager, City and  Borough of  Wrangell;                                                              
Second  Vice-President,  Southeast   Conference;  Alternate  board                                                              
member, Southeast  Alaska  Power Agency (SEAPA),  agreed  with the                                                              
previous  testimony.   Mr. Rooney  said this  is a critical  issue                                                              
for all  of the  communities in  Southeast; in  fact, Wrangell  is                                                              
one of  the few communities  with affordable  electric rates.   He                                                              
said  the ability  to construct  and  maintain transmission  lines                                                              
and interties between  hydro projects is vital to  the survival of                                                              
all of Southeast Alaska.                                                                                                        
                                                                                                                                
3:36:20 PM                                                                                                                    
                                                                                                                                
MARILYN  LELAND,  Executive  Director,  Alaska  Power  Association                                                              
(APA),  informed   the  committee  APA  is  the   statewide  trade                                                              
association  that represents  the electric  utilities that  supply                                                              
power   to   over   500,000   Alaskans.      She   expressed   her                                                              
organization's strong  support for HJR 20, and the  efforts of the                                                              
legislature  to   oppose  implementation  of  the   roadless  rule                                                              
regulation for the  Tongass and Chugach National  Forests.  Alaska                                                              
possesses an abundance  of hydro resources that can  be built with                                                              
minimal environmental  impact to replace costly,  finite, and less                                                              
environmentally-benign  fossil  fuels such  as  diesel, coal,  and                                                              
natural gas.   The special  use permits  that are required  by the                                                              
roadless  rule must  be individually  signed by  the Secretary  of                                                              
USDA, and  additional required  federal actions  can add  one year                                                              
or more  to the hydro  application approval  process by  FERC, and                                                              
seriously jeopardize the three-year deadline on projects.                                                                       
                                                                                                                                
3:38:47 PM                                                                                                                    
                                                                                                                                
CHARLES  FREEMAN,  Chair,  Board of  Directors,  Southeast  Alaska                                                              
Power Agency  (SEAPA), stated  SEAPA owns the  Lake Tyee  and Swan                                                              
Lake  hydro  projects  and  the  Ketchikan,  Wrangell,  Petersburg                                                              
intertie.   He affirmed  that the  intertie was  "helicopter-built                                                              
and  helicopter-maintained;" however,  due to  the roadless  rule,                                                              
at the moment  there is a  question as to whether  helicopter pads                                                              
can be  installed along  the line  for maintenance.   Mr.  Freeman                                                              
offered  SEAPA's  help  in  opposing the  roadless  rule.    Then,                                                              
speaking for  himself, he  stated his  opposition to the  roadless                                                              
rule.                                                                                                                           
                                                                                                                                
3:40:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FOSTER called  attention  to  page 2,  line  22, of  the                                                              
resolution, and  noted that  the goal of  achieving 50  percent of                                                              
the  state's energy  from  renewable sources  is  ascribed to  the                                                              
governor;  however,  the goal  is  actually  part of  the  state's                                                              
energy policy.                                                                                                                  
                                                                                                                                
3:40:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  PRUITT   moved  to  adopt   Amendment  1,   labeled  27-                                                              
LS0554\A.1, Bullock, 3/22/11, which read:                                                                                       
                                                                                                                                
     Page 2, line 22:                                                                                                           
             Delete "Governor's goal of generating"                                                                             
         Insert "policy of the state, as stated in sec.                                                                         
     1, ch. 82, SLA 2010, to generate"                                                                                          
                                                                                                                                
3:41:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN objected for discussion purposes.                                                                           
                                                                                                                                
CO-CHAIR FOSTER said this is a technical amendment.                                                                             
                                                                                                                                
3:41:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN removed his objection.                                                                                      
                                                                                                                                
3:42:00 PM                                                                                                                    
                                                                                                                                
There being no further objection, Amendment 1 was adopted.                                                                      
                                                                                                                                
3:42:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TUCK  opined   it   is  important   to  add   the                                                              
President's intent - to get to 25 percent - to the resolution.                                                                  
                                                                                                                                
CO-CHAIR FOSTER  asked Representative  Tuck to offer  a conceptual                                                              
amendment.                                                                                                                      
                                                                                                                                
[There followed  discussion on whether a conceptual  amendment was                                                              
preferred.]                                                                                                                     
                                                                                                                                
3:43:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK moved to adopt Conceptual Amendment 2.                                                                      
                                                                                                                                
[Although not  formally stated,  Conceptual Amendment 2  added the                                                              
intent of the President.]                                                                                                       
                                                                                                                                
CO-CHAIR FOSTER objected for discussion purposes.                                                                               
                                                                                                                                
3:43:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETERSEN  urged   that  the  conceptual  amendment                                                              
state, "The  President's goal was  25 percent renewable  energy by                                                              
2025."                                                                                                                          
                                                                                                                                
3:44:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER observed  that there  is some question  as                                                              
to  what the  federal  government  defines  as renewable,  and  he                                                              
suggested   the   committee  ensure   hydroelectric   energy   was                                                              
included.                                                                                                                       
                                                                                                                                
3:44:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  suggested  that Conceptual  Amendment  2                                                              
would  be  easily  incorporated   on  page  2,  line  25,  by  the                                                              
resolution's  drafter.   However, the  issue on  how renewable  is                                                              
defined by  the federal  government is a  larger issue  that could                                                              
be addressed by the House Resources Standing Committee.                                                                         
                                                                                                                                
REPRESENTATIVE  TUCK   supported  the  insertion   of  "The  Obama                                                              
administration has set  a goal of having 25 percent  of the energy                                                              
generated  in  the  United  States  come  from  renewable,  green,                                                              
resources by 2025" at page 2, line 25.                                                                                          
                                                                                                                                
3:46:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER  removed his  objection.   There being  no further                                                              
objection, Conceptual Amendment 2 was adopted.                                                                                  
                                                                                                                                
3:46:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT  moved to report  HJR 20, Version  27-LS0554\A, as                                                              
amended,  out of  committee  with individual  recommendations  and                                                              
the accompanying  fiscal note.   There  being no objection,  CSHRJ                                                              
20  (ENE)  was  reported  from  the  House  Special  Committee  on                                                              
Energy.                                                                                                                         
                                                                                                                                
                                                                                                                                
3:47:08 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:47 p.m. to 3:51 p.m.                                                                       
                                                                                                                                
3:51:25 PM                                                                                                                    
                                                                                                                                
          HJR 23-HYDROELECTRIC POWER; RENEWABLE ENERGY                                                                      
                                                                                                                                
3:51:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER  announced that the  next order of  business would                                                              
be  HOUSE  JOINT  RESOLUTION  NO. 23,  Urging  the  United  States                                                              
Congress  to  classify  hydroelectric  power as  a  renewable  and                                                              
alternative energy source.                                                                                                      
                                                                                                                                
3:51:48 PM                                                                                                                    
                                                                                                                                
DIRK  CRAFT, Staff,  Representative  Lance  Pruitt  and the  House                                                              
Special Committee  on Energy, introduced  HJR 23 on behalf  of the                                                              
House Special  Committee on  Energy.  Mr.  Craft advised  that the                                                              
U.S. has  long used  targeted tax  credit programs to  incentivize                                                              
investment and  innovation in the  energy sector, both  for fossil                                                              
and renewable  resources; in fact,  Investment and  Production Tax                                                              
Credits for  renewable energy have  been highly successful.    The                                                              
hydropower   industry  is   creating  jobs   and  affordable   and                                                              
renewable power,  and private investment has often  been driven by                                                              
smart tax  policies.  In Alaska,  hydroelectric (hydro)  power has                                                              
the potential  to replace  diesel-generated  power with little  to                                                              
no environmental  impact, but  receives only  one-half of  the tax                                                              
credits available  to other renewable energy sources.   He pointed                                                              
out that  there are almost 50  hydropower projects in  Alaska that                                                              
supply 24  percent of Alaska's  electricity, large and  small, and                                                              
there  are many  potential  sites for  the  development of  future                                                              
hydropower.  Provided  in the committee packet was  a copy of U.S.                                                              
Senator Lisa Murkowski's  proposed federal legislation  seeking to                                                              
incentivize   further  production   of  hydropower  resources   by                                                              
classifying hydro power as a renewable source of energy.                                                                        
                                                                                                                                
3:54:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER called  attention to  page 2,  line 9,  of                                                              
the resolution,  and asked what federal renewable  and alternative                                                              
energy  programs do  not classify  hydro power  as a renewable  or                                                              
alternative energy source.                                                                                                      
                                                                                                                                
MR.  CRAFT  said he  did  not  know; however,  the  resolution  is                                                              
focused on production tax credit incentives.                                                                                    
                                                                                                                                
3:55:06 PM                                                                                                                    
                                                                                                                                
HAP  SYMMONDS,   Chair,  Board  of  Directors,   Cordova  Electric                                                              
Cooperative,  Inc.,   in  response  to  Representative   Saddler's                                                              
question,  noted that federal  laws dealing  with not  classifying                                                              
hydro as a renewable  resource are related to  financing; in fact,                                                              
cooperatives in  Alaska that are building hydropower  projects are                                                              
not eligible  for federal financing  as green energy  or renewable                                                              
projects.  Mr.  Symmonds relayed his efforts -  beginning 15 years                                                              
ago - to rectify  this situation, and said he  was very supportive                                                              
of Senator Murkowski's bill and HJR 23.                                                                                         
                                                                                                                                
3:57:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK moved to adopt Conceptual Amendment 1.                                                                      
                                                                                                                                
CO-CHAIR FOSTER objected for discussion purposes.                                                                               
                                                                                                                                
REPRESENTATIVE TUCK  explained that unlike Washington  and Oregon,                                                              
Alaska  is unique  in  its  hydro resources.    His  intent is  to                                                              
reclassify hydro  plants as renewable  - without making  Alaska an                                                              
exception -  by language  stating that  hydro can be  reclassified                                                              
as  long  as  there  is no  economic  competition  for  the  water                                                              
resource    with   municipalities,    agriculture,   or    others.                                                              
Representative  Tuck stressed  that the language  should  help all                                                              
hydro projects  in the  U.S., yet allay  the concerns  about hydro                                                              
that do not apply to Alaska.                                                                                                    
                                                                                                                                
3:58:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked for the proposed language.                                                                         
                                                                                                                                
REPRESENTATIVE TUCK proposed the following:                                                                                     
                                                                                                                                
     On page 2, line 17, after "alternative energy source"                                                                      
     add ", as long as there is no economic competition for                                                                     
     the water resource,"                                                                                                       
                                                                                                                                
3:59:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  expressed his hesitation to  condition the                                                              
resolution and thereby raise the test of applicability.                                                                         
                                                                                                                                
CO-CHAIR  PRUITT wished  to be  line  with the  intent of  Senator                                                              
Murkowski's  bill and  noted that  her bill did  not include  this                                                              
wording.                                                                                                                        
                                                                                                                                
REPRESENTATIVE PETERSEN  conversed with U.S. Senator  Mark Begich,                                                              
who  said  the  U.S.  Senate  Committee   on  Energy  and  Natural                                                              
Resources is hoping to include this definition in a future bill.                                                                
                                                                                                                                
4:02:20 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
REPRESENTATIVE  TUCK  clarified   that  the  conceptual  amendment                                                              
would have  language to put  a condition  on hydro to  address the                                                              
concerns  of the  rest  of the  nation about  hydro  that are  not                                                              
shared by  Alaska.   The condition  would help  Alaska -  and some                                                              
other communities  throughout the nation  - by showing  that there                                                              
are  places  where there  is  no  economic competition  for  water                                                              
resources.                                                                                                                      
                                                                                                                                
4:05:15 PM                                                                                                                    
                                                                                                                                
[HJR 23 was heard and held for further testimony.]                                                                              
                                                                                                                                
4:05:36 PM                                                                                                                    
                                                                                                                                
          HCR  9-STATE ENERGY PRODUCTION WORKING GROUP                                                                      
                                                                                                                                
4:05:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER announced  that the final order  of business would                                                              
be HOUSE CONCURRENT  RESOLUTION NO. 9, Establishing  in the Alaska                                                              
State Legislature  the Alaska Working  Group on Interstate  Energy                                                              
Production.                                                                                                                     
                                                                                                                                
4:06:00 PM                                                                                                                    
                                                                                                                                
DIRK  CRAFT, Staff,  Representative  Lance  Pruitt  and the  House                                                              
Special Committee  on Energy,  introduced HCR  9 on behalf  of the                                                              
House  Special Committee  on Energy,  saying  that the  resolution                                                              
establishes  in the Alaska  State Legislature  the Alaska  Working                                                              
Group on  Interstate Energy  Production.   This legislation  is in                                                              
response  to legislation  proposed  by other  states that  produce                                                              
energy and  energy resources.   Alaska,  along with other  states,                                                              
continues to  experience the negative  consequences from  delay or                                                              
cancellation  of   economically  viable  energy-related   projects                                                              
because  federal  law  and  federal   law  enforcement  too  often                                                              
overreach  the federal  government's  constitutional authority  to                                                              
make  and  enforce  laws.   This  working  group  will  develop  a                                                              
proposal for an  inter-legislature agreement that  will facilitate                                                              
collaboration  between  the  Alaska State  Legislature  and  other                                                              
state  legislatures  in  efforts   to  influence  federal  energy-                                                              
related law  and policy  and to  discourage delay or  cancellation                                                              
of economically  viable energy-related  projects in the  state and                                                              
in other states.   The intent of  this working group is  to create                                                              
a  more  unified  voice  from the  states  most  affected  by  the                                                              
consequences of  energy-related federal law.  He  called attention                                                              
to page  2, line  10, and  noted the resolution  directs  that the                                                              
working  group shall  consist of  four members,  two of which  are                                                              
appointed  by the President  of  the Senate and  two appointed  by                                                              
the Speaker  of the  House.  On  page 2,  line 14, the  resolution                                                              
directs the  working group  will meet  during and between  regular                                                              
sessions of  the Alaska State  Legislature and members  may travel                                                              
to meetings,  subject to approval  by the President of  the Senate                                                              
and  the  Speaker  of  the  House.    On  page  2,  line  20,  the                                                              
resolution  directs  that  the working  group  will  terminate  on                                                              
1/18/13.   On page  2, line  22, the resolution  directs  that the                                                              
working group  shall issue  its report on  or before  1/17/12, and                                                              
allows   for  additional   reports   that   the  group   considers                                                              
advisable.                                                                                                                      
                                                                                                                                
4:07:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SADDLER  clarified   that  the   intent  of   the                                                              
resolution  was  not to  establish  interstate  energy  production                                                              
with another state.                                                                                                             
                                                                                                                                
MR.  CRAFT  concurred.   The  resolution  is  unusual, but  it  is                                                              
similar to  resolutions in  Utah and  Wyoming, although  Alaska is                                                              
acting through a concurrent resolution rather than statute.                                                                     
                                                                                                                                
4:08:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked  whether Alaska  would  be  working                                                              
with Utah and Wyoming.                                                                                                          
                                                                                                                                
MR. CRAFT indicated correct, and also Texas.                                                                                    
                                                                                                                                
CO-CHAIR FOSTER determined that there was no public testimony.                                                                  
                                                                                                                                
4:09:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  moved  to  adopt Amendment  1,  labeled  27-                                                              
LS0600\B.2, Wayne, 3/21/11, which read:                                                                                         
                                                                                                                                
     Page 2, line 11:                                                                                                           
          Delete "four"                                                                                                         
          Insert "six"                                                                                                          
          Delete "two"                                                                                                          
          Insert "three"                                                                                                        
                                                                                                                                
     Page 2, line 12:                                                                                                           
          Delete "two"                                                                                                          
          Insert "three"                                                                                                        
                                                                                                                                
     Page 2, following line 13:                                                                                                 
     Insert a new resolution section to read:                                                                                   
          "FURTHER RESOLVED that at least one of the three                                                                    
     senators  appointed  to  the  Alaska  Working  Group  on                                                                   
     Interstate  Energy Production shall  be a member  of the                                                                   
     largest  minority caucus  in  the Senate,  and at  least                                                                   
     one  of  the  three  representatives  appointed  to  the                                                                   
     Alaska  Working Group  on Interstate  Energy  Production                                                                   
     shall  be a  member of  the largest  minority caucus  in                                                                   
     the House of Representatives; and be it"                                                                                   
                                                                                                                                
CO-CHAIR PRUITT objected for discussion purposes.                                                                               
                                                                                                                                
4:09:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK said  he was very proud of the  past work done                                                              
by the  House Special Committee  on Energy, and especially  of the                                                              
work done  on the  state's energy  policy by  the committee  and a                                                              
group  of  stakeholders  that included  a  variety  of  interested                                                              
parties; this  group was able  to develop  a "unified voice."   He                                                              
explained that  the amendment  would increase  the members  of the                                                              
proposed  working group  from  four to  six,  consisting of  three                                                              
senators  and  three  representatives.     The  amendment  further                                                              
directs  that  at least  one  member  shall  be  a member  of  the                                                              
largest minority  caucus in the Senate  and one member  shall be a                                                              
member of the largest  minority caucus in the House.   The purpose                                                              
of this increase  is to allow  minority members to be  included in                                                              
the  working group  and  "we continue  having  that unified  voice                                                              
from both bodies."                                                                                                              
                                                                                                                                
4:11:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER observed the  proposed working  group will                                                              
bring back  to the  committee proposals from  work outside  of the                                                              
state's boundaries.   He opined  for compactness,  efficiency, and                                                              
cost, the working group should be kept to the size proposed.                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  pointed out  there  would be  no  additional                                                              
cost as there is no fiscal note attached to the resolution.                                                                     
                                                                                                                                
4:12:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  PRUITT  there  is  a   fiscal  note  related  to  travel                                                              
estimated  at $5,000  per individual.   He stated  that the  other                                                              
states have four members each.                                                                                                  
                                                                                                                                
4:13:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK withdrew Amendment 1.                                                                                       
                                                                                                                                
4:14:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT  moved to report  HCR 9, Version  27-LS0600\B, out                                                              
of   committee    with   individual   recommendations    and   the                                                              
accompanying fiscal  note.  There being no further  objection, HCR
9 was reported from the House Special Committee on Energy.                                                                      
                                                                                                                                
4:15:19 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being  no further business  before the committee,  the House                                                              
Special Committee on Energy meeting was adjourned at 4:15 p.m.                                                                  

Document Name Date/Time Subjects
HJR 20 - 01 Original Resolution, Version A.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 03 Talking Points.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 04 Legislative Affairs Agency Fiscal Note, HJR20-LEG-COU-3-21-2011.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 02 Sponsor Statement.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 05 Tongass National Forest Map, Inventoried Roadless Areas.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 06 Southeast Conference Letter of Support, 16 March 2011.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 07 Southeast Alaska Power Agency Letter of Support, 15 March 2011.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 09 Alaska Power Association Letter of Support, 16 March 2011.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 08 Alaska Power Association Resolution, December 2010.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 10 Sitka Economic Development Association Letter of Support, 16 March 2011.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 11 Petersburg Letter of Support, 17 March 2011.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 12 Juneau Chamber of Commerce Resolution 07-10, 28 December 2010.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 20 - 13 Juneau Chamber of Commerce Resolution, 15 March 2011.pdf HENE 3/22/2011 3:00:00 PM
HJR 20
HJR 23 - 01 Original Version, Version M.PDF HENE 3/22/2011 3:00:00 PM
HJR 23
HJR 23 - 02 Sponsor Statement.pdf HENE 3/22/2011 3:00:00 PM
HJR 23
HJR 23 - 03 National Hydropower Association Study Highlights.pdf HENE 3/22/2011 3:00:00 PM
HJR 23
HJR 23 - 04 Senator Lisa Murkowski Hydro Renewable Energy Development Act of 2011.pdf HENE 3/22/2011 3:00:00 PM
HJR 23
HJR 23 - 05 Legislative Affairs Agency Fiscal Note, HJR23-LEG-COU-3-21-2011.pdf HENE 3/22/2011 3:00:00 PM
HJR 23
HCR 9 - 01 Original Version, Version B.PDF HENE 3/22/2011 3:00:00 PM
HCR 9
HCR 9 - 02 Sponsor Statement.pdf HENE 3/22/2011 3:00:00 PM
HCR 9
HCR 9 - 03 Legislative Affairs Agency Fiscal Note, HCR9-LEG-COU-3-21-2011.pdf HENE 3/22/2011 3:00:00 PM
HCR 9
HCR 9 - 04 Utah Producer States Agreement.pdf HENE 3/22/2011 3:00:00 PM
HCR 9
HCR 9 - 05 Wyoming Producer States Agreement.pdf HENE 3/22/2011 3:00:00 PM
HCR 9
HCR 9 - 06 Amendment #1.pdf HENE 3/22/2011 3:00:00 PM
HCR 9