Legislature(2019 - 2020)CAPITOL 17
03/14/2019 10:15 AM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| HJR10 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HJR 10 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
March 14, 2019
10:18 a.m.
MEMBERS PRESENT
Representative Grier Hopkins, Chair
Representative Zack Fields, Vice Chair
Representative Ivy Spohnholz
Representative Tiffany Zulkosky
Representative Lance Pruitt
Representative George Rauscher
MEMBERS ABSENT
Representative John Lincoln
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 10
Supporting development of the road belt electrical transmission
line; and urging members of the Alaska delegation in Congress to
pursue the development of this high- voltage electrical line in
the interior of the state.
- MOVED CSHJR 10(ENE) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HJR 10
SHORT TITLE: SUPPORTING ROAD BELT ELECTRICAL LINE
SPONSOR(s): REPRESENTATIVE(s) TALERICO
03/04/19 (H) READ THE FIRST TIME - REFERRALS
03/04/19 (H) ENE, RES
03/14/19 (H) ENE AT 10:15 AM CAPITOL 17
WITNESS REGISTER
JASON HOKE, Board President
Copper Valley Development Association
Glennallen, Alaska
POSITION STATEMENT: Presented a PowerPoint titled "Road Belt
Inter-Tie."
JOHN DUHAMEL, CEO
Copper Valley Electric Association (CVEA)
Valdez, Alaska
POSITION STATEMENT: Presented a PowerPoint in support of HJR
10.
REPRESENTATIVE DAVE TALERICO
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HJR 10 as the sponsor of the
resolution.
BRUCE CAIN, President
Copper Valley Chamber of Commerce
Glennallen, Alaska
POSITION STATEMENT: Testified in support of the resolution.
ACTION NARRATIVE
10:18:40 AM
CHAIR GRIER HOPKINS called the House Special Committee on Energy
meeting to order at 10:18 a.m. Representatives Hopkins,
Spohnholz, Zulkosky, Pruitt, and Rauscher were present at the
call to order. Representative Fields arrived as the meeting was
in progress.
HJR 10-SUPPORTING ROAD BELT ELECTRICAL LINE
10:19:26 AM
CHAIR HOPKINS announced that the only order of business would be
HOUSE JOINT RESOLUTION NO. 10, Supporting development of the
road belt electrical transmission line; and urging members of
the Alaska delegation in Congress to pursue the development of
this high- voltage electrical line in the interior of the state.
10:20:02 AM
JASON HOKE, Board President, Copper Valley Development
Association, presented a PowerPoint titled "Road Belt Inter-
Tie," and directed attention to slide 1, "Not RBIT'S First
Rodeo," which read: "Historically, this project was considered
and studied in the late 1980s and mid-1990s with much of the
ground work for this transmission line done." He reported that
there had been multiple studies for the inter-tie.
MR. HOKE moved on to slide 2, "Current Project Proposed
Transmission Runs," and reported that this had been broken down
into several phases: Phase 1, Sutton to Glennallen to Delta
Junction, approximately 286 miles, a larger line at 138
kilovolts (kV) to 245kV; and Phase 2, Gakona to Tok to Delta
Junction, approximately 227 miles, a smaller sub-transmission
line at 65kV. The project could utilize existing rights of way
except for 100 miles of gaps which completes a redundant loop
around the road system of the interior of Alaska and connects to
the "Rail Belt" electrical transmission line. He explained that
any loss of transmission would still allow the other areas to
fill in the electricity, so that power loss would be very short
lived. He reported that the electrical grid would be the size of
the State of Montana. He expressed amazement that there was
still an area this large in the US, on a road system, that was
not connected by grid.
10:23:14 AM
MR. HOKE presented slide 3, "Current Concept," which depicted
maps of the road system and the projected power for the
communities affected.
10:24:28 AM
MR. HOKE discussed slide 4, "Public Planning and Vetting
Processes," noting that "proper planning prevents poor
performance." He added that the process was the number one
priority for the Copper Valley Regional Energy Plan with the
Alaska Energy Authority (AEA), a top three choice in the
Statewide Energy Planning with AEA Top Priorities, a Copper
Valley Regional CEDS (Comprehensive Economic Development
Strategy- US EDA), a top priority with the Statewide CEDS (with
US EDA and AK DED of DCCED), the number one priority with the
Ahtna Tribal Energy Plan with the US Department of Energy Office
of Indian Energy (US DoE-OIE), a top priority for the Tanana
Chiefs Conference Energy Planning Priority (US DoE-OIE), and a
top priority in the Fairbanks North Star (FBNS) Borough CEDS.
10:26:03 AM
MR. HOKE discussed slide 5, "Support and Resolutions," and
listed this project as AFNs (Alaska Federation of Natives) only
Energy Resolution 2017. He pointed out that the Native
organizations impacted and supportive of this project effort
included approximately 12 Tribal Governments, 12 Village
Corporations, 4 ANSCA Corporations (Ahtna, CIRI, Doyon,
Chitina), Ahtna Inter-Tribal Resource Commission, Tanana Chiefs
Conference, Copper River Native Association, , Native Village of
Chickaloon and many more. He noted the support of the
utilities, including Copper Valley Electric Association (CVEA),
Alaska Power and Telephone (AP&T), Matanuska Electric
Association (MEA), Golden Valley, and the Alaska Power
Association (APA). He added that there was support from the
Copper Valley Development Association (ARDOR) and the Copper
Valley Chamber of Commerce, and that the meetings and
discussions were indicative of support.
10:28:09 AM
MR. HOKE shared slide 6, "Current Costs and Consumptions
Inhibiting Development." He reported that most of the
communities in this project area were paying 300-500 percent
more than the national average ($0.12 per kilowatt hour (kWh)).
Communities were electrified by multiple micro-grids consuming
approximately four million gallons of diesel per year, while
emissions and other issues plague these small communities. He
reported that Power Cost Equalization (PCE) did not cover
commercial electricity which was approximately 60 percent of all
the electrical consumption in these communities, adding that
electrical costs directly correlated to business and residential
closures and relocations.
10:30:39 AM
MR. HOKE shared slide 7, "Economic and Natural Resource
Development," noting that cheaper electrical power opened the
door for business retention and expansion and allowed business
plans to be penciled out. He said that it was the necessary
infrastructure for economic development, including the timber
and lumber industry (OSB manufacturing, lumber mills, biomass
pellet and brick plants); mining operations that could be
opened or benefit, Ft. Knox, Pogo, Stellar Mine, Ahtell Creek
Mine, Tetlin Mine, and 4th of July Creek Mine; tourism,
fishing, agriculture, and the transportation industry benefits;
and the Alyeska Pipeline benefits with cheaper energy for
pumping oil and cathodic protection at its non-grid connected
pump stations.
10:33:47 AM
MR. HOKE displayed slide 8, "Military Benefits and Build Up,"
declaring that "energy is national security." The Military
Bases that would benefit include: Black Rapids Training
Facility, Donnelly Dome Range, Ft. Greeley, Eielson AFB, Ft.
Wainwright, and Clear Lidar AFB. He emphasized that redundant
and reliable energy to the military was necessary. He explained
that, currently, there was an 80-megawatt (mW) bottleneck at Eva
Creek on the Rail Belt. He reminded that this project offered a
redundant loop with more power capacity, and a reduced cost for
the military with cheaper energy and redundancy. He noted that
there were signs of continued defense build-up and growth. He
stated that 25 percent of renewable energy was needed which
could be supplemented with this project.
10:35:30 AM
MR. HOKE moved on to slide 9, "Other Information," and announced
the hierarchy of needs for infrastructure: Energy,
Transportation, and Communication, pointing out that there were
already two of the three. He declared that new industry and
economic development meant potentially new revenue for the State
of Alaska. He pointed out that, as the region was an
unorganized borough, the Alaska State Legislature was the
governing body. He explained that this was about people making
hard choices: pay for groceries or the electric bill: stay in
Alaska or migrate outside.
10:37:19 AM
MR. HOKE presented slide 10, "What's Needed??" He declared that
support from the Alaska State Legislature was necessary. He
shared the estimated costs: $2 Million for the Engineers
Report. The outcome of this proposed reconnaissance study would
be an actionable document to define a path forward for project
development, a timeline and milestones table, beneficiaries and
project participants, and indicative pricing and budget. This
recon project would take about nine months. He estimated the
total cost of the project: Phase 1 = between $200-$300 million
and Phase 2 = about $100 million. He reported that it was
expected that US Departments of Defense, Energy, Interior,
Commerce, and Agriculture, along with Alaska state agencies,
would be approached and contribute toward project deployment and
construction, as well as beneficiary utilities, communities, and
organizations.
10:39:03 AM
CHAIR HOPKINS asked about the estimated cost during the 1990s
before the project was "shelved."
MR. HOKE offered his belief that it had been about $125 million.
10:39:13 AM
JOHN DUHAMEL, CEO, Copper Valley Electric Association (CVEA), in
response to Chair Hopkins, said that the original project never
got to the details of cost, even though CVEA had reviewed the
cost for one aspect, the Sutton to Glennallen leg, to be about
$100 million or $1 million each mile. He offered an estimate
for a 30 -40 percent increase in the costs today.
10:40:16 AM
CHAIR HOPKINS asked if there was any current opposition.
MR. HOKE opined that there was not any opposition to the project
itself, although there was concern for whether the project would
be overhead or underground. He offered his belief that the
communities were behind the project.
10:40:56 AM
REPRESENTATIVE RAUSCHER shared his recollection that the earlier
price tag had been closer to $80 million and that, although most
of the community opposition had been for the site of the
transmission lines, there was now an overall approval for the
project. He reported that, as he was a co-sponsor to proposed
HJR 10, he was in support of HJR 10.
10:44:08 AM
MR. DUHAMEL continued with his PowerPoint, titled "Road Belt
Intertie (RBIT) Concept." He noted that he was a Director of
the Alaska Power Association, which supported proposed HJR 10.
He presented slide 2, "Transmission vs Distribution." He
explained distribution power as lower voltage, managed by the
utility, which was distributed to the end user, most often
residential, commercial, or small industrial users. He
explained that transmission and sub-transmission power were high
voltages, power moved between communities, and, as an
infrastructure item, it should be funded through state or
federal means as it benefited the state. He pointed out that
the road belt intertie was a transmission/sub-transmission
project and should be State managed.
10:46:52 AM
REPRESENTATIVE SPOHNHOLZ asked for the difference between
transmission and sub-transmission.
MR. DUHAMEL explained that the difference was merely a
difference in voltage, and he presented slide 3, "Electric Power
System Overview." He explained that transmission was 230/138kV
with large facilities and large lines, whereas, sub transmission
was 69/45kV. He noted that the distribution costs were lower
for sub transmission.
10:48:46 AM
REPRESENTATIVE PRUITT asked if this was included in "the larger
conversation about the hodge podge of ownership on both
transmission and other ... ." He asked if this would be the
time to discuss a separate transmission utility to take this
ownership and have discussions with the RCA (Regulatory
Commission of Alaska) for the rate determinations, which would
allow for repair funding.
10:50:31 AM
MR. DUHAMEL said that this work was currently underway with a
search for a transmission manager, although there was still a
lot of work for the final decisions. He reminded that this was
a long-term project, probably 10 years, and that the management
decisions would be resolved by then. He pointed out that in the
Lower 48 this had been accomplished, even as it had a far larger
hodge podge.
REPRESENTATIVE PRUITT offered his belief that, although it was a
long-term project, it was worth the conversation at this point,
in case the federal government funding was not made available,
in order to fill in any of the voids for underfunding.
10:52:29 AM
MR. DUHAMEL moved on to slide 4 "Power Principles," and
explained that a grid was a network of interconnected power
lines, and the bigger the grid, the more resilient it becomes.
Fluctuations were more easily absorbed with a bigger grid, and,
as some renewable energy sources fluctuate significantly, a
bigger grid allowed for more renewable energy sources. He
reiterated that power can move in any direction so a break in
the transmission system did not mean the power was lost, as
power could be re-routed. He pointed out that the more people
on the grid was a key to cheaper power.
10:54:33 AM
MR. DUHAMEL reiterated that this was not a new concept, slide 5,
"Concept," and he moved to slide 6, "Window of Opportunity," a
map of the communities.
10:55:14 AM
MR. DUHAMEL jumped to slide 8, "Why Approve the Resolution?" He
shared that HJR10 gives credibility to the concept and it tells
our congressional delegation, federal departments and the White
House we are united in ameliorating our high cost of energy.
10:55:59 AM
REPRESENTATIVE DAVE TALERICO, Alaska State Legislature, directed
attention to the sponsor statement [Included in members'
packets] and emphasized that the U.S. Department of Defense had
determined to make a substantial investment in the State of
Alaska. He shared his insight to get a resolution from the
Alaska State Legislature to present to the federal government.
He pointed out how critical this would be for the Department of
Defense. He shared that the current intertie had been able to
provide power during the recent earthquake. He declared that
this was a good time to ask for full federal funding for the
Road Belt intertie system.
REPRESENTATIVE TALERICO, in response to Representative Zulkosky,
said that he fully supported 100 percent federal funding for
this project. He pointed out that the utilities produced enough
to keep the project viable and to still provide for the local
communities.
10:59:48 AM
CHAIR HOPKINS asked if there had been any concerns about the
electric grid from the Department of Defense.
REPRESENTATIVE TALERICO replied that he had not personally heard
of any big issues, and he noted that the Department of Defense
had participated in past discussions for the intertie.
MR. HOKE added that there had been testimony during recent
federal confirmation hearings for Mr. Niemeyer that there would
be work with Alaskans for a road belt intertie if necessitated
by military build-up.
11:00:58 AM
REPRESENTATIVE TALERICO referenced a statement by General Billy
Mitchell for strengthening the military in Alaska as those who
controlled the air in Alaska would probably control the northern
hemisphere.
11:01:41 AM
REPRESENTATIVE SPOHNHOLZ moved to adopt Amendment 1 to HJR 10,
labeled 31-LS0596\M.2, Fisher, 3/12/19, which read:
Page 2, line 6:
Delete "state"
Insert "region"
CHAIR HOPKINS objected for discussion.
REPRESENTATIVE SPOHNHOLZ explained that Amendment 1 clarified a
drafting error on page 2, line 6 of proposed HJR 10.
11:02:23 AM
CHAIR HOPKINS removed his objection. There being no further
objection, Amendment 1 was adopted.
11:02:35 AM
CHAIR HOPKINS opened public testimony.
11:02:58 AM
BRUCE CAIN, President, Copper Valley Chamber of Commerce, said
that the Copper Valley Chamber of Commerce had submitted letters
of support from more than 200 business members. He stated that
the reduction of the cost of electricity was a "very big concern
of ours. We have that as our number one priority for economic
development."
11:03:52 AM
CHAIR HOPKINS closed public testimony.
11:04:00 AM
REPRESENTATIVE SPOHNHOLZ moved to report HJR 10, as amended, out
of committee with individual recommendations and the
accompanying zero fiscal note. There being no objection, CSHJR
10(ENE) was moved from the House Special Committee on Energy.
11:04:19 AM
The committee took an at-ease from 11:04 a.m. to 11:07 a.m.
11:07:07 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 11:07 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HJR 10 Amendment 1.pdf |
HENE 3/14/2019 10:15:00 AM |
HJR 10 |
| 2019-09-14 - Road Belt Intertie Presentation by CVDA.pdf |
HENE 3/14/2019 10:15:00 AM |
|
| HJR 10 Sponsor Statement.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| 2019-03-07 - Alaska Power Association Support for HJR10.pdf |
HENE 3/14/2019 10:15:00 AM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Alaska Federation of Natives.docx.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Article APM.docx.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Map 1.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Project Description.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Ahtna Inc..pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Alaska Power Association .pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Alaska Power Telephone Company .pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Chickaloon Village Tradition Council.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Chitina Electric Inc Resolution.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Chitina Native Corp.pdf |
HENE 3/14/2019 10:15:00 AM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Chitna Electric Inc.pdf |
HENE 3/14/2019 10:15:00 AM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Copper Valley Chamber of Commerce.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Copper Valley Devlopment Association.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Copper Valley Electrical Association Resolution.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Golden Valley Electrical Association .pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Map 2 .pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Northway Traditional Council.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR 10 Supporting Documents Tanana Chiefs Conference.pdf |
HENE 3/14/2019 10:15:00 AM HRES 3/29/2019 1:00:00 PM HRES 4/1/2019 1:00:00 PM SCRA 5/7/2019 3:30:00 PM |
HJR 10 |
| HJR Support Documents Letter from Rep Talerico and Sen Bishop.pdf |
HENE 3/14/2019 10:15:00 AM |
|
| 2019-03-14 - Road Belt Intertie Presentation by CVEA Duhamel.pptx |
HENE 3/14/2019 10:15:00 AM |
HJR 10 |