Legislature(2013 - 2014)BARNES 124
03/27/2013 08:00 AM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Interior Rural Energy: Opportunities to Move Forward | |
| Presentation(s): Alaska Energy: Problems & Solutions | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
March 27, 2013
8:02 a.m.
MEMBERS PRESENT
Representative Doug Isaacson, Co-Chair
Representative Charisse Millett, Co-Chair
Representative Neal Foster
Representative Pete Higgins
Representative Shelley Hughes
Representative Benjamin Nageak
Representative Andy Josephson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION(S): INTERIOR RURAL ENERGY: OPPORTUNITIES TO MOVE
FORWARD
- HEARD
PRESENTATION(S): ALASKA ENERGY: PROBLEMS & SOLUTIONS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JULIE ROBERTS-HYSLOP, Vice President
Tanana Chiefs Conference (TCC)
Fairbanks, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation
entitled, "Interior Rural Energy: Opportunities to Move
Forward," and dated 3/27/13.
DAVID PELUNIS-MESSIER, Rural Energy Coordinator
Tanana Chiefs Conference (TCC)
Fairbanks, Alaska
POSITION STATEMENT: Participated in the PowerPoint presentation
by Tanana Chiefs Conference.
BERNIE KARL, Owner
Chena Power; Chena Hot Springs; K and K Recycling
Fairbanks, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation
entitled, "Alaska Energy/Economy: Problems and Solutions."
ACTION NARRATIVE
8:02:11 AM
CO-CHAIR DOUG ISAACSON called the House Special Committee on
Energy meeting to order at 8:02 a.m. Representatives Josephson,
Hughes, Nageak, Millett, and Isaacson were present at the call
to order. Representatives Foster and Higgins arrived as the
meeting was in progress.
^PRESENTATION(S): INTERIOR RURAL ENERGY: OPPORTUNITIES TO MOVE
FORWARD
PRESENTATION(S): INTERIOR RURAL ENERGY: OPPORTUNITIES TO MOVE
FORWARD
8:03:23 AM
CO-CHAIR ISAACSON announced that the first order of business
would be a presentation by the Tanana Chiefs Conference.
8:03:43 AM
JULIE ROBERTS-HYSLOP, Vice President, Tanana Chiefs Conference
(TCC), informed the committee Tanana Chiefs Conference
represents 42 Interior villages. She said she was born and
raised in the village of Tanana which is located 130 miles from
Fairbanks on the confluence of the Yukon and Tanana Rivers.
Every summer the village's freight comes by barge on the rivers.
Ms. Roberts-Hyslop provided a brief history of her work for her
tribe, and said she represents a lot of people. The energy
issue continues to be a challenge for people who choose to live
in villages; they make this choice because it is their home.
The presentation will provide the committee with insight on
village life. In Tanana, community members have improved
building standards and are looking at renewable energy such as
using biomass to heat the washeteria. Over the past few years
using wood has led to tremendous savings and brought the cost of
living down.
8:07:15 AM
DAVID PELUNIS-MESSIER, Rural Energy Coordinator, Tanana Chiefs
Conference (TCC), said the TCC region consists of 42 member
villages representing 37 federally recognized tribes throughout
the Interior, who live in some of coldest regions in the nation.
The mission of TCC is to provide a unified voice in advancing
sovereign tribal governments through the promotion of physical
and mental wellness, education, socioeconomic development, and
the culture of the Interior Alaska Native people [slide 2].
His organization believes one way to fulfill this mission is by
the use of sustainable energy. The TCC region covers about
235,000 square miles and makes up about 37 percent of the state;
the size of the region creates challenges in the transportation
of energy, goods, and individuals [slide 3]. In Arctic Village
fuel costs $10 per gallon and electric rates are very high.
Mr. Pelunis-Messier displayed a map provided by the Alaska
Energy Authority (AEA), Department of Commerce, Community &
Economic Development, showing the different resources that are
available across the state. In the TCC region, most of the area
is still dependent upon diesel fuel for heating and for
electrical generation, however, there are efforts to return to
biomass for heating schools, city buildings, and tribal
buildings. Fuel from biomass provides employment, is
sustainable, does not have to be imported into the region, and
provides energy security. For example, because there is limited
storage for diesel fuel, in winter villages may only have one
week's supply of fuel for electrical generation. Energy
security is a serious problem, in addition to the fact that the
cost is equivalent to six to ten times that of Anchorage. Also,
high energy costs are a barrier to economic development [slide
4]. Information provided by the Institute for Social and
Economic Research (ISER), University of Alaska Anchorage (UAA),
shows that low-income households in remote communities spend up
to 47 percent of their income on fuel [slide 5]. The high cost
of fuel also has a detrimental effect on subsistence activities
and on the cost of travel and goods. For example, a roundtrip
flight from Galena costs about $380, and freight to some
communities costs $0.85 per pound [slide 6].
8:12:28 AM
MR. PELUNIS-MESSIER continued, saying that space heating is the
biggest challenge in rural communities; in fact, about $0.75 of
every "energy dollar" per household goes to pay for space
heating. Schools and community buildings suffer from this cost,
as do businesses [slide 7]. He noted that TCC passed a
resolution to increase efficiency standards in Tanana, which
will be discussed later in the presentation. In terms of
opportunities, he praised the AEA Village Energy Efficiency
Program (VEEP), which provides funds for the assessment of
village electrical loads, and remediation. The work funded by
this program provides significant long-term reductions in energy
use. Also, the AEA Rural Power Systems Upgrade Program (RPSU)
has funded power systems upgrades in several communities. In
addition, renewables such as solar, biomass, and wind are adding
energy security and lowering cost. Mr. Pelunis-Messier said TCC
strongly supports the liquefied natural gas (LNG) trucking plan
because it has the potential to lower the cost of propane in
rural Alaska.
8:16:06 AM
MS. ROBERTS-HYSLOP said that in the summer 100-pound bottles of
propane come by barge to Tanana at a cost of $150 each. During
winter, the cost can be $190 each.
MR. PELUNIS-MESSIER described a project at the Nenana Teen Rec
Center where solar panels were installed for lights and hot
water. During an evaluation of power use, he discovered that if
one 75-watt exterior light was replaced with one 20-watt light,
the energy saved was equivalent to that generated by one solar
panel.
CO-CHAIR ISAACSON questioned whether lower wattage is sufficient
for an outdoor security light.
MR. PELUNIS-MESSIER advised that replacing 250-watt bulbs with
60-watt light-emitting diode (LED) streetlights is efficient and
effective. The light may not spread equally, but the quality of
light is good. For security light applications, adding a motion
sensor is especially efficient [slide 8]. Mr. Pelunis-Messier
returned attention to the TCC resolution on energy standards in
Tanana. He observed that new homes are built in rural Alaska
and on the road system in the Interior that are not designed for
"14,000 heating degree days." However, TCC passed Resolution
2013-111 that states, "Buildings financed with public money
shall seek to achieve the following efficiency standards: roof,
R-100; walls, R-70; and floor/slab, R-50." He cautioned that
even projects funded with state money are currently built
without the use of high efficiency materials [slide 9].
8:22:49 AM
CO-CHAIR ISAACSON asked for a definition of heating degree days.
MR. PELUNIS-MESSIER explained that it is a standard of measuring
how cold an area is for the purpose of comparing the climate of
different regions.
REPRESENTATIVE NAGEAK asked for data from the house in Anaktuvuk
Pass built by the Cold Climate Housing Research Center, Inc.
MR. PELUNIS-MESSIER answered that he worked on the solar array
and wind turbine for that project and said it is a fantastic
success. The house was cheaper to construct than standard homes
in that area and uses much less fuel. The style of construction
incorporated Native knowledge of the area by using traditional
sod materials. He returned attention to the presentation,
stressing that the reason Fairbanks is having air quality
problems is because inefficient homes have been built there for
the last 50 years. A graph showed that over the average life
cycle of a building, 84 percent of the costs are operating
expenses such as heating, maintenance, and electricity, thus
spending more upfront to increase efficiency will result in
significant reductions in the overall life cycle costs [slide
10]. Mr. Pelunis-Messier said biomass is a name for burning
wood more efficiently by using gasification technology.
Tanana's biomass project is an example of how heat can be
provided locally in most of the Interior. In 2006, the City of
Tanana was importing about 30,000 gallons of diesel fuel at a
cost of $150,000 to heat the washeteria, sewer loop, shop, and
fire hall. The city manager instigated biomass projects and in
2013, Tanana only needed to import 12,000 gallons of heating
fuel. The savings stayed in the community and paid residents to
harvest wood, creating job opportunities [slide 11]. A "rain
barrel model" is a way to visualize money that goes in and out
of a community; for example, energy dollars come into a
community from government sources, and if those funds are used
to pay for fuel oil or gasoline, the funds leave the community
immediately, which is a dynamic that needs to change. To
facilitate change, residents are working with AEA and in
partnership with regional housing authorities to install biomass
projects.
8:30:43 AM
REPRESENTATIVE HUGHES asked whether Tanana is using biomass for
its city buildings, and whether the supply of fuel is
sustainable.
MR. PELUNIS-MESSIER indicated yes.
MS. ROBERTS-HYSLOP added that the first biomass projects in
Tanana were the washeteria and the teacher housing units. The
next project was to install wood-burning heat for the fire
station that also includes a housing unit. Recently, three
units have been installed at the school. The source of wood is
driftwood brought by the river which is dry wood, and many tons
of it can be harvested by residents. Standing dead timber is
also a source of wood.
MR. PELUNIS-MESSIER noted that the local village corporation has
designated an island as a wood cutting lot and TCC's forestry
department is ensuring that the harvest is sustainable by
conducting biomass assessments.
REPRESENTATIVE FOSTER expressed his support of harvesting
biomass for savings, jobs, and fire safety. He asked whether
there are impediments to any community that wishes to harvest
biomass on state land.
MS. ROBERTS-HYSLOP said TCC is working on partnerships with
village corporations and federal and state entities for the
purpose of harvesting timber. Harvesters stay close to their
communities because of the cost of transportation, and try to
harvest during the summer when the wood is readily accessible.
8:37:10 AM
CO-CHAIR ISAACSON observed that driftwood passes through
different communities, and asked whether the resource is
sufficient to supply areas where there is not much biomass
material available.
MS. ROBERTS-HYSLOP advised high-level water in the spring brings
more driftwood than can be used by Tanana and the excess floats
down to the next community.
REPRESENTATIVE NAGEAK asked whether residents in Tanana are also
modernizing their wood stoves as is happening in Fairbanks.
MS. ROBERTS-HYSLOP acknowledged modern woodstoves are very
efficient. Her personal experience is that a two-story house
can be kept warm with wood heat.
MR. PELUNIS-MESSIER advised that the Interior Regional Housing
Authority is installing many efficient Blaze King stoves and
conducts a training program on the use of a catalytic converter.
8:40:50 AM
REPRESENTATIVE NAGEAK asked whether large outside furnaces are
used to heat community buildings.
MR. PELUNIS-MESSIER indicated no. Certain outdoor wood burning
appliances lose a lot of heat and efficiency. The best use is a
simple unit with a burn box, blower, and thermal storage located
in a mechanical room. Normally, the homeowner sets a thermostat
once.
REPRESENTATIVE HIGGINS relayed that peat moss is also a source
of biomass.
REPRESENTATIVE HUGHES recalled her previous experience heating
with a wood stove was negative.
MS. ROBERTS-HYSLOP assured the committee the stoves are
regulated and burn all day without tending.
REPRESENTATIVE JOSEPHSON asked how much the stoves cost.
8:44:20 AM
MR. PELUNIS-MESSIER answered a small Blaze King stove costs
$2,500 and larger wood gasification systems can cost from
$12,000 to $20,000. A heating system for a building must
include the associated wood delivery set-up. In response to
Representative Hughes, he said the most efficient wood
gasification systems have a water thermal storage component. He
returned to the presentation and compared the cost of fuel
sources, pointing out that a cord of white spruce is equivalent
to about 130 gallons of fuel oil [slide 12]. The harvesting and
storage of wood is best kept simple [slide 13]. Regarding
propane, TCC passed Resolution 2013-12 which supports the LNG
trucking plan as a future source of propane for villages at one-
half of the present cost [slide 14]. He stressed that all
projects - even those on the cutting edge of technology - must
be simple; for example, the In-Stream Hydrokinetic Turbine
project in Ruby was high maintenance, challenging, and not
properly scaled for the community [slide 15]. He returned
attention to the Nenana Rec Center project, and discussed the
installation of a programmable thermostat [slide 16]. An
example of an energy model that should be followed is: 1.
Collect Data & Plan; 2. Efficiency First; and 3. Renewable
Energy (Biomass! Solar!) [slide 17].
8:51:34 AM
REPRESENTATIVE MILLETT asked whether the aforementioned model
was provided in the AEA Alaska Energy Pathway document.
MR. PELUNIS-MESSIER opined a plan for efficiency first may be in
the book but is often ignored. For example, the Manley Hot
Springs Tribal Council built a tribal complex beyond the
terminus of the power line, and so ran a 35 kilowatt generator
at a cost of $70,000 in diesel fuel per year [slide 18]. After
an efficiency assessment, the council reduced its use of
electricity by replacing electric heat, dryers, and a hot water
heater with propane, and replacing lights with LEDs. These
changes decreased the electrical maximum load from 35 kilowatts
to 16 kilowatts. The final goal is to supplement electrical
generation with solar [slides 19-21].
8:55:48 AM
REPRESENTATIVE MILLETT relayed AEA believes interest in energy
efficiency is waning and asked whether Mr. Pelunis-Messier
agreed.
MR. PELUNIS-MESSIER advised "People like being able to come
before the legislature and come before their constituents with
energy projects, with wind turbines, with solar panels ... they
don't see the energy savings." A necessary part of any
efficiency project is keeping track of the reduction in
electrical use, which can be complicated. He said he strives to
showcase efficiency projects just as often as renewables,
because efficiency projects have a better payback and less
maintenance than new renewable projects. In rural communities,
payback on efficiency projects can be as short as five months.
REPRESENTATIVE HIGGINS recalled Rural Alaska Community Action
Program, Inc. (RurAL CAP) seeks to expand its Energy Wise
Program to other areas of the state. He asked whether TCC works
with other organizations on energy efficiency issues.
MS. ROBERTS-HYSLOP assured the committee TCC has good
relationships with other nonprofits although they may have
different circumstances. Her village works with the City of
Tanana, Native corporations, and tribes.
9:00:13 AM
REPRESENTATIVE MILLETT inquired as to whether willow can be used
for biomass fuel.
MS. ROBERTS-HYSLOP said that hasn't been explored yet.
REPRESENTATIVE JOSEPHSON was impressed by Mr. Pelunis-Messier's
work.
MR. PELUNIS-MESSIER closed, saying funds appropriated to
weatherization, energy efficiency, and the AEA Renewable Energy
Fund Grant program are appreciated and are put to the best use
possible.
9:02:37 AM
The committee took an at-ease from 9:02 a.m. to 9:04 a.m.
^PRESENTATION(S): ALASKA ENERGY: PROBLEMS & SOLUTIONS
PRESENTATION(S): ALASKA ENERGY: PROBLEMS & SOLUTIONS
9:05:04 AM
CO-CHAIR ISAACSON announced that the final order of business
would be a presentation by Bernie Karl of Chena Power.
9:05:27 AM
BERNIE KARL, Owner, Chena Power, Chena Hot Springs, and K and K
Recycling, informed the committee he and his wife own three
businesses and employ 140 workers in the state. He gave a short
history of his life growing up in a large family where he was
taught that hard work makes good luck. He said Alaska and the
nation have an addiction to oil and greed but there are
opportunities for Alaska. His vision is for Alaska to become a
self-sustaining state by following a plan for cheap energy and a
vibrant economy without using federal or state money [slide 1].
Three problems - or opportunities - for Alaska are fuel source,
energy delivery, and food security [slide 2]. The bigger
problem is that except for savings, the state is out of money,
and having less money requires innovation and the practical
application of intelligence [slides 3 and 4]. Alaska has enough
innovation, intelligence, and money to solve its problems [slide
5].
9:11:59 AM
MR. KARL said one example of innovation is the use of a Rife Ram
water pump to water gardens and plants without electricity.
Other examples are to use geothermal heat to generate
electricity - a unit that will do this cost $400,000 and will
generate electricity for $0.06 per kilowatt hour (kWh) - or to
grow food, which is just as important. At this time residents
in Alaska buy all of their food and grow very little. Mr. Karl
said his greenhouses at Chena Hot Springs grow food at -60
degrees [slide 6]. In addition, Fairbanks is currently
recycling cardboard, paper, and glass to generate heat and
electricity [slide 7]. From this technology has come the Chena
Power Energy System which is the largest screw expander in the
world. The unit runs with a synchronous generator and produces
300 net kWh without a grid. Mr. Karl advised this new
technology will change the way Alaskans look at energy and -
when sized down to 2.5 kWh - will make every home grid-
independent [slide 8].
9:15:59 AM
CO-CHAIR ISAACSON asked how this technology will serve
residential needs.
MR. KARL said residential units cost $5,000 each and are made in
China; the units will be available August 18, 2013, at the
Alaska Renewable Energy Fair. He explained the unit needs no
foundation or building because the generator comes in a box. In
addition, in Fairbanks the ash is combined with crushed glass
and used to make geopolymer cement which is stronger than
Portland cement [slide 9]. He provided images of small units
sized for a home or community buildings, and for units that burn
coal, wood pellets, wood chips, barley, or corn. He said a unit
can produce 100 kWh of power from coal, and noted that the
average kilowatt usage in villages is 100 kWh. Also soon to be
available is a unit that gasifies coal at a cost of $1.75 per
gallon. The units are financed through GE Capital, General
Electric Corporation, at 6.5 percent interest. Mr. Karl opined
small units can be paid for with energy savings, and there is a
demonstration unit at Chena Hot Springs [slide 10]. A combined
heat/power component can be added to the system that will
provide energy at $0.10 per kWh [slide 11]. Also available for
viewing at Chena Hot Springs are modular year-round controlled
environment grow systems. The grow chambers are self-contained
and are ideal to grow lettuce and vegetables. These units use
no herbicides, pesticides, or fertilizer and can grow barley
with nutrients from the sea for animal fodder [slides 12 and
13]. He restated that the state does not need to finance these
projects.
9:24:27 AM
MR. KARL turned attention to landfills, and stated that a
solution to unsightly landfills in villages is a firebox unit
that is approved for use in Class 11 or Class l11 landfills.
The unit costs between $90,000 and $500,000 and is equipped with
water panels to store heat, and burns very hot with an air
curtain. The unit makes sense for every community because it
will burn trash and capture heat [slide 14].
REPRESENTATIVE HIGGINS asked whether the unit can burn
everything.
MR. KARL said yes, adding that nothing is separated and the 2
percent of metal and glass left can be raked out and recycled.
His said his goal is to deliver coal to the villages for a
guaranteed price. The villages will have no risk but to sign a
100-year contract. He invited everyone to see the units in
operation.
REPRESENTATIVE JOSEPHSON cautioned that some solid waste is
noxious if burned.
MR. KARL pointed out that there is very little industry in
villages. If present, hazardous waste must be separately
handled, but the Department of Environmental Conservation (DEC)
has approved this unit for normal household waste burned at
1,800 degrees.
REPRESENTATIVE NAGEAK expressed interest in seeing the unit.
9:29:27 AM
CO-CHAIR ISAACSON asked how the unit is fueled.
MR. KARL answered that the unit is lit with cardboard, paper, or
a gallon of diesel fuel, and then "goes catalytic." Mr. Karl
restated his belief in the products he described and offered to
provide a tour at Chena Hot Springs Resort, K and K Recycling,
or Chena Power [slides 15-17].
CO-CHAIR ISAACSON asked Mr. Karl to explain how to make these
products into an integrated system.
MR. KARL suggested beginning with efficiency such as using
highly efficient materials in new construction even when energy
is available. Also, converting to light-emitting diode (LED)
lights saves the Chena Hot Springs Resort 120 kWh. He
encouraged communities to use the resources available, or to use
coal which is a cheaper resource than wood. He emphasized that
businesses that keep money in the state will grow wealth. There
are many possibilities for all of Alaska if residents can follow
a model and make the best choices for their situation. He
provided more examples of the use of technology to mimic nature.
CO-CHAIR ISAACSON observed the availability of energy will
attract other industry, and suggested that the committee attend
the energy fair and tour Mr. Karl's facility at North Pole.
9:40:52 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 9:40 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Agenda Energy Committee March 27.pdf |
HENE 3/27/2013 8:00:00 AM |
|
| Interior Rural Energy.pdf |
HENE 3/27/2013 8:00:00 AM |
|
| Problems and Solutions.pdf |
HENE 3/27/2013 8:00:00 AM |