Legislature(2023 - 2024)BARNES 124
04/23/2024 10:15 AM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| HB328 | |
| HB349 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 349 | TELECONFERENCED | |
| *+ | HB 328 | TELECONFERENCED | |
| + | SB 152 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
April 23, 2024
10:16 a.m.
MEMBERS PRESENT
Representative George Rauscher, Chair
Representative Tom McKay
Representative Thomas Baker
Representative Stanley Wright
Representative Mike Prax
Representative Calvin Schrage
Representative Jennie Armstrong
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 328
"An Act relating to community energy facilities."
- HEARD & HELD
HOUSE BILL NO. 349
"An Act relating to leases of public land for renewable energy
projects; and providing for an effective date."
- HEARD & HELD
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 152(L&C)
"An Act relating to community energy facilities."
- PENDING REFERRAL
PREVIOUS COMMITTEE ACTION
BILL: HB 328
SHORT TITLE: COMMUNITY ENERGY FACILITIES; NET METERING
SPONSOR(s): REPRESENTATIVE(s) TOMASZEWSKI
02/15/24 (H) READ THE FIRST TIME - REFERRALS
02/15/24 (H) ENE, L&C
04/23/24 (H) ENE AT 10:15 AM BARNES 124
BILL: HB 349
SHORT TITLE: RENEWABLE ENERGY PROJECT LEASES
SPONSOR(s): REPRESENTATIVE(s) GROH
02/20/24 (H) READ THE FIRST TIME - REFERRALS
02/20/24 (H) RES, ENE, FIN
03/08/24 (H) RES AT 1:00 PM BARNES 124
03/08/24 (H) Heard & Held
03/08/24 (H) MINUTE(RES)
03/11/24 (H) RES AT 1:00 PM BARNES 124
03/11/24 (H) Heard & Held
03/11/24 (H) MINUTE(RES)
03/22/24 (H) RES AT 1:00 PM BARNES 124
03/22/24 (H) <Bill Hearing Canceled>
03/25/24 (H) RES AT 1:00 PM BARNES 124
03/25/24 (H) <Bill Hearing Rescheduled to 03/27/24>
03/27/24 (H) RES AT 1:00 PM BARNES 124
03/27/24 (H) Scheduled but Not Heard
04/01/24 (H) RES AT 1:00 PM BARNES 124
04/01/24 (H) Heard & Held
04/01/24 (H) MINUTE(RES)
04/05/24 (H) RES AT 1:00 PM BARNES 124
04/05/24 (H) Scheduled but Not Heard
04/08/24 (H) RES AT 1:00 PM BARNES 124
04/08/24 (H) Scheduled but Not Heard
04/09/24 (H) ENE AT 10:15 AM BARNES 124
04/09/24 (H) -- MEETING CANCELED --
04/11/24 (H) ENE AT 10:15 AM BARNES 124
04/11/24 (H) -- MEETING CANCELED --
04/15/24 (H) RES AT 1:00 PM BARNES 124
04/15/24 (H) Scheduled but Not Heard
04/16/24 (H) ENE AT 10:15 AM BARNES 124
04/16/24 (H) -- MEETING CANCELED --
04/17/24 (H) RES AT 1:00 PM BARNES 124
04/17/24 (H) Moved CSHB 349(RES) Out of Committee
04/17/24 (H) MINUTE(RES)
04/18/24 (H) RES RPT CS(RES) NEW TITLE 3DP 5NR 1AM
04/18/24 (H) DP: MEARS, ARMSTRONG, DIBERT
04/18/24 (H) NR: MCCABE, SADDLER, WRIGHT, BAKER,
MCKAY
04/18/24 (H) AM: RAUSCHER
04/18/24 (H) FIN REFERRAL REMOVED
04/18/24 (H) ENE AT 10:15 AM BARNES 124
04/18/24 (H) Heard & Held
04/18/24 (H) MINUTE(ENE)
04/23/24 (H) ENE AT 10:15 AM BARNES 124
WITNESS REGISTER
DAVID GOFF, Staff
Representative Mike Tomaszewski
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Tomaszewski,
prime sponsor, presented HB 328.
MIKE JONES, representing self
Homer, Alaska
POSITION STATEMENT: Testified in opposition to HB 328.
DYANI CHAPMAN, State Director
Alaska Environment
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 328.
REPRESENTATIVE CLIFF GROH
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, answered committee
questions on HB 349.
CAMERON EBERSOLD, Staff
Representative Cliff Groh
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Groh, prime
sponsor, answered committee questions on HB 349.
ACTION NARRATIVE
10:16:47 AM
RAUSCHER called the House Special Committee on Energy meeting to
order at 10:16 a.m. Representatives Wright, Armstrong, McKay,
Baker, Prax, Schrage, and Rauscher were present at the call to
order.
HB 328-COMMUNITY ENERGY FACILITIES; NET METERING
10:18:00 AM
CHAIR RAUSCHER announced that the first order of business would
be HOUSE BILL NO. 328 "An Act relating to community energy
facilities."
10:19:22 AM
DAVID GOFF, Staff, Representative Mike Tomaszewski, Alaska State
Legislature, on behalf of Representative Tomaszewski, prime
sponsor, presented HB 328. He began the sponsor statement on HB
328, [included in committee packet], which read as follows
[original punctuation provided]:
This bill will increase options for renewable energy
development, allow Alaskan ratepayers to lower their
electric costs, and offset natural gas usage by
establishing a virtual net metering program for small
scale renewable energy generation. Currently,
ratepayers for economically regulated utilities can
utilize net metering, which lowers their electric
bills based on the amount of electricity they generate
from generators like solar panels or wind turbines.
Unfortunately, many ratepayers including renters and
condo owners are not able to take advantage of net
metering because they do not have space available on-
site. HB 328 will allow multiple ratepayers to pool
their resources to receive net metering benefits from
a single project. HB 328 will allow power generated
from a single centralized and efficient renewable
energy source to be purchased through a subscription
for multiple utility customers. This subscription
allows homeowners and tenants who might not have
access to consistent solar or renewable energy sources
to reap the benefits of cost savings, reliability, and
other benefits to the community. Twenty states have
established formal community energy programs, with
several more that operate at the utility regulation
level. This new effort could generate 7.3 GW of new
solar capacity nationwide by 2030. Utility customers
who subscribe to community energy projects save
between 5 and 15% on their utility bill through
monthly credits. Creating a community energy program
in Alaska will allow the state to capture millions of
dollars in investment for new renewable energy
projects. It will lead to hundreds of new jobs in the
energy industry. The announcement of $7 Billion in
federal funding for residential and community solar
projects will help pay for community energy projects.
Several private investors in community solar projects
have already reached out to express interest. Through
this bill, an 8 percent increase in renewable energy
on the Railbelt could help offset natural gas usage
and address the supply issues for Cook Inlet natural
gas. This bill will only apply to utilities that are
economically regulated by the Regulatory Commission of
Alaska, who will be responsible for reviewing and
approving utilities' community energy programs. The
RCA will have the authority to modify or waive the
requirements of this bill to meet the needs of
specific utilities. SB 152 will help utility customers
save money, attract millions in investment, and help
offset natural gas use in Cook Inlet while creating
good jobs for Alaskans.
10:23:01 AM
MR. GOFF, at the request of Chair Rauscher, began the sectional
analysis on HB 328, [included in the committee packet], which
read as follows [original punctuation provided]:
Section 1 adds new statutory sections relating to
community energy facilities:
AS 42.05.725 is a conforming section for
applicability.
AS 42.05.727 requires utilities to submit a community
energy plan to the Regulatory Commission of Alaska for
approval and to make their community energy program
available to all subscriber organizations that request
interconnection subject to a 50megawatt limit.
AS 42.05.729 establishes bill procedures for community
energy subscribers.
Subsection (a) allows utilities to bill subscribers
for all charges authorized by the utility's tariff.
Subsection (b) prohibits utilities from charging
subscribers additional fees without approval from the
commission.
Subsection (c) allows utilities to petition the
commission to change their rates designs for community
energy subscribers.
Subsection (d) allows electrical cooperatives to
invest in renewable energy projects, with the approval
of their member owners.
AS 42.05.731 establishes the authority of the
commission to modify this program and adopt additional
requirements by regulation.
Subsection (a) allows the commission to waive or
modify the requirements of this bill.
Subsection (b) allows the commission to adopt
regulations governing safety, power quality, and
interconnection standards for community energy
projects.
AS 42.05.733 establishes community energy facilities
and outlines the parameters for how these facilities
can operate.
Subsection (a) sets criteria for who may own a
community energy facility.
Subsection(b) sets procedures for enrolling and
billing subscribers.
Subsection (c) sets criteria for what must be included
in a utilities community energy plan.
Subsection (d) requires the commission to ensure that
community energy plans that are targeted to low- to
moderate income households are crafted to achieve
tangible cost savings.
Subsection (e) provides that a subscriber or
subscription organization is not considered an
electric utility.
Subsection (f) establishes criteria for community
energy facilities to be eligible.
Subsection (g) establishes requirements for subscriber
organizations.
Subsection (h) defines "low-to moderate-income"
household.
AS 42.05.735 provides definitions of terms used in the
bill.
Section 2 requires the commission to adopt regulations
necessary to implement this bill within one year of
its effective date.
10:26:39 AM
MR. GOFF moved to the associated PowerPoint presentation on HB
328 [hardcopy included in committee packet]. He defined what
community energy is and explained that it is popular and the
fastest growing sector in the renewable energy sector. He
explained how the current net metering program works, and how HB
328 would target users without net metering access.
10:28:29 AM
CHAIR RAUSCHER asked for the source of the claims made on slide
4 and asked for a qualification of the numbers on the slide.
MR. GOFF responded that each utility is only allowed 50
Megawatts of energy from community solar.
CHAIR RAUSCHER asked if Alaska has an expectation of the numbers
used in the formula.
MR. GOFF responded that he doesn't think there is a number
secured yet because the bill sponsor is waiting for utilities
companies to figure out their expectations/limits in regard to
community energy.
10:30:27 AM
MR. GOFF resumed his presentation and moved to slide 7 to
explain how HB 328 would expand options for net metering. He
explained how the Regulatory Commission of Alaska would have
oversight of a community energy program and said that the RCA
may waive any requirement or law established by HB 328 in order
to regulate community energy. He explained the process in order
of start to finish of establishing a community energy project
and explained the benefits of community energy. In response to
Chair Rauscher, he gave a breakdown on net metering and how it
is performed from ratepayer to utility company.
10:35:54 AM
MR. GOFF continued his presentation on the latter half of slide
10, which detailed the benefits of using community energy.
10:37:08 AM
REPRESENTATIVE WRIGHT asked whether there is a continuous
benefit with a proposed tax credit or a one-time benefit.
MR. GOFF answered that it is a one-time credit, and the
percentage of the cost credited varies year by year.
10:38:01 AM
REPRESENTATIVE ARMSTRONG asked whether a new $125 million
federal grant has been taken into account with regard to HB 349.
MR. GOFF answered that he himself has not yet considered that
grant.
10:38:51 AM
MR. GOFF continued his presentation on slide 11, which detailed
how HB 328 and community energy projects can lower energy bills
in Alaska. He explained how HB 328 would create more jobs in
investment, and that a renewable energy sector has more jobs
than fossil fuels. He said it would offset natural gas and
improve grid resiliency and reliability by creating a system of
redundancies.
10:42:53 AM
REPRESENTATIVE PRAX asked whether the regulations would dictate
how the utilities would pay their avoided cost or whether that
would be negotiated for each project.
MR. GOFF answered that if someone is using the energy in a net
metering scenario, the person is credited the price per Kilowatt
(Kw) because they are not using the energy to begin with. He
added that whatever excess energy they would produce would come
at a much lower cost at the end of the month.
REPRESENTATIVE PRAX asked whether Mr. Goff had checked with the
utilities about his previous answer.
MR. GOFF responded that he currently has a solar array at his
house, so that is how he knows.
REPRESENTATIVE PRAX said that on a large scale, renewables
aren't reliable, and he expressed a concern that using
renewables could increase costs to ratepayers.
MR. GOFF said that HB 328 would limit the amount that each
utility company would be able to go into a certain sector of
energy generation, so there would still be redundancies in the
energy grid.
10:48:01 AM
CHAIR RAUSCHER opened public testimony on HB 328.
10:49:04 AM
MIKE JONES, representing self, testified in opposition to HB
328. He said that this bill would penalize people who use more
traditional utilities options. He criticized the reliability of
renewable energy and said that the net metering clause of the
bill is flawed. He gave a series of perceived flaws and
encouraged committee members to vote no on HB 328.
10:51:39 AM
DYANI CHAPMAN, State Director, Alaska Environment, testified in
support of HB 328. She said this bill would allow individuals
who can't afford energy on their own to obtain reliable and
affordable energy.
10:52:44 AM
CHAIR RAUSCHER, after ascertaining there was no one else who
wished to testify, closed public testimony on HB 328.
10:53:02 AM
The committee took an at-ease from 10:53 a.m. to 10:56 a.m.
10:56:28 AM
CHAIR RAUSCHER announced that HB 328 was held over.
HB 349-RENEWABLE ENERGY PROJECT LEASES
10:56:54 AM
CHAIR RAUSCHER announced that the final order of business would
be HOUSE BILL NO. 349 "An Act relating to leases of public land
for renewable energy projects; and providing for an effective
date."
CHAIR RAUSCHER opened public testimony on HB 349. After
ascertaining there was no one who wished to testify, he closed
public testimony.
10:58:03 AM
REPRESENTATIVE PRAX gave his understanding that the lease as
defined in HB 349 must provide for recreational activities.
10:58:23 AM
REPRESENTATIVE CLIFF GROH, Alaska State Legislature, as prime
sponsor, directed the question to Cameron Ebersold.
10:58:30 AM
CAMERON EBERSOLD, Staff, Representative Cliff Groh, Alaska State
Legislature, on behalf of Representative Groh, prime sponsor,
answered committee questions on HB 349. He said that
Representative Prax' observation is correct that HB 349 would
preserve access for other kinds of public uses.
REPRESENTATIVE PRAX asked whether the threat of vandalism to the
renewable energy infrastructure had been taken to account when
funding a project.
10:59:30 AM
MR. EBERSOLD asked for clarification because HB 349 relates to
licensing of the state land, determining the feasibility of a
project, and establishing lease terms.
REPRESENTATIVE PRAX cited a windmill project in Fairbanks,
Alaska, that he believed was under threat from vandalism and
asked how HB 349 would protect the renewable energy projects
from vandalism.
11:00:52 AM
REPRESENTATIVE GROH answered that he has never worked with a
lease contract for renewable energy, but he thinks the
individual contracts to develop the project would address the
threat of vandalism, not the bill.
REPRESENTATIVE PRAX asked for confirmation that the protection
would be addressed in the lease.
REPRESENTATIVE GROH said he thinks so but directed the question
to Mr. Ebersold for additional clarification.
MR. EBERSOLD cited an experience from his childhood,
highlighting that there is nothing that would stop someone from
shooting or damaging the turbine. He said it would be up to the
company to protect its property, not the Department of Natural
Resources (DNR).
11:03:03 AM
REPRESENTATIVE SCHRAGE commented that the wind turbines on
Kodiak are fenced off from access and added that Alaskans would
rather shoot road signs versus energy infrastructure.
11:04:10 AM
CHAIR RAUSCHER said people shoot the pipeline, so people can
shoot a wind turbine. He said people are going to do what
they're going to do.
11:05:18 AM
CHAIR RAUSCHER announced that HB 349 was held over.
11:05:34 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 11:05 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB328 sponser statement.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 328 |
| HB0328A.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 328 |
| HB 328 Sectional Analysis.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 328 |
| CSHB 349(RES) 33-LS1325R.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 349 |
| HB349.HRES CS Version R Sectional Analysis.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 349 |
| HB349.Sponsor Statement.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 349 |
| CSHB349.HRES.D.sectional.history.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 349 |
| HB 328 Pre4sentation.pdf |
HENE 4/23/2024 10:15:00 AM |
HB 328 |