HJR 25-HYDROELECTRIC POWER; RENEWABLE ENERGY CO-CHAIR MILLETT announced that the first order of business would be HOUSE JOINT RESOLUTION NO. 25, Urging the United States Congress to classify hydroelectric power as a renewable and alternative energy source. 3:52:52 PM REPRESENTATIVE WILLIAM "BILL" THOMAS, JR., Alaska State Legislature, sponsor, presented HJR 25 that urges Congress to clarify hydroelectric (hydro) power as renewable. He said the federal government does not recognize hydro power as renewable, probably because, in the Lower 48, hydroelectric power usually involves building a large dam that blocks a valley. In Alaska, however, there are high glacial creeks and streams that can be a source of energy with very little, or no, impact on the environment. Representative Thomas informed the committee he has five hydro generators in his district that are located high enough so there is no impact to salmon streams. He advised that if there is a favorable response to the resolution from the federal government, it will be possible to use further legislation to obtain matching funds from federal renewable energy funding sources. 3:54:55 PM REPRESENTATIVE JOHANSEN moved to adopt the committee substitute (CS) for HJR 25, Version E, as the working document. KACI SCHROEDER-HOTCH, Staff to Representative Thomas, Alaska State Legislature, presented the proposed changes to the resolution. The first change, on page 2, line 2, was the deletion of the references to specific areas of the state and the insertion of "entire state." The second change was in response to a request by the Alaska Industrial Development & Export Authority (AIDEA) for the deletion of the word "dam" on page 2, lines 4-5. 3:56:14 PM REPRESENTATIVE DAHLSTROM asked whether the sponsor wants the resolution sent to the President also. REPRESENTATIVE THOMAS said yes. 3:57:06 PM CLAY KOPLIN, Manager, Cordova Electric Cooperative, informed the committee that because hydro is not considered a renewable source of energy, it is left out of funding opportunities at the federal level. Ironically, the upfront cost of hydro is similar to wind, but the life of hydro infrastructure is 50 to 100 years; therefore, hydro is the best solution for many parts of the state. He praised Representative Thomas and the work of the special committees on energy. 3:58:42 PM HAP SYMMONDS, Chairman, Board of Directors, Cordova Electric Cooperative; Representative, Ocean Beauty Seafood, opined the resolution is long overdue. He asked whether the proposed deletion on line 5 was "require little or no dam construction and." CO-CHAIR MILLETT said yes. MR. SYMMONDS restated his support. 3:59:58 PM ROBERT GRIMM, CEO, Alaska Power & Telephone, voiced his strong support of the resolution. His firm began in 1995 using 1 percent renewable fuel and 99 percent fossil fuel; presently, the company uses 31 percent fossil fuel and 68 percent renewable fuel. He noted that all of the renewable sources of energy now used by his company are hydro, although hydro does not meet the current definition of renewable; in fact, there is no provision of federal [funding] for new hydro. This is especially a problem for a young state, like Alaska, that does not have much of an existing hydro system. Finally, he opined the passage of this resolution "would show some leadership ...." 4:02:02 PM DOUGLAS OTT, Hydro Program Manager, Alaska Energy Authority (AEA), Alaska Industrial Development & Export Authority (AIDEA) and Alaska Energy Authority (AEA), Department of Commerce, Community, & Economic Development (DCCED), stated his support for the resolution and that its passage would promote the development of hydro power in the state. 4:02:38 PM JAMES HEMSATH, Deputy Director for Development, Alaska Industrial Development & Export Authority (AIDEA) and Alaska Energy Authority (AEA), Department of Commerce, Community, & Economic Development (DCCED), expressed his support for the committee substitute for HJR 25 and explained his agency was concerned that the wording in the resolution, prior to the change proposed by the CS, would eliminate the potential development of a large hydro power plant in Alaska. 4:03:32 PM REPRESENTATIVE RAMRAS expressed his concern for halibut. 4:03:57 PM REPRESENTATIVE THOMAS responded. 4:04:13 PM JERRY MEDINA, Administrative Officer, Inside Passage Electric Cooperative (IPEC), read the following statement [original punctuation provided]: Hydropower is a clean, domestic, and renewable energy source, that does not consume more water than is produced by nature. According the Energy Information Administration, of the renewable energy sources that generate electricity, hydropower is the most often used. It accounted for 6 percent of total U.S. electricity generation and 71 percent of generation from renewables in 2007. Among the advantages of hydropower are low operating costs, because the fuel, water, comes free of charge. This contributes to provide inexpensive electricity, because no fossil fuels are required to produce the electricity, and the earth naturally replenishes the "fuel" supply. Hydropower is also one of the most efficient ways to generate electricity; modern turbines can convert as much as 90 % of the available energy into electricity. Hydropower energy produces no greenhouse gases or other air pollution and leaves behind no waste. And, unlike other energy sources such as fossil fuel, water is not destroyed during the production of electricity - it can be reused for other purposes. Hydropower energy is very abundant in Southeast Alaska. Since water is a naturally recurring domestic product and is not subject to the whims of foreign suppliers, there is no worry of unstable fuel prices, fuel spillage or contamination issues, transportation concerns, or national security issues. Water is one of our most valuable resources, and hydropower makes use of this renewable treasure. Hydroelectric power plants do not use up resources to create electricity nor do they pollute the air, land, or water. 4:05:32 PM CO-CHAIR MILLETT closed public testimony. 4:05:54 PM REPRESENTATIVE DAHLSTROM offered a conceptual amendment to page 2, line 16, that renumbered lines 16-21, and on page 2, line 16, inserted "Honorable Barack H. Obama, President of the United States;" after the word "the." There being no objection, Conceptual Amendment 1 was adopted. 4:06:36 PM REPRESENTATIVE TUCK offered an amendment on behalf of Representative Petersen. The purpose of the amendment was to strengthen the resolution specifically for Alaska, in light of the fact that Alaska has ample water supplies and hydro is a well-accepted renewable resource in Alaska. Conceptual Amendment 2 read: WHEREAS regions in the United States outside of Alaska have limited water supplies and water sources that can lead to classifying hydroelectric power as nonrenewable, but all areas of Alaska have ample water supplies that are capable of providing a renewable energy source for hydroelectric projects in the state. 4:07:26 PM CO-CHAIR MILLETT objected for the purpose of discussion. 4:07:40 PM REPRESENTATIVE JOHANSEN requested a written copy of the amendment. 4:08:24 PM The committee took an at-ease from 4:08 p.m. to 4:09 p.m. 4:09:32 PM Co-Chair Millett called the committee back to order at 4:09 p.m. REPRESENTATIVE TUCK withdrew Conceptual Amendment 2. 4:09:41 PM REPRESENTATIVE THOMAS stated his objection to Conceptual Amendment 2 was that a resolution specific to Alaska may prevent other states with similar issues "to get onboard." 4:10:08 PM REPRESENTATIVE JOHANSEN appreciated the leadership shown by Representative Thomas for hydro across Alaska. REPRESENTATIVE TUCK agreed and added that hydro is definitely renewable. 4:11:32 PM REPRESENTATIVE DAHLSTROM moved CSHJR 25, Version E, with Conceptual Amendment 1, and attached zero fiscal note and individual recommendations. There being no objection, CSHJR 25(ENE) was moved out of committee with individual recommendations and the accompanying fiscal notes.