Legislature(2009 - 2010)BARNES 124

01/26/2010 03:00 PM ENERGY


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03:05:44 PM Start
03:06:08 PM HB305|| HB306
04:00:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 305 OMNIBUS ENERGY BILL TELECONFERENCED
Heard & Held
*+ HB 306 STATE ENERGY POLICY TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                        January 26, 2010                                                                                        
                           3:05 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bryce Edgmon, Co-Chair                                                                                           
Representative Charisse Millett, Co-Chair                                                                                       
Representative Kyle Johansen                                                                                                    
Representative Pete Petersen                                                                                                    
Representative Chris Tuck                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Nancy Dahlstrom                                                                                                  
Representative Jay Ramras                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 305                                                                                                              
"An Act  relating to energy;  relating to the board  of directors                                                               
of   the  Alaska   Energy  Authority;   amending  the   size  and                                                               
composition  of  the board  of  directors  of the  Alaska  Energy                                                               
Authority  by  removing  the members  of  the  Alaska  Industrial                                                               
Development  and  Export Authority  as  directors  of the  Alaska                                                               
Energy Authority and providing for  designation or appointment of                                                               
other members; amending  the quorum requirement for  the board of                                                               
directors  of  the  Alaska  Energy  Authority;  and  relating  to                                                               
nuclear waste material."                                                                                                        
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 306                                                                                                              
"An Act declaring a state energy policy."                                                                                       
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to report                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CHRIS ROSE, Executive Director                                                                                                  
Renewable Energy Alaska Project (REAP)                                                                                          
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Participated  in the  presentation  of  a                                                             
report titled, "Energy Policy for Alaska."                                                                                      
                                                                                                                                
BILL POPP, President & CEO                                                                                                      
Anchorage Economic Development Corporation (AEDC)                                                                               
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Participated  in the  presentation  of  a                                                             
report titled, "Energy Policy for Alaska."                                                                                      
                                                                                                                                
JEFF TURNER, Staff                                                                                                              
Representative Charisse Millett                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Introduced  HB 305 on  behalf of  the House                                                             
Special Committee on Energy.                                                                                                    
                                                                                                                                
ADAM BERG, Staff                                                                                                                
Representative Bryce Edgmon                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Presented the sectional analysis  of HB 306                                                             
on behalf of the House Special Committee on Energy.                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:05:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  BRYCE  EDGMON called  the  House  Special Committee  on                                                             
Energy meeting  to order  at 3:05  p.m.  Present  at the  call to                                                               
order were  Representatives Johansen, Tuck, Millett,  and Edgmon.                                                               
Representative Petersen arrived as the meeting was in progress.                                                                 
                                                                                                                                
3:06:08 PM                                                                                                                    
                                                                                                                                
                   HB 305-OMNIBUS ENERGY BILL                                                                               
                   HB 306-STATE ENERGY POLICY                                                                               
                                                                                                                                
3:06:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EDGMON announced  that the only order  of business would                                                               
be the  introduction of HOUSE BILL  NO. 305, "An Act  relating to                                                               
energy; relating to  the board of directors of  the Alaska Energy                                                               
Authority;  amending the  size and  composition of  the board  of                                                               
directors of the Alaska Energy  Authority by removing the members                                                               
of  the Alaska  Industrial  Development and  Export Authority  as                                                               
directors  of  the  Alaska Energy  Authority  and  providing  for                                                               
designation or appointment of other  members; amending the quorum                                                               
requirement  for the  board  of directors  of  the Alaska  Energy                                                               
Authority;  and relating  to nuclear  waste material,"  and HOUSE                                                               
BILL NO. 306, "An Act declaring a state energy policy."                                                                         
                                                                                                                                
3:06:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT informed  the committee that the  purpose of the                                                               
first  bill heard  today, HB  306, is  to codify  a state  energy                                                               
policy.  Alaska is one of  the few states that currently does not                                                               
have  a  stated  policy,  or  guidelines  for  developing  energy                                                               
strategies  for  energy independence.    The  bill was  primarily                                                               
written   by   the   House   Energy   Stakeholders   Group   with                                                               
participation   by   committee    members,   staff,   and   other                                                               
legislators.   She  said, "It's  a really  great, great  piece of                                                               
work that  they did,"  and anticipated the  passage of  the bill.                                                               
House Bill  305, the omnibus  bill, includes provisions  from the                                                               
best  of  nine  bills  proposed  last  session,  plus  additional                                                               
language regarding public education and public facilities.                                                                      
                                                                                                                                
3:08:29 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  MILLETT  recalled the  time  the  committee spent  last                                                               
year, and  during the  interim, travelling  to 13  communities to                                                               
hear from Alaskans.   In fact, the committee  held the first-ever                                                               
legislative  hearing  during  the Alaska  Federation  of  Natives                                                               
(AFN) annual  meeting, and  also held a  hearing with  the Alaska                                                               
Municipal League (AML).                                                                                                         
                                                                                                                                
3:09:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EDGMON  invited testimony  pertaining  to  HB 306,  the                                                               
proposed state energy policy legislation.                                                                                       
                                                                                                                                
3:10:30 PM                                                                                                                    
                                                                                                                                
CHRIS ROSE,  Executive Director, Renewable Energy  Alaska Project                                                               
(REAP), said  he participated in  the energy  stakeholders group.                                                               
Alaska  does  not  have  an  energy policy  that  looks  at  "how                                                               
Alaskans are going to get their  energy."  The bill is a holistic                                                               
vision  of  how  the  state will  develop  energy  resources  for                                                               
residential, commercial, and industrial  uses, including the need                                                               
for electricity, heating, and transportation.   Mr. Rose said the                                                               
bill  contains the  guiding  principles that  are  needed to  set                                                               
goals, but not the actual  goals or plans, for the implementation                                                               
of  projects.   He noted  the stakeholder  group was  diverse and                                                               
included:  Representatives  Bryce  Edgmon and  Charisse  Millett,                                                               
House  Special Committee  on Energy  Co-Chairs;  Adam Berg,  Jeff                                                               
Turner,  and Larry  Persily,  legislative  staff; Gwen  Holdmann,                                                               
Alaska Center  for Energy and  Power; Robert  Venables, Southeast                                                               
Conference; Scott  Goldsmith, Institute  for Social  and Economic                                                               
Research; Jason  Brune, Resource Development Council  for Alaska,                                                               
Inc.; John  Davies, Alaska Cold Climate  Housing Research Center;                                                               
Ralph  Andersen,  Bristol  Bay  Native  Association;  Bill  Popp,                                                               
Anchorage  Economic Development  Corporation;  Bob Pawlowski  and                                                               
Denali  Daniels,  Denali   Commission;  Caitlin  Higgins,  Alaska                                                               
Conservation   Alliance;   Stacy    Schubert,   Municipality   of                                                               
Anchorage;  Marilyn  Leland,  Alaska Power  Association;    Meera                                                               
Kohler, Alaska  Village Electric Cooperative; Ron  Miller, energy                                                               
consultant; Chris Rose, REAP; and Kathy Wasserman, AML.                                                                         
                                                                                                                                
3:12:36 PM                                                                                                                    
                                                                                                                                
BILL  POPP,  President  &  CEO,  Anchorage  Economic  Development                                                               
Corporation,  said   he  was  honored   to  be  a  part   of  the                                                               
stakeholders group.  The purpose and  focus of this effort was to                                                               
develop an energy policy as  a foundation from which to establish                                                               
goals, and  also to design  strategic initiatives from  a policy,                                                               
legislative,  and  spending  point  of view.    He  advised  that                                                               
adoption  of  this  policy  will   align  the  efforts  of  state                                                               
government  and its  political subdivisions  with the  efforts to                                                               
spend and invest  in the energy future of the  state.  The policy                                                               
will also lead to the  development of a comprehensive energy plan                                                               
to achieve the strategic goals.                                                                                                 
                                                                                                                                
3:14:12 PM                                                                                                                    
                                                                                                                                
MR.  ROSE noted  that the  Railbelt Regional  Integrated Resource                                                               
Plan (RIRP)  was used  by the stakeholders  group as  an example.                                                               
He  acknowledged  that  the  plan  will  need  to  recognize  the                                                               
geographical  diversity  of  Alaska;   at  first,  there  may  be                                                               
regional  plans  from  which  will   be  developed  programs  and                                                               
projects that will reach the set goals.                                                                                         
                                                                                                                                
3:14:58 PM                                                                                                                    
                                                                                                                                
MR. POPP  continued to  explain that  the principles  guiding the                                                               
process accept  that the  future success  of Alaska's  economy is                                                               
tied   to  available,   reliable,  and   affordable  energy   for                                                               
residential,  commercial,  and  industrial   users.    Also,  the                                                               
worldwide supply and demand for  fossil fuels, and concerns about                                                               
climate  change, will  affect the  price  of fossil  fuel in  the                                                               
future.    Because of  these  factors,  Alaska must  become  more                                                               
diversified.                                                                                                                    
                                                                                                                                
3:15:59 PM                                                                                                                    
                                                                                                                                
MR.  ROSE  advised  that  the   state  must  anticipate  what  is                                                               
happening in the worldwide economy,  and consider that the supply                                                               
and  demand of  fossil  fuels will  drive  prices up;  therefore,                                                               
energy efficiency  is "super important."   The stakeholders group                                                               
was unanimous on  the need to highlight energy  efficiency in the                                                               
legislation.    Beyond  that,  the   group  wanted  to  encourage                                                               
economic  development  by the  promotion  of  renewable and  non-                                                               
renewable  energy resources  under a  sustainable fiscal  regime.                                                               
The  stakeholders group  also included  language in  the bill  to                                                               
identify  and   assist  with  workforce   development,  technical                                                               
assistance, and research and development  for new energy sources.                                                               
Finally,   the  last   aspect  in   the   bill  is   coordinating                                                               
governmental functions  to ensure  that regulatory  processes are                                                               
streamlined and available to all residents and federal agencies.                                                                
                                                                                                                                
3:18:18 PM                                                                                                                    
                                                                                                                                
MR. POPP explained the starting point of the policy was the Tri-                                                                
Borough Commission Energy  Policy.  This policy  was initiated in                                                               
October,   2007,   by    the   Matanuska-Susitna   Borough,   the                                                               
Municipality of  Anchorage, and the Kenai  Peninsula Borough, and                                                               
was written  by a task  force of members  representing utilities,                                                               
renewable  energy,  industrial  and  commercial  users,  and  the                                                               
University  of Alaska  (UA).   Through a  consensus process,  the                                                               
task  force  adopted a  document  that  was  used by  the  energy                                                               
stakeholders group as a starting point;  in fact, 16 of its goals                                                               
are  incorporated  in  the proposed  energy  policy  legislation.                                                               
Although the Tri-Borough Commission  Energy Policy is specific to                                                               
the Southcentral region, the stakeholders  group agreed that many                                                               
of the principles in this policy could be applied statewide.                                                                    
                                                                                                                                
3:20:04 PM                                                                                                                    
                                                                                                                                
MR. ROSE then described the process  that led to the work done by                                                               
the  stakeholders group.    The group  met  monthly beginning  in                                                               
July, 2009, through  December, 2009.  At one  point, the document                                                               
ballooned up  to seven  or eight pages  of "pet  goals"; however,                                                               
the group  decided to stick to  the original purpose and  write a                                                               
set  of   guiding  principles.     Nevertheless,   the  following                                                               
legislative intent remains in the  bill: a 15 percent increase in                                                               
energy efficiency  on a per  capita basis between 2010  and 2025;                                                               
50 percent  electrical energy generation  by renewable  energy by                                                               
2025; work  to ensure a  reliable in-state gas supply;  and using                                                               
the  power  project  loan  fund  as  the  main  source  of  state                                                               
assistance for energy projects.                                                                                                 
                                                                                                                                
3:22:24 PM                                                                                                                    
                                                                                                                                
MR.  POPP  re-stated that  the  first  step  is to  establish  an                                                               
overarching energy policy that brings  into alignment all aspects                                                               
of state government  and its political subdivisions.   The second                                                               
step  is  to develop  the  strategic  goals  that flow  from  the                                                               
policy.   The  third and  final  step is  to adopt  the plans  to                                                               
achieve the goals  and implement programs and  projects to ensure                                                               
overall success for a secure energy future in Alaska.                                                                           
                                                                                                                                
3:24:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  thanked the  participants for  their service                                                               
and hard work.                                                                                                                  
                                                                                                                                
3:24:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EDGMON stated  that public  testimony on  HB 305  would                                                               
begin at the next meeting on 1/28/10.                                                                                           
                                                                                                                                
3:25:12 PM                                                                                                                    
                                                                                                                                
JEFF  TURNER, staff  to Representative  Charisse Millett,  Alaska                                                               
State Legislature, advised  that HB 305 is the result  of a year-                                                               
long  effort to  determine how  to  meet the  current and  future                                                               
energy needs  of Alaskans.   The committee held hearings  in nine                                                               
communities  statewide  and,  on   10/23/09,  held  a  first-ever                                                               
hearing  at   an  Alaska  Federation  of   Natives  (AFN)  annual                                                               
convention.   The  results of  those hearings  are HB  306, State                                                               
Energy Policy,  and HB 305,  Omnibus Energy Bill.   The following                                                               
bills were  incorporated into the  omnibus energy bill:   HB 148,                                                               
Energy Efficiency  Standards for  Public Buildings,  sponsored by                                                               
Representative  Les  Gara;  HB  191,  Nuclear  Power  Production,                                                               
sponsored by  Representative Craig  Johnson; HB  196, Alternative                                                               
Energy Revolving Loan  Fund; HB 218, State  Department of Energy,                                                               
and  HB 219,  Renewable Energy  Grant Requirements,  sponsored by                                                               
the  House  Special Committee  on  Energy;  SB 31,  sponsored  by                                                               
Senator  Lesil McGuire;  SB 71,  Alternative  Energy Systems  for                                                               
Public  Works,  sponsored by  Senator  Gene  Therriault; SB  121,                                                               
Energy Efficiency  Standards for  Public Buildings,  sponsored by                                                               
the  Senate Resources  Standing Committee;  and SB  150, Emerging                                                               
Energy Technology Fund, sponsored by Senator  Lesil McGuire.                                                                    
                                                                                                                                
3:27:26 PM                                                                                                                    
                                                                                                                                
MR. TURNER continued  to explain that HB 305 is  the framework of                                                               
the  omnibus  energy  bill  that   will  be  refined  during  the                                                               
legislative session.                                                                                                            
                                                                                                                                
3:27:47 PM                                                                                                                    
                                                                                                                                
ADAM  BERG, staff  to Representative  Bryce Edgmon,  Alaska State                                                               
Legislature,  presented   the  sectional  analysis  of   HB  305.                                                               
Section 1,  a provision provided  by the House  Special Committee                                                               
on  Energy,  requires  the  Department  of  Education  and  Early                                                               
Development  (EED)  to assure  energy  efficiency  in public  and                                                               
private schools  that would  meet or  exceed requirements  of the                                                               
2009  International Energy  Conservation Code.   Section  2, also                                                               
provided  by the  committee,  requires EED  to  review plans  for                                                               
construction of new  schools to ensure energy  efficiency, and to                                                               
look at  existing power sources  in a community  when determining                                                               
new school sites.   Section 3, a provision from  HB 191, adds the                                                               
term "facility" regarding permitting  for nuclear materials.  Mr.                                                               
Berg noted  the goal of this  provision is to remove  the express                                                               
prohibitions related to the consideration  of nuclear energy that                                                               
are  currently  in  state  statute.     Section  4  requires  the                                                               
legislature to  act in the  interest of regulating  the economics                                                               
of nuclear energy  when locating a nuclear  facility, and removes                                                               
the requirement for  approval from the governor.   Sections 5 and                                                               
6 are conforming amendments related  to HB 218, the department of                                                               
energy bill.   Section 7, a  provision from HB 148,  requires the                                                               
Alaska  Supreme  Court  to  comply  with  the  state  energy  use                                                               
reduction plan.   Section 8,  a provision  from SB 71,  tasks the                                                               
Department  of Transportation  &  Public  Facilities (DOT&PF)  to                                                               
review  the  option of  using  alternative  energy when  adopting                                                               
plans  and  specifications  for  public  works.    Section  9,  a                                                               
provision  from   HB  148,  requires  an   agency  requesting  an                                                               
appropriation  of over  $1,000,000  for  capital improvements  to                                                               
submit an energy  audit report, a proposal  for energy efficiency                                                               
improvements,  and  a  cost-savings  analysis.    Section  10,  a                                                               
provision from HB 218, adds the  board of directors of the Alaska                                                               
Energy Authority (AEA) to the  state's official list of boards or                                                               
commissions.     Section   11  moves   the  Alaska   Natural  Gas                                                               
Development  Authority (ANGDA)  to the  new department  of energy                                                               
from the Department  of Revenue (DOR); Section 12  relates to the                                                               
methodology used by  AEA to weigh project  proposals, and Section                                                               
13 requires AEA  to hire an economist or  analyst with experience                                                               
in renewable energy to prepare  written evaluations of each grant                                                               
proposal.   Mr. Berg advised  that AEA  will be available  to the                                                               
committee for  an update  on these requirements.   Section  14, a                                                               
provision of SB 150, creates  the emerging energy technology fund                                                               
that  will  be  used  to  make  grants  or  loans  for  research,                                                               
development,  or  demonstration  projects designed  to  test  new                                                               
energy technologies,  or methods of conserving  energy to improve                                                               
existing  technologies,  or  to applied  research  projects  that                                                               
employ emerging  technologies that  are not  commercially viable.                                                               
Mr.  Berg pointed  out that  HB 305  differs from  SB 150  in the                                                               
administration of the fund.   Section 15 amends the definition of                                                               
"power project"  or "project" to allow  nuclear energy production                                                               
as  it  applies  to  projects  in AS  42.45  covering  rural  and                                                               
statewide energy  programs.   Section 16, a  provision of  SB 31,                                                               
adds the renewable  energy production tax credit  as an exception                                                               
to a  tax credit  limitation set for  corporations.   Section 17,                                                               
also  a provision  from  SB 31,  establishes  a renewable  energy                                                               
production tax credit  as part of the Alaska Net  Income Tax Act.                                                               
He pointed  out that  "renewable energy" is  defined on  page 13,                                                               
lines 8-9,  of the bill.   Section 18,  a provision from  HB 218,                                                               
adds the  department of  energy to the  list of  state government                                                               
offices  and  departments.    Section   19,  also  from  HB  218,                                                               
establishes   the  department   of   energy,   and  within   that                                                               
department,   creates   the    home   energy   conservation   and                                                               
weatherization program.   Section  20, a  provision from  SB 121,                                                               
tasks  DOT&PF with  updating the  energy use  index database  and                                                               
conducting   energy  audits   of  public   facilities  that   are                                                               
determined to have substantial energy  inefficiency.  Section 21,                                                               
a provision  from SB 121, requires  DOT&PF to submit a  report to                                                               
the legislature summarizing the energy  audits.  Section 22 tasks                                                               
DOT&PF with preparing  and adopting a state  energy use reduction                                                               
plan, and entering into performance energy contracts.                                                                           
                                                                                                                                
3:36:11 PM                                                                                                                    
                                                                                                                                
MR. BERG continued  to explain that Section 23,  a provision from                                                               
HB  218, transfers  AEA  to  the department  of  energy from  the                                                               
Department  of   Commerce,  Community,  &   Economic  Development                                                               
(DCCED).   Section  24 reconstitutes  the membership  of the  AEA                                                               
board of directors and removes  the Alaska Industrial Development                                                               
and  Export Authority  (AIDEA) members.    As a  result, the  AEA                                                               
board will include  the commissioners of energy  and revenue, and                                                               
a  commissioner   and  four  public  members   appointed  by  the                                                               
governor.   Section 25  is a conforming  statute for  Section 24.                                                               
Section 26, a provision from SB  121, directs AEA to establish an                                                               
energy  use  index  for  public  facilities  that  would  measure                                                               
baseline  energy   consumption  data   for  all   state-owned  or                                                               
controlled  facilities.     Section   27  adds   "nuclear  energy                                                               
production" to the definition of  "power project" or "project" as                                                               
it  applies to  projects  subject  to the  AEA.    Section 28,  a                                                               
provision from  HB 196, amends  the alternative  energy revolving                                                               
loan  fund by  adding  potential funding  sources  for the  fund.                                                               
Section  29  assures  that  loans  from  the  alternative  energy                                                               
revolving  loan fund  may only  be made  for projects  located in                                                               
Alaska.   Section 30, a  provision from  HB 196, amends  the loan                                                               
terms of the alternative energy  revolving loan fund.  Section 31                                                               
amends  the  term  "alternative  energy  system"  to  allow  high                                                               
efficiency wood  pellet stoves.   He  directed attention  to page                                                               
19, line  22, and the  deletion of the  word "wood."   Section 32                                                               
amends the definition of "alternative  energy system" in AS 46.11                                                               
by deleting  the reference to  "nuclear fuel" that is  related to                                                               
the financing of  energy efficient homes and  buildings.  Section                                                               
33 is a  repealer section, and Mr. Berg indicated  copies of this                                                               
section are provided  in the committee packet.   He explained the                                                               
repealed  provisions are  related to  the transportation  of high                                                               
level  nuclear  waste, the  AHFC  statute  governing home  energy                                                               
conservation  and  weatherization,  a   sweep  provision  in  the                                                               
alternative  energy  revolving  loan fund,  previous  alternative                                                               
energy revolving  loan fund interest  rates, and the  transfer or                                                               
sale of mortgages and/or notes.                                                                                                 
                                                                                                                                
3:39:56 PM                                                                                                                    
                                                                                                                                
MR.  BERG stated  that Section  34 repeals  the renewable  energy                                                               
production tax  credit on  1/1/25.  Section  35 assures  that any                                                               
unused  tax credits  may not  be carried  forward on  taxes after                                                               
12/31/25.   Section 36  gives AEA six  months from  the effective                                                               
date  of this  act to  establish the  energy use  index database.                                                               
Section 37  requires DOT&PF submit  an energy  performance report                                                               
to the  legislature no later than  [1/31/11].  Section 38  set up                                                               
the  initial appointment  of directors  to the  reconstituted AEA                                                               
board.   Mr. Berg closed by  pointing out that the  bill does not                                                               
include  any funding  recommendations for  programs or  projects;                                                               
however, the co-chairs intend "to  work with the finance chairman                                                               
on those recommendations when the time comes."                                                                                  
                                                                                                                                
3:41:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EDGMON  advised an omnibus bill  often incorporates "all                                                               
of  the above;"  however, there  are many  weighty energy-related                                                               
topics,  such as  the Greater  Railbelt  Energy and  Transmission                                                               
Corporation (GRETC)  bill, and several  gas pipeline  bills, that                                                               
are not included.  On the  other hand, a variety of AHFC programs                                                               
are  appropriate  and may  be  added  to  the legislation  as  it                                                               
progresses through the committee process.                                                                                       
                                                                                                                                
3:43:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT  elaborated on  two outstanding issues  that are                                                               
not  addressed:  GRETC  and  the  in-state  gas  pipeline.    She                                                               
recalled that  during the interim,  the committee was  in contact                                                               
with six  utilities in  the Railbelt that  were meeting  to reach                                                               
agreement on  the GRETC bill.   The utilities will  be submitting                                                               
their suggestions to the committee  and, if acceptable, a CS will                                                               
be offered.   Co-Chair Millett reminded the  committee that GRETC                                                               
is a large,  "stand-alone" piece of legislation that  will not be                                                               
incorporated into HB  305.  Regarding the construction  of an in-                                                               
state natural gas pipeline and  natural gas storage, she said tax                                                               
credits for gas storage will fit  into HB 305 after removing some                                                               
limitations to the tax credits.   She acknowledged that there are                                                               
many projects  underway for  the Railbelt  and expressed  the co-                                                               
chairs'  intent to  complete a  comparative analysis,  project by                                                               
project, on the  gas pipeline, the Chakachamna  and Susitna hydro                                                               
projects, the  [Fire Island]  wind farm,  Mt. Spurr,  Healy Clean                                                               
Coal, and coal gasification.  This  analysis of the cost of power                                                               
to residents,  timelines, required  investment by the  state, and                                                               
regulatory  hurdles,  will  take   place  during  a  round  table                                                               
discussion.                                                                                                                     
                                                                                                                                
3:47:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK asked  whether provisions  from other  bills                                                               
will be added to HB 305 by amendments.                                                                                          
                                                                                                                                
3:47:47 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EDGMON  indicated yes.   Some subjects are  deserving of                                                               
separate legislation,  although the  home energy  rebate program,                                                               
for  example,  could   work  well  in  the  omnibus   bill.    He                                                               
anticipated  that  there  will  be  many  hearings  to  undertake                                                               
provisions from other bills and  to learn from their sponsors and                                                               
staff.  In  further response to Representative Tuck,  he said the                                                               
senate,  the   governor's  office,  and  respective   staff  will                                                               
continue to  be heard, as  they were  during the past  summer and                                                               
fall.                                                                                                                           
                                                                                                                                
3:50:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK asked  whether nuclear fuel was  deleted as a                                                               
definition for alternative energy.                                                                                              
                                                                                                                                
3:50:48 PM                                                                                                                    
                                                                                                                                
MR.  BERG confirmed  that  the definition  applies  to AS  46.11,                                                               
which is dealing  with the conservation of  energy and materials.                                                               
Again, the  intention is to continue  to review HB 191,  and take                                                               
out  the spots  where [nuclear  energy] is  expressly prohibited.                                                               
In further response to Representative  Tuck, he explained that in                                                               
Alaska  statutes, there  are several  areas where  the option  of                                                               
nuclear energy is prohibited.                                                                                                   
                                                                                                                                
3:52:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  asked  whether there  was  a  contradiction                                                               
between the bill and the statutes.                                                                                              
                                                                                                                                
3:53:20 PM                                                                                                                    
                                                                                                                                
MR. BERG further explained that  removing the language will allow                                                               
nuclear energy to be considered as an alternative system.                                                                       
                                                                                                                                
3:53:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN  praised the leadership of  the co-chairs                                                               
and the  work of the committee  staff for "the best  process I've                                                               
ever  been through  to  get ...  a piece  of  legislation on  the                                                               
table."   He said  he had no  questions because  discussion about                                                               
the bill has gone on for months.                                                                                                
                                                                                                                                
3:55:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN  agreed with Representative  Johansen and                                                               
added that  everyone's opinions  were heard.   Obviously,  HB 305                                                               
covers a wide  area of topics and he expressed  his hope that the                                                               
remaining questions  will be answered,  and it will  move, before                                                               
time runs out.                                                                                                                  
                                                                                                                                
3:56:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR MILLETT  thanked the  committee for  their participation                                                               
in  the  interim road  show.    She  stressed the  importance  of                                                               
listening to  Alaskans: not only did  legislators gain knowledge,                                                               
but  also  respect  for  the  diversity  of  the  state  and  its                                                               
different regional energy issues.                                                                                               
                                                                                                                                
3:58:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EDGMON   reminded  members  of  the   public  that  the                                                               
expectation is to return to the bills  at the next meeting.  As a                                                               
rural  legislator, he  is  pleased to  see  long- and  short-term                                                               
energy issues become a dominant theme throughout this session.                                                                  
Co-Chair Edgmon announced that public testimony will be taken on                                                                
1/28/10.                                                                                                                        
                                                                                                                                
[HB 305 and HB 306 were heard and held.]                                                                                        
                                                                                                                                
4:00:50 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Energy meeting was adjourned at 4:00 p.m.                                                                  

Document Name Date/Time Subjects
HB305 Sectional.pdf HENE 1/26/2010 3:00:00 PM
HB 305
Affected Statutes - HB305.pdf HENE 1/26/2010 3:00:00 PM
HB 305
HB 306 Sponsor Statement.pdf HENE 1/26/2010 3:00:00 PM
HENE 1/28/2010 3:00:00 PM
HB 306
Energy Policy for Alaska Presentation 01 26 10.pdf HENE 1/26/2010 3:00:00 PM
HENE 1/28/2010 3:00:00 PM
HB 306
HB 305 Sponsor Statement.pdf HENE 1/26/2010 3:00:00 PM
HB 305