02/05/2025 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Cordova Electric Cooperative | |
| SB61 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 61 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
February 5, 2025
3:30 p.m.
DRAFT
MEMBERS PRESENT
Senator Cathy Giessel, Chair
Senator Bill Wielechowski, Vice Chair
Senator Matt Claman
Senator Forrest Dunbar
Senator Scott Kawasaki
MEMBERS ABSENT
Senator Shelley Hughes
Senator Robert Myers
COMMITTEE CALENDAR
PRESENTATION(S): CORDOVA ELECTRIC COOPERATIVE
- HEARD
SENATE BILL NO. 61
"An Act relating to an electronic product stewardship program;
relating to collection, recycling, and disposal of electronic
equipment; establishing the electronics recycling advisory
council; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 61
SHORT TITLE: ELECTRONIC DEVICE RECYCLING
SPONSOR(s): SENATOR(s) TOBIN
01/24/25 (S) READ THE FIRST TIME - REFERRALS
01/24/25 (S) RES, FIN
02/05/25 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
CLAY KOPLIN, Chief Executive Officer
Cordova Electric Cooperative
Cordova, Alaska
POSITION STATEMENT: Delivered the presentation, Cordova Electric
Cooperative.
LOUIE FLORA, Staff
Senator Löki Tobin
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 61 on behalf of the sponsor.
LYNN ZENDER, Executive Director
Zender Environmental Health and Research Group
Anchorage, Alaska
POSITION STATEMENT: Presented Electronics Product Stewardship in
Alaska, relating to SB 61.
SCOTT KLAG, Consultant
Product Stewardship Institute
Portland, Oregon
POSITION STATEMENT: Testified in support of and answered
questions on SB 61.
LELAND REHARD, Environmental Program Coordinator
City of Columbia
Columbia, Missouri
POSITION STATEMENT: Testified in support of SB 61.
ACTION NARRATIVE
3:30:20 PM
CHAIR GIESSEL called the Senate Resources Standing Committee
meeting to order at 3:30 p.m. Present at the call to order were
Senators Kawasaki, Dunbar, Claman and Chair Giessel. Senator
Wielechowski arrived during the course of the meeting.
^PRESENTATION(S): CORDOVA ELECTRIC COOPERATIVE
PRESENTATION(S): CORDOVA ELECTRIC COOPERATIVE
3:31:26 PM
CHAIR GIESSEL announced the presentation, Cordova Electric
Cooperative.
3:31:41 PM
CLAY KOPLIN, Chief Executive Officer, Cordova Electric
Cooperative (CEC), Cordova, Alaska, moved to slide 1, a photo of
the Cordova waterfront, and began the presentation, Cordova
Electric Cooperative. He suggested the Cordova story could serve
as a model for other communities and for the energy industry in
general. Referring to the importance of the seafood industry to
Cordova, he acknowledged the pressure that industry was
currently facing. He said the presentation would include the
interface between the energy industry and the seafood industry.
3:32:50 PM
MR. KOPLIN moved to slide 2 and summarized the story of Cordova
as one of resilience:
[Original punctuation provided.]
Resilience
The capacity to recover quickly from difficulties;
toughness. Starts from a position of strength /
capacity, is devastated by events, and returns to a
position of strength. Resides with people and
organizations, not resources or technology.
Copper River & NW Railroad Closed 1938
Great Alaska Earthquake 1964
Exxon Valdez Oil Spill 1989
3:33:45 PM
MR. KOPLIN moved to and narrated slide 3, a topographical map
illustrating the key components of the Cordova Electric
Cooperative (CEC) with photos and brief descriptions of each
component:
[Original punctuation provided.]
CEC Grid Architecture
Humpback Creek Hydroelectric Plant
1250kW (2 x 500 kW + 1 x 250 kW)
17,000 foot [underground] UG and submarine
transmission line
HBC Edge Cloud
Water Cooled
Decentralized Cloud
Power Creek Hydroelectric
6278kW (2 x 3124 kW)
25 kV transmission ties to Eyak Substation, Inflatable
dam
City of Cordova
1,566 customers, 18MW
One Substation
78mi UG distribution lines
Battery Energy Storage System
1 MW, 1MWh ABB/SAFT at Eyak Substation
Orca Power Plant
10.8 MW Diesel Control Center, CEC
3:34:12 PM
MR. KOPLIN moved to slide 4 and highlighted Cordova's journey
from struggling with outages and aged infrastructure to becoming
a reliable and affordable utility, particularly in renewables.
He emphasized three "levers" as key to Cordova's transformation:
• cooperation with partners
• adaptation to environmental and financial challenges
• innovation
3:35:24 PM
MR. KOPLIN moved to slide 5, highlighting the cooperative
partnerships Cordova has established with these entities:
[Original punctuation provided.]
COOPERATION: BETTER TOGETHER
Cordova Telephone Cooperative, Inc.
The Eyak Corporation
City of Cordova, Incorporated 1909
Sandia National Laboratories
The State of Alaska
Native Village of Eyak
NRECA - America's Electric Cooperative
Alaska Department of Fish and Game
Pacific Northwest - National Laboratory
United States Senate
Department of State - United States of America
Idaho National Laboratory
Chugach
Alaska Center for Energy and Power
MR. KOPLIN said there were many other organizations in addition
to this list who have allowed Cordova to do very creative things
on their path.
3:35:47 PM
MR. KOPLIN moved to slide 6 and said partnering with the state
was transformational for CEC. In 2000 Cordova developed the
Power Creek Hydroelectric Project. They got $12 million of
funding in cooperation with their native corporations from the
Indian Energy act and the State of Alaska, through House and
Senate Bill 528 which included a large capital bill for debt
reimbursement. CEC paid off the remaining debt on the Power
Creek project with that state capital funding:
[Original punctuation provided.]
Power Creek Hydroelectric: Local, Affordable, Reliable
Energy Project Cost: $24M - $12M Federal, $12M State
of Alaska
[Photo of the Power Creek hydroelectric dam]
Power Creek Run of River Hydro Intake
3:36:22 PM
MR. KOPLIN moved to slide 7 and said the Power Creek project
transformed the Cordova community by providing seven percent of
its electricity and reducing base rates by 20 percent. CEC
nearly eliminated diesel use in the summer, saving 70 percent of
diesel usage annually, equating to 1.5 million gallons and $50
million in diesel fuel cost savings over 20 years.
3:37:09 PM
MR. KOPLIN explained that Cordova residents voted to de-regulate
[energy rates], allowing the board of directors to make quick
and creative decisions on rates without significant legal costs
or time investment. Communication and cooperative efforts
between CEC and the seafood industry were possible because of
the extra energy capacity and creative rate structure,
encouraging local seafood processors to invest in high-
efficiency equipment, shifting operations onshore. This resulted
in an additional $750,000 in raw fish tax revenues annually,
benefiting the state and the city of Cordova for community needs
like education and infrastructure:
[Original punctuation provided.]
Power Creek
Project
Benefits/Outcomes
• Provides 70 percent of Community's Electricity
• Reduced rates ~ 20 percent
• Reduced diesel fuel use 70 percent (1.4M
gallons/year) - $50M in 20 years
• $0.06/kWh seafood incentive rates
• Moved floating processing onshore
• Increased Cordova and State Raw Fish Taxes ~
$750K/year each
• Attracted tens of millions in shipping and seafood
infrastructure investments
• Grew sales allowing CEC to keep rates flat for 20
years
3:38:55 PM
SENATOR KAWASAKI noted the $.06 per kwh rate offered to the
seafood industry and asked about the process to approve those
rates. He asked whether Regulatory Commission of Alaska (RCA)
approval was required.
3:39:19 PM
MR. KOPLIN appreciated the opportunity to clarify that Cordova
Electric Cooperative (CEC) voted to deregulate, which allowed
the rate-making authority to transfer from the RCA to the board
of directors for CEC. He explained that CEC follows a simplified
rate filing process and the national regulatory rate structures,
which includes public hearings and is essentially the same
process used by the RCA. CEC developed an incentive rate
structure that the board reviewed and approved within 40 days.
This new rate structure, beneficial for the seafood industry by
enhancing the use of local plants, particularly during winter
and shoulder seasons, also aims to promote the use of air source
heat pumps and electric vehicles. The strategy aligns with the
board's goal of increasing kilowatt-hour sales to reduce costs.
3:41:08 PM
SENATOR CLAMAN asked how many years ago CEC opted out of RCA
regulation.
3:41:15 PM
MR. KOPLIN said it was soon after the cooperative was
established, in the late 80's.
3:41:28 PM
SENATOR CLAMAN noted that pre-dated the RCA. He expressed
surprise that this was possible and asked whether the
predecessor to the Regulatory Commission of Alaska (RCA) was
required to allow CEC to [vote for deregulation].
3:41:56 PM
MR. KOPLIN explained that cooperatives in Alaska, as outlined by
the Alaska Power and Telephone Act, are self-governed by their
customer-owners, with an elected board of directors making
decisions.
3:41:58 PM
SENATOR WIELECHOWSKI arrived.
3:42:20 PM
MR. KOPLIN said, anecdotally, over 80 percent of the
cooperative's members voted to deregulate, indicating a strong
vote of trust in the board's ability to set fair rates, rather
than relying on the Regulatory Commission of Alaska (RCA).
3:42:36 PM
SENATOR KAWASAKI noted that some funds for the Power Creek
project were from the state, and some were federal. He mentioned
the Eva Creek Windfarm and the intent of Golden Vally Electric
Association (GVEA) to be sure state residents received benefit
from state spending on the project. He asked whether there was
similar intent and follow through by CEC to pass along rate
reductions to consumer residents.
3:43:28 PM
MR. KOPLIN explained that the strategy to reduce rates to
residents by nearly 20 percent was made possible through state
funding for debt reimbursement. The strategy avoided significant
interest costs and contributed to consistently reduced rates
[for residents] as funding tranches were received. Additionally,
the success of seafood sales contributed to maintaining flat
rates for nearly 20 years.
3:45:12 PM
MR. KOPLIN moved to and narrated slide 8:
[Original punctuation provided.]
Avg Daily kW Load 2012 w/Excess Hydro
CEC Controls System Frequency by Deflecting up to
750kW of water, a waste of energy (orange), and there
is excess in summer (green), and not enough in winter
(black/diesel)
[The graph uses colored bars to illustrate the energy
in the CE system for each day of the year 2012.]
MR. KOPLIN said CEC approached the Alaska Center for Energy and
Power (ACEP) and explained that CEC was generating extra hydro-
generated energy they wanted to use, and they were seeking ways
to use the lost power. ACEP offered to assist with battery
energy storage.
3:45:47 PM
MR. KOPLIN moved to slide 9 and narrated the animated graphic
illustration of CEC energy dynamics January 1 - through
September of 2014. He described the challenge of managing the
fluctuations of supply and usage to provide quality power.
[Original punctuation provided.]
Cordova Seasonal Load Dynamics
Partners: Cordova Electric Cooperative, ACEP, SNL,
CESA funded through DOE OE
[Animated graphic illustration]
3:46:41 PM
MR. KOPLIN moved to slide 10 and described CEC's collaboration
with Alaska Center for Energy and Power to optimize their highly
automated grid system using a battery energy storage system
(BESS). Funded by Sandia National Labs, the BESS was right-sized
for the grid, enabling it to balance power in real-time and
significantly reduce diesel fuel consumption by 50,000 gallons
in the first year. The project involved working with advanced
companies ABB and Saft to perfect communication algorithms,
crucial for maintaining a reliable microgrid:
[Original punctuation provided.]
A US Department of Energy Sponsored Microgrid
Battery Energy Storage Application
(Dr. Imre Gyuk, Director of Energy Storage Research,
Office of Electricity)
PARTNERS: US DEPT OF ENERGY-SANDIA-NRECA-ACEP-CEC;
SAFT/ABB PACKAGE
3:48:25 PM
MR. KOPLIN moved to slide 11 and said of all the important
partnering for CEC's operations, the most important partners are
the customers. He said CEC moved its customers to the top of its
organizational chart, followed by the board of directors, and
then staff. He presented a five-minute "CEC Customer Engagement"
video following a local fisher receiving a tour of CEC's
operations and learning the history of Cordova's power
generation. She reflected on CEC's efforts to save power and
money by continually improving efficiency.
3:54:38 PM
SENATOR CLAMAN noted the inflatable portion [of the dam at Power
Creek] and asked how long it lasts and how much it costs to
replace it.
3:54:57 PM
MR. KOPLIN described avalanche and flooding events that caused
significant damage to the dam and the way those events modified
the design and operation. He said there is a 50-year life
expectancy for the dam. It has cost around $1 million to replace
the rubber bladder; it has been replaced twice. He said the
operation and maintenance costs for the dam are generally quite
low.
3:56:52 PM
SENATOR CLAMAN noted the difference between CEC's dam design and
a typical concrete dam.
3:57:06 PM
MR. KOPLIN said the bladder itself is about $250,000 and with
other factors and logistics, replacement costs are around
$300,000.
3:57:18 PM
MR. KOPLIN moved to slide 13, comprised of photos of damage from
floods and avalanche to the dams at Power Creek and Humpback
Creek over the years. He noted that a lot of bad things can
happen, and CEC has learned to adapt their equipment and their
system to the environment.
3:57:57 PM
MR. KOPLIN moved to slide 14. He said the reason he went to
Cordova 26 years ago from Kodiak Electric was that he
appreciated the visionary perspective Cordova exemplified by
developing a policy to convert to underground power lines. He
noted that during the past several weeks, there were no power
outages in Cordova during the 90-100 mph wind storms:
[Original punctuation provided.]
100% Underground Power Lines: Reliability
[photo of a utility worker maintaining/repairing
overhead power line]
3:58:35 PM
MR. KOPLIN moved to slide 15. He emphasized the importance of
continuing to modernize and optimize projects. He provided
details for each of the bulleted upgrades and innovations noted
on the slide, describing the conditions that led to them and the
degree of improvement and efficiency each provided. He said most
of these improvements cost tens of thousands of dollars and paid
for themselves almost immediately:
[Original punctuation provided.]
OPTIMIZING HYDRO
• Instream Flow 22,000 REPRESENTATIVE GALVIN
• Trash Screens 15,000 REPRESENTATIVE GALVIN
• BESS Control 25,000 REPRESENTATIVE GALVIN
• Valve Upgrade 20,000 REPRESENTATIVE GALVIN
• Power Factor 5,000 REPRESENTATIVE GALVIN
• Diesel Warm 25,000 REPRESENTATIVE GALVIN
• Diesel Upgrades 40,000 REPRESENTATIVE GALVIN
• 2024 Trend: 80 percent+ Hydro, 200,000-gallon
reduction or 1/3 of remaining diesel
4:01:12 PM
MR. KOPLIN moved to slide 16 and said innovation was the third
lever in CEC's formula for success. He described financial
innovation and the partnership with CoBank to manage debt using
low interest opportunities:
[Original punctuation provided.]
INNOVATION: A PATH TO THE FUTURE
[photos depicting examples of CEC innovation]
4:01:57 PM
MR. KOPLIN moved to slide 17. He described the repair of a fault
in a 3.5-mile submarine cable using old technology that was on
hand. The crew lifted the damaged cable, spliced in new cable
and re-energized the line the next day. He said this experience
represented a $60,000 expense for what would have been a
$500,000 repair. He noted again the effect of creating
efficiencies by innovating and partnering with other entities:
[Original punctuation provided.]
[photos depicting:
a fishing crew on the deck of a fishing boat with a
repurposed net reel
a Metro-Tel Cable Hound (cable locator equipment) &
Repurposed net reel spooled with standard underground
cable]
4:03:07 PM
MR. KOPLIN moved to slide 18 and reiterated that CEC had a
highly automated system with a lot of data. CEC hosted the
largest GRID modernization project in the U.S. with the
Department of Energy, achieving the most successful project to
date in terms of modernization breakthroughs.
[Original punctuation provided.]
GRID
MODERNIZATION
LABORATORY
CONSORTIUM
U.S. Department of Energy
Resilient Alaskan Distribution system
Improvements using Automation, Network analysis,
Control, and Energy storage (RADIANCE)
Rob Hovsapian / Abraham Ellis
Idaho National Laboratory / Sandia National Laboratory
DOE Project Overview - December 13, 2017
4:03:24 PM
MR. KOPLIN moved to slide 19. He said CEC's entire energy grid
was modeled on the National Renewable Energy Lab's campus. CEC
uses the model to evaluate potential projects for their impact
on the grid:
[Original punctuation provided.]
Resilience Week
CEC Digital Blueprint development for Real-time CHIL &
PHIL [Controller-Hardware-in-the-Loop and Power-
Hardware-in-the-Loop] evaluation
[Photo: 250 kW electric boiler as dispatchable load
and saves diesel fuel 1500 gal/month]
[Photo: CEC Microgrid's Eyak Substation with BESS]
[Diagram: CEC's status, data and control system -
components and connections]
4:03:37 PM
MR. KOPLIN moved to slide 20 and said CEC had an agreement with
a boiler company and next-generation developer of heat pumps to
test their product and measure the possible cost savings for
customers [of using heat pumps]:
[Original punctuation provided.]
Heat Pumps
• Test Agreement US Manufacturer
• Incentive Programs
• CEC Mini-grant
• USDA RESP 0 percent Loans
• IIJA Incentives
• Aligns with sales growth strategy
• Can save customers substantially
• Supported by Winter Incentive Rate
4:04:00 PM
MR. KOPLIN moved to slide 21 and said this [cloud and data
services opportunities] was where he and Senator Giessel began
the conversation about CEC's experience and implications for the
entire state [of Alaska]. He described the local area cloud
server installed inside CEC's hydro plant and said the setup
offered multiple efficiencies, allowing for the sale of excess
hydropower and bringing cloud services directly to the
community. He explained that the local server provided data
security and sovereignty, reducing reliance on distant cloud
servers. He said there was a Nexus between energy, data, and
communications presenting emerging opportunities for Alaska:
[Original punctuation provided.]
HEAD IN THE CLOUDS:
LOCAL AREA CLOUD/
EDGE COMPUTING
• Grow Sales
• Utilize Capacity
• Cloud Services "Inside the Fence"
• Data Security and Sovereignty
• Crossing the Digital Divide Local Tech
• Cloud / AI Development Space
4:06:10 PM
MR. KOPLIN moved to slide 22 and played a video describing the
partnership and innovations achieved between CEC, Greensparc,
and HPE GreenLake. In the video, Sam Enoka describes
Greensparc's vision to bridge the digital divide by bringing
data infrastructure that is cheaper, faster and greener to the
most difficult to reach markets. Mr. Koplin describes CEC's
features, data systems and desire to localize data processing
and improve CEC's efficiency, reducing the cost of energy and
improving reliability. Mr. Enoka reports that this partnership
developed and deployed the Cordova data center in 30 days:
4:09:29 PM
MR. KOPLIN said that the resulting data server allowed Cordova
Electric Cooperative (CEC) to sell excess renewable energy,
increasing revenues and reducing energy costs for customers. He
emphasized the opportunity for Alaska to develop and operate
data centers and generate revenue, benefitting many facets of
community life in the state.
4:10:41 PM
MR. KOPLIN moved to slide 23 and said the other part of data
that is seen as a threat to many is artificial intelligence (AI)
processing. He noted excess capacity and the possibility of
building more excess capacity in the fiber-optic grid and said
that could also be an opportunity to sell into a global market:
[Original punctuation provided.]
BIG DATA: BIG OPPORTUNITY
AI LLM Capacity Bottleneck Alaska Climate and
Infrastructure - Scaling
[Illustration: Tech-Grid style map of North America
with light arcs connecting population centers.]
COOPERATIVE
EXCHANGE
EXPERIENCE THE POWER OF SHARING
4:11:16 PM
MR. KOPLIN moved to slide 24 and said the winter incentive rate
schedule was developed in response to the seafood industry's
appeals for help with energy costs. He said once a customer
reached a threshold where they have paid their fair share of
energy costs, their rate drops to $.06 per kwh,
[Original punctuation provided.]
Temporary Winter Incentive
Rate
Public Hearing
September 25, 2024
Implemented: October 1, 2024
4:11:42 PM
MR. KOPLIN moved to slide 25 and said most CEC customers were
hovering just below the 1,000-kwH threshold and if they added an
air source heat pump, they would land in the incentive range. He
explained that the savings on heating bills will be significant.
He noted that for businesses and residents heating bills are
generally three times their electric bill, so making heat less
expensive makes a big impact on overall energy costs:
[Original punctuation provided.]
Proposal
Two-part incentive rate structure
• Top winter users in the cannery and large power
rate class have an incentive tier based on
historical winter maximum usage
• Large power, general service, and residential
rate classes have an incentive tier implemented
Incentive Rate of 6 cents / kwh
Effective Oct 2024 Mar 2025
[Rate Table comparing four rate tiers plus a proposed
Incentive Tier]
4:12:20 PM
MR. KOPLIN moved to slide 26 and said CEC worked with the
Renewable Energy Fund to address the costs of a high-altitude
[dam] project. Access to low-interest federal funding is
available now. However, a review of local opportunities
suggested that the Humpback Creek Project with the upstream
addition of a thin-arch dam would allow storage of about three
days of operating water, eliminating the need for summer diesel
use, as well as significant reduction of winter diesel use.
Redesign and upgrade to that existing facility will
approximately triple the current diesel off-set and combining
Humpback Creek storage with Crater Lake Storage will bring CEC
to approximately 95 percent renewable energy:
[Original punctuation provided.]
HUMPBACK CREEK STORAGE ADDITION
• Build 70' Thin Arch Dam
• Connect Dam to Existing Penstock
• Remove (2) 500kW Francis Turbines with
• Install (1) 1,300kW Pelton Turbine Generator
• Upgrade Switchgear and Hydraulics
• Triple Output Maximize Diesel Offset
4:13:45 PM
MR. KOPLIN moved to slide 27. He said Crater Lake was perched
high above the [Cordova] community. The dam proposed would be
fairly small, at about 25 feet tall with a small pipeline down
to tidewater. He said the city experienced droughts and water
shortages at a water treatment facility and the Crater Lake dam
would provide hundreds of thousands of gallons of water storage
which could be used when water is needed and would provide
energy as well. He emphasized the multiple benefits of
thoughtful infrastructure. He said Cordova would be seeking
matching funds for the funding opportunity to move forward with
these projects. He acknowledged the high up-front capital
investments required for hydro projects but noted that the
investment results in significant decreases in the cost of
energy, as [Alaska has] experienced with the Bradley Lake dam:
[Original punctuation provided.]
Crater Lake Design
and Layout
[Text superimposed on topographical map of the
proposed facility]
14" 16" Diameter Pipeline
Approximately 3,800' Long
20-25' High Dam
125'-400' Wide Dam
1713 Acre-Feet or 567,000,000 gal/year
2.2M kWh/Yr or 162,300 gal. diesel
4:15:02 PM
SENATOR CLAMAN asked for a comparison of the Humpback Creek dam
with the inflatable dam [at Power Creek].
4:15:15 PM
MR. KOPLIN said Humpback Creek Dam and the watershed were about
one fifth the size of Power Creek, and Power Creek has undergone
significant design improvements. He said Power Creek produced
about 70 percent of Cordova's energy last year and Humpback
Creek produced about ten percent. He said Humpback Creek would
grow from about two million to six million kWh annually and CEC
realizes about 18 million kWh out of Power Creek.
4:16:19 PM
MR. KOPLIN moved to slide 28, a graph representing 2023 Hydro
[Humpback Creek and Power Creek], Diesel, and Peak [Energy]
Generation. He highlighted valve replacements and diesel
efficiency improvements to the system over the past two years
and the resulting reduction to diesel generation in the winter
months of 2023.
4:16:34 PM
MR. KOPLIN moved to slide 29, a graph like the one on slide 28
depicting CEC power generation for 2024 and noted the increase
in hydropower generation and the continued decrease in diesel
consumption.
4:16:40 PM
MR. KOPLIN moved to slide 30, a graph like the one on slide 29
with the hypothetical additions of the upgrades to Humpback
Creek and Crater Lake. He said the graph represented
conservative estimates of what CEC expects from the upgraded
hydropower systems, especially for the winter months when year-
round residents and businesses would realize the greatest
benefit.
4:17:02 PM
MR. KOPLIN moved to and narrated slide 31. He emphasized that
the presentation barely scratched the surface of the CEC
experience and he hoped for the opportunity to share much more.
He noted CEC was able to share with Greenland their experience
using underground power lines to extract more energy from their
power plant. As a result of the increased efficiency, Greenland
deferred building a $30-40 million fourth turbine because they
were producing enough power with the turbines they had; the
underground power lines allowed more efficient power use:
[Original punctuation provided.]
THANK YOU! Questions?
Cordova Center Cordova, Alaska
2025 Alaska Power Association Annual Meeting
September 23-26
We Welcome Policy Tours and Field Hearings
[email protected] (907) 831-6339 M
[Alaska Power Association] APA & [ARECA Insurance
Exchange] AIE
-ANNUAL-
MEETINGS
SEPTEMBER 23-26, 2025
THE CORDOVA CENTER
CORDOVA, Alaska
MORE INFORMATION:
WWW.ALASKAPOWER.ORG/ANNUAL-CONFERENCE
4:17:54 PM
SENATOR CLAMAN noted Cordova's decision to bury their power
lines. He asked how long it took to accomplish community wide.
4:18:08 PM
MR. KOPLIN said it took 40 years, from 1978 when the cooperative
was formed until 2011. The decision represented $68 million
dollars in value to the community. He said underground power
lines are much safer and there are many value streams for
underground power. He said Cordova took advantage of every
opportunity, such as repaving projects, and electric utility
upgrade projects etc., over the forty years to lay conduit and
upgrade circuits and continue to build the system. He emphasized
the value of cooperation, collaboration and communication among
utilities and other entities to keep costs down and spread the
project out over time. He said it was surprising how fast it
gets done and how time goes by.
4:20:18 PM
SENATOR CLAMAN noted that Anchorage expects to take about 100
years to upgrade to underground power. The project is funded
through property taxes and though it is taking time, he
approved.
4:20:39 PM
SENATOR DUNBAR noted the potential application of Cordova's
lessons to other Alaska communities and that the decision to
pursue hydro power in Cordova was controversial.
SENATOR DUNBAR commended the innovative approach of CEC and the
telephone cooperative. He emphasized the importance of pursuing
funding and embracing innovation, even in a traditional
community of fishermen. He also noted significant contributions
of state and federal support and the establishment of the
Cordova Center, which required external assistance.
4:22:35 PM
MR. KOPLIN humorously noted that policies may not keep the
lights on, but they are crucial. He acknowledged controversies
and objections as well as the tragic fatality that occurred
during the development and construction of the Power Creek dam.
He urged holistic consideration of future projects, though, and
noted recent flooding and emergencies in communities downstream
of the proposed Susitna-Watana dam. He advocated for the role of
dams in responding to the impact of climate change on water
supplies and in maintaining stable conditions for salmon and
other aquatic life. He cited the example of the Columbia and
Snake Rivers, which were showing increased salmon returns due to
dams. He emphasized the value propositions of dam projects under
consideration, urging that they be built now despite challenges
and opposition, citing their energy cost savings and
environmental benefits. He stressed the importance of leadership
making hard, right choices.
4:25:22 PM
CHAIR GIESSEL thanked Mr. Koplin for bringing the presentation
to the committee.
4:25:38 PM
MR. KOPLIN emphasized the important role of governance and
leadership.
4:25:57 PM
At ease.
SB 61-ELECTRONIC DEVICE RECYCLING
4:29:55 PM
CHAIR GIESSEL reconvened the meeting and announced the
consideration of SENATE BILL NO. 61, "An Act relating to an
electronic product stewardship program; relating to collection,
recycling, and disposal of electronic equipment; establishing
the electronics recycling advisory council; and providing for an
effective date."
4:30:33 PM
LOUIE FLORA, Staff, Senator Löki Tobin, Alaska State
Legislature, Juneau, Alaska, explained that this legislation was
first brought before the Senate Resources Committee in 2024. He
paraphrased the written Sponsor Statement for SB 61 on behalf of
the sponsor:
[Original punctuation provided.]
SB 61
Sponsor Statement
Senate Bill 61 creates a manufacturer-funded system
for collecting and recycling electronic devices. Flat-
screen televisions, computer monitors, and other
electronic devices have grown integral to modern life,
business, and education. With ever more devices, there
is a growing problem of electronic waste in Alaska.
SB 61 introduces the practice of product stewardship
for electronic devices sold in Alaska. Product
stewardship is where the manufacturer of an electronic
device assumes financial responsibility on a life-
cycle basis for that device. Manufacturers allocate
funding to cover collection and recycling activities.
These costs are currently borne by communities, non-
profit organizations, Tribes, and businesses.
Electronic waste associated with human health risks
includes lead used in the cathode ray tubes found in
computer and TV screens, cadmium used in rechargeable
computer batteries, contacts and switches, and mercury
used in the liquid crystal displays of mobile phones
and flat screen computer monitors as well as in
switches, batteries, and fluorescent lamps. These
components are especially problematic in rural Alaska
where community landfills are often unlined, allowing
harmful chemicals to be released into local waters.
Landfill fires that include electronic devices can
cause smoke inhalation hazards in communities.
If SB 61 passes, Alaska will join half the states in
the nation, Canada, and many other countries in having
a product stewardship law. Under SB 61 a manufacturer
offering electronic devices covered under this bill
for sale in Alaska would register with the Department
of Environmental Conservation and allocate funding for
the collection and recycling of devices proportional
to the volume of their sales. Manufacturers would
register individually or join a clearinghouse that
specializes in implementing these programs and
dividing the costs of the program among manufacturers.
This will create a funding stream to cover the costs
of collection, transportation and recycling which is
currently funded by a mix of grants and local tax
revenue.
SB 61 was developed by the Alaska Solid Waste Task
Force. Stakeholders in the task force include the
Alaska Native Tribal Health Consortium, the Alaska
Department of Environmental Conservation, Kawerak
Incorporated, and Zender Environmental. A product
stewardship policy for electronic devices is supported
by the Alaska Federation of Natives, the Alaska
Municipal League, the Solid Waste Association of North
America as well as numerous Alaska communities,
organizations, and businesses.
4:33:44 PM
MR. FLORA explained that, under SB 61, manufacturers can
register individually or join what is called a Product
Responsibility Organization (PRO), referred to in SB 61 as a
clearinghouse. He said a PRO specialized in implementing
disposal programs and dividing the cost of the programs among
manufacturers. The PRO model is generally well-accepted in
states that have adopted legislation like SB 61.
4:34:26 PM
MR. FLORA said the manufacturers, or their PRO will propose a
plan for the recycling of the goods. The plan will be reviewed
and amended by a 13-member advisory council created under SB 61,
and ultimately that plan will be [submitted for] approval by the
Department of Environmental Conservation.
4:34:48 PM
MR. FLORA said the fee paid by the manufacturers will cover the
cost of collection, transportation and recycling efforts
currently funded in Alaska by a mix of grants and local tax
revenue. SB 61 will decrease the burden on local taxpayers and
help alleviate concerns about what the federal funding picture
might look like in the future.
4:35:55 PM
MR. FLORA noted expert resources available on-line to testify or
answer questions.
4:37:05 PM
CHAIR GIESSEL announced invited testimony on SB 61.
4:37:57 PM
LYNN ZENDER, Executive Director, Zender Environmental Health and
Research Group, Anchorage, Alaska, moved to slide 1 and
introduced herself:
[Original punctuation provided.]
Electronics product
stewardship in Alaska
February 5th
Senate Resources Committee
Dr. Lynn Zender
Director, Zender Environmental Health and Research
Group
Member, Solid Waste Alaska Task Force
MS. ZENDER explained that Zender Environmental Health and
Research Group was an 18-member non-profit based in Anchorage,
primarily focused on serving rural communities to address waste
management and water quality issues.
4:38:41 PM
MS. ZENDER moved to slide 2. She said the task force was
comprised of solid waste experts from each organization who came
together to identify issues beyond the control or influence of
any one community. She said electronic waste (E-waste) was one
of those issues:
[Original punctuation provided.]
What is the Solid Waste Alaska Taskforce (SWAT)?
Formed in December 2014, SWAT is a team of multiple
organizations with statewide solid waste programs that
work together for sustainable waste solutions in rural
Alaska:
• Alaska Department of Environmental Conservation
(ADEC)
• Alaska Native Tribal Health Consortium (ANTHC)
• Zender Environmental Health and Research Group
• Kawerak, Inc
4:39:17 PM
MS. ZENDER moved to slide 3, which contained a table of chemical
compounds, their range and refences; and two diagrams:
• A sanitary landfill - MS. ZENDER highlighted the liner,
leachate collection system and leachate treatment plant and
said a sanitary landfill is required in every community in
the United States, including the larger cities in Alaska.
• Unlined landfill - In rural Alaska, the landfills don't
have liners or leachate treatment. She said the chemicals
listed in the table of compounds and many more enter the
environment because there is nothing to stop them.
4:40:05 PM
MS. ZENDER moved to slide 4. She noted the dead plants around
the landfill and said they indicated that leachate and the
chemicals therein were entering the surrounding waters and land:
[Original punctuation provided.]
[Overhead photo of a rural landfill situated on the
tundra.]
Chemicals
migrate
because there is
nothing stopping
them.
4:40:29 PM
MS. ZENDER moved to slide 5, which contains a table of chemicals
and compounds as well as an incineration plant diagram and a
photo of a burn box in rural Alaska. She explained that burning
is one method of reducing waste volume and an incinerator to
treat all the [chemical] emissions is required everywhere in the
U.S. except in rural Alaska.
4:41:06 PM
MS. ZENDER moved to slide 6 and said the chemicals listed in the
table [on slide 5] will be released into the air [when using a
burn box] and will result in the unfortunate circumstances
depicted on slide 6. She said about 85 percent of rural Alaska
communities burn at least sometimes:
[Original punctuation provided.]
Harmful
chemicals
release into the
air through
Open Burning
[Photo of a rural school and playground situated
across a road from a landfill; smoke from a burn box
is shown carried by the wind toward the school and
playground.]
About three-quarters of landfills are within
one mile of town and one-quarter
are within 1000 ft of town.
4:41:35 PM
MS. ZENDER moved to and narrated slide 7:
[Original punctuation provided.]
Proximity to Water
[Photo of a fenced landfill situated within a few
yards of a Subsistence River.]
Proximity: Nearly 30% are within 100 ft of a primary
water body, about half flood yearly during breakup.
4:41:54 PM
MS. ZENDER moved to slide 8 and expressed concern about direct
human exposure to chemicals released by burning or by leaching:
[Original punctuation provided.]
Worker safety concerns.
[Photo of an open, operating burn box with a person in
proximity.]
4:42:24 PM
MS. ZENDER moved to slide 9. She said there have not been a lot
of health risk studies done in rural Alaska, primarily because
of the small populations. One study published in the American
Journal of Epidemiology found that rural Alaska sites with the
most hazardous waste content were linked with a four times
greater chance of certain birth defects as well as other
[adverse] birth outcomes. E-waste comprises the greatest volume
of hazardous waste present in rural Alaska, containing lead,
cadmium, flame retardants, phthalates, etc. that can cause
cancer, developmental delays, birth defects, IQ loss and
reproductive problems. She said it makes sense to pull out the
E-waste:
[Original punctuation provided.]
[Text accompanied by photos of open landfill with
evidence of burning and with evident E-waste.]
Sites with the most hazardous wastes were linked with
a 4 times greater chance of certain types of birth
defects, as well as other negative birth outcomes.
E-wastes make up the biggest volume of hazardous
waste.
They contain chemicals like lead, cadmium, flame
retardants, phthalates, that can cause cancer,
developmental delays, IQ loss, reproductive problems,
and more.
4:43:32 PM
MS. ZENDER moved to slide 10. She said there was very limited
space to store e-waste when villages pull it out of landfills to
avoid negative health impacts. She noted the high expense to
construct facilities in rural Alaska. She said Americans
generate about 40 pounds of e-waste per person per year:
[Original punctuation provided.]
Limited space to store e-waste.
[Text accompanied by photos of piled E-waste in indoor
and outdoor settings.]
• A 500-person village can generate 20,000 lbs. of
e-waste each year.
• Alaska makes around 25 million pounds of e-waste
each year.
4:44:11 PM
MS. ZENDER moved to slide 11. She said safety was not part of
the health risk study:
[Original punctuation provided.]
Safety is also a problem even when it doesn't look
like it.
[Statement superimposed on a photo of a landfill with
an open fire emitting heavy, black smoke.]
4:44:22 PM
MS. ZENDER moved to slide 12:
[Original punctuation provided.]
Lithium Battery Air Incidents
involving smoke, fire, or extreme heat
Cellular phone - 86
Other electronic device - 75
Laptop - 72
[Statement superimposed on subsequent photo of burning
landfill from slide 12 engulfed in a fiery explosion.]
MS. ZENDER observed that it was not known whether the explosion
in the photo was caused by a lithium battery, but it is known
that lithium batteries are a fire safety issue. There were over
200 incidents of lithium battery error incidents last. She
emphasized that these materials do not belong in landfills where
there is combustible material and not a lot of control.
4:45:00 PM
MS. ZENDER moved to and narrated slide 13:
[Original punctuation provided.]
About 90% of communities can't afford to operate a
backhaul program on their own and still run their
landfill properly
backhaul creates jobs.
[Photos of village residents working to gather e-
waste.]
Backhaul creates jobs, increases Alaska transporter
revenues, protects people, and reduces future
liability concerns.
4:45:33 PM
MS. ZENDER moved to slide 14 and said [Zender Environmental
Health and Research Group] administers the Backhaul Alaska
program on behalf of Solid Waste Alaska Taskforce (SWAT). The
effort includes 94 communities. She emphasized the great work
that is being done, but said it is grant-funded and not
sustainable:
[Original punctuation provided.]
Backhaul Alaska helps to leverage logistics and
supplies but is grant funded also
• Trainings [Photo of people gathered around
palletized e-waste.]
• Logisitics [Photo of excavator loading e-waste on
a fishing boat
• Supplies and Inventory Assistance [Photo of
packaging and appropriate chemical and hazardous
labeling materials.]
• Regional Coordination and Guidance [Alaska map
illustrating rural locations and connections.]
• Site Visits and Safety Checks [Photo of worker
with apparent collected e-waste.]
4:46:18 PM
MS. ZENDER moved to and narrated slide 15:
[Original punctuation provided.]
The E-waste problem in Urban Alaska
• Even the best urban landfill liners fail and will
eventually release toxic chemicals to water and
land.
• Alaskans depend on the environment for their food
salmon, moose, berries can all be impacted.
• It's a big liability risk.
4:46:50 PM
MS. ZENDER moved to and narrated slide 16:
[Original punctuation provided.]
The E-waste problem in Alaska
• it is inconvenient because there are few locations
and there are restrictions on what is accepted.
• But making people pay to drop-off their electronics
is a big disincentive. We want to capture the full
waste stream.
• Our schools and small businesses pay when they are
struggling.
• Our big cities pay for e-waste disposal when those funds
could go to balance budgets.
4:47:39 PM
MS. ZENDER moved to and narrated slide 17:
[Original punctuation provided.]
We want to recycle , but it is so expensive.
Disposal costs are burdening our governments, our
schools, small businesses, non -profits, and the
public.
[Graphic illustration comparing the cost of waste
recycling in the Lower-48, Urban Alaska and Rural
Alaska.]
4:47:59 PM
MS. ZENDER moved to and narrated slide 18. She said Solid Waste
Alaska Taskforce (SWAT) identified the number one solution to be
"Product Stewardship".
[Original punctuation provided.]
#1. Product Stewardship.
[Graphic depiction:
1. Manufacturers make the product $
2. Interim Public Use of Product
3. Recycle the Product $
4. Safe Disposal
• A law that shifts the cost of safe
recycling/disposal to the producers.
• Producers pay for the product development and
they pay for its disposal the full life cycle
of the product.
• Because producers have to pay for disposal they
are motivated to produce less toxic, more
durable, repairable, and /or more recyclable
products. Market Efficiency.
4:48:35 PM
MS. ZENDER moved to slide 19, a map of the United States
identifying states with U.S. Electronics Laws in 2024. She noted
that Hawaii also has backhaul costs and backhaul issues because
they do not have any processors in state.
4:48:56 PM
MS. ZENDER moved to and narrated slide 20:
[Original punctuation provided.]
E-waste legislation for Alaska
• SWAT researched product stewardship in Maine, BC,
Hawaii and consulted with stakeholders around the
state over several years.
• Product Stewardship Institute (PSI) helped
incorporate experiences from other states through a
template
• A stakeholder advisory group discussed and drafted a
framework that fits Alaska.
4:49:44 PM
MS. ZENDER moved to and narrated slide 21:
[Original punctuation provided.]
Resolutions: Alaska Federation of Natives, Alaska
Municipal League, multiple small communities, the
Solid Waste Association of North America, Alaska
Chapter
Some of the Groups, Tribes, Organizations who have
provided input for a Framework that will work for
Alaska. 2018 - 2023
• Alaska Support Industry Alliance
• UAA Cooperative Development Center
• Alaskans for Litter Prevention and Recycling
• Maniilaq Association
• Saltchuk
• Alaska Marine Lines
• Aleut International Association
• ANVCA
• Alaska Air Carriers Association
• Denali Commission
• TetraTech
• Waste Management
• Alaska Municipal League
• Knik Tribe
• AVCP
• Anchorage Municipality
• Curyung Tribe
• Solid Waste Assoc. N. America
• Total Reclaim
• Interior Greenstar
• Central Recycling
4:49:50 PM
MS. ZENDER moved to and narrated slide 22:
[Original punctuation provided.]
Every community is covered.
• Larger communities (over 5,500) get year-round drop-
off centers
• Offroad communities would have essentially a
shipping van(s) to store waste, and recycling,
shipping, supplies, and labor would be covered to
ship out accumulated electronics annually.
• Schools would be included as would smaller business
and nonprofits.
4:50:06 PM
MS. ZENDER moved to and narrated slide 23. She emphasized the
agreement among stakeholders that Product Stewardship in Alaska
should not cost the state anything:
[Original punctuation provided.]
To know
• Producers covers all costs: collection,
transportation, processing, recycling, education,
program administration, and ADEC
oversight/administration.
• There has never been a documented price increase in
computers/electronics after a bill has passed here
or worldwide.
4:50:57 PM
MS. ZENDER moved to and narrated slide 24.
[Original punctuation provided.]
The Bottom Line?Why not?
By incorporating disposal costs into the product, the
Market makes health protection and cost much more
efficient than what we could otherwise do.
• No obligations on Alaska Retailers.
• No taxes or fees for Alaska consumers.
• No additional cost for the State.
4:52:10 PM
SCOTT KLAG, Consultant, Product Stewardship Institute, Portland,
Oregon, affirmed SB 61 and said its provisions place it as one
of the best product stewardship laws in the country. He
emphasized that SB 61 would not put a financial burden on the
state and that all costs of the program, including the costs of
administration and oversight, are to be carried by the
manufacturers.
4:54:19 PM
LELAND REHARD, Environmental Program Coordinator, City of
Columbia, Columbia, Missouri, emphasized and affirmed the high
degree of collaboration among stakeholders to develop SB 61 and
the high value placed on building consensus by the Solid Waste
Alaska Taskforce (SWAT).
4:55:04 PM
SENATOR DUNBAR noted concerns about Section 46.06.250 of SB 61
describing civil penalties for prohibited acts:
• He questioned the enforceability of individualized penalties,
especially in everyday scenarios like disposing of old
devices.
• He expressed doubts about the necessity of these penalties for
the bill's operation.
• He suggested potential disparities in the application of
penalties across different neighborhoods, noting significant
fines for repeated violations.
4:56:47 PM
MR. FLORA said it was his understanding that the fines [proposed
in SB 61] apply to the manufacturers, the clearing houses and
the collection site administrators [as well as residents]. He
said the fee structure included latitude for situational
flexibility. He advocated keeping some penalty in the
legislation to ensure accountability and to ensure that SB 61
produces results.
4:58:08 PM
MR. KLAG affirmed that this was an issue in other states. He
highlighted the ability to hold manufacturers accountable to the
provisions of SB 61 and to address proper disposal by residents.
He cautioned against singling people out and the importance of
informing people about disposal bans. He encouraged the
development of robust community education and promotion programs
by the advisory committee and said those programs should include
information about available [disposal] services.
5:00:15 PM
MS. ZENDER said she was aware of regulations in place in
Anchorage against discarding electronic devices in trash cans.
She said she was not sure how the city of Anchorage enforced the
regulation.
5:01:02 PM
SENATOR DUNBAR said he would investigate further [outside of
committee].
5:01:16 PM
CHAIR GIESSEL held SB 61 in committee.
5:01:46 PM
There being no further business to come before the committee,
Chair Giessel adjourned the Senate Resources Standing Committee
meeting at 5:01 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2.5.25 Cordova Electric Presentation to Senate Resources.pdf |
SRES 2/5/2025 3:30:00 PM |
|
| SB 61 Support Resolutions.pdf |
SRES 2/5/2025 3:30:00 PM |
SB 61 |
| SB 61 v.A Fiscal Note.pdf |
SRES 2/5/2025 3:30:00 PM |
SB 61 |
| SB 61 Supporting Document Alaska Business Magazine October 2024.pdf |
SRES 2/5/2025 3:30:00 PM |
SB 61 |
| SB 61 Version A Sectional Analysis.pdf |
SRES 2/5/2025 3:30:00 PM |
SB 61 |
| SB 61 Background Alaska Electronics Product Stewardship Summary.pdf |
SRES 2/5/2025 3:30:00 PM |
SB 61 |
| SB 61 Sponsor Statement.pdf |
SRES 2/5/2025 3:30:00 PM |
SB 61 |
| SB 61 Public Testimony.pdf |
SRES 2/5/2025 3:30:00 PM |
SB 61 |
| SB 61 Dr. Zender Presentation.pdf |
SRES 2/5/2025 3:30:00 PM |
SB 61 |