CS FOR HOUSE BILL NO. 306(RES) "An Act declaring a state energy policy." Representative Bryce Edgmon, Sponsor, explained that the bill would create a statewide energy policy. The bill is a product of a working group from the energy sector of Alaska. It ties together all the facets of energy moving forward in the 21st Century, including conservation, efficiency, renewable and non-renewable energy, and community-level involvement. The bill addresses the fact that Alaska is a resource development state and energy is tied to economic development. He pointed out the legislative intent language in the bill. The bill passed the House unanimously and has a zero fiscal note. Co-Chair Stedman noted one zero fiscal note by the House Energy Committee. 10:04:51 AM CHRIS ROSE, EXECUTIVE DIRECTOR, RENEWABLE ENERGY ALASKA PROJECT (REAP), testified in support of HB 306. He explained the process of working on the bill and how consensus was attained. He stressed the importance of the bill due to the fact that the state does not have an energy policy. The goal of the bill was to provide a framework or vision in which to put strategic goals. Those goals can be implemented through projects. He listed the benefits of the bill, which promotes both renewable and non-renewable alternative fuels. Energy efficiency and conservation is foremost. The bill also supports training and workforce development and works on coordinating government functions so that the goals can be efficiently implemented. 10:07:48 AM STEVE HAAGENSON, EXECUTIVE DIRECTOR, ALASKA ENERGY AUTHORITY, testified in favor of HB 306. Co-Chair Stedman pointed out that the bill targets 50 percent of the state's electrical generation to be from renewable energy sources by 2025. He questioned where the state currently is and how that goal might be attained. Mr. Haagenson reported that the state is currently at 24 percent energy from renewable sources, including hydro electricity. He stated that it was a realistic goal. He talked about the Railbelt's renewable resource plan. Co-Chair Stedman commented that there was currently $10 million in the capital budget for hydro electric projects. Mr. Haagenson agreed. He added that there is a goal to develop renewable energy plans for each community in Alaska, not just Southeast and the Railbelt. 10:11:19 AM Co-Chair Stedman asked if there had been much integration with the idea of a bullet line or a major gas line and gas- fired electric turbines. Mr. Haagenson responded with information on natural gas energy in the Railbelt. He noted that the bill does not include bullet lines or pipelines. Senator Thomas requested further explanation of the 24 percent. Mr. Haagenson state that only .3 percent is non- hydro; the majority is hydro-driven. BRIAN BJORKQUIST, SENIOR ASSISTANT ATTORNEY GENERAL, LABOR AND STATE AFFAIRS SECTION, DEPARTMENT OF LAW (via teleconference), introduced himself. Co-Chair Stedman asked what exposure Alaska has if the 50 percent goal is not met by 2025. Mr. Bjorkquist reported that that information is found in Section 1 of the bill, which is part of the legislative intent. If the state did not meet that goal, there isn't a statutory mandate or liability that could arise. The legislative intent would not have been met and the consequences would be political, rather than legal in nature. Mr. Bjorkquist made two additional comments. He said on page 3, line 22, the word "national" is problematic. He suggested deleting that word, otherwise the word may impose upon the state an obligation to meet federal targets. Mr. Bjorkquist addressed the goal of 50 percent. He suggested it could be used to suggest that the policy points would affect litigation. He suggested codifying it in order to prevent unintended consequences. 10:16:51 AM Senator Thomas asked about national issues and its affect throughout the bill. He cited page 2, lines 15 and 16 as an example. Mr. Bjorkquist concurred. He said that obligations could cross over to other state agencies and be unintended consequences. HB 306 was heard and HELD in Committee for further consideration. 10:18:20 AM