Legislature(2021 - 2022)BELTZ 105 (TSBldg)
02/23/2022 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB179 | |
| SB132 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 179 | TELECONFERENCED | |
| + | SB 132 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 23, 2022
1:30 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Joshua Revak, Vice Chair
Senator Peter Micciche
Senator Gary Stevens
Senator Elvi Gray-Jackson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 179
"An Act relating to the establishment of a renewable portfolio
standard for regulated electric utilities; and providing for an
effective date."
- HEARD & HELD
SENATE BILL NO. 132
"An Act exempting veterinarians from the requirements of the
controlled substance prescription database."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 179
SHORT TITLE: UTILITIES: RENEWABLE PORTFOLIO STANDARD
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/04/22 (S) READ THE FIRST TIME - REFERRALS
02/04/22 (S) L&C, FIN
02/23/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 132
SHORT TITLE: CONTROLLED SUB. DATA: EXEMPT VETERINARIAN
SPONSOR(s): HOLLAND
04/28/21 (S) READ THE FIRST TIME - REFERRALS
04/28/21 (S) HSS, L&C
02/03/22 (S) HSS AT 1:30 PM BUTROVICH 205
02/03/22 (S) Heard & Held
02/03/22 (S) MINUTE(HSS)
02/08/22 (S) HSS AT 1:30 PM BUTROVICH 205
02/08/22 (S) Moved SB 132 Out of Committee
02/08/22 (S) MINUTE(HSS)
02/09/22 (S) HSS RPT 4DP
02/09/22 (S) DP: WILSON, REINBOLD, BEGICH, HUGHES
02/23/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
CURTIS THAYER, Executive Director
Alaska Energy Authority (AEA)
Anchorage, Alaska
POSITION STATEMENT: Introduced SB 179 on behalf of the
administration
JESS GEHIN, Ph.D. Associate Laboratory Director
Nuclear Science and Technology (NS&T) Directorate
Idaho National Laboratory (INL)
Idaho Falls, Idaho
POSITION STATEMENT: Provided information about advanced
microreactors during the hearing on SB 179.
GWEN HOLDMANN, Director
Alaska Center for Energy and Power (ACEP)
University of Alaska Fairbanks (UAF)
Fairbanks, Alaska
POSITION STATEMENT: Provided invited testimony on SB 179
CHRIS ROSE, Executive Director
Renewable Energy Alaska Project (REAP)
Sutton, Alaska
POSITION STATEMENT: Testified in support of SB 179.
NIKKI ROSE, Staff
Senator Roger Holland
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 132 on behalf of the sponsor.
DR. RACHEL BERNGARTT, Chair
Board of Veterinary Examiners
Juneau, Alaska
POSITION STATEMENT: Testified by invitation in support of SB
132.
DR. TRACY WARD, President
Alaska Veterinary Medical Association
Juneau, Alaska
POSITION STATEMENT: Testified by invitation in support of SB
132.
DR. MCKAYLA DICK, Past President
Alaska Veterinary Association
North Pole, Alaska
POSITION STATEMENT: Testified in support of SB 132.
TERRI LYONS, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified in support of SB 132.
ACTION NARRATIVE
1:30:51 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:30 p.m. Present at the call to
order were Senators Gray-Jackson, Revak, Stevens, and Chair
Costello. Senator Micciche arrived soon thereafter.
SB 179-UTILITIES: RENEWABLE PORTFOLIO STANDARD
1:31:11 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
179 "An Act relating to the establishment of a renewable
portfolio standard for regulated electric utilities; and
providing for an effective date."
She noted that this was the first hearing and the intention was
to hear the introduction from Curtis Thayer followed by invited
and public testimony.
1:32:04 PM
CURTIS THAYER, Executive Director, Alaska Energy Authority
(AEA), Anchorage, Alaska, introduced himself and TW Patch, the
director of planning for AEA.
1:32:27 PM
MR. THAYER began the presentation with an explanation of AEA's
programs and services. He summarized the following from slide 2:
[Original punctuation provided.]
Railbelt Energy AEA owns the Bradley Lake
Hydroelectric Project, the Alaska Intertie, and the
Sterling to Quartz Creek Transmission Line all of
which benefit Railbelt consumers by reducing the cost
of power.
Power Cost Equalization (PCE) PCE reduces the cost
of electricity in rural Alaska for residential
customers and community facilities, which helps ensure
the sustainability of centralized power.
Rural Energy AEA constructs bulk fuel tank farms,
diesel powerhouses, and electrical distribution grids
in rural villages. AEA supports the operation of these
facilities through circuit rider and emergency
response programs.
Alternative Energy and Energy Efficiency AEA
provides funding, technical assistance, and analysis
on alternative energy technologies to benefit
Alaskans. These include biomass, hydro, solar, wind,
and others.
Grants and Loans AEA provides loans to local
utilities, local governments, and independent power
producers for the construction or upgrade of power
generation and other energy facilities.
Energy Planning In collaboration with local and
regional partners, AEA provides economic and
engineering analysis to plan the development of cost-
effective energy infrastructure.
1:33:33 PM
MR. THAYER turned to slide 3, What is a Renewable Portfolio
Standard? He explained that retail electric suppliers are
required to supply a minimum amount of their retail load with
eligible sources of renewable energy. Typically, it is backed
with a financial or other form of incentive. Often it is
accompanied by a tradable renewable energy certificate (REC) to
facilitate compliance. Importantly, [renewable portfolio
standards (RPS) standards are unique to each of the 32 states
that have them. They are never designed the same. He offered his
expectation that Alaska's would be different going forward.
MR. THAYER paraphrased slide 4 that read as follows:
[Original punctuation provided.]
Senate Bill 179
• Senate Bill (SB) 179 promotes energy independence,
long-term cost reductions, and competitive markets
in Alaska's Railbelt.
• SB 179 aligns Alaska with 30 states and two
territories in creating a renewable portfolio
standard on the Railbelt.
• A key element of the Governor's RPS is a firm
commitment to transition to 30% renewable power by
2030 and 80% by 2040.
• Expanding our renewable energy portfolio is the best
way to diversify our supply thus increasing Alaska's
energy security.
1:35:00 PM
MR. THAYER stated that in 2010 the legislature passed An Act
Declaring a State Energy Policy. He read the legislative intent
in that bill:
LEGISLATIVE INTENT. It is the intent of the
legislature that
(1) the state achieve a 15 percent increase in energy
efficiency on a per capita basis between 2010 and
2020;
(2) the state receive 50 percent of its electric
generation from renewable and alternative energy
sources by 2025;
(3) the state work to ensure a reliable in-state gas
supply for residents of the state;
(4) the power project fund (AS 42.45.010) serve as the
main source of state assistance for energy
projects;
(5) the state remain a leader in petroleum and natural
gas production and become a leader in renewable
and alternative energy development.
MR. THAYER displayed slide 6 that illustrates that from January
2012 to September 2020, the RPS policies in the participating
states have shifted more toward standards and less toward goals.
He noted that Alaska has been in the goal stage and SB 179 will
take it to standards.
MR. THAYER reviewed the energy production profile by source for
the U.S. and Alaska if Susitna-Watana were to be built. Today,
70 percent of the energy produced in the U.S. is still coming
from oil and gas; 9 percent comes from renewable energy,
primarily biomass, solar, and wind; 2 percent comes from
hydroelectric; 11 percent from coal; and 8 percent from nuclear
power. In Alaska today, 65 percent of the energy produced is
from oil and gas; 27 percent comes from hydroelectric; 2 percent
from renewable energy; and 6 percent comes from coal. At 29
percent, Alaska's portfolio of renewables falls short of the
goal to have 50 percent of energy production come from
renewables including hydro, but it is moving in the right
direction. He noted that if Susitna-Watana, or some other
renewable were to be a reality, hydroelectric would account for
58 percent of Alaska's energy production.
1:37:06 PM
SENATOR MICCICHE joined the committee.
1:38:17 PM
MR. THAYER continued to slide 9 to discuss the 30-year-old
Bradley Lake Hydroelectric Project that is located about 25
miles from Homer on the Kenai Peninsula. It provides low-cost
energy to the Railbelt members from Homer Electric to Golden
Valley in Fairbanks. For example, 18 percent of the power from
Bradley Lake is sent to Fairbanks consumers. The cost of this
power is roughly 4 cents/kWh, whereas the cost of natural gas is
7-8 cents per kWh, and power from the wind farm at Fire Island
currently costs 9.7 cents per kWh. Bradley Lake provides about
10 percent of the Railbelt energy needs, which is equivalent to
54,400 homes/year. Last year the $47 million Battle Creek
diversion into Bradley Lake was completed and it provides
electricity for the equivalent of 5,000 homes. That project was
done through a partnership between the Railbelt utilities and
AEA. He highlighted that the bonds on Bradley Lake were paid off
this year.
MR. THAYER continued to slide 10 to discuss the Dixon Diversion
Project, which would expand the capacity of Bradley Lake. It is
located five miles from Bradley Lake. Two alternatives are under
consideration: Alternative 1 is a tunnel to Bradley Lake and
Alternative 2 is a tunnel to the Martin River Powerhouse. The
cost estimate ranges from $160 million to $500 million. It could
provide electric energy for 17,000 to 40,000 homes, which would
nearly double the output of Bradley Lake.
1:40:39 PM
CHAIR COSTELLO noted that Senator Stevens had a question.
SENATOR STEVENS asked if a lot of power is lost from Bradley
Lake to Fairbanks because the lines need to be improved. Noting
that Susitna-Watana has always run into problems, he asked what
the last illustration on slide 8 would look like if the Dixon
Diversion Project replaced Susitna-Watana.
MR. THAYER replied it would have minimal effect. Bradley Lake
currently provides 10 percent of the Railbelt energy and
maximizing the Dixon Diversion Project would probably add 6-7
percent. He noted that subsequent slides address the needed
upgrades to the transmission line, but in general, the lines
leaving Bradley Lake are at capacity. The Railbelt utilities are
working with AEA to make those upgrades. Subsequent slides talk
about how this will happen and how it will be financed.
1:42:33 PM
MR. THAYER displayed slide 11 that outlines the steps for the
Dixon Diversion Project for FY2022 through FY2024. It read as
follows:
Fiscal Year 2022
• Establish river gauge
• Initiate Bradley Lake FERC License Amendment
• Alternatives Analysis Report (Conceptual Design)
Fiscal Year 2023
• Detailed mapping/topography
• License Amendment Consultations
• Environmental Studies
• Hydrology Studies
• Initial Geotechnical Investigations
• Preliminary Design
Fiscal Year 2024
• Feasibility Design and Hydrology
• Environmental Studies
• Draft License Amendment
• Detailed Geotechnical Investigations
• Operations/Power Modeling
• Environmental Assessment
MR. THAYER said the next two slides were lifted from the
National Energy Lab report. The first shows where power for the
Railbelt would come from in a peak demand scenario on the
coldest day of the year. Hydro would be the largest piece. Slide
13 looks at the same scenario without Susitna-Watana. A lot more
of the power comes from wind and solar. He noted that the wind
component is untested in many places in Alaska and both wind and
solar need batteries to store the power and put it onto the grid
as needed. These batteries would likely be located in Homer,
Anchorage, and Fairbanks. He said AEA looks forward to the ever
changing technologies for these resources.
1:44:56 PM
MR. THAYER turned to slide 14, Railbelt Infrastructure Upgrades
to respond further to Senator Steven's question about the
condition of the power line from Bradley Lake to Fairbanks. He
listed the Railbelt utilities, which are Chugach Electric
Association, Matanuska Electric Association, Seward Electric
Association, Homer Electric Association, and Golden Valley
Electric Association. Together, they represent 550,000 Alaskan
consumers. The plans to upgrade the infrastructure involve
projects to remove transmission constraints, improve grid
resiliency, and allow for better use of the Bradley Project's
potential by increasing its ability to deliver more low-cost,
renewable energy throughout the Railbelt grid. The lines, which
are more than 30 years old and pre Bradley Lake, do not have the
capacity to move additional renewables.
1:46:16 PM
MR. THAYER directed attention to the Required Project Work
Summary on slide 15. The utilities are looking at working
together on the following projects:
Upgrade Transmission Line from Bradley Junction to Soldotna. The
transmission line would be upgraded to 230 kV or a second 115 kV
line would be constructed.
Upgrade Transmission Line from Sterling to Quartz Creek.
Upgrade Transmission Line from Sterling to Quartz Creek. AEA
purchased this transmission line from Homer Electric following
the Swanson Lake fire to extinguish a number of lawsuits. The
goal was to upgrade the transmission line from 115 kV to 230 kV
and remove the 69 kV line.
Battery Energy Storage Systems (BESS) for Grid Stabilization.
This project will upgrade the existing BESS system in Fairbanks
and add systems in the Kenai and Southcentral regions.
Study of Alternative Path to Export Energy off Kenai Peninsula.
This might be an undersea cable.
MR THAYER stated that the total cost for these projects is about
$261 million. Because the Bradley Lake power sales agreement
from 30 years ago allows for required project work, the excess
from the 12.5 percent that the utilities are obligated to pay
for the next 20 years can go toward these projects. He estimated
that this bonding could pay from $225-$250 million of the
upgrades. AEA is working with the utilities on this bonding. The
ratepayers will pay no more than they do now. He noted that the
line loss to Fairbanks is estimated to cost ratepayers up to
$0.5 million per month, so this will make a huge difference in
that community. The upgraded transmission lines will also
provide opportunities for wind and solar to serve the entire
Railbelt.
1:49:46 PM
MR. THAYER briefly reviewed the Alaska Intertie. Slide 16 read
as follows:
• Constructed in the mid -1980s, the Alaska Intertie
is a 170 mile -long, 345 kilovolt (kV) transmission
line from Willow to Healy
He highlighted that this line was designed to be upgraded and
that work would need to be done for any renewable work that is
done from Anchorage to Fairbanks.
• Operated by AEA and Railbelt utilities, the
transmission line improves reliability within
Railbelt system
• Allows Golden Valley Electric Association (GVEA) to
connect to and benefit from lower cost power
• Between 2008 and 2018, the Intertie provided an
average annual cost savings of $30 million to GVEA
customers
MR. THAYER emphasized that even after 30 years, Bradley Lake and
the Alaska Intertie continues to save money. He directed
attention to the bulleted points on slide 17 that highlight
clean energy savings for the Railbelt. The slide read as
follows:
• Bradley Lake Expansion (Spillway Raise) $4
million
• Bradley-Soldotna 115kV Line $66 million
• Soldotna-Quartz Creek (and Substation) $70
million
• Bernice Lake-Beluga HVDC $185 million
He noted that this is an undersea cable to take a line to
Beluga and provide a second line into Fairbanks, which is
similar to what Enstar Natural Gas does with two lines. AEA
has just one line into Southcentral and is looking for a
second.
• Dave's Creek-University 230kV Line $58 million
• Grid Stabilization $115 million
1:52:02 PM
MR. THAYER displayed slide 18, Susitna-Watana Hydroelectric
Project History. He recapped that the project was first studied
as a source of power in the 1950s. In the 1980s the state
supported the project and by 2010 the 50 percent renewable goal
was established. In 2011, the legislature unanimously authorized
the Alaska Energy Authority to pursue Susitna-Watana Hydro and
studies began in 2012. He reported that the state has spent $193
million on FERC licenses and estimated it will take an
additional $100 million to get a FERC license. The previous
administration put licensing of the project in abeyance and the
current administration rescinded the abeyance in 2019.
MR. THAYER highlighted that the utilities along the Railbelt
have expressed interest in purchasing 450 megawatts from the
project and that there was interest from the private sector to
build Susitna-Watana. He acknowledged that a new cost-benefit
analysis was needed before any more work is done.
MR. THAYER paraphrased slide 19, Cook Inlet Natural Gas Value
into the Future. It read as follows:
[Original punctuation provided.]
Opportunities:
• Home heating on the Railbelt (including potential
future expansion)
• Power generation fuel on an as-needed basis and gas
storage (CINGSA)
• Industrial customers in the Cook Inlet
- Combined heat and power applications standalone
customers
- Possibility for green hydrogen production
- In-state industrial use
- Potential pipeline transport for minerals
extraction
MR. THAYER described SB 179 as a work in progress as the state
moves toward clean energy. He said this is something that the
utilities, AEA, and the state have said they want to do and now
is the time to work together to figure out a path forward. He
added that the RPS is with the Regulatory Commission of Alaska
(RCA) and that agency will be responsible for both the statutes
and regulations.
1:56:02 PM
CHAIR COSTELLO mentioned that while the bill would create a
portfolio standard for electric providers to include renewable
energy, it does not consider other innovative carbon free
options such as microreactors. For that reason, the invited
testimony will illuminate new opportunities for Alaska to
incorporate clean, reliable energy sources into the electric
grid
1:57:19 PM
JESS GEHIN, Ph.D. Associate Laboratory Director, Nuclear Science
and Technology (NS&T) Directorate, Idaho National Laboratory
(INL), Idaho Falls, Idaho, stated that his testimony would
provide information on nuclear energy as a primary source of
clean, low carbon energy. It provides an opportunity to
complement renewables, so it could be considered part of an
energy portfolio. He explained that INL is the Department of
Energy's nuclear laboratory that performs research on nuclear
energy technologies, deployment, and demonstrations. He noted
that INL also works closely with other laboratories on energy
system integration.
1:59:36 PM
DR. GEHIN explained that nuclear energy is based on a process
called fission. A nuclear reactor system harnesses the power
from nuclear fission, controls it, and converts it primarily to
heat that can be converted to electricity. Fuel is not burned,
so carbon emissions are comparable to other renewable sources of
energy. Nuclear plants provide firm power 24/7 or it can be
adjusted to meet demand; operate in any weather conditions; and
run for long periods between refueling. These plants are not
subject to fuel supply disruptions. Nuclear plants in the U.S.
generate about 100 gigawatts (GWh) or 20 percent of the
electricity produced in the nation. It accounts for about 55
percent of the low carbon electricity generation.
2:02:15 PM
DR. GEHIN recounted the significant development in new reactor
types in the last several years. Termed advanced reactors
because of the technologies used, they are under development and
will be demonstrated in the next decade and deployed after that.
The advanced reactors use fuels and coolants that can be
operated at higher temperatures and lower pressures, which leads
to simpler designs, higher efficiency and a broader range of
application. One size is typically less than 50 megawatts. Small
modular reactors typically range from 500 [kilowatts] to 300
megawatts, and modules can be added to meet the required power
demand. Smaller sized reactors can be fabricated in a factory,
which reduces the cost and allows a more streamlined schedule
for development.
DR. GEHIN described three microreactor concepts that will be
demonstrated in the next five years.
1) The Department of Energy (DOE) is funding the microreactor
development called Marvel. The plan is for it to start
operations in 2023. It will demonstrate the processes
required to get a microreactor designed, authorized,
fabricated, and started.
2) In the 2024 timeframe, the Department of Energy Capability
Office will demonstrate at INL its mobile microreactor for
remote uses.
3) The company Oklo is developing the microreactor called
Aurora. It will be demonstrated at INL in the middle of
this decade.
2:05:07 PM
DR. GEHIN related that DOE's Advanced Reactor Demonstration
Program is supporting public/private partnerships for other
advanced reactor systems. These include:
1) TerraPower's Natrium Reactor, which is sodium cooled, will
be deployed at a retired coal plant in Kemmerer, Wyoming.
2) X-energy is developing the Xe-100 gas cooled reactor that
will be sited in Washington state and start up in 2027.
3) Kairos salt-cooled high temperature test reactor that will
start up in 2026.
4) Southern Company and TerraPower are partnering on a Molten
Chloride Reactor Experiment that will start in 2025.
DR. GEHIN also mentioned that Utah Associated Municipal Power
System is moving forward on deploying a small modular reactor
(SMR) on the INL site in 2029. It consists of six modules, each
of which is 77 megawatts.
He said the point is that there will be demonstrations in the
next decade that will prove the ability and feasibility of
microreactors and small modular reactors to meet clean energy
needs.
2:06:50 PM
DR. GEHIN stated that states are increasingly interested in
considering nuclear energy as an option. In addition to projects
in Idaho, Wyoming, and Washington state, West Virginia recently
removed its ban on nuclear power plants; Indiana has legislation
to consider small modular reactors; Nebraska passed legislation
to allow nuclear energy to qualify for renewable energy
incentives; and SB 177 seeks to streamline deployment of
microreactors in Alaska.
DR. GEHIN described other things happening in Alaska related to
nuclear power.
1) Copper Valley Electric Association is working with Ultra
Safe Nuclear Corporation (USNC) on a feasibility study of
microreactors.
2) The U.S. Air Force has expressed its intention to use
nuclear energy at Eielson Air Force Base.
3) INL has supported and collaborated to look at the role of
nuclear energy in Alaska. This includes the study by MIT
and supported by the INL Market Initiative, which included
participation from the University of Alaska Anchorage
faculty and staff. A finding was that microreactors are
cost effective because they provide both heat and
electricity.
4) The University of Alaska, Anchorage supported studies that
looked at use cases for nuclear energy in Alaska.
DR. GEHIN stated that the foregoing are concrete projects that
will demonstrate the feasibility of a wide range of nuclear
energy concepts. Microreactors that provide heat and power look
particularly attractive for remote communities and rural areas.
In the next ten years these demonstration projects will show how
these reactors perform. Nuclear energy is clean and it meets all
the objectives of a renewable energy portfolio standard, and
because of the emerging efforts, it warrants consideration for a
future energy source.
2:09:55 PM
CHAIR COSTELLO asked him to talk about the safety considerations
and the small physical footprint of a microreactor.
DR GEHIN stated that the physical footprint for a micro might be
the size of a shipping container while others may have a garage-
size building. There may also be support buildings around the
facility itself. Safety considerations include exclusionary
emergency planning zones, which are unoccupied spaces. He
relayed that the Nuclear Regulatory Commission (NRC) is working
to update the requirements for emergency planning zones given
the small size and enhanced safety of these small reactors. The
expectation is that the emergency planning zones will be limited
to the physical area of the reactor. By comparison, large
gigawatt class reactors may occupy 50 acres.
With regard to safety, he said a lot of work has been done on
light water reactors since Fukushima to maintain cooling after a
reactor shuts down, because the heat produced during the fission
process does not immediately go to zero. Existing reactors need
power to cool the reactor within 72 hours if power is lost.
Without power, a disaster like what happened at Fukushima
occurs. New safety measures for those reactors have been to put
systems in place to ensure that power is maintained. By
comparison, decay heat for advanced reactors does not require
any operator action to maintain cooling, which significantly
enhances safety if there is an incident at a reactor.
2:13:28 PM
SENATOR MICCICHE asked if there had been a delay in the
development of microreactors because it's been discussed for a
long time and he would have expected something to be on the
market by now.
DR. GEHIN offered his perspective that the development and
deployment timeline for this nuclear technology has been quite
fast.
SENATOR MICCICHE observed that in certain applications in rural
Alaska, 300 megawatts was a significant amount of generation. He
asked what portion could go toward heating structures versus
providing electrical power.
DR. GEHIN clarified that reactors currently under design range
from less than a megawatt to 300 megawatts or more.
Microreactors currently are being developed in the megawatt
range. The reactor that will be demonstrated at INL is in the
100 kilowatt range.
He explained that the 300 megawatt reactor mentioned earlier is
the upper limit for a small modular reactor; it will produce
700-800 megawatts of heat. It depends on the design of the
reactor and the power conversion system, but one can decide
whether some or all will go directly to heat and how much will
go to electricity. The waste or rejected heat can also be used
for different processes.
SENATOR MICCICHE asked what it would take for the renewable
community to accept micro nuclear reactors as a renewable source
of energy.
DR. GEHIN offered his view that the nuclear community is working
closely with the renewable community. Combining firm power from
nuclear with renewables makes it easier to manage variabilities.
He described it as infinite batteries. He added that reactors
can also be designed to work with renewables for thermal energy
storage. The reactor in Wyoming, for example, has the ability to
maneuver power through thermal energy storage to adjust to
variable renewables.
2:18:23 PM
SENATOR STEVENS noted that hydropower in his community of Kodiak
costs about 6 cents/kWh. He asked what it would cost to run a
small nuclear plant.
DR. GEHIN said that it would be hard to compete with that
because established hydro is very cost effective. Analyses have
been done that show the cost would be from 10 cents/kWh to as
much as 50 cents/kWh for the very small nuclear systems. These
systems would only be competitive in small rural locations that
rely on diesel that is shipped in. He said the goal is to match
with the appropriate market.
CHAIR COSTELLO invited Gwen Holdmann to comment on the bill and
the approach it takes.
2:19:59 PM
GWEN HOLDMANN, Director, Alaska Center for Energy and Power
(ACEP), UAF, Fairbanks, Alaska, stated that it is fairly common
for nuclear to be excluded from an RPS. No other state includes
nuclear as eligible under a RPS, although a bill introduced in
California in 2020 would have made nuclear eligible under that
RPS standard. The European Union (EU) also recently declared
nuclear a green technology. She said Alaska does not have
nuclear as part of its renewable energy mix, but she believes it
has potential as part of a future mix.
MS. HOLDMANN agreed with an earlier comment that the use of
nuclear has been discussed for a long time. She noted that there
were no venders looking at microreactors when the Alaska Center
for Energy and Power first reported to the legislature on
modular nuclear reactors in 2011, but that has changed. Now a
number of venders are actively looking at smaller reactor
designs. She highlighted that there is a plan to install up to a
5 megawatt reactor at Eielson Air Force Base by 2027.
MS. HOLDMANN stated that ACEP has been working with the Idaho
National Lab to analyze opportunities for microreactors under 50
megawatts of electric power output for the Alaska market. She
highlighted that including microreactors in this RPS would
provide additional grid resilience for critical infrastructure.
This would be similar to the Eielson project where both heat and
power could be provided to critical nodes on the Railbelt grid.
She agreed with Dr. Gehin that there is the potential to
regulate variable renewables. Mr. Thayer talked about the need
for additional energy storage on the Railbelt grid, but
microreactors could potentially be an alternative solution since
they have the ability to firm up renewable energy resources
while providing other energy sources like electric power and
heat. This is different than a battery. There are potential
industrial applications as well as for rural hubs. She opined
that nuclear could support other opportunities in Alaska related
to hydrogen or synthetic fuel production.
MS. HOLDMANN related that ACEP has been working on the economics
and possible use cases for microreactors and hopes to continue
to do so as part of a statewide roadmap for nuclear energy. She
mentioned that many states have a clean energy standard (CES)
instead of a renewable portfolio standard RPS. The key
differences include energy efficiency, carbon capture, and
nuclear. She noted that this might exclude biomass, which is
considered renewable but it does have emissions. She concluded
her comments saying that she did not see that an RPS would
necessarily exclude nuclear.
2:25:27 PM
SENATOR REVAK noted that the committee heard about hydropower
that costs about 6 cents/kWh. He asked if she had an idea of the
cost for nuclear.
MS. HOLDMANN said it will not compete with 6 cents/kWh
hydropower. ACEP is working with INL to understand the value
streams that come from a microreactor and she believes that the
economics are such that, there will be a place for these types
of systems as part of the state and national energy mix in the
future.
SENATOR REVAK asked how many states have RPS policies or clean
energy standards, and how that has affected the rates for users.
MS. HOLDMANN said she did not have the answer, although she
recalled that Mr. Thayer said about half the states have some
type of RPS or clean energy standard.
SENATOR MICCICHE asked if the NRC was looking at tiered
permitting such that the evaluation was different than for
typical nuclear construction.
MS. HOLDMANN answered that the idea over the long term was for
the National Regulatory Commission to license the technology and
then a separate licensing process would be specific to the site
to ensure that the technology is appropriate for the site. The
expectation is that the reactor design would not need to go
through multiple levels of relicensing for every individual
project because they will be developed and built in a factory to
exacting specifications.
2:30:34 PM
SENATOR MICCICHE asked if anyone had modeled a community on a
megawatt Btu balance for generation versus heat and waste heat
and looked for applications for a district heating system versus
outlying electrification using waste heat heating.
MS. HOLDMANN offered to meet separately or set up a Lunch and
Learn on such details. She relayed that ACEP currently was
looking at potential use cases to better understand the energy
streams. These are: Fort Wainwright and downtown Fairbanks; the
university; a remote community; and a remote mine site She said
ACEP has very good electric power data but heating data was
lacking for many users in the state. She noted that sites that
have an existing steam heat district heating system such as Fort
Wainwright and downtown Fairbanks are potentially examples of
where one could replace a coal plant at the end of its life with
a microreactor. She opined that such use cases might have more
economic value than just the power generation itself. ACEP is
working with the developers and manufacturers on this model and
there is a supplemental request in the university's budget to
fund that effort.
CHAIR COSTELLO said she believes that a Lunch and Learn would be
helpful to give people an idea of the work that ACEP is doing
with this technology and the potential for application in the
state.
2:33:02 PM
CHAIR COSTELLO opened public testimony on SB 179.
2:33:15 PM
CHRIS ROSE, Executive Director, Renewable Energy Alaska Project
(REAP), Sutton, Alaska, stated support for the Renewable
Portfolio Standard (RPS), as written. He agreed with previous
comments that they typically do not include nuclear and opined
that there were practical reasons for maintaining the existing
standard. Some of the nuclear technology under discussion will
not be available for 5-10 years. Furthermore, the cost of
nuclear energy from microreactors will not be close to 6
cents/kWh. Solar and wind currently are the least expensive
power options available in the country. He opined that nuclear
will not be competitive with wind and solar in the next 19
years, which is the range of the RPS put forward in SB 179. He
urged the committee to keep the RPS to those technologies that
were currently available.
CHAIR COSTELLO asked if he knew why the 80 percent by 2040
requirement was set and if that was achievable.
MR. ROSE explained that the National Renewable Energy Laboratory
(NREL) looked at whether an 80 percent standard was achievable
and determined that in the Railbelt that standard could be
achieved without impacting reliability. All the scenarios
included the updated transmission and batteries that Mr. Thayer
discussed and continued natural gas generation to supply the
remaining 20 percent of the power.
2:37:52 PM
CHAIR COSTELLO discerned that nobody else wished to comment and
closed public testimony on SB 179.
CHAIR COSTELLO held SB 179 for further consideration.
2:38:16 PM
At ease
SB 132-CONTROLLED SUB. DATA: EXEMPT VETERINARIAN
2:39:02 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SENATE BILL NO. 132 "An Act exempting
veterinarians from the requirements of the controlled substance
prescription database."
She stated her intention to move the bill if public testimony
didn't go beyond 3:00 p.m.
2:39:36 PM
NIKKI ROSE, Staff, Senator Roger Holland, Alaska State
Legislature, Juneau, Alaska, introduced SB 132 on behalf of the
sponsor. She paraphrased the following sponsor statement:
th
Alaska's 25 legislature created the Prescription Drug
Monitoring Program (PDMP) in 2008. The legislative
intent behind the PDMP was to create a database of
prescriptions for controlled substances in the state.
The PDMP may create obstacles for individuals seeking
opioids to obtain multiple prescriptions from
registered providers and may be a useful tool for
human doctors in combating the opioid crisis. Under
the current statutory framework, Alaska's
veterinarians are required to participate in the PDMP,
despite the irreconcilable differences between human
and veterinary medical practice. PDMPs have been
implemented in all 50 states, but 34 states have
recognized the unsuitability of veterinary
participation in the PDMP and exempted veterinarians.
SB 132 would add Alaska to that list.
The majority of states exempt veterinarians from PDMP
because they have recognized that PDMPs are designed
for use in human medicine; and veterinary exclusion
from PDMPs does not increase risk to the public.
Alaska's inclusion of veterinarians in the PDMP has
produced no identifiable benefit; yet the PDMP has
created a multitude of verifiable harms to the
veterinary profession and the Alaskans they serve. The
PDMP is inappropriate and not effective for use with
animal patients, as animals do not have identifiers
such as a social security number, and veterinarians
must view human owners' private health data before
treating an animal.
Alaska has the highest veterinary licensure cost in
the United States. Veterinary participation in the
PDMP contributes to this unnecessary financial burden
on a profession already experiencing extreme staffing
shortages, decreasing availability of veterinary
services to Alaskans. Moreso, a recent survey found
attempted veterinary doctor shopping across the entire
United States is essentially non-existent.
Veterinarians are tightly regulated by the Drug
Enforcement Agency, the Know Your Customer Act, and
the State licensing board. SB 132 seeks to correct an
expensive overreach so that Alaskans can have access
to treatment for their pets without compromising
public safety.
2:42:44 PM
MS. ROSE presented the sectional analysis for SB 132 that read
as follows:
[Original punctuation provided with minor formatting changes.]
Sec. 1
AS 17.30.200(o), relating to the controlled substance
prescription database, is amended by deleting the
Board of Veterinary Examiners from the list of
required notification by the Board of Pharmacy when a
practitioner registers with the database.
Sec. 2
Adds veterinarians to the list of practitioners not
required to comply with the controlled substance
prescription database under AS 17.30.200(t).
Sec. 3
Adds a definition of "practitioner" to AS 17.30.200(u)
Sec. 4
Repeals AS 08.98.050(a)(10), which obligates the board
of veterinary examiners to require licensees to
register with the controlled substance prescription
database.
2:43:53 PM
SENATOR STEVENS shared that he knew a veterinarian who
became addicted to the drugs he prescribed to animals. He
asked if the bill had sideboards to ensure that would not
happen in the future or if that situation was independent
of what the bill does.
MS. ROSE explained that this database would not capture
that kind of misuse because an individual would not put
information about their own drug use into the database.
CHAIR COSTELLO suggested that the invited testifiers could
talk about how veterinarians must look at pet owners'
personal prescription history even though veterinarians
have no training in human health matters.
2:45:29 PM
SENATOR REVAK mentioned the concern about doctor shopping
to feed an addiction and said he didn't want to exacerbate
that problem, but he did want to find a solution for
veterinarians.
CHAIR COSTELLO invited Dr. Tracy Ward and Dr. Rachel
Berngartt to give their presentation.
2:46:43 PM
DR. RACHEL BERNGARTT, Chair, Board of Veterinary Examiners,
Juneau, Alaska stated that she has been an Alaska licensed
veterinarian since 2002 working in a wide variety of
practice areas and she was speaking in support of SB 132.
2:47:24 PM
DR. TRACY WARD, President, Alaska Veterinary Medical
Association, Juneau, Alaska stated that she has been a
veterinarian for 32 years and has worked in several fields,
and she also spent considerable time in the pharmaceutical
industry. She is currently a small animal practitioner and
in several months will transition to be a shelter
veterinarian.
SENATOR STEVENS asked Dr. Ward and Dr. Berngartt to address
the concern about veterinarians who become addicted to the
drugs they prescribe for animals.
DR. BERNGARTT explained the process when a veterinarian
enters data in the Prescription Drug Monitoring Program
(PDMP) and said veterinary addiction is probably outside
the PDMP because professionals who are struggling with an
addiction are very unlikely to enter their own data into
the PDMP.
2:49:27 PM
DR. WARD said she believes some of the prepared testimony
addresses that concern a little more.
DR. WARD stated that both the Alaska State Veterinary
Medical Association, which is the professional body, and
the Alaska Board of Veterinary Examiners, which is the
regulatory body, strongly support SB 132. She and Dr.
Berngartt would discuss the reasons.
DR. WARD highlighted that just last Thursday the Alaska
Board of Pharmacy met and voted in support of this
exemption. They agree with the other 34 states that have
concluded that including veterinarians dilutes and confuses
the database. This vote was significant because this board
monitors, maintains, and interprets the data in the PDMP.
DR. WARD provided background on Alaska's PDMP, which was
established in 2008. In response to the growing opioid
epidemic, the PDMP was amended in 2017 to require
participation by all federal Drug Enforcement
Administration (DEA) permit holders, including
veterinarians. Neither the Alaska State Veterinary Medical
Association nor the Alaska Board of Veterinary Examiners
were consulted when the amendment was proposed.
2:51:26 PM
DR. WARD said there are a number of reasons that it makes
sense to exempt veterinarians. She would speak about the
practitioner concerns and Dr. Berngartt would talk about
the regulatory concerns.
She highlighted that the PDMP was not intended to be a
database for animals so it is not an effective tool for
tracking prescriptions for veterinarians or their patients.
The primary reason is the database was designed for human
medicine. Veterinary patients are animals and they do not
have unique identifiers such as a Social Security number
and the date of birth is often not known. When the law
passed initially, there was some confusion about who the
veterinarian would query because the Act talked about
querying the patient and the patients in a veterinary
practice are animals. It soon became clear that
veterinarians were supposed to query the animal owner's
prescription data when they prescribed a controlled
substance for the animal. This is despite the fact that the
information in the PDMP is not useful to veterinarians
because they are not trained in human medicine and dosages
do not translate from human to animal medicine. The data a
veterinarian enters into the PDMP for an animal patient is
similarly not useful for a medical doctor.
DR. WARD said Senator Revak brought up the next concern
which is privacy. Veterinarians are not trained in or bound
by the federal Health Insurance Portability and
Accountability Act (HIPPA) Privacy Rule. Furthermore,
veterinarians often work on shared computers in a large
treatment area so many people could see the information
that is entered. This is a concern for both veterinarians
and their clients. She asked the members if they would want
somebody who is not bound by HIPPA to see their private
prescription data. She pointed to the list of common
medications that veterinarians might see.
2:54:52 PM
SENATOR REVAK recalled that when they met he was comforted
that she mentioned that the dosages prescribed for animals
was comparatively small. This would make it much less
likely that an individual would "vet shop" to obtain drugs
for their personal use.
DR. WARD said that is relevant and she would respond to
that later in the presentation.
SENATOR STEVENS noted that dosages for large animals such
as horses could be quite large, then asked if anybody
tracked excessive use of drugs in a veterinary practice.
"How can you protect society from someone who may not have
scruples?"
2:56:27 PM
DR. WARD acknowledged he had valid concerns and noted that
the next slide discusses the fact that veterinarians are
monitored by the Drug Enforcement Agency and must adhere to
controlled substance regulations. She said she also wanted
to respond to his comment about large animals. She related
that she has experience with cattle, swine, and equine
practice and can say that controlled substances are almost
never used in food animals because the cost would be
prohibitive. Opioids are never used on horses because their
gastrointestinal tract would become impacted and the animal
would likely die.
SENATOR STEVENS thanked her for the response and shared
that his knowledge of veterinary science extended to All
Creatures Great and Small.
DR. WARD addressed the concern about abuse or diversion of
drugs by veterinarians. First, the PDMP was not intended to
track that information. It is about stopping shopping, not
diversion or self-use. If a veterinarian were to purchase a
drug for their own use or for diversion that would not be
entered into the database. There are, however, strict
regulations through the Drug Enforcement Agency (DEA). Any
veterinarian who prescribes or dispenses controlled
substances is licensed through the DEA and must adhere to
strict accountability, record keeping, and medication
storage requirements. Those records must be available to
the DEA on demand and local law enforcement agencies may
also request access.
DR. WARD continued to explain that manufacturers and
distributors of controlled substances are bound by Know
Your Customer type legislation that requires them to
maintain a Suspicious Order Monitoring System. These
companies must monitor, flag, and report a veterinarian's
unusual purchase patterns to the DEA. This is how the
majority of veterinary diversion is found. She drew a
parallel to a credit card company calling clients to ask
about unusual/potentially fraudulent charges on their card.
3:01:13 PM
DR. BERNGARTT delivered the second half of the
presentation. She reported that 34 other states have
exempted veterinarians from participating in the PDMP so
Alaska would not be a guinea pig. Increased veterinary
shopping or increased risk to the public would already be
evident, but that hasn't happened.
DR. BERNGARTT made the case that veterinarians are not a
source for the drugs that are of primary concern. She spoke
to the following from slide 9:
• The Board of Pharmacy reported that veterinarians
in Alaska from 20162018 prescribed .3% to 1% of
total Morphine Milligram Equivalents (MMEs).
• Opioid medications prescribed by veterinarians
(728,223) were only 0.34% of the total opioid
prescriptions (214 million) that were dispensed
by U.S. retail pharmacies in 2017.
• There is a natural barrier to vet shopping
since costs for veterinary care are paid up
front by the pet owner.
• There have been no identified cases of
veterinary shopping in Alaska.
3:04:38 PM
DR. BERNGARTT said another reason it makes sense to exempt
veterinarians from the PDMP is cost. Speaking as the chair
of the Board of Veterinary Examiners, she said the board
has seen an exponential increase in the cost of
investigations because the PDMP is unwieldy. She
highlighted that the state received a grant to cover some
of the cost of the PDMP. Costs are distributed between the
PDMP and the Board of Veterinary Examiners, but the grant
does not cover the board side of investigations.
3:06:23 PM
DR. BERNGARTT directed attention to slide 11 that
highlights that Alaska has the highest licensing fees for
veterinarians in the country. The state also has a critical
shortage of veterinarians and veterinary technicians.
Juneau, for example, used to have a nine doctor veterinary
hospital, and two hospitals that each had two doctors.
Currently, no overnight emergency animal services are
available in the community. Veterinary technicians are also
in very short supply. Further, Alaska has perhaps the
highest licensing fees for veterinarians in the country.
This makes it difficult to attract veterinarians to the
state. Alaska currently has 366 veterinarians who are
eligible to prescribe under the PDMP and just 266 licensed
technicians. That is less than one technician per doctor,
so it is not realistic to think that the technicians could
be charged with entering data into the PDMP to provide
relief for veterinarians.
3:08:16 PM
SENATOR STEVENS referred to the last line on slide 11 that
talks about charging veterinarians for the cost of
enforcement. He asked if she could place a dollar value on
this charge to veterinarians.
SR. BERNGARTT explained that the board is self-supporting
so the cost associated with the PDMP and investigations
comes from the fees charged to veterinarians and veterinary
technicians. Over the last several years the investigative
fees have become a concern and the only way to cover those
additional costs is to raise licensing fees.
SR. BERNGARTT concluded the presentation stating that a
"Yes" vote on SB 132 will allow veterinarians to:
• provide care for their patients;
• spend time with their patients instead of needless
querying and reporting unusable PDMP data
• increase the efficiency of the PDMP by eliminating
animal data that is not used
• allow more efficient tracking of human data in the
PDMP
• allow continued judicious use of controlled substances
that is already practiced by veterinarians, who are
regulated under the DEA
• allow veterinarians to continue to do their job
• eliminate unnecessary business burdens
3:11:34 PM
SENATOR GRAY-JACKSON said she appreciates the concerns of
her colleagues but since the bill was introduced last year
she has received many emails in support of the legislation.
She asked if there was any opposition to the bill because
she had heard none. She added that SB 132 makes sense and
she signed on as a co-sponsor.
DR. WARD replied that the Board of Pharmacy initially
expressed concerns similar to those articulated by
committee members, but the board recently voted to support
the bill.
3:12:31 PM
CHAIR COSTELLO opened public testimony for SB 132.
3:12:51 PM
DR. MCKAYLA DICK, Past President Alaska Veterinary
Association, North Pole, Alaska, stated that she is a
veterinarian who supports SB 132. It will allow the PDMP to
function as intended, which is to catch drug shoppers.
3:13:25 PM
TERRI LYONS, representing self, Wasilla, Alaska, stated
that she is a horse owner and there is a huge need for
large animal veterinarians in Alaska. She spoke to the
difficulties she has when her horse is in need of medical
attention in the middle of the night. SB 132 is one thing
that can be done to help this desperate situation.
3:14:45 PM
CHAIR COSTELLO closed public testimony on SB 132.
3:15:05 PM
At ease
3:18:05 PM
CHAIR COSTELLO reconvened the meeting and stated she would
hold SB 132 for future consideration.
3:18:30 PM
SENATOR MICCICHE said the discussion during the at-ease was
that he and other legislators amended the Alaska PDMP law
in 2017 in the belief that it would help to stem opioid
abuse. He said he has come to the conclusion that including
veterinarians in the PDMP is not the way to manage this
crisis.
SENATOR STEVENS said he was not trying to hold the bill up
because everything he heard makes sense. However, his
personal experience was causing him pause.
CHAIR COSTELLO said the veterinary community has worked
hard on this legislation and she appreciates that work. She
said her office would work to ensure that everyone is
comfortable with the bill.
CHAIR COSTELLO held SB 132 in committee.
3:21:08 PM
There being no further business to come before the
committee, Chair Costello adjourned the Senate Labor and
Commerce Standing Committee meeting at 3:21 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 179 Transmittal Letter.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 179 Sectional Analysis version A.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 179 Fiscal Note 2417 - DCCED.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 179 AEA Presentation to SLAC - 2.22.22.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 179 Supporting Document - NREL Feasibility Study (2022).pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 179 Written Testimony received as of 2.22.22.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 179 |
| SB 132 Presentation to SLAC 2.23.22.pdf |
SL&C 2/23/2022 1:30:00 PM |
SB 132 |