Legislature(2023 - 2024)SENATE FINANCE 532
05/15/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB217 || HB307 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 217 | TELECONFERENCED | |
| += | HB 307 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
May 15, 2024
12:45 p.m.
12:45:29 PM
CALL TO ORDER
Co-Chair Olson called the Senate Finance Committee meeting
to order at 12:45 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Jesse Kiehl
Senator Kelly Merrick
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Andrew Jensen, Energy Policy Advisor, Office of the
Governor; Ken Alper, Staff, Senator Donny Olson.
PRESENT VIA TELECONFERENCE
Robert Doyle, Chair, Regulatory Commission of Alaska.
SUMMARY
SB 217 INTEGRATED TRANSMISSION SYSTEMS
SB 217 was HEARD and Held in committee.
HB 81 VEHICLES/BOATS: TRANSFER ON DEATH TITLE
HB 81 was SECHEDULED but not HEARD.
HB 145 LOANS UNDER $25,000; PAYDAY LOANS
HB 145 was SCHEDULED but not HEARD.
CSHB 307(FIN) am
INTEGRATED TRANSMISSION SYSTEMS
SCS CSHB 307(FIN) was REPORTED out of committee
with four "do pass" recommendations and three "no
recommendation" recommendations and with three
new fiscal impact notes from the Department of
Commerce, Community and Economic Development and
one previously published zero note: FN1 (CED).
SENATE BILL NO. 217
"An Act relating to the taxation of independent power
producers; and increasing the efficiency of integrated
transmission system charges and use for the benefit of
ratepayers."
CS FOR HOUSE BILL NO. 307(FIN) am
"An Act relating to the Regulatory Commission of
Alaska; relating to regulation of public utilities,
pipeline carriers, and liquefied natural gas import
facilities; relating to approval of wholesale power
agreements; relating to preapproval for construction
of energy facilities; relating to electric reliability
organizations; relating to the taxation of new
electricity generation facilities; relating to the
Alaska Energy Authority; relating to the Railbelt
Transmission Organization; requiring the Alaska Energy
Authority to submit a report about issuing rate
reduction bonds for financing transmission system
upgrades; and providing for an effective date."
12:45:57 PM
Co-Chair Olson explained that the committee would hear HB
307 for the first time, although it had heard the companion
bill, SB 217.
12:46:36 PM
ANDREW JENSEN, ENERGY POLICY ADVISOR, OFFICE OF THE
GOVERNOR, relayed that the bill was a high priority for the
Office of the Governor, and he would present on HB 307 as
it was transmitted to the committee. He noted that he would
focus on the changes made to the bill on the House Floor.
Mr. Jensen addressed a Sectional Analysis for HB 307(FIN)am
(copy on fie):
Section 1 - Amends AS 39.25.110(11) to include Alaska
Energy Authority (AEA) officers and employees as being
in exempt service under AS 39.25.
Section 2 - Amends AS 42.05.020(f) to increase the
salary for Regulatory Commission of Alaska (RCA)
commissioners from Range 27 to Range 29.
Section 3 - Amends AS 42.05.254(a) to increase the
regulatory cost charge for public utilities and
telecommunications providers to fund operations at the
RCA and the Regulatory Affairs and Public Advocacy
(RAPA) section of the Department of Law. The increase
for RCA operations is from 0.7 percent to 0.98
percent, and the increase for RAPA is from 0.17
percent to 0.22 percent.
Section 4 - Amends AS 42.05.381(e) to require the RCA
to adopt regulations specific to refuse utilities for
setting a range for adjustment of rates by a
simplified rate filing procedure. This expands the
current public utilities covered by the section that
currently includes electric cooperatives and telephone
utilities.
Section 5 - Amends AS 42.05.381 to expand the criteria
for a "just and reasonable" rate to consider whether
the purpose of the rate is to increase the diversity
of supply, promote load growth, or enhance energy
reliability or energy security. It also prohibits the
RCA from considering the costs of imported liquified
natural gas facilities in customer rates.
Section 6 - Amends AS 42.05.431(b) to require that
wholesale power contracts between a utility and an
independent power producer (IPP) must disclose a state
or local tax exemption provided to a utility or IPP,
and defines an IPP. The definition of IPP in this
section does not include a joint action agency if such
joint action agency is established under AS 42.45.310.
A joint action agency is two or more public utilities
that form a joint action agency under AS 42.45.310 to
purchase a power project from the authority if the
purchase and sale of the project has first been
authorized by law.
Section 7 - Amends AS 42.05.431 to add a section
allowing for cost recovery in rates for renewable
energy projects less than 15 megawatts that have been
approved by the utility's board of directors. This
cost recovery would not require approval by the RCA,
and would apply only to utilities subject to the
jurisdiction of an electric reliability organization
(ERO). The only ERO in the state covers the Railbelt,
so this provision would be currently limited to those
utilities.
Section 8 Amends AS 42.05.711(b) to reflect language
in the legislation that the Alaska Energy Authority
(AEA) is subject to RCA jurisdiction for the purposes
of establishing the open access transmission tariff. 2
Section 9 - Amends AS 42.05.760(a) to exempt utilities
in an interconnected electric system from the
requirement to participate in an electric reliability
organization if the sum of total annual energy sales
by the load-serving entities in the interconnected
system is less than 1.5 million megawatt-hours.
Section 10 - Amends AS 42.05.762 to require that an
ERO prioritize reliability, stability, and cost to the
customer of an interconnected electric system.
Section 11 - Amends AS 42.05.770 to require an ERO to
develop nondiscriminatory standards for
interconnection, and it removes the requirement that
an ERO develop open access transmission and
transmission cost recovery standards.
Section 12 - Amends AS 42.06.286(a) to increase the
regulatory cost charge on pipeline carriers to fund
operations of RCA and RAPA. The increase for RCA
operations is from 0.7 percent to 0.98 percent, and
the increase for RAPA is from 0.17 percent to 0.22
percent.
Section 13 - Amends AS 43.98 to add a new section that
would exempt electricity generation facilities
constructed and placed into service after July 1,
2024, from state and local taxation provided the
facility only provides power to a public utility as
defined in AS 42.05.990.
Section 14 - Amends AS 44.83.990 to create a new board
for the AEA to include the commissioners of Revenue
and Commerce, Community and Economic Development; and
six public members to be appointed by the Governor.
Section 15 - Amends AS 44.83.030 to allow for the
commissioners of the board to delegate their
responsibilities to a designee; that public members
serve for three-year terms; and the process for
filling vacancies.
Section 16 - Amends 44.83.040(a) to account for the
new AEA board of directors, and the larger size of the
AEA board to update the number of members required for
a quorum and a majority vote.
Section 17 - Amends AS 44.83.040 to add a new section
as conforming language to Section 1 concerning AEA
officers and employees.
Section 18 - Amends AS 44.83.080 to carry out the
powers and duties in AS 44.83.700 44.83.720 in House
Bill 307, and add an additional authority allowing for
AEA to acquire battery or energy storage systems.
Section 19 - Amends AS 44.83.090(b) to make AEA
subject to the jurisdiction of the RCA solely for the
purposes outlined in the creation of the Railbelt
Transmission Organization (TRO) requiring the
establishment of an open access transmission tariff.
Section 20 - Amends AS 44.83 to add a new section that
creates the RTO for the purpose of establishment of an
open access transmission tariff to fairly recover and
equitably allocate the costs of operating the backbone
transmission system. This section establishes the RTO
as a division of AEA, and that the governance
structure includes representatives of the Railbelt
utilities, AEA, and an ex-officio member of the
electric reliability organization. The RTO is subject
to RCA jurisdiction, and will be required to file
tariffs to achieve this purpose. The section also
establishes the revenue mechanism structure and
criteria for the open access transmission tariff
covering the "backbone" transmission system, and
provides a deadline for the submission of this tariff
of no later 3 than July 1, 2025. If the tariff is not
submitted by this date, the section requires the RCA
to establish the open access and cost recovery
standard consistent with this section. The section
requires that this commission-approved cost will be
passed directly and transparently to the end customer.
The section includes definitions of "backbone
transmission system"; "commission"; "Railbelt";
"Railbelt utility"; and "transmission organization".
Section 21 - It adds uncodified language requiring AEA
to submit a report to the Legislature by Jan. 1, 2025,
examining the feasibility of the RTO as a "special
purpose entity" for the purposes of issuing rate
reduction bonds to finance transmission system
upgrades.
Section 22 - Provides for the transition of the new
members of the AEA board of directors with initial
staggered terms of one-, two-, and three-year terms.
Section 23 - Provides for a deadline for the RTO to be
formed by Jan. 1, 2025; to model its governance
structure on the Bradley Lake Project Management
Committee; and to file a certificate with the RCA by
Jan. 1, 2025.
Section 24 - Provides for an immediate effective date
for Sec. 4 and 5.
Section 25 - Provides for an effective date of July 1,
2024, for the remainder of the act.
12:48:29 PM
Co-Chair Olson asked for the reasoning behind the change
found in Section 4.
Mr. Jensen explained that a member of House Finance
Committee had expressed concern the cost of the
construction of an LNG facility being passed on to
consumers.
Mr. Jensen addressed Section 6, which was amended on the
House Floor and concerned the tax exemption for utilities.
The language replaced the word "reflect" with disclose to
narrow it to a state or local tax exemption and to remove
the term government subsidy.
12:49:35 PM
Mr. Jensen addressed Section 7, which did not require pre-
approval for projects less than 15 megawatts for projects
that had been approved by a utilitys board of directors.
The provision would only apply to Railbelt utilities.
Section 8 contained language stating that the AEA would be
subject to Regulatory Commission of Alaska jurisdiction for
the purposes of the Open Access Transmission Tariff.
12:50:38 PM
Mr. Jensen addressed Section 9, which was related to EROs
and would allow interconnected utilities exemption from
forming an ERO is the accumulative amount of power sales
was less than 1.5 million megawatt hours. The provision
would currently only apply to the Railbelt system.
He continued that Section 10 amended AS 42.05.762 to
require that an ERO prioritize reliability, stability, and
cost to the customer of an interconnected electric system.
Mr. Jensen noted that the amendment on the House floor was
meant to put cost on an equal footing with reliability and
stability. He noted that the amendment had been passed
without objection.
12:52:04 PM
Mr. Jensen summarized that Sections 11 through 19 had
previously been before the committee and touched on cost
recovery standards, increased regulatory cost charges, new
generation facility tax exemptions, the new AEA board,
allowance of commissioner responsibilities on the board,
the size of the board in terms of majority and quorum, and
additional conforming language to the AEA as exempt service
employees, as well as the expansion of AEA duties to
acquire battery and energy storage systems, and additional
conforming language. He said that Section 20 had been
amended on the House Floor to change the language cost
recovery mechanism to open access transmission tariff,
which was how FERC described the structures. He said that
additional technical clean up was also reflected in the
section.
12:54:08 PM
Mr. Jensen highlighted updated definitions in Section 20.
He noted that the language clarified intent.
12:55:06 PM
Mr. Jensen spoke to Section 21, which was new:
Section 21 - It adds uncodified language requiring AEA
to submit a report to the Legislature by Jan. 1, 2025,
examining the feasibility of the RTO as a "special
purpose entity" for the purposes of issuing rate
reduction bonds to finance transmission system
upgrades.
Mr. Jensen spoke to Section 22 through 25:
Section 22 - Provides for the transition of the new
members of the AEA board of directors with initial
staggered terms of one-, two-, and three-year terms.
Section 23 - Provides for a deadline for the RTO to be
formed by Jan. 1, 2025; to model its governance
structure on the Bradley Lake Project Management
Committee; and to file a certificate with the RCA by
Jan. 1, 2025.
Section 24 - Provides for an immediate effective date
for Sec. 4 and 5.
Section 25 - Provides for an effective date of July 1,
2024, for the remainder of the act.
12:57:30 PM
Co-Chair Stedman was curious about the definition of a
rate reduction bond.
Co-Chair Olson echoed the question.
Mr. Jensen understood that the concept of a rate reduction
bond could signify use of the savings from lowered customer
rates being applied to the service of the project debt.
Co-Chair Olson noted that the savings would be unrealized
money.
Mr. Jensen believed that the requested report would add
clarity. He understood that a rate reduction bond would
service the debt with the savings that the project would
create.
Co-Chair Stedman surmised that if no savings were realized
then the bond would be in default.
Mr. Jensen deferred the question to people with more
expertise and noted that the language came from a House
Floor amendment and not the governor's office.
Co-Chair Olson asked whether the vote on the amendment was
unanimous.
Mr. Jensen replied that he did not know.
12:58:59 PM
Co-Chair Stedman expressed deeper focus on the four
amendments to the bill on the House Floor.
12:59:18 PM
Senator Kiehl asked whether there was a cost estimate for
the report in question.
Mr. Jensen explained that there was no fiscal note, but the
report would be required of AEA to complete with existing
funds.
Senator Kiehl wondered whether a representative from AEA
was available for questions.
Senator Olson responded that no one from AEA was online.
1:00:15 PM
Senator Bishop referenced Section 21 and asked whether Mr.
Jensen's office had conferred with the Executive Director
of AEA to glean whether the report would be a manageable
task considering all the other duties that would be a
result of the bill.
Mr. Jensen replied that he was not aware of any
communication with AEA on the matter.
Senator Bishop followed up on Co-Chair Stedman's question
about rate reduction bonds. He thought common sense
indicated that the bonds would be a premium price.
1:01:26 PM
Co-Chair Hoffman thought Section 21 addressed examining the
feasibility of rate reduction bonds but did not give AEA
the authority to issue rate reduction bonds.
Mr. Jensen answered "yes," and thought the section
mentioned only that the report should be done and not that
the authority should be given.
1:02:09 PM
Co-Chair Stedman asked Mr. Jensen to discuss the other
amendments made to the bill for clarity.
Mr. Jensen affirmed that there had been four amendments to
the bill on the House floor. He listed that one amendment
had been an omnibus amendment by Representative Rauscher
that addressed several technical items. He noted that the
changes had been largely items like replacing cost
recovery mechanism with open access transmission tariff
He noted that the disclosure requirement for tax exemptions
within rates had been part of the amendment as well as the
change in the definition of an independent power producer
from a person to make it a legal entity. He said that
conforming language about the Regulatory Commission of
Alaskas jurisdictional issue had been addressed. He added
that the amendment also changed the language in AEA to
division of AEA to make clear the different governmental
structure.
1:03:50 PM
Mr. Jensen discussed updated definitions. There was also
amended transition language to base the governance
structure on the Bradley Lake Project Committee and for the
st
group to have to file a certificate by January 1. He said
that an immediate effective date for Section 5 had been
added. He said that Amendment 2 changed the language that
was previously before the committee regarding the
prioritization of cost to the customer. He reiterated that
the third amendment would require AEA to produce the report
concerning rate reduction bonds. He noted that Amendment 4
had been offered by Representative Sumner and would
prohibit the Regulatory Commission of Alaska from allowing
the utility to recover the costs of an imported LNG
facility through rates charged to customers.
1:05:44 PM
Co-Chair Hoffman cited Section 6 and queried the
justification for the deletion of or government subsidy.
Mr. Jensen explained that the reason for removal was that
the language was overly broad and not well defined. He
thought that narrowing the scope to what the state could
control would speak to issues of cost uncertainty.
Co-Chair Hoffman pointed out that Mr. Jensen often used
we to describe those that crafted the current bill
version and wondered who Mr. Jensen was referring to when
he said we.
Mr. Jensen explained that the bill was a governors bill
and the administration had worked closely with both the
House Majority and minority on the bill; when he said we
he was speaking of the administration.
Co-Chair Olson asked whether the governor was in favor of
the amendments.
Mr. Jensen noted that the omnibus Amendment 1 was the
amendment that was crafted jointly with house members.
Co-Chair Olson asked whether the governor favored all 4
amendments.
Mr. Jensen answered that the governor supported Amendment 1
and Amendment 2. He admitted that the other two had not
come from the governors office and deferred to the House
on those amendments.
1:08:48 PM
Co-Chair Hoffman asked about Section 9 and Section 19. He
probed which amendments they were related to. He referred
the Explanation of Changes HB 307 (FIN)am: Integrated
Transmission Systems From Version B (copy on file):
Amends the title to include the "liquified natural gas
import facilities" and "requiring the Alaska Energy
Authority to submit a report about issuing rate
reduction bonds for financing transmission system
upgrades."
Section 5 Amended to add a new section that prohibits
the RCA from considering the costs of imported
liquified natural gas facilities in customer rates.
Section 6 Amends requirements for RCA approval of a
rate set in accordance with a wholesale power
agreement to "must disclose a state or local tax
exemption" provided to a utility or independent power
producer (IPP), and deletes "or government subsidy."
It also amends the definition of an IPP to change
"person" to "legal entity."
It inserts a new section of conforming language to
reflect language in the legislation that the Alaska
Energy Authority (AEA) is subject to RCA jurisdiction
for the purposes of establishing the open access
transmission tariff.
Section 9 Amended to read "prioritize the reliability,
stability, and cost to the customer".
Section 19 Amended language creating the Railbelt
Transmission Organization (RTO) to replace "cost
recovery mechanism" with "open access transmission
tariff" and requires that the tariff fairly recover
and equitably allocate the costs of operating the open
access transmission tariff.
It amends the establishment of the RTO to "a division
of" AEA; includes AEA in the governance structure of
the RTO; adds the CEO of the electric reliability
organization (ERO) as an ex-officio member; and adds
statutory reference establishing that AEA is subject
to RCA jurisdiction for the purposes of the open
access transmission tariff.
It amends the definition of backbone transmission
assets and the definition of a Railbelt utility.
Section 21 It amends the transition language for the
RTO to require it be modeled on the governance
structure and methods of the Bradley Lake Project
Management Committee, with any adjustments the parties
determine are necessary, and that the RTO will file
for a certificate from the RCA no later than Jan. 1,
2025.
Section 22 It creates an immediate effective date for
Section 5.
New Section It adds uncodified language requiring AEA
to submit a report to the Legislature by Jan. 1, 2025,
examining the feasibility of the RTO as a "special
purpose entity" for the purposes of issuing rate
reduction bonds to finance transmission system
upgrades.
1:09:06 PM
AT EASE
1:09:37 PM
RECONVENED
Co-Chair Olson asked Mr. Jensen to address Senator
Hoffmans question.
Co-Chair Hoffman asked about Sections 5, 6, 9, 19, 21, 22
of the Explanation of Changes document. He asked Mr. Jensen
to identify which sections related to which floor
amendment.
Mr. Jensen noted that there was an error and Section 9
should say Section 10. The change was made as Amendment 2
and passed unanimously on the House Floor.
Co-Chair Hoffman asked about Sections 5, 6, 19, 21, and 22.
Mr. Jensen relayed that Section 5 was Amendment 14, which
was the fourth amendment adopted on the House Floor.
1:11:52 PM
Mr. Jensen addressed the changes to the bill and the
correlating amendments:
Section 6 was part of Amendment 1.
The new section was part of Amendment 1.
Section 10 (9) was part of Amendment 2.
Section 19 was part of Amendment 1.
Section 21 was part of Amendment 1.
Section 22 was part of Amendment 1.
The following new section was part of Amendment 8 on
the floor, which was the third amendment that passed
on the House Floor.
Co-Chair Olson thought Amendment 1 had been significant and
related to many of the sections.
Mr. Jensen answered affirmatively.
1:13:36 PM
Co-Chair Hoffman went back to Section 6. He asked whether
the change was considered a government subsidy.
Mr. Jensen asked whether Senator Hoffman was asking about
the state or local tax exemption.
Co-Chair Hoffman replied affirmatively.
Mr. Jensen thought that the language had improved the bill.
Co-Chair Hoffman noted that the words or government
subsidy had been deleted and he asked whether those words
had been in the governor's original bill.
Mr. Jensen indicated that the language was not in the
original bill. He elaborated on the process of removing and
replacing the language.
1:16:25 PM
Co-Chair Hoffman expressed concern about taking away the
authority of local governments to tax. He contended that it
took revenue from local governments.
Mr. Jensen referenced testimony from the Alaska Municipal
League, which had taken a no position on the legislation.
He furthered that the Matanuska-Susitna Borough had issued
a resolution of support for the bill. He reiterated that
savings would be passed into the customer.
Co-Chair Hoffman agreed that the exemption should exist. He
pondered whether the language government subsidy was
appropriate since the exemption would be granted by a
government, albeit local. Local government would be giving
up a revenue source, which should be considered a subsidy.
Mr. Jensen relayed that that the word exemption had been
used for clarity and to provide clear understanding of what
must be disclosed and reflected in the rate.
Co-Chair Hoffman commented that when issuing a tax-exempt
status to a profit corporation, it was important to name
things in the proper terms. He used the example of the City
of Bethel, which was to move from a profit corporation to a
non-profit status. He thought the language was a clear
deviation from calling things what they are.
1:20:15 PM
Senator Bishop referenced Section 5:
Amended to add a new section that prohibits the RCA
from considering the costs of imported liquified
natural gas facilities in customer rates.
Co-Chair Bishop asked for clarification on the term
facilities and what was included in the facilities.
1:20:55 PM
ROBERT DOYLE, CHAIR, REGULATORY COMMISSION OF ALASKA (via
teleconference), replied that facilities included:
compressors, storage, pipes, land, and investments of that
nature. He understood the utilities would not be able to
invest in facilities under the amendment.
Senator Bishop asked whether the pipes included export
pipelines from the facility out to the distribution
network.
Mr. Doyle responded that it would include anything used to
move LNG to utilities within the state. He said that there
could be distribution pipes owned by other entities.
1:22:22 PM
Co-Chair Stedman wondered whether it was common that LNG
plants were prohibited from building costs into rates. He
wondered how plants would get a return on capital.
Mr. Doyle affirmed that the practice was uncommon. He
relayed that normally if the utility was going to invest
there would be a way to recoup investment through rates.
He thought that when there was a shortage of fuel, the
provision would prohibit anyone from using any kind of
facility invested in to access something not produced in
Cook Inlet. He thought the result might be an overreach of
what was intended. He thought that the management decisions
should be left to the member owners who elected boards and
leader to make those decisions.
Co-Chair Stedman understood that there were limitations on
financial exposure that utilities were allowed to take on.
Mr. Doyle though that the process was risky. He said that
money lost on investment would impact utilities. He hoped
that leadership put in place would make proper financial
decisions.
1:25:41 PM
Co-Chair Stedman commented that several years ago the state
was looking at a major gasline and it had been said at the
time that utilities in the Lower 48 were standing by as
asset backers for construction. He had been skeptical at
the time as the regulator would not allow the exposure of
billion in capital loss to fall back on rate payers in
other states.
Mr. Doyle agreed that there were important considerations
that needed to be considered. He thought it was a policy
decision that should be made by the legislature.
1:26:59 PM
Senator Kiehl considered Section 5 and surmised that the
section forbit the recovery of costs. He asked whether the
Regulatory Commission of Alaska could consider another,
more expensive, option.
Mr. Doyle relayed that with the original intent of the bill
was to keep rates low. He said that the work would have to
be done within the statutory framework provided in the
legislation.
Senator Kiehl mentioned the phrase "reasonable prudent." He
echoed the commissioners concern that the most prudent
choice might limit a utilities ability to provide
meaningful service.
1:29:38 PM
Co-Chair Stedman understood that the administration did not
support Amendment 3 nor Amendment 4.
Mr. Jensen replied that the administration looked to the
will of the committee concerning Amendment 3. He added that
the provision added by Amendment 4 had previously been
removed and then reinstated on the House Floor.
Co-Chair Olson asked whether Amendment 4 was superfluous.
Mr. Jensen replied that the amendment was unnecessary to
achieve the governors intent of the legislation.
1:30:28 PM
Co-Chair Stedman asked whether the administration supported
Amendment 4.
Mr. Jensen relayed that the administration supported the
previous of the committee.
Co-Chair Olson expressed confusion with Mr. Jensens
response.
1:30:57 PM
Senator Wilson believed that it was a yes or no
question.
Mr. Jensen relayed that the administration supported a bill
that achieved the governors priorities, which was the bill
version prior to the House Floor amendments.
1:32:06 PM
Co-Chair Hoffman recalled that Mr. Jensen offered support
for Amendments 1 and 2 and remained neutral on Amendments 3
and 4.
Mr. Jensen agreed.
1:32:40 PM
RECESSED
7:13:53 PM
RECONVENED
7:14:11 PM
Senator Merrick MOVED to ADOPT MOVED to ADOPT the proposed
committee substitute for CSHB 307(FIN) am, Work Draft 33-
GH2489\R (Walsh, 05\15\24) (copy on file).
Co-Chair Olson OBJECTED for the purpose of discussion.
7:14:38 PM
KEN ALPER, STAFF, SENATOR DONNY OLSON, explained the
changes. He read from the document Summary of Changes,
version B.A to R:
Change #1 Increased the qualifications for Regulatory
Commission of Alaska (RCA) commissioners, requiring a
specific number of years of professional experience.
(Sec. 2)
Change #2 Clarified and expanded how the Railbelt
Transmission Organization (RTO), while housed within
the Alaska Energy Authority (AEA), is regulated by the
RCA for the specific purpose of filing a single cost
recovery tariff to replace the current system of
multiple wheeling rates and must file for a
certificate. (Sec. 4 and 22)
Change #3 Added a technical correction to the
regulation of telecommunications, which is preventing
implementation of SB83 as passed in 2019. (Sec. 5)
Change #4 Removed section that would have authorized
the RCA to regulate refuse utilities. (Sec. 4 of House
version)
7:14:54 PM
Mr. Alper continued:
Change #5 Removed section that would have required the
Regulatory Commission of Alaska to not consider a
utility's investment in a liquified natural gas import
facility for rate making purposes. (Sec. 5(q) of House
version)
Change #6 Removed sections that said the RCA may not
require pre-approval for certain smaller electrical
generation or storage projects. (Sec. 7 of House
version)
Change #7 Modified the section that exempts an
interconnected transmission network from needing to
form an electric reliability organization, to systems
that sell less than 3,000,000 megawatt hours per year.
(Sec. 10)
Change #8 Added language reducing the interest rate
for certain loans for renewable energy projects from
the power project fund. This is to offset a
community's potential loss of power cost equalization
funds due to the lower cost power. (Sec. 14)
Change #9 Modified the section that exempted certain
independent power producers from state and local
property, income, and excise taxes for new facilities
to include energy storage facilities and to clearly
include a facility operated by an entity other than a
public utility if it provides power only to a public
utility. (Sec. 15)
Change #10 Added a requirement one of the new AEA
Board's members must have expertise or experience
managing a municipally owned utility or Joint Action
Agency located off the road system. (Sec. 16)
Change #11 Removed a required report from the Alaska
Energy Authority to the Legislature, to evaluate the
feasibility of making the RTO a special purpose entity
to issue long term debt to finance upgrades to the
backbone transmission system. (Sec. 21 of House
version)
Change #12 Expanded upon the transition language
describing the governance of the Railbelt Transmission
Organization, indicating that it should be modeled
after the existing Bradley Lake Project Management
Committee with adjustments the parties agree are
necessary. (Sec. 25)
7:22:15 PM
Mr. Jensen was available for questions.
Co-Chair Olson wondered whether the administration
supported the committee substitute.
Mr. Jensen replied in the affirmative.
Co-Chair Olson WITHDREW the OBJECTION. There being NO
further OBJECTION, Work Draft 33-GH2489\R was ADOPTED.
Senator Merrick MOVED to REPORT SCS CSHB 307(FIN) from
committee with individual recommendations, attached and
forthcoming fiscal notes, and attached title change
resolution.
SCS CSHB 307(FIN) was REPORTED out of committee with four
"do pass" recommendations and three "no recommendation"
recommendations and with three new fiscal impact notes from
the Department of Commerce, Community and Economic
Development and one previously published zero note: FN1
(CED).
7:23:37 PM
AT EASE
7:25:19 PM
RECONVENED
Senator Wilson thanked the co-chairs and support staff for
guidance and support during the session.
Co-Chair Olson thanked the committee and staff for their
work during the legislative session.
SB 217 was HEARD and HELD in committee for further
consideration.
7:27:38 PM
RECESSED TO THE CALL OF THE CHAIR [Note: the meeting never
reconvened.]
ADJOURNMENT
7:28:00 PM
The meeting was adjourned at 10:58 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 307 (FIN)am -Sectional Analysis.pdf |
SFIN 5/15/2024 9:00:00 AM |
HB 307 |
| HB 307 Explanation for Changes to ver B_.pdf |
SFIN 5/15/2024 9:00:00 AM |
HB 307 |
| HB 307vR CS in SFin summary of changes 5-15-24.pdf |
SFIN 5/15/2024 9:00:00 AM |
HB 307 |
| HB 307 work draft version R.pdf |
SFIN 5/15/2024 9:00:00 AM |
HB 307 |
| HB 307 Sectional Analysis version R.pdf |
SFIN 5/15/2024 9:00:00 AM |
HB 307 |