Legislature(2011 - 2012)BARNES 124
03/24/2011 03:00 PM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| HJR23 | |
| Overview: Department of Natural Resources on the Natural Gas Potential in the Nenana River Basin, the Susitna River Basin, the Copper River Valley Basin, and the Bering Sea Region | |
| Overview(s): Rural Cap's Energy Wise Program to Reduce Energy Costs | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HJR 23 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
March 24, 2011
3:08 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. 23
Urging the United States Congress to classify hydroelectric
power as a renewable and alternative energy source.
- MOVED HJR 23 OUT OF COMMITTEE
OVERVIEW(S): DEPARTMENT OF NATURAL RESOURCES ON THE NATURAL GAS
POTENTIAL IN THE NENANA RIVER BASIN, THE SUSITNA RIVER BASIN,
THE COPPER RIVER VALLEY BASIN, AND THE BERING SEA REGION
- HEARD
OVERVIEW(S): RURAL CAP'S ENERGY WISE PROGRAM TO REDUCE ENERGY
COSTS
- HEARD
PREVIOUS COMMITTEE ACTION
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
03/22/11 (H) Heard & Held
03/22/11 (H) MINUTE(ENE)
03/24/11 (H) ENE AT 3:00 PM BARNES 124
WITNESS REGISTER
BOB SWENSON, Director
Central Office
Division of Geological & Geophysical Surveys
Department of Natural Resources (DNR)
Fairbanks, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation titled,
"Sedimentary Basins of Alaska."
SARA SCANLAN, Deputy Director
Rural Alaska Community Action Program, Inc.
Anchorage, Alaska
POSITION STATEMENT: Introduced a PowerPoint presentation
titled, "Rural Alaska Community Action Program, Inc.'s Energy
Wise Program."
CATHIE CLEMENTS, Community Development Division Director
Rural Alaska Community Action Program, Inc.
Anchorage, Alaska
POSITION STATEMENT: Assisted in a PowerPoint presentation
titled, "Rural Alaska Community Action Program, Inc.'s Energy
Wise Program."
ELLEN KAZARY, Community Development Manager
Rural Alaska Community Action Program, Inc.
Anchorage, Alaska
POSITION STATEMENT: Assisted in a PowerPoint presentation
titled, "Rural Alaska Community Action Program, Inc.'s Energy
Wise Program."
DIANA RAMOTH
Selawik, Alaska
POSITION STATEMENT: Testified during the presentation on Rural
Alaska Community Action Program, Inc.'s Energy Wise Program.
ACTION NARRATIVE
3:08:38 PM
CO-CHAIR NEAL FOSTER called the House Special Committee on
Energy meeting to order at 3:08 p.m. Representatives Foster,
Pruitt, Petersen, Saddler, Lynn, and Tuck were present at the
call to order.
HJR 23-HYDROELECTRIC POWER; RENEWABLE ENERGY
3:09:33 PM
CO-CHAIR FOSTER announced that the first 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.
CO-CHAIR FOSTER reminded the committee of the discussion during
the House Special Committee on Energy meeting on 3/22/11,
regarding a conceptual amendment offered by Representative Tuck.
3:10:26 PM
REPRESENTATIVE TUCK moved to adopt Amendment 1, which read:
Page 2, line 17, following "source":
Insert ", as long as there is no other economic
competition for the water resource,"
REPRESENTATIVE SADDLER objected for discussion purposes.
REPRESENTATIVE TUCK urged the committee to forward a meaningful
resolution to Congress. He said there is no reason that water
and hydroelectric (hydro) are not a renewable energy resource,
and pointed out that Alaska is unable to take full advantage of
the tax credits that are available for renewable and alternative
sources of energy. Representative Tuck recalled previous
discussions on how to protect interests so that the resolution
will pass, and opined that the addition of the aforementioned
amendment will assuage the concerns of other states.
3:12:08 PM
REPRESENTATIVE PETERSEN added that the amendment makes the
language in the resolution compatible with the definition that
the U.S. Senate Committee on Energy and Natural Resources is
considering; in addition, it would support the Alaska
Congressional delegation's efforts.
REPRESENTATIVE SADDLER questioned the need to carve out a
special exception because the resolution makes a clear
statement.
CO-CHAIR PRUITT expressed his concern that the amendment creates
redundancy; for example, in order to receive a license from the
Federal Energy Regulatory Commission (FERC) a hydro project must
prove through the environmental impact statement that it has
water rights, will not affect the economics of a water resource,
and will not degrade a fishery.
3:14:25 PM
REPRESENTATIVE TUCK assured the committee he was not trying to
hold back the resolution, but to make the resolution more
attractive for other states to support.
REPRESENTATIVE LYNN expressed his support of the amendment.
3:15:15 PM
A roll call vote was taken. Representatives Petersen, Tuck, and
Lynn voted in favor of Amendment 1. Representatives Saddler,
Foster, and Pruitt voted against it. Therefore, Amendment 1
failed by a vote of 3-3.
3:16:13 PM
CO-CHAIR PRUITT moved to report HJR 23, Version 27-LS0660\M, out
of committee with individual recommendations and the
accompanying fiscal note. There being no objection, HJR 23 was
reported from the House Special Committee on Energy.
3:16:39 PM
^OVERVIEW: Department of Natural Resources on the natural gas
potential in the Nenana River basin, the Susitna River basin,
the Copper River Valley basin, and the Bering Sea region
OVERVIEW: Department of Natural Resources on the natural gas
potential in the Nenana River basin, the Susitna River basin,
the Copper River Valley basin, and the Bering Sea region
3:17:16 PM
CO-CHAIR FOSTER announced that the next order of business would
be a presentation by the Department of Natural Resources on the
natural gas potential in the Nenana River basin, the Susitna
River basin, the Copper River Valley basin, and the Bering Sea
region.
3:18:46 PM
BOB SWENSON, Director, Central Office, Division of Geological &
Geophysical Surveys, Department of Natural Resources (DNR),
advised that activities in the Cook Inlet basin and the North
Slope basin are well reported, and his presentation will focus
on other sedimentary basins around the state. He displayed a
slide that showed an outcropping of sandstone rock on the Kenai
Peninsula which is typical of tertiary basins throughout Alaska.
Slide 1 titled, "Alaska's Sedimentary Basins Oil & Gas
Potential" was a digital elevation model which showed mountains,
valleys, sedimentary basins, and population centers. He
explained that the North Slope basin is from the Mesozoic period
and contains the oil and gas presently under production;
however, about 65 million years ago, the southern part of the
state went through a phase of uplift and erosion that created a
series of tertiary basins, which are the focus of his
presentation. Slide 2, titled, "Subduction and Tectonics Drive
the System," showed an oceanic crust subducting beneath a
continental crust, thereby creating new crust at an oceanic
spreading ridge. As the subducting plate encounters a
continent, it sinks into the Earth's mantle, loses rigidity, de-
waters, and creates zones of volcanoes. Slide 3 titled, "Alaska
is Complex, Both Topographically & Geologically," explained that
Alaska is complex because the subducting plate underneath is not
smooth, and causes many active volcanoes, earthquakes, and very
large crustal-scale faults, such as the Denali Fault which
traveled and left behind large tertiary basins. Slide 4 titled,
"South Alaska Terranes," showed the "docking" of the large
Yakutat block which slid along the strike-slip system of the
west coast of North America until colliding in the south Alaska
region, and causing deformation in Interior Alaska and in the
Cook Inlet.
3:24:26 PM
REPRESENTATIVE SADDLER asked whether the Yakutat block moved
north.
MR. SWENSON explained that the Yakutat block slid along the West
Coast until it encountered southern Alaska and the Aleutian
Trench, then it accreted onto the continent causing deformation
in Interior Alaska. Mr. Swenson displayed slide 5 titled,
"Mountain Building and Depressions," and pointed out the
location of the Denali Fault and the Castle Mountain Fault -
active faults that currently present geo-hazard. He said there
is a continuation of mountain-building as a result of the
strike-slip motion of the Yakutat block. Following the
mountain-building, the topography begins to erode, leaving
depressions along the fault systems. Although the depressions
are different, they were filled by organic deposits from the
meandering rivers and with sandstone; in fact, in parts of the
Cook Inlet region, the sediment layer is almost five miles
thick. Slide 7 showed a cross-section of several wells in the
Beluga River Gas Field, and illustrated the material that is
encountered in the wellbore, such as coals, sand bodies, and
reservoir quality sands that trap the natural gas. Later in
time - and as a result of deformation in the basin - the
deposits are "folded" in the layers of sand, soapstones, and
coals.
3:29:31 PM
MR. SWENSON, in response to Representative Saddler, indicated
that on slide 8, the colored lines represent geologic formations
in the subsurface of Cook Inlet. He emphasized that in tertiary
basins, petroleum systems are created by the temperature of the
rock as layers of organic carbon left by marine animals or
terrestrial plants are changed by heat and depth. If the basin
does not get hot enough to create oil, there are biogenetic
systems that are pure natural gas, as is 90 percent of the Cook
Inlet. The gas sits in place until folding and uplifting
occurs, which reduces the pressure and allows the gas to migrate
into the structure of the rock.
3:32:25 PM
REPRESENTATIVE SADDLER surmised the accumulation material that
creates the sandstone comes from the erosion of the mountains
into lower areas.
MR. SWENSON said correct; in fact, all of the material is
generated in the mountain ranges and is carried by streams into
the basins, as long as the basin continues to subside. In
further response to Representative Saddler, he explained that
the temperature of the rock depends on the geothermal gradient,
which is the amount of heat and depth. A normal geothermal
gradient in Alaska is about 25 degrees per kilometer, thus at
10,000 feet, one would expect to measure 200 degrees Fahrenheit.
A depth of 18,000-20,000 feet is required to create enough heat
to generate hydrocarbons. Slide 9 was a map which displayed the
location of all of the exploration wells in the state. Slide 10
was a map that showed technically recoverable natural gas
resources estimated by the U.S. Geological Survey (USGS); the
analysis ranged wildly from basin to basin. Slide 11 was a map
which indicated the geology of the Yukon-Koyukuk/Upper Tanana
Energy Region, including Yukon, Nenana, Copper River, and
Susitna basins. Slide 12 indicated the thickness of the Nenana
sedimentary tertiary basin and its two sub-basins that have been
explored for the last 20 years. Slide 13 was a cross-section of
well-logs associated with different areas in the Nenana basin,
which illustrated the stratigraphy of the basin.
3:38:38 PM
MR. SWENSON displayed a picture of an uplifted rock outcrop
located in the Usibelli Group, south of the Nenana Exploration
License Area, with thick layers of coals between thick layers of
coarse sandstones; gas is generated by the coals, and the
sandstones reservoir the gas. He noted that portions of the
Nenana basin are up to 18,000 feet thick, the oil potential is
low, and there is little seismic data available from the '80s.
Two exploratory wells have been drilled, but only in a shallower
part of the basin.
3:40:14 PM
REPRESENTATIVE SADDLER asked for the meaning of a "basement
high."
3:40:18 PM
MR. SWENSON explained that the "basement" is what the tertiary
basin sits on, and a "basement high" is the portion that has
been elevated by a fault, thus it becomes the high point in the
basement of the basin. Returning to statistics on the Nenana
basin, he noted that there is significant deformation along the
southern margin, including large folds and uplift stratigraphy,
which are an indication for further exploration. Slide 16 was a
diagram of the Yukon Flats basin, indicating a large and deep
basin approximately 23,000 feet thick, and associated with the
Tintina Fault. The Yukon Flats basin has the same tertiary
stratigraphy with coals, sandstones, organic material, and fair
potential for the presence of natural gas. In the Railbelt
region, the Sustitna basin has two sub-basins with an uplifted
area - a basement high - in between. Mr. Swenson said there
has been little exploration in this region; however, an upcoming
two-year study will soon begin. Slide 18 provided a generalized
geologic map of the Susitna lowlands and a Bouguer gravity map
of the Susitna lowlands, for analysis. The stratigraphy of the
Susitna basin is similar to the Cook Inlet basin in that it is
separated by the active Castle Mountain Fault, and with a
tertiary section 15,000 feet deep, limited oil-generative
capabilities are indicated. Two wells drilled in the '60s
revealed the basin is gas-prone - but no oil-source rocks have
been identified to date - and further mapping is scheduled. The
Copper River basin is also similar to the Cook Inlet basin, but
with only 3,000 feet of tertiary rock. Its western portion has
Mesozoic rock; however, the rest of the basin is surrounded by
metamorphic and volcanic rock. Eleven wells have been drilled,
and there is limited gravity and magnetic data. Although the
area is gas-prone, no commercial discoveries have been
announced.
3:46:10 PM
MR. SWENSON turned to the offshore area of the Bering Shelf
basins, which is an area of very large wrench tectonics and big
strike-slip systems that create accommodation space for deposits
of sand, coal, and shale. It is important to note these are
primarily gas plays in the Hope, Norton, Navarin, St. George,
and North Aleutian basins, containing mainly non-marine coals
and continental-type deposits. In order to explain why there
are non-marine coals and terrestrial deposits in the Bering Sea,
he provided slides of the changes in the shoreline of the Bering
land bridge over the last 20,000 years.
3:47:49 PM
MR. SWENSON, in response to Representative Saddler, said the
darker colors on the slides indicate higher elevations. Twenty
thousand years ago the Bering land bridge was completely
exposed, explaining why coals and non-marine stratigraphy is
found in basins out on the Bering Shelf. Slide 24 was a map of
the North and Hope basins on the Seward Peninsula, which are
tertiary basins that were created along the Kaltag Fault. Slide
26 was a cross-section of the Norton Basin structure that showed
many faults and areas of significant deposits, and reveals
trapping configurations for accumulations of natural gas or oil.
Mr. Swenson reviewed the exploration history of Norton basin
beginning in 1982, and noted that all of the exploration wells
had indications of natural gas, or weak "oil shows." He
explained that a "gas show" means there is an indication of the
presence of gas in the mud column pulled up from the ground;
"oil shows" are found by looking at the mud samples under a
black light. Slide 28 was a geology summary of Norton basin and
he pointed out the mid-tertiary west sub-basin play has the best
potential for reservoir quality; in fact, the Minerals
Management Service (MMS) estimated the basin contains 1.6
trillion cubic feet (tcf) of gas.
3:54:06 PM
MR. SWENSON described the Navarin basin as the largest and most
remote of the Bering Shelf basins. It is 32,000 square miles in
size, and is up to 36,000 feet thick. Between 1983 and 1987,
nine wells were drilled and all indicated gas shows or limited
oil-prone source rocks, and he concluded there is very good
exploration potential for this area. At this time, there is not
a federal lease sale scheduled, although MMS estimated there are
500 million barrels of technically recoverable oil (mmbo) and 6
tcf of gas in the Navarin basin. Mr. Swenson's final slide was
titled, "Alaska Energy Data Inventory," and he explained his
division is assembling an inventory of its work around the state
in order to better understand each area, and geographic
information on all of the basins and their stratigraphy is
distributed on DNR's website.
3:55:31 PM
CO-CHAIR FOSTER asked why the potential of the North Aleutian
basin was not presented.
MR. SWENSON explained the North Aleutian basin was not included
in his presentation because there is a lot of information
available on it, and on the Bristol Bay basin; in fact, state
onshore lease sales have been held, seismic work has been done,
and there is tremendous potential there with thick sequences of
tertiary rock.
3:56:55 PM
CO-CHAIR FOSTER observed the Navarin basin appears to be located
in Russia.
MR. SWENSON agreed that some of the basin is in Russian
territory, but American waters have been explored by Atlantic
Richfield Oil Company (ARCO).
REPRESENTATIVE TUCK asked for the meaning of "unfiltered gas."
3:57:47 PM
MR. SWENSON clarified he meant to say "pure methane gas" with a
single molecule. This gas is unlike gas in a thermogenic system
that has lots of associated liquids, but it is like Cook Inlet
gas, which does not have to be processed at the surface.
REPRESENTATIVE SADDLER asked Mr. Swenson to rank the basins on
their prospects for exploration.
3:58:43 PM
MR. SWENSON acknowledged ranking at this time is difficult due
to the lack of information. Generally, basins can be ranked by
thickness; for example, the Copper River basin only has 3,000
feet, and its tertiary section would be limited, whereas a basin
with a layer 23,000 feet thick has more generative capacity.
Also, deformation, uplifting, and unfolding to release the gas -
as found in the Nenana, Yukon, and Susitna basins - is key. The
final challenge is the distance from the well site to existing
infrastructure compared to the size of the prize; these basins
are relatively small and exploration is expensive.
4:00:23 PM
REPRESENTATIVE PETERSEN asked whether the wells are searching
for "traditional" gas, coalbed methane, shale gas, or a
combination thereof.
MR. SWENSON advised that there is a lot of unconventional
potential for these basins; as a matter of fact, the basins
under discussion have a lot of coal and some potential for
coalbed methane. He described the process necessary to have a
viable coalbed methane play. He said marine shales - like what
are being delineated in the Lower 48 - are not likely to be
found in Interior basins.
4:02:08 PM
CO-CHAIR PRUITT called attention to the Susitna basin and its
possibilities for gas. He asked about the potential for finding
gas there, and the feasibility of getting it to the market in
Southcentral.
4:03:19 PM
MR. SWENSON affirmed that his division is continuing to gather
geological information in this region. He pointed out there are
two depocenters in the basin, and areas of deformation along the
Castle Mountain Fault; in addition, there is tertiary
stratigraphy similar to that of Cook Inlet. He explained that
the previous exploration of this area was limited because there
is no oil, and this basin does not have the generative potential
of Cook Inlet. However, although the Susitna basin may not have
the highest generative potential, it is attractive to industry
because of its proximity to infrastructure and market.
4:05:18 PM
CO-CHAIR FOSTER asked for the impact of future government
regulations possibly "clamping down on coal," and encouraging
the use of cleaner-burning fuels.
MR. SWENSON advised that the geology of any of the basins under
discussion is good enough for exploration in the Lower 48, but
their location in Alaska limits exploration. Another limiting
factor is that because of the cost of exploration, the industry
must look for a very large accumulation, which probably will not
be found in a smaller basin. In the long-term, providing the
industry with more data will allow explorers to focus on a given
area.
4:07:40 PM
REPRESENTATIVE SADDLER asked for the source and the sufficiency
of the division's data.
MR. SWENSON said the division does not have sufficient data to
totally classify the basins. One source of data is airborne
gravity, airborne geophysics, and magnetics. Also, there is
seismic data from the '60s through the '80s, gathered during
exploration drilling in the Bering Sea and the Interior basins.
Other data available is ground mapping; however, in the basins
proper, there are limited rock outcroppings. In further
response to Representative Saddler, Mr. Swenson indicated that
the prospects for more data include continuous mapping around
the state for more surface information. Some data is
confidential, and can be used for interpretation by the state,
but cannot be published.
4:10:19 PM
CO-CHAIR PRUITT referred to the potential of the Navarin basin,
and asked whether newer technologies will allow access to its
resources.
MR. SWENSON said yes, and added that technology is advancing in
surface and subsurface drilling techniques. However, problems
with the Navarin basin are its remote location, distance from
infrastructure, and the cost of exploration. He opined a large
company would need to expect 6 tcf of gas from a single field,
rather than the entire basin, in order to justify an exploration
program there.
4:12:30 PM
CO-CHAIR PRUITT surmised some resources will be trapped by
location and other limiting factors.
MR. SWENSON acknowledged that 15 years ago he did not believe
there would be the production of oil and gas out of shale;
however, although "things change," gas in the basins is a
stranded resource right now.
4:13:33 PM
The committee took an at-ease from 4:13 p.m. to 4:19 p.m.
4:19:04 PM
^OVERVIEW(S): RURAL CAP'S ENERGY WISE PROGRAM TO REDUCE ENERGY
COSTS
OVERVIEW(S): RURAL CAP'S ENERGY WISE PROGRAM TO REDUCE ENERGY
COSTS
4:19:11 PM
CO-CHAIR FOSTER announced that the final order of business would
be a presentation on RurAL CAP's Energy Wise Program to Reduce
Energy Costs.
4:19:22 PM
SARA SCANLAN, Deputy Director, Rural Alaska Community Action
Program, Inc. (RurAL CAP), informed the committee RurAL CAP
assists over 90 communities around the state with proven
programs such as early childhood education, housing programs,
construction, weatherization, community development, supportive
housing, and energy programs. She expressed support for the
committee's work on alternative and traditional energy sources
to reduce the energy burden of Alaskans. Ms. Scanlan observed
that at this time of year rural communities are getting ready to
order their annual supplies of fuel oil and gas, and there is
concern about the effect of rising prices on elders, senior
citizens, and others who live on fixed incomes. The following
presentation illustrated how state investment can produce jobs,
create disposable income, and return a quick pay-off of the
state's investment, and also provided data supporting the
benefits of the Energy Wise program. Ms. Scanlan concluded that
the Energy Wise Program provides another alternative to reduce
the energy burden on residents, and to fill the gap in
affordable energy until large renewable energy projects are
done.
4:22:43 PM
CATHIE CLEMENTS, Community Development Division Director, Rural
Alaska Community Action Program, Inc. (RurAL CAP), explained
RurAL CAP's Energy Wise Program is targeted to address the high
cost of energy in rural Alaska that can amount to 30-40 percent
of a rural resident's disposable income. At this time, programs
available to combat this high cost, such as the state's energy
efficiency weatherization and home rebate programs, are hard for
rural residents to access because of the requirements for energy
audits and the payment of up-front costs. Therefore, RurAL CAP
designed the Energy Wise Program to meet the immediate needs of
rural residents through energy efficiency education and behavior
change. The program was piloted in 2010 with Community Service
Block Grant - American Recovery and Reinvestment Act of 2009
(CSBG-ARRA) funding, and its goals are: save money on home
energy bills through behavior change and low-cost home upgrades
that can be completed by the resident; create local jobs to
provide training and education in energy efficiency. Ms.
Clements relayed the immediate benefits of the program are:
cost savings for both the resident and the state in that one
dollar saved by a rural resident saves the state two dollars in
support of the Power Cost Equalization (PCE) program; employment
and training of local crews.
4:27:27 PM
MS. CLEMENTS continued, noting that the long-term and
sustainable benefit of the program is that it teaches behaviors
that will benefit communities and families for years to come.
An effective model of behavior change requires several
meaningful contacts, thus the program is designed for
interaction with residents at many levels; for example, the
first contact is with local crews. Next, residents are invited
to an energy fair that involves the entire community and
provides an opportunity for residents to sign up for home
assessments. During the home assessments, local crews of two to
three members spend eight hours in the home, reviewing energy
bills and advising on the use of energy. Residents are also
provided with about $300 worth of installed energy supplies,
such as compact fluorescent lamp (CFL) bulbs. Three to six
months after the home assessment, there is a follow-up visit by
one or two members of the crew to provide additional education
and to conduct a survey of savings. Ms. Clements pointed out
that the Energy Wise Program complements - but does not replace
- the weatherization program, which focuses on physical energy
improvements to a home, and instead "Energy Wise looks at that
people part, the behavior change." Targeted communities for
the pilot program were those that were not receiving
weatherization; however, RurAL CAP is interested in partnering
with existing programs and providing education in all
communities. In fact, implementation of the Energy Wise pilot
program was possible in collaboration with other organizations
including: Alaska Housing Finance Corporation, Department of
Revenue; Alaska Energy Authority, Department of Commerce,
Community & Economic Development; Denali Commission; U.S.
Department of Energy; regional and local organizations;
Renewable Energy Alaska Project; University of Alaska-Anchorage,
Institute of Social and Economic Research, which provided the
evaluation component; Alaska Village Electric Cooperative, which
provided "one-year before and one-year after" electricity bills.
Ms. Clements concluded by calling attention to the letters of
support provided in the committee packets from NANA Regional
Corporation, Tanana Chiefs Conference, Central Council Tlingit
Haida Indian Tribes of Alaska, Tlingit-Haida Regional Housing
Authority, Northwest Arctic Borough, Denali Commission, Alaska
Native Tribal Health Consortium, U.S. Department of Energy,
National Renewable Energy Lab, rural tribal councils, and
residents.
4:32:52 PM
ELLEN KAZARY, Community Development Manager, Rural Alaska
Community Action Program, Inc. (RurAL CAP), emphasized RurAL
CAP's pilot Energy Wise Program was very successful: 160 rural
Alaskans were trained and employed; 2,000 homes were served
within a 12-month period; 90 percent of the crew members
completed training and the project; education was provided to
7,500 residents; energy and money were saved. The training of
local crew members included certifications in weatherization,
Occupational Safety and Health Administration (OSHA), and first
aid, with the idea that certification in these areas would
ensure crew members' future employment in the fields of
construction and maintenance. Ms. Kazary provided a slide
that showed the energy-saving supplies that were installed in
homes, and said the items were all low-cost, low-tech, easy to
install, and easy to replace. She acknowledged that energy
efficiency and conservation is often taught with "passive
education;" however, this program - through home visits and
personal contact - provides personal incentives for change. She
presented slides and further details on crew training, home
assessments, and energy fairs, and stressed that the final
survey is conducted in person during an additional home visit to
answer questions and discuss results. Energy fairs were
described as exciting community events involving members of the
community of all ages.
4:39:28 PM
REPRESENTATIVE PETERSEN asked for information on the shipping
costs and the source of the energy-saving supplies.
MS. KAZARY responded that the $300 cost of goods included an
average of shipping costs, and that any supplies available were
purchased in-state. She continued to provide slides that showed
crew training, the delivery of supplies, safety equipment, and
tools, and of crew members in homes installing materials,
teaching maintenance on appliances, and reading energy bills.
The program makes extensive use of a "Kill-a-Watt meter," which
indicates the power used by an appliance or an electronic
device. Many slides portrayed crews working with residents in
their homes. Ms. Kazary turned to the results of the pilot
program and relayed that residents immediately reported $20-$30
per month saved in the cost of electricity, and that their homes
were warmer. The following additional information was gleaned
from 700 surveys: 86 percent reported they were following
energy efficiency and conservation measures; 80 percent reported
decreased electric bills; 82 percent reported decreased home
heating costs. To determine the Energy Wise Project payback,
she said the total cost of the program including crews,
management, training, travel, supplies, and shipping, averaged
about $2,000 per home and savings in energy bills averaged $50
per month per home; therefore, residents are saving about $600
per year and PCE is reduced by $468 per year, per home. These
figures indicate that the project payback is less than three
years. Furthermore, before the program was available, the
average residential electric bill was $186 for 287.5 kilowatt
hours (kWhs) per month, and of that $63 was paid by the resident
and $123 was paid by PCE. After Energy Wise, the average bill
was $127 for 195.7 kWhs per month, and of that $43 was paid by
the resident and $84 paid by PCE, for an average savings of $20
to the resident and $39 to PCE per month.
MS. KAZARY advised RurAL CAP's 2011 budget request to the state
is $1.96 million, which will be leveraged with $1 million in
matching funds from NANA Regional Corporation and other
partners. RurAL CAP's goal for 2011 is to provide Energy Wise
services to 1,500 homes in 10-15 communities, and to hire,
train, and certify 150 local residents. A breakdown of the
Energy Wise budget indicated approximately one-half was
dedicated for employment, approximately one-quarter was
dedicated for supplies, and approximately one-quarter was
dedicated for logistics and management.
4:49:11 PM
MS. KAZARY observed that as a result of the Energy Wise Program,
projected annual savings to residents is approximately $765,000,
and projected annual savings to PCE is $596,700, for a total of
$1.3 million. As the cost of the Energy Wise Program is
estimated at $3 million per year, she restated that the project
payback in savings to the state will be two to three years.
4:49:59 PM
DIANA RAMOTH informed the committee her village was selected for
the Energy Wise program because of the high cost of electricity
and fuel there. She said two of her sons were hired to work for
the program and trained at her house. After training, her sons
helped other villagers learn how to save electricity. She has
benefitted from the program and is now able to pay her bill on
time. Ms. Ramoth stated her energy costs have been reduced by
about 50 percent, and she appreciated how the program benefits
elders, and trains young people for work.
4:54:35 PM
REPRESENTATIVE PETERSEN commended the program. He asked whether
the jobs are permanent.
MS. KAZARY explained that the jobs last 8-14 weeks. Some of the
crew leaders train crews in nearby communities, and RurAL CAP is
establishing a network so weatherization programs and housing
authorities know of the local residents who have received
training.
4:56:21 PM
CO-CHAIR FOSTER observed that even a few jobs have a big effect
on small communities.
CO-CHAIR PRUITT, after receiving confirmation that 2,000 homes
were served last year, expressed his concern that federal money
may not be available in the future.
4:59:39 PM
MS. KAZARY affirmed that RurAL CAP has a contract with NANA
Regional Corporation for $860,000 and it is optimistic about its
applications to other partners.
REPRESENTATIVE SADDLER asked in what region the homes targeted
for next year are located.
5:00:24 PM
MS. CLEMENTS stated RurAL CAP's intent is to have a fair and
open application process for communities and regions, and that
the applications will be evaluated with regard to each
community's needs and resources. Funding from the state and
other partners will ensure that communities across the state
benefit from the program.
5:01:32 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 5:01 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR 23 - 01 Original Version, Version M.PDF |
HENE 3/24/2011 3:00:00 PM |
HJR 23 |
| HJR 23 - 03 National Hydropower Association Study Highlights.pdf |
HENE 3/24/2011 3:00:00 PM |
HJR 23 |
| HJR 23 - 02 Sponsor Statement.pdf |
HENE 3/24/2011 3:00:00 PM |
HJR 23 |
| HJR 23 - 04 Senator Lisa Murkowski Hydro Renewable Energy Development Act of 2011.pdf |
HENE 3/24/2011 3:00:00 PM |
HJR 23 |
| HJR 23 - 05 Legislative Affairs Agency Fiscal Note, HJR23-LEG-COU-3-21-2011.pdf |
HENE 3/24/2011 3:00:00 PM |
HJR 23 |
| Bob Swenson Presentation on Sedimentary Basins of Alaska.pdf |
HENE 3/24/2011 3:00:00 PM |
Bob Swenson Presentation on Sedimentary Basins of Alaska |
| HJR 23 - 06 Amendment #1.pdf |
HENE 3/24/2011 3:00:00 PM |
HJR 23 |
| Energy Wise Overview for Energy Committee by RurAL CAP.pdf |
HENE 3/24/2011 3:00:00 PM |
RurAL CAP Presentation |