Legislature(2013 - 2014)BUTROVICH 205
03/26/2013 07:30 AM Senate SENATE SPECIAL COMM ON IN-STATE ENERGY
| Audio | Topic |
|---|---|
| Start | |
| Presentation: Tanana Chiefs Conference, Interior Energy Needs | |
| Overview: Alaska Energy/economy: Problems and Solutions | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE SPECIAL COMMITTEE ON IN-STATE ENERGY
March 26, 2013
7:31 a.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator John Coghill, Co-Chair
Senator Peter Micciche
Senator Dennis Egan
MEMBERS ABSENT
Senator Bill Wielechowski
OTHER LEGISLATORS PRESENT
Senator Cathy Giessel
COMMITTEE CALENDAR
PRESENTATION: TANANA CHIEFS CONFERENCE - INTERIOR ENERGY NEEDS
- HEARD
OVERVIEW: ALASKA ENERGY ECONOMY: PROBLEMS AND SOLUTIONS
- HEARD
WITNESS REGISTER
DAVE PELUNIS-MESSIER, Rural Energy Coordinator
Tanana Chiefs Conference
Fairbanks, Alaska
POSITION STATEMENT: Provided an overview of the Tanana Chiefs
Conference's energy needs.
JULIE ROBERTS-HYSLOP, Vice President
Tanana Chiefs Conference
Fairbanks, Alaska
POSITION STATEMENT: Provided an overview of the Tanana Chiefs
Conference's energy needs.
BERNIE KARL, Owner
Chena Hot Springs Resort
North Pole, Alaska
POSITION STATEMENT: Provided an overview of renewable energy and
food projects in Alaska.
ACTION NARRATIVE
7:31:53 AM
CO-CHAIR CLICK BISHOP called the Senate Special Committee on In-
State Energy meeting to order at 7:31 a.m. Present at the call
to order were Senators Egan, Micciche, Co-Chair Coghill, and Co-
Chair Bishop.
7:32:38 AM
CO-CHAIR BISHOP announced that Senator Giessel was in
attendance.
^PRESENTATION: Tanana Chiefs Conference, Interior Energy Needs
PRESENTATION: Tanana Chiefs Conference, Interior Energy Needs
7:33:26 AM
CO-CHAIR BISHOP announced that the first order of business would
be a presentation on the cost of energy in Interior Alaska.
DAVE PELUNIS-MESSIER, Rural Energy Coordinator, Tanana Chiefs
Conference, introduced himself.
JULIE ROBERTS-HYSLOP, Vice President, Tanana Chiefs Conference,
introduced herself.
MR. PELUNIS-MESSIER said the Tanana Chiefs Conference (TCC) was
a tribal consortium with 42 member communities, representing 39
villages, and 37 federally recognized tribes. He said TCC's
mission was to provide a unified voice in advancing sovereign
tribal governments through the promotion of physical and mental
wellness, education, socioeconomic development, and Interior
Alaska's native culture. He noted that energy fit in a big way
in terms of socioeconomic development while adding strength to
native communities. He said TCC was composed of [235,000 square
miles] or 37 percent of Alaska's land area. He explained that
TCC was Alaska's largest regional-corporation landowner.
7:35:16 AM
MS. ROBERTS-HYSLOP stated that she would share her experiences
of living in rural Alaska. She revealed that she was born in
Tanana and had lived in rural Alaska all of her life. She said
Tanana's cost of living had gone up tremendously, especially the
cost of energy. She explained that Tanana was 130 miles from
Fairbanks with most goods delivered by small airlines or river
barge access during the summer months. She noted that Tanana had
explored road access feasibility during the past several years
with the hope of working with the state to improve supply
delivery. She noted that Tanana's gasoline cost was $6 per
gallon, $10 for a quart of oil, and $6 per gallon for heating
fuel. She noted that most Tanana residents burned wood for
heating during the winter. She said Tanana was exploring
renewable energy alternatives that included expanded biomass use
in the village's laundry, school system, and city facilities.
She stated that rural villages faced high transportation costs
in order to receive goods, but conceded that living in rural
Alaska was a choice. She said her hope was for TCC to work with
the state to find energy cost solutions in rural Alaska and to
look at all possibilities. She explained that Arctic villages in
the TCC region were paying $10 per gallon of [gasoline] and high
energy costs affected the subsistence lifestyle. She stated that
it was necessary to look at other energy cost solutions. She
detailed her support for propane and natural gas as alternatives
that could help make a difference in villages.
7:39:27 AM
MR. PELUNIS-MESSIER displayed an Interior Rural Energy map that
showed village energy infrastructure and costs. He noted that
Anchorage and Barrow focused on gas; the Railbelt used coal as a
cheap energy source; and most of the rural communities
predominantly used oil based energy sources for heating,
electricity, and transportation. He reiterated that oil based
energy costs were affecting nearly all aspects of life. He said
TCC was looking at ways to help their communities lower energy
costs and provide economic development. He explained that TCC
emphasized locally sourced energy so that communities could be
self-sustaining.
He addressed a University of Alaska-Anchorage Institute of
Social and Economic Research (ISER) study on the percentage of a
household's income that was spent on energy. He noted that rural
Alaska spent 16 percent of household income on energy in 2000
and 47 percent in 2008. He said the high cost of energy was
having a significant impact on rural Alaska and the community
members were really feeling it. He said the 2011 Power Cost
Equalization (PCE) reports showed over 2.5 million gallons of
diesel fuel was used to electrify and heat rural Alaska. He said
higher energy costs directly impacted goods and services,
healthcare, electricity, heating, transportation, and the
percentage of household income that went towards energy
expenses. He remarked that high energy costs stifled economic
development.
7:42:33 AM
MR. PELUNIS-MESSIER explained that his initial rural energy
focus changed from electricity to space-heating. He detailed
that 75 percent of every energy-dollar went towards heating
homes, stores, and schools. He noted that a number of TCC school
districts were in danger of closing due to low student
attendance and teacher-student resource diversion towards
heating costs. He explained that TCC was working to make biomass
a viable heat source to lower school districts' costs as well as
providing communities with additional economic development.
He addressed energy opportunities with the Alaska Energy
Authority (AEA) as follows:
· Village End Use Efficiency Program (VEEP).
· Rural Power Systems Upgrade Program (RPSU).
He said VEEP funded different entities to work in communities to
go through and do basic efficiency work. He explained that
efficiency work lowered the overall base-load in communities,
generally on the electrical system. He stated that a smaller
base-load equated to less diesel usage and possible generator
down-sizing.
He said excluding the Alaska Village Electric Cooperative
(AVEC), RPSU was a key program to help rural utilities with new
generator purchases, technical assistance related to heat
recovery systems, and distribution systems support.
He addressed renewable energy and noted a solar panel
installation at the Nenana Teen Rec Center. He said the solar
panels were producing great amounts of energy with low
operational and maintenance service. He detailed that less than
three hours of operations and maintenance were committed to the
solar panels over a two to three year period. He explained that
he was a big proponent of solar power and noted that TCC did not
have much wind in the region.
He expressed the importance of energy efficiency related to fan
motors, pumps, and lighting inspections. He said it was
important to know where the energy was going in order to make
smart decisions.
He said lower cost propane to Fairbanks would have an impact on
rural Alaska. He estimated that rural delivered propane from
Fairbanks could reduce current costs by 30 to 40 percent. He
noted that there were a lot of synergies to fit propane in with
existing generators and heating systems. He stated that
affordable energy in rural Alaska would provide more
opportunities for economic development.
7:47:37 AM
MS. ROBERTS-HYSLOP noted that a 100 pound bottle of propane in
Tanana was $189.
MR. PELUNIS-MESSIER said basic building efficiency often went
unnoticed. He mentioned that Tanana recently sponsored a
resolution at the TCC annual convention that called for the
highest efficiency standards in the state for new building
construction in the TCC region. He noted Thorsten Chlupp as the
owner of Reina, LLC; a company from Fairbanks that built passive
solar standard homes. He explained that Reina, LLC was working
with the city of Tanana to retrofit homes. He said the new
standards for public buildings financed with public money in the
TCC region were as follows:
· Roof: R-100;
· Walls: R-70;
· Floor/Slab: R-50.
He asserted that current building standards had led to
inefficient buildings. He said the new standards model insured
oil and wood based energy that went into buildings and villages
would be used more efficiently. He remarked that weatherization
has had a huge impact on the TCC region. He explained that the
average person who received weatherization had realized an
average of $2000 in annual energy cost savings.
He referred to a Building Life Cycle chart that showed the total
ownership costs in buildings. He noted that 84 percent of a
building's cost during an 80 year life cycle was related to
operating costs with design and construction costs accounting
for 16 percent. He explained that people tend to focus on
minimizing the design and construction costs rather than
spending additional dollars upfront to decrease operational
costs during the 80 year life cycle. He noted that a large
public building constructed without the higher efficiency
standards could be a burden to a community.
7:51:16 AM
He addressed biomass and stated that it was important to note
that dollars spent on locally harvested biomass stayed in a
community rather dollars spent on oil that left a community. He
noted an example in Tanana where 30,000 gallons of diesel were
imported to heat the public buildings [in 2006]. He said
Tanana's city manager saw an opportunity for economic
development when diesel prices increased. He explained that oil-
fired units were replaced with biomass and gasification systems.
He reported that in 2013, Tanana was on track to reduce their
consumption from 30,000 to 12,000 gallons with the remainder
supplied from locally sourced biomass. He explained that the
jobs generated from biomass were decent paying jobs for Tanana
residents that also provided intangible benefits from the
ability to earn a paycheck. He summarized that locally sourced
energy from rural communities would lead to the most overall
benefit.
MS. ROBERTS-HYSLOP said the upriver village of Stevens Village
delivered 50 cords of wood to the City of Tanana last fall. She
explained that the biomass opportunities were available to both
locals and area villages to contribute.
7:54:15 AM
SENATOR MICCICHE noted that Tanana was on the river system and
asked why coal was not a consideration and part of their
portfolio. He stated that coal stockpiled well and remarked
about Tanana's energy struggles over the years.
MS. ROBERTS-HYSLOP replied that Tanana had not explored the
different types of energy that could be used. She said coal
would be something that Tanana would look at. She noted that her
attendance at the committee meeting was to explore all
opportunities to reduce costs in TCC's villages.
SENATOR MICCICHE declared that Ms. Roberts-Hyslop's response was
a common theme throughout the state. He explained that coal was
a fraction of oil's cost with efficient and environmentally
responsible ways to use it.
MS. ROBERTS-HYSLOP disclosed that getting the energy source to
the villages would have to be considered.
CO-CHAIR BISHOP related that there was a working coal mile
during the late 1800s approximately 30 miles north of Rampart
and the coal was used to supply steamboats.
CO-CHAIR COGHILL commented that a road going into Tanana could
change the dynamic. He remarked that the river only had a few
weeks during the year when coal could be delivered. He remarked
that a road system would allow for year-round delivery.
SENATOR MICCICHE responded that he agreed and commented that if
oil was being moved, coal could be moved too. He noted that coal
was as dense as oil at the fraction of the cost.
7:57:20 AM
MR. PELUNIS-MESSIER stated that oil was a bit more common due to
its energy density and ability to fly-in. He noted that almost
all TCC villages were setup for diesel fuel. He agreed that
there were other opportunities and TCC would continue to look at
them. He explained that new energies required both an equipment
and mindset change. He said it would take time to catch up to
the fluctuating oil prices.
He addressed biomass and noted that a cord of white spruce was
equal to 130 gallons of diesel. He revealed that both Tanana and
Tetlin were using wood. He noted that the villages of Hughes,
Huslia, Koyukuk, and Anvik were all looking at different
district-heating systems or heating individual buildings through
the use of locally sourced biomass. He affirmed that biomass
kept money in the community and lowered the cost of energy.
He commented that the "simple as possible" models were the most
successful in rural Alaska. He explained that too many moving
parts meant too many points of failure. He said there were two
main sources of energy: diesel and cord wood. He remarked that
residents were used to their systems and the energy sources
required little maintenance, a necessary attribute during minus
40 degree conditions and times when supply planes were unable to
deliver fuel.
CHAIR COGHILL asked for an explanation on Tanana's central
heating system and its wood source.
MS. ROBERTS-HYSLOP answered that during the spring time, the
river was running and a lot of drift wood was present. She
explained that drift wood was harvested from the river and
stacked into cords for use in Tanana. She noted that the drift
wood was seasoned and did not require trees in the area to be
cut down.
CHAIR COGHILL inquired if the Tanana central heating system was
used at the school and "washeteria." He asked what other public
facilities used the central heating system.
MS. ROBERTS-HYSLOP replied that the city office, fire station,
and teacher-units were on the system. She explained that Tanana
was converting public buildings into biomass systems.
CO-CHAIR COGHILL asked how many years the system had been in
use.
MS. ROBERTS-HYSLOP answered that the system had been in use for
seven or eight years. She noted that there had been a dramatic
reduction in oil costs from using wood to heat the laundry
facility.
CO-CHAIR COGHILL commended Tanana for their central heating
system.
8:01:14 AM
MR. PELUNIS-MESSIER addressed propane and noted that TCC
recently passed Resolution 2013-12 in support of HB74 and SB23.
He stated that affordable energy was the key to any sustainable
economy and rural Alaska was no different. He said the proposed
gas trucking plan could decrease TCC's propane costs by 50
percent. He set forth that lower cost propane would allow for
the conversion of electric ranges, water heaters, and dryers to
on-demand units. He remarked that reducing the electrical grid
load would allow for downsizing generators, expand renewables
use, and increase battery storage viability. He affirmed that
having added lower cost energy would provide for greater
flexibility, allow for more money to be kept in a community, and
act as a key component to overall economic sustainability.
He addressed the Hydrokinetics Turbine Project (HTP) in Ruby,
Alaska. He explained that HTP was difficult to install and
implement. He reported that HTP was pulled out of the water due
to unsustainability on a village-scale and could not be turned
over to the community to continue operations. He commented that
it was important to get a village-level perspective when
considering different technologies. He noted that an electric
utility in Eagle, Alaska had implemented a similar project with
the same experiences as HTP. He summarized that he was proud of
how TCC spent the HTP money and the research path taken.
He addressed an energy efficiency project at the Nenana Rec
Center (NRC). He said NRC had solar panels installed, but the
most important installation was the addition of programmable
zone-valves and thermostats, components that were not in NRC's
initial design. He noted that NRC had balance-valves that
required a utility person to adjust and the effect was full-
blast heat at all times. He stated that the greatest impact on
NRC were the lowest cost items, a result that furthered the idea
that efficiency would be where TCC spent its time and money for
the biggest impact.
8:04:54 AM
MR. PELUNIS-MESSIER explained the TCC Energy Model as follows:
1. Collect Data & Plan
There had been plenty of money spent on inefficient
projects that did not work out because the proper
homework was not done. Knowing the community, where
the energy was going, and tracking the energy were
important components.
2. Efficiency First
Focusing on efficiency would impart the biggest impact
for money spent.
3. Renewable Energy
Biomass and solar were the two simplest forms of
renewable energy for interior Alaska.
He addressed putting the TCC Energy Model into practice. He
referred to a project at Manley Hot Springs were the electrical
load was reduced through efficiency upgrades. He said electrical
consumption was reduced in half and less diesel fuel was used
for the generator. He noted that a solar panel and battery
storage installation was being considered to further reduce
diesel use by the generator.
8:08:30 AM
He summarized that local and cheaper energy was going to lead to
more sustainable communities. He said energy was expensive
regardless of its source and it made a lot more sense to try to
use energy as efficiently as possible. He remarked that
renewables were excellent when locally sourced, but were only
part of the solution. He asserted that discussions on energy in
rural Alaska required a holistic view.
SENATOR GIESSEL commended Mr. Pelunis-Messier for his efforts in
energy efficiency. She stated that Mr. Pelunis-Messier had
shared a lot of the things that need to be done in rural Alaska.
She commented on her experience regarding thermostats in rural
Alaska and having to open windows in the winter because a
building was so hot. She noted the importance of higher
insulation levels in buildings and expressed her hope that Mr.
Pelunis-Messier was spreading his rural energy information
beyond the TCC region.
SENATOR EGAN concurred with Senator Giessel's comments. He
recounted a major situation in Juneau when the city's
hydroelectric source was lost and the cost per kilowatt hour
(kWh) increased from $0.08 to $0.54. He recounted how he had to
learn how to save energy during the hydroelectric power outage
and installed energy efficient upgrades in his home to save
money. He commented that people do not care about saving energy
until they faced high energy prices. He noted that his home
electrical consumption was cut in half. He asked what Mr.
Pelunis-Messier factored into pricing for his calculations on
price per cord.
8:12:16 AM
MR. PELUNIS-MESSIER replied that the average cost was $250 to
$300 per cord of wood and the price equivalent British Thermal
Unit (BTU) was $2.00 to $2.40 per gallon for diesel.
CO-CHAIR BISHOP noted the population decrease in Tanana and the
importance of bringing back jobs to the rural communities. He
asserted that local employment had a positive impact on the
health of a community by decreasing law enforcement problems and
reducing suicide. He stated that a whole host of benefits are
provided beyond bring energy to a community.
SENATOR MICCICHE expressed his appreciation that TCC was not
waiting for someone to solve their energy problems. He recounted
his trip to Tanana and remarked about the impressive education
levels, particularly of the community's female leadership. He
said he applauded TCC and commented that he was always looking
for a better way. He affirmed that the In-State Energy Committee
would help assist TCC.
8:14:42 AM
CO-CHAIR BISHOP announced an at-ease.
^OVERVIEW: Alaska Energy/Economy: Problems and Solutions
OVERVIEW: Alaska Energy/Economy: Problems and Solutions
8:17:38 AM
CO-CHAIR BISHOP called the In-State Energy Committee back to
order. He stated that the next order of business would be a
presentation by Bernie Karl, owner of Chena Hot Springs Resort.
He said Mr. Karl has been a pioneer-leader in alternative energy
in Alaska. He announced that Mr. Karl would talk about
alternative energy problems and solutions.
8:18:11 AM
BERNIE KARL, Owner, Chena Hot Springs Resort, stated that he
would speak to the committee about something that was his life.
He remarked that there were not problems, only opportunities. He
said the issue was taking opportunities and calling them
problems. He stated that Webster's definition for failure was,
"if you do not succeed." He noted that children were taught that
failure was if you do not succeed and he rhetorically asked who
would want to be a failure. He asserted that failure was if a
person did not try and declared that a person could never fail
if they did not quit. He said he was living proof of not
quitting. He stated that he had a lot of opportunities in his
life, but not a problem. He recounted that he was the sixth
child of sixteen children and taught that god was important
rather than money.
He addressed what was important with energy. He said his
company's vision was for the state and all of the communities to
become self-sustaining, something that should be shared by all
individuals. He declared that the only reason why the state did
not have sustainable energy was due to its addiction to oil and
greed. He said the state was stealing from future generations.
He explained that the U.S. was five percent of the world's
population and consumed 25 to 30 percent of the world's energy.
He stated that people do not like the U.S. because the country
was an energy-hog.
8:21:04 AM
He addressed problems relating to fuel source, fuel delivery,
and food security. He said Alaska's fuel source was oil and the
state was addicted to it. He remarked that 90 percent of the
food consumed in Alaska was imported. He said last year in the
U.S., 40 percent of the food was brought in from countries with
no labor laws, environmental laws, and paid no import duties. He
remarked that every economy that had gotten away from agronomy
had failed. He stated that the country was moving away from its
roots and no longer had morals. He cited his moral-based
decisions were interfered with due to the state's high
regulation levels. He disclosed that 900,000 regulations were
put into place since 1990. He stated his intent was not to ask
for money, but to ask for regulation relief in order to allow
people to do things.
He said the state was on the downhill side of its big oil field
and only had a savings account. He declared that the reality of
less state money required more innovation and practical
application of intelligence. He cited his use of a water-ram to
water his gardens, an $800 piece of equipment that had no
operation costs. He touted his geothermal project that produced
$0.06 kWh electricity. He explained that his year-round system
to grow food in all weather conditions. He conceded his access
to geothermal energy, but noted that harnessing 2 percent of the
earth's energy would equate to a thousand times more energy than
the world consumed. He said the U.S. imported 8 million barrels
of oil each day from unfriendly countries. He explained the
reason for a lack of geothermal energy was due to an addiction
to oil.
8:25:51 AM
MR. KARL said another alternative energy program was in
Fairbanks where cardboard and paper waste were converted into
$0.10/kWh electricity and sold to Golden Valley Electrical for
$0.1150/kWh with $0.0050/kWh avoided cost. He stated that the
cardboard and paper program would not be suited for small
villages.
He explained the Chena Power Energy Source's (CPES) as follows:
· Modular "Plug and Play" system that was container-
housed and required no foundation or infrastructure.
Bush Alaska would benefit by not having to build
expensive infrastructure.
· Direct-drive system that did not lose 3 to 4 percent
efficiency due to moving parts.
· Ready for market with a one year payback.
· Required no state or federal funding to develop.
· Could generate electricity from 2.5 kilowatts (kW) up
to 2.5 megawatts (MW).
· Fueled by coal or biomass with 100 percent of its ash
used to make [Geopolymer] cement.
He noted that the idea for using the CPES ash to create concrete
was presented by the Cold Climate Housing Research Center
(CCHRC) from Fairbanks. He said CPES would be the first
application of CCHRC's concrete concept. He explained that the
concrete's features would be as follows:
· 10,000 pounds per square inch (PSI).
· Fire resistant up to 1800 degrees.
· Uses all waste materials.
· Diverts landfill use.
· Saves money in cement costs.
8:28:43 AM
MR. KARL explained affordable gasifying heating devices that
used coal. He said his company would become the largest coal
customer in Alaska with a projected 650,000 tons of coal that
could potentially be shipped to Bush Alaska. He stated that he
was willing to prove to every village that coal was the cheapest
energy for the next couple hundred years. He explained being an
advocate for gas and propane, but noted that coal was
sustainable. He said the largest amount of coal in the world was
in Alaska. He said Usibelli Coal Mine (UCM) had been operating
for 60 years, paid good wages, and was the best mine in the
world. He said his company put together an infrastructure to
load UCM coal out of Nenana [for river village shipments] and
Seward for shipments to Western Alaska. He said his company had
meetings scheduled the following week to address coal shipments
to Kotzebue and the Bethel Region. He asserted that energy costs
for Western Alaska could be reduced from $10 to $12 per million
BTUs, down to $2 per million BTUs by using coal. He commented
that the reason coal had not been considered in the past was due
to the state's addiction to oil.
He explained a 2.5 kW screw-unit that could be used in homes. He
said his goal in the next ten years was for every home in Alaska
to be grid-independent by using biomass or solar tubes that used
95 percent of the sun's spectrum. He asserted that the best use
for oil and gas was for petrochemicals. He stated that oil and
gas should not be exported.
He declared that Alaska should lead the parade in making all of
the building blocks for the world and should do so in Alaska
with the highest paying jobs in the world. He asserted that
smoke-stack-free coal was a very important part of the state's
energy future.
He explained the use of modular growing-units. He said several
growing-units had been sold and one was working at Chena Hot
Springs. He declared that his company would show anybody how to
grow reasonably and said knowledge was not any good if it was
not shared. He noted that the Chinese had a printing press 4,000
years before Gutenberg and they did not share the knowledge with
anyone. He said his company did not charge for their knowledge
and noted free energy tours were conducted twice a day. He
detailed that over 6,000 children had partaken in energy tours
the previous year and over 15,000 during the present year. He
explained that children learn about sustainability at no cost to
schools or the state.
8:31:55 AM
SENATOR MICCICHE asked for additional personal and company
background information.
MR. KARL answered that his businesses were family owned between
himself and his wife. He explained that his businesses consisted
of 140 employees with operations in Chena Hot Springs,
Fairbanks, the North Slope, and Kodiak. He said his businesses
were the Chena Hot Springs Resort, Chena Power, K & K Recycling,
and Kodiak Cape Narrows Lodge. He stated that he was an American
by birth and an Alaskan by choice for 40 years.
He said his company's grow-units were manufactured in Fairbanks
by highly skilled employees. He stated that the modular grow-
chambers would allow a person to immediately grow food for their
animals. He explained that his company purchased barley from
Delta and noted that there had never been a crop failure. He
said the barley growers in Delta had 12,000 acres in production
out of 84,000 acres of farmable ground. He stated that he had
encouraged the Delta barley growers to have all of its farmable
acreage in production and he would find a home for all of their
barley.
He said the barley from Delta was purchased at $160/ton and
planted in the Chena Hot Spring's grow-chamber without
herbicides, pesticides, or fertilizers. He explained that he
called the growing process "bio-mimicking," doing what god does.
He stated that the barley in the grow-chamber used no soil. He
divulged that 72 pounds of planted seed equated to 600 pounds of
daily food for the company's farm animals. He stated that
typical barley provided animals with delivered protein levels at
3 to 5 percent, ground barley at 34 percent. He noted that
chickens had gizzards that ground seeds that allowed them to
receive addition protein benefit. He declared that the barley
grown in his grow-chambers delivered protein levels at 95
percent.
He informed the committee that he was paying $450/ton for the
worst hay in world and driving 160 miles one way to get it. He
explained that currently he was paying $50/ton for the best hay
in the world that was harvested daily. He mentioned that cows
eating the grow-chamber hay produced milk with ten percent more
butterfat.
MR. KARL said he did not invent the grow-chamber idea, he made
it better. He said Thomas Edison had 1,034 patents and improved
upon inventions that were created by others such as the light
bulb and the telephone. He asserted that an individual did not
have to be the brightest bulb on the tree; a person simply had
to be a bulb.
8:36:01 AM
He stated that every village had a landfill. He said village
landfills were scary and predicted their elimination within his
lifetime. He explained that using modified Air Curtain Burners
(ACB) were cleaver and could also be used to generate power
during the process. He claimed that ACB could be used in any
village for $90,000 to $500,000. He said heat and electricity
could be generated from a landfill's trash, no more garbage
blowing around or mess. He stated that the modified ACB was
approved by the Alaska Department of Environmental Conservation
(DEC) for Class II and Class III landfills, the landfill
classifications for Bush Alaska. He informed the committee that
an ACB was in operation in Fairbanks and the process would
change the dynamics of energy. He stated that the first law of
thermodynamics was that you could not create or destroy energy,
only change its state and use it. He questioned why villages
would want the landfill mess when $1.40 per pound was spent to
ship energy to Bush Alaska and have it buried. He claimed that
there was a solution to landfills and presented an analogy of
getting multiple bites out of an apple rather than just one
bite.
SENATOR MICCICHE asked what the minimum village size was for a
firebox to be economical.
MR. KARL replied 50 people. He said a model was available for
$16,000 that would take care of a village's landfill situation,
total cost was less than $50,000 delivered with training. He
stated that villages easily spent $50,000 annually for landfill
equipment fuel while trash continued to blow all over the place.
He concluded that the state's addiction to oil was a
contributing factor for not using an ACB in the past.
8:39:05 AM
He said the state currently had enough innovation, intelligence
and money to provide cheap energy for a vibrant economy. He
asserted that the energy options presented to the committee were
currently being operated by his company. He stated that his
company was one of several organizations that were doing
innovative ideas in Alaska. He declared that he was looking
forward to working with all of the native corporations, regional
corporations, local communities, individuals, and schools.
MR. KARL proclaimed that the problem was not a lack of
education, but the problem was due to knowledge not being
shared. He explained that Alaska's energy situation was similar
to the Chinese not sharing their knowledge. He said it was not a
person's fault if they did not know what a firebox, organic
Rankine cycle, or grow-chamber was. He said the reason for the
In-State Energy Committee was to respond to a great need and
find solutions. He declared that the energy solutions were right
at hand without taking state or federal money. He said his
company was currently spending the money and the senators would
be remiss if they did not have some solution. He said the
solution was simple and the first step was to want to do it. He
informed the committee that GE Capital would finance every one
of the projects he presented with zero capital required at 6.5
percent interest. He said not one homeowner or native project
would not be funded. He remarked that as the state's spending
tightened, the requests for money from the legislature would
increase. He said it was not business as usual and there were
more opportunities than any time in the state or mankind's
history. He asserted that the energy opportunity would lead to
the state kicking its oil addiction.
8:41:38 AM
SENATOR EGAN stated that Mr. Karl was a breath of fresh air. He
recalled that some of the best tours he had ever been on were at
Chena Hot Springs. He declared that Mr. Karl's innovations were
incredible.
MR. KARL announced upcoming innovations included a new "screw"
and a hydrogen kitchen-of-the-future that turned human waste
into methane gas to cook food. He noted that DEC may have a
problem with the kitchen-of-the-future, but his company takes
the innovation seriously. He reiterated that his company's
knowledge was to be shared. He asserted that each village
required a "sparkplug" person to be trained and sent back to be
a leader. He declared that money was available and every dime
would stay in the villages and the state. He stressed that coal
would totally change the dynamics for the next several hundred
years in Bush Alaska. He said UCM had 300 years of Prudhoe Bay.
He said he was willing to assist with coal mines near Kotzebue
and Galena. He declared that there should be coal mines and
noted that 75 percent of the state consisted of coal. He said it
made no sense to take our children's future life breath by
burning gas and oil when coal was available for so many things.
8:43:50 AM
SENATOR EGAN noted a prior conversation that Juneau was looking
for a windmill.
MR. KARL addressed Juneau's fog situation and noted his idea to
have windmills at the airport to dissipate fog.
SENATOR MICCICHE agreed that there was a factor of addiction,
but noted the factor of "just the way it has always been" and
the challenge associated with breaking out of it. He addressed
having individuals that provided creative solutions and
individuals that provided reasons not to consider the creative
solutions. He commented on Mr. Karl's opening statement that
pertained to the philosophies of raising children to create
their own solutions rather than handing them everything. He said
the legislature needs to turn loose the spirit of Alaskans
rather than providing solutions that never worked. He said the
state had an uncanny knack of playing its cards wrong when it
came to energy. He commended Mr. Karl for his presentation and
stated that he hoped people would get motivated.
MR. KARL replied that he did not understand the tendency of
studying everything to death. He explained that money was
appropriated for studies, but asked what was wrong with using
common sense. He said he found that using common sense was not
very common. He asserted that using common sense would mean
projects were studied as they moved forward. He explained that
he made a lot of changes during a biomass project and the end
result was turbines running at 28,000 RPM in a magnetic field,
something that was not being done anywhere else off of biomass.
He said his company was taking ash and turning it into some of
the best cement in the world. He said a lot of people would say
that he failed, but he was taking the knowledge he had learned
to build a screw-expander. He reiterated Webster's definition
that failure was if you do not succeed. He said his biomass
project was operational and he would not quit in his attempt to
make it a lot better. He declared that his company would share
its knowledge.
8:48:01 AM
CO-CHAIR COGHILL commended Mr. Karl for the work he had done and
the ideas he brought forth on the energy-front. He commented
that Mr. Karl's contribution on growing food was often
overlooked. He said Mr. Karl's barley production at Chena Hot
Springs was phenomenal and noted that the ability to grow barley
would change the economics of the red meat industry in Alaska.
MR. KARL replied that it was a synergy with every dime staying
in Alaska. He commended Co-Chair Coghill's father, Senator
Coghill, Sr. for being the voice for agriculture in Alaska. He
said the Delta barley growers were world class and had
production down to a science. He explained that barley was a
good and hardy crop that could take a little cold. He said the
Delta barley growers did not have a market, but his intent was
to provide a market where all 84,000 acres were in production to
grow the food to feed Alaska.
He said the state worried about oil and money to fund things. He
said the state should start worrying about food. He remarked
that food was the most important energy in the world and often
was pushed under the rug. He declared that food would come to
the forefront and his company would "bring power to the people"
so that everybody could be in charge of their own energy. He
said everyone comes down to the legislature to ask for money and
his company did not require funds. He said his only request from
the committee was for less regulation.
8:50:43 AM
CO-CHAIR BISHOP thanked Mr. Karl for his presentation.
8:51:05 AM
There being no further business to come before the Senate In-
State Energy Committee, Co-Chair Bishop adjourned the meeting at
8:51 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Problems and Solutions.pdf |
SISE 3/26/2013 7:30:00 AM |
Tanana Chiefs |
| 2013_AKSenate_Energy_3 25.pdf |
SISE 3/26/2013 7:30:00 AM |
tanana chiefs |