Legislature(2021 - 2022)BARNES 124
04/13/2021 10:15 AM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| HB170 | |
| SB69 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 69 | TELECONFERENCED | |
| *+ | HB 170 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
April 13, 2021
10:17 a.m.
MEMBERS PRESENT
Representative Calvin Schrage, Chair
Representative Matt Claman
Representative Tiffany Zulkosky
Representative Zack Fields
Representative George Rauscher
Representative James Kaufman
MEMBERS ABSENT
Representative Chris Tuck
COMMITTEE CALENDAR
HOUSE BILL NO. 170
"An Act establishing the Alaska energy independence program and
the Alaska energy independence fund in the Alaska Industrial
Development and Export Authority; and providing for an effective
date."
- HEARD & HELD
SENATE BILL NO. 69 AM
"An Act extending an exemption from regulation as a public
utility for plants and facilities generating electricity
entirely from renewable energy resources; and providing for an
effective date."
- MOVED SB 69 AM OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 170
SHORT TITLE: ENERGY INDEPENDENCE PROGRAM & FUND: AIDEA
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
04/09/21 (H) READ THE FIRST TIME - REFERRALS
04/09/21 (H) ENE, L&C, FIN
04/13/21 (H) ENE AT 10:15 AM BARNES 124
BILL: SB 69
SHORT TITLE: EXEMPT RENEWABLE ENERGY ELECTRIC PLANTS
SPONSOR(s): REVAK
02/03/21 (S) READ THE FIRST TIME - REFERRALS
02/03/21 (S) L&C
02/10/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/10/21 (S) <Bill Hearing Canceled>
02/15/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/15/21 (S) Heard & Held
02/15/21 (S) MINUTE(L&C)
03/03/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/03/21 (S) Moved SB 69 Out of Committee
03/03/21 (S) MINUTE(L&C)
03/05/21 (S) L&C RPT 1DP 3AM
03/05/21 (S) DP: COSTELLO
03/05/21 (S) AM: GRAY-JACKSON, STEVENS, HOLLAND
03/31/21 (S) TRANSMITTED TO (H)
03/31/21 (S) VERSION: SB 69 AM
04/05/21 (H) READ THE FIRST TIME - REFERRALS
04/05/21 (H) ENE, L&C
04/06/21 (H) ENE AT 10:15 AM ADAMS 519
04/06/21 (H) Heard & Held
04/06/21 (H) MINUTE(ENE)
04/13/21 (H) ENE AT 10:15 AM BARNES 124
WITNESS REGISTER
ALAN WEITZNER, Executive Director
Alaska Industrial Development and Export Authority
Anchorage, Alaska
POSITION STATEMENT: Presented HB 170 on behalf of the bill
sponsor, House Rules by request of the governor.
ACTION NARRATIVE
10:17:38 AM
CHAIR CALVIN SCHRAGE called the House Special Committee on
Energy meeting to order at 10:17 a.m. Representatives Claman,
Zulkosky, Rauscher, and Schrage were present at the call to
order. Representatives Fields and Kaufman arrived as the
meeting was in progress.
CHAIR SCHRAGE announced that Representative Zulkosky would be
vice chair.
HB 170-ENERGY INDEPENDENCE PROGRAM & FUND: AIDEA
10:18:33 AM
CHAIR SCHRAGE announced that the first order of business would
be HOUSE BILL NO. 170, "An Act establishing the Alaska energy
independence program and the Alaska energy independence fund in
the Alaska Industrial Development and Export Authority; and
providing for an effective date."
10:18:45 AM
ALAN WEITZNER, Executive Director, Alaska Industrial Development
and Export Authority, presented HB 170 on behalf of the bill
sponsor, House Rules by request of the governor. He explained
that HB 170 would facilitate the financing of sustainable energy
development projects through a separately managed fund created
within the Alaska Industrial Development and Export Authority
(AIDEA). He highlighted that AIDEA has worked in collaboration
with Chris Rose with the Renewable Energy Alaska Project and
Jeffrey Schub with the Coalition for Green Capital. He went on
to explain that according to a 2018 statistic from the U.S.
Energy Administration, Alaska energy consumption per capita
ranks the highest in the U.S., close to 2.5 times the national
average, a statistic he attributed to Alaska's need for heating
in the winter as well as energy intensive industries.
MR. WEITZNER pointed to Alaska's potential for renewable
energies and opined that HB 170 would help develop that
potential to address the high demand. He highlighted that
Alaska's energy cost is ranked eleventh in the U.S. but said
that because of the high demand, Alaska consumers spend over
$8,000 per year per capita on energy, and 10.83 percent of
Alaska's gross domestic product (GDP) goes to energy
expenditures. He explained that the Alaska energy independence
fund (AEIF) serves a public purpose by addressing the cost of
power and overall demand for energy in the state. He explained
that often the reference for AEIF is "green bank." It functions
as a private/public entity that uses "modest" amounts of public
funding to leverage private capital to accelerate investment
into clean energy projects.
10:23:00 AM
MR. WEITZNER explained that green banks do not literally
function as banks, rather they are dedicated public finance
corporations that act as a catalyst for clean energy
development. They build a range of projects and programs tailor
made to communities that would otherwise not have been
developed, mobilize private capital by reducing barriers, and
aim to make energy cleaner and cheaper. Most importantly, AEIF
would create a tangible economic impact by creating jobs,
reducing the cost of power, and renewing investment into
communities.
10:24:21 AM
MR. WEIZNER explained that statewide implementation of AEIF,
with an initial capitalization of $5-10 million, benchmarks very
well with the GDP per capita of similar green banks in New York
and Maryland. He explained that through comparison of sizing,
AIDEA came to request $10 million for the fund. He highlighted
that the effectiveness of benchmarked entities comes from their
capacity to leverage capital. New York and Maryland were able
to achieve 7-8 times the initial capital investment thanks to
private industry contribution. He stated his belief that Alaska
could achieve similar growth.
10:27:48 AM
REPRESENTATIVE FIELDS asked about the relationship between the
initial capitalization and the resulting capacity for projects.
MR. WEIZNER explained that the leverage they can achieve is a
multiple of 6 to 8 times the initial investment.
10:29:18 AM
REPRESENTATIVE KAUFMAN asked if initial spending is front end
loaded with private industry support coming in later.
MR. WEIZNER answered that it is front end loaded. In response
to a follow-up question, he said it takes three to five years to
reach six to eight times the returns.
MR. WEIZNER continued by reiterating the benefits of the fund.
He opined that Alaska has the minerals needed to supply electric
vehicle manufacturers a "safe, clean, and domestic" supply of
batteries. He said if the state was able to sustain 10 percent
reduction in the cost of power, then the amount of capital being
provided back to consumers would range from $800 to $25,000.
10:33:39 AM
CHAIR SCHRAGE asked if AEIF would facilitate the production of
raw materials in any way.
MR. WEIZNER answered it would not.
10:34:26 AM
REPRESENTATIVE CLAMAN asked how the fund fits in with AIDEA's
work developing resources.
MR. WEIZNER explained that the goal of AIDEA is to promote
economic development, and that supporting economic growth in the
clean energy sector is another way of fulfilling that mission.
He pointed out that AIDEA has several funds devoted to a variety
of projects. In response to a follow-up question, he said AIDEA
would provide a list and description of all the funds under
AIDEA to the committee.
10:37:10 AM
MR. WEIZNER continued the presentation on slide 8, explaining
that HB 170 has been worded to match a federal bill that creates
funding to capitalize clean energy projects nationwide; it would
create the fund to make capital available to borrowers for
sustainable energy development projects.
10:39:50 AM
REPRESENTATIVE ZULKOSKY asked Mr. Weizner to describe the types
of projects that may qualify with respect to "microgrid."
MR. WEIZNER explained that in that case the projects would be
smaller scale and focus on local distribution.
10:40:34 AM
MR. WEIZNER continued by explaining that the financing and
investments for AEIF would be leveraging capital with Alaska's
financial sector. He said the primary targets would be
financing loans, the returns of which would be reinvested into
sustainable energy development within the state. He said the
fund would begin with appropriations from the legislature, with
matching investment from federal funds, and ultimately leverage
cooperation with Alaska's financial institutions. He talked
about the expected benefits of the fund, including financial
innovation and the removal of perceived project risk.
10:44:42 AM
REPRESENTATIVE ZULKOSKY asked how loans would be crafted to
reduce barriers to borrowing for rural communities.
MR. WEIZNER answered that HB 170 would help rural communities
through three areas in the structure of the legislation. The
first is the creation of an advisory board that will provide
input on the programs, underlying markets, and issues within
rural communities and the programs that can be applied to them.
He highlighted a "best practices" element. The second area he
highlighted is close cooperation with the Alaska Energy
Authority (AEA) who address many of those issues in rural areas.
The third area he highlighted is the purpose of the AEIF to
create programs that are tailor made for Alaska's unique energy
needs.
REPRESENTATIVE ZULKOSKY asked what kind of engagement would be
done to address the "tailor made" programs to ensure an
equitable opportunity for small and remote communities that are
currently off the railbelt.
MR. WEIZNER relied that the programs would be structured based
on the input from the advisory board. He highlighted that HB
170 was written to be flexible to address those issues.
10:49:29 AM
MR. WEIZNER next addressed workflow. He explained that with the
establishment of the initial capital, AEIF would start a
conversation on specific tools for the implementation of the
fund. He then explained how AIDEA will work with AEA.
10:53:11 AM
REPRESENTATIVE ZULKOSKY asked if there are any specifics within
the legislation regarding who will be appointed to the advisory
board.
MR. WEIZNER said that is included in the sectional analysis,
which he would address subsequently.
10:53:39 AM
REPRESENTATIVE KAUFMAN asked what metrics are built into the
program to measure the success of the fund to ensure efficacy.
MR. WEIZNER explained that the structure of the fund itself
means that the cost efficiencies within AIDEA and AEA benefit
the fund directly, and the fund would be self-sustaining with
the budget proposed.
10:55:38 AM
REPRESENTATIVE FIELDS asked how the bill positions Alaska to
capitalize on federally available resources should they
materialize. He asked specifically what would happen to federal
funding should HB 170 not pass.
MR. WEIZNER answered that HB 170 has been structured to mirror
the federal legislation. He said he could not address what
would happen should HB 170 fail.
10:57:41 AM
MR. WEIZNER moved on to talk about the statutes that define the
reasons AIDEA should contain the AEIF. He highlighted the
intent in the creation of AIDEA to stimulate economic
development through the end use of resources. He then provided
the sectional analysis [hard copy included in the committee
packet].
11:06:25 AM
CHAIR SCHRAGE announced that HB 170 was held over.
SB 69-EXEMPT RENEWABLE ENERGY ELECTRIC PLANTS
11:06:45 AM
CHAIR SCHRAGE announced that the final order of business would
be SENATE BILL NO. 69 am, "An Act extending an exemption from
regulation as a public utility for plants and facilities
generating electricity entirely from renewable energy resources;
and providing for an effective date."
11:07:26 AM
REPRESENTATIVE ZULKOSKY moved to report SB 69 am out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, SB 69 am was reported
out of the House Special Committee on Energy.
11:07:57 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 11:08 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 69 version A.pdf |
HENE 4/6/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| SB 69 am Version A.A.PDF |
HENE 4/6/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| SB 69 am Summary of Changes.pdf |
HENE 4/6/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| SB 69 am Sponsor Statement.pdf |
HENE 4/6/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| SB 69 Legal Opinion 3.4.21.pdf |
HENE 4/6/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM |
SB 69 |
| SB 69 DCCED Fiscal Note.pdf |
HENE 4/13/2021 10:15:00 AM |
SB 69 |
| HB 170 - Presentation - Alaska Energy Independence Fund - April 2021.pdf |
HENE 4/13/2021 10:15:00 AM |
HB 170 |
| HB 170 Sponsor Statement-Transmittal Letter (4.8.21).pdf |
HCRA 4/15/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB0170A (1).PDF |
HCRA 4/15/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Sectional Analysis (Version A).pdf |
HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM |
HB 170 |
| HB 170 Fiscal Note - Version A (AIDEA).pdf |
HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM |
HB 170 |
| HB 170 Fiscal Note - Version A (Fund Capitalization).pdf |
HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM |
HB 170 |
| REAP - HB 170 & SB 123 Letter of Support - 4.11.21.pdf |
HENE 4/13/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 SB 123 |
| HB 170 Supporting - A Green Bank for Alaska - REAP - 2020.pdf |
HCRA 4/15/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Supporting - Green Bank Opportunity Report - MOA - May 2020.pdf |
HCRA 4/15/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Supporting - Green Banks in the U.S. - 2020.pdf |
HCRA 4/15/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 |