ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         April 17, 2016                                                                                         
                           10:03 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kurt Olson, Chair                                                                                                
Representative Shelley Hughes, Vice Chair                                                                                       
Representative Jim Colver                                                                                                       
Representative Gabrielle LeDoux                                                                                                 
Representative Cathy Tilton                                                                                                     
Representative Sam Kito                                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Andy Josephson                                                                                                   
Representative Mike Chenault (alternate)                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 193(L&C)                                                                                                 
"An  Act   extending  the  exemption   from  regulation   by  the                                                               
Regulatory Commission of Alaska  for certain facilities or plants                                                               
generating energy from renewable energy resources."                                                                             
                                                                                                                                
     - MOVED HCS CSSB 193(L&C) OUT OF COMMITTEE                                                                                 
                                                                                                                                
SENATE BILL NO. 203                                                                                                             
"An Act  relating to  overtime pay  eligibility for  medical care                                                               
providers employed  by common  air carriers  or by  carriers that                                                               
transport mail by air for  the federal government and to overtime                                                               
pay  eligibility  for flight  crews  and  medical care  providers                                                               
employed by air ambulance service providers."                                                                                   
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
SENATE BILL NO. 206                                                                                                             
"An Act relating  to a reinsurance program for  residents who are                                                               
high  risks and  insurer assessments  to cover  the costs  of the                                                               
reinsurance   program;   relating   to  application   for   state                                                               
innovation  waivers  for  health   care  insurance;  relating  to                                                               
definitions  of  'residents  who  are high  risks'  and  'covered                                                               
lives'; and providing for an effective date."                                                                                   
                                                                                                                                
     - SCHEDULED BUT NOT HEARD; PENDING REFERRAL                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 193                                                                                                                  
SHORT TITLE: EXTEND EXEMPTION FOR SMALL POWER PLANTS                                                                            
SPONSOR(s): SENATOR(s) MCGUIRE                                                                                                  
                                                                                                                                
02/22/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/16       (S)       NRG, L&C                                                                                               
03/15/16       (S)       NRG AT 1:00 PM BUTROVICH 205                                                                           
03/15/16       (S)       Heard & Held                                                                                           
03/15/16       (S)       MINUTE(NRG)                                                                                            
03/31/16       (S)       NRG AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
03/31/16       (S)       Moved  CSSB 193(NRG) Out of Committee                                                                  
03/31/16       (S)       MINUTE(NRG)                                                                                            
04/01/16       (S)       NRG RPT CS  3DP 1NR  SAME TITLE                                                                        
04/01/16       (S)       DP: BISHOP, MICCICHE, EGAN                                                                             
04/01/16       (S)       NR: HOFFMAN                                                                                            
04/05/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/05/16       (S)       Heard & Held                                                                                           
04/05/16       (S)       MINUTE(L&C)                                                                                            
04/07/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/07/16       (S)       Moved  CSSB 193(L&C) Out of Committee                                                                  
04/07/16       (S)       MINUTE(L&C)                                                                                            
04/09/16       (S)       L&C RPT CS 4DP  SAME TITLE                                                                             
04/09/16       (S)       DP: COSTELLO, GIESSEL, MEYER, STEVENS                                                                  
04/09/16       (S)       TRANSMITTED TO (H)                                                                                     
04/09/16       (S)       VERSION: CSSB 193(L&C)                                                                                 
04/10/16       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/10/16       (H)       L&C                                                                                                    
04/16/16       (H)       L&C AT 9:00 AM BARNES 124                                                                              
04/16/16       (H)       -- Public Testimony <Time Limit May Be                                                                 
                         Set> --                                                                                                
04/17/16       (H)       L&C AT 10:00 AM BARNES 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR LESIL MCGUIRE                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Speaking as the bill sponsor, presented                                                                
CSSB 193(L&C) and answered questions.                                                                                           
                                                                                                                                
JESSE LOGAN, Staff                                                                                                              
Senator Lesil McGuire                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   On  behalf  of  Senator McGuire,  sponsor,                                                             
answered questions on Amendment 1 to CSSB 193(L&C).                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:03:06 AM                                                                                                                   
                                                                                                                                
CHAIR KURT  OLSON called  the House  Labor and  Commerce Standing                                                             
Committee meeting  back to order  at 10:03 a.m.   Representatives                                                               
Olson, Kito, Tilton,  Colver, LeDoux, and Hughes  were present at                                                               
the call back to order.                                                                                                         
                                                                                                                                
[The meeting was  a continuation of the meeting  recessed at 2:31                                                               
p.m. on 4/16/16.]                                                                                                               
                                                                                                                                
         SB 193-EXTEND EXEMPTION FOR SMALL POWER PLANTS                                                                     
                                                                                                                                
10:03:22 AM                                                                                                                   
                                                                                                                                
CHAIR OLSON  announced that the  only order of business  would be                                                               
CS FOR SENATE BILL NO.  193(L&C), "An Act extending the exemption                                                               
from  regulation  by  the Regulatory  Commission  of  Alaska  for                                                               
certain  facilities or  plants generating  energy from  renewable                                                               
energy resources."                                                                                                              
                                                                                                                                
10:03:25 AM                                                                                                                   
                                                                                                                                
SENATOR LESIL MCGUIRE, Alaska State  Legislature, speaking as the                                                               
sponsor,  explained  that CSSB  193(L&C)  is  an extension  of  a                                                               
policy  the legislature  put  in place  in 2010,  as  part of  an                                                               
energy package.   She  reminded the committee  that there  was an                                                               
effort to  expand and incentivize renewable  energy, particularly                                                               
in small communities that currently  depend on diesel fuel, which                                                               
is a  very high-priced commodity.   Senator McGuire  advised that                                                               
the proposed bill would extend  the sunset on an already existing                                                               
exemption  in  state  law  which allows  for  power  plants  that                                                               
generate  less than  65 megawatts  of electricity,  entirely from                                                               
renewable energy resources,  to be exempt from  regulation by the                                                               
Regulatory  Commission  of  Alaska  (RCA).   The  affected  power                                                               
plants had  to have been  placed into commercial operation  on or                                                               
after August 31,  2010, could not have received  any state grants                                                               
or  tax credits,  and have  to be  selling power  on a  wholesale                                                               
basis  to  regulated utilities,  which  distribute  the power  to                                                               
local  customers.   She  pointed  out  that distribution  through                                                               
regulated utilities  means that  RCA has  ensured that  the rates                                                               
are fair  and reasonable to  Alaskans.   She noted that  even the                                                               
federal government does not regulate  similar facilities under 80                                                               
megawatts,  and  that  Alaska  was  one  of  the  few  which  did                                                               
regulate.   Senator  McGuire  said extending  this  policy is  an                                                               
opportunity to  continue to incentivize  this source of  power by                                                               
reducing  government  regulation;  in fact,  the  current  budget                                                               
shortfall will  inspire more creative  ideas to help  the private                                                               
sector  by reducing  government  costs, as  opposed  to the  past                                                               
policy of funding state grants.                                                                                                 
                                                                                                                                
10:06:18 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HUGHES moved  to adopt  Amendment 1,  labeled 29-                                                               
LS1513\H.1, Nauman, 4/15/16, which read:                                                                                        
                                                                                                                                
     Page 1, line 10:                                                                                                           
          Delete "[, AND BEFORE JANUARY 1, 2016]"                                                                               
         Insert ", and before July 1, 2021 [JANUARY 1,                                                                      
     2016]".                                                                                                                    
                                                                                                                                
CHAIR OLSON objected for discussion purposes.                                                                                   
                                                                                                                                
10:06:26 AM                                                                                                                   
                                                                                                                                
JESSE  LOGAN,   Staff,  Senator   Lesil  McGuire,   Alaska  State                                                               
Legislature, informed  the committee that Amendment  1 places the                                                               
sunset  extension  to   July  1,  2021,  which   is  a  five-year                                                               
extension.   He  stated that  the previous  sunset scheduled  for                                                               
January would have allowed for  "a few months of questionable de-                                                               
regulation."  Further, a five-year  sunset is a reasonable amount                                                               
of time  for the program to  continue, and to allow  for a review                                                               
by the legislature to ensure the programs are working properly.                                                                 
                                                                                                                                
REPRESENTATIVE  HUGHES  expressed   her  understanding  that  the                                                               
Alaska Power Association (APA) sought  a sunset date of 2020, and                                                               
asked whether APA is in support of this new sunset date.                                                                        
                                                                                                                                
MR.  LOGAN replied  that the  original sunset  date had  been for                                                               
2026, and  he directed attention  to a letter dated  2/29/16 from                                                               
APA included  in the committee  packet, in which APA  stated they                                                               
would not  oppose the bill.   He noted  that the sunset  date was                                                               
previously changed  by another committee;  however, "To  the best                                                               
of my knowledge, 2021 is satisfactory to them," he said.                                                                        
                                                                                                                                
REPRESENTATIVE KITO surmised that  the original authorization had                                                               
been from 2010 to 2016.                                                                                                         
                                                                                                                                
MR. LOGAN said correct.                                                                                                         
                                                                                                                                
REPRESENTATIVE KITO  observed this is  a similar amount  of time,                                                               
and there have not been any issues in that regard.                                                                              
                                                                                                                                
MR. LOGAN said correct.                                                                                                         
                                                                                                                                
10:08:15 AM                                                                                                                   
                                                                                                                                
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
10:08:28 AM                                                                                                                   
                                                                                                                                
CHAIR OLSON opened  public testimony.  After  ascertaining no one                                                               
wished to testify, public testimony was closed.                                                                                 
                                                                                                                                
REPRESENTATIVE  HUGHES asked  whether  there has  been growth  in                                                               
small power plants since the original period of 2010 to 2016.                                                                   
                                                                                                                                
SENATOR MCGUIRE  reported that  Fire Island  Wind and  Delta Wind                                                               
Farm are  power plants  that have come  online during  that time,                                                               
although  there are  many  others underway.    She reported  that                                                               
there is a lot of interest,  and she has been asked whether there                                                               
was any  consideration of expansion  beyond the  current megawatt                                                               
limitation,  although   currently  there  appeared  to   be  some                                                               
discomfort  with this.   Senator  McGuire explained  that "nobody                                                               
wants to be regulated by the  RCA," although RCA seeks to shorten                                                               
its response  time.   She opined sometimes  the interests  of the                                                               
consumer are  met by RCA,  and sometimes not.   Her hope  is that                                                               
there will  be more independent  renewable power plants  to lower                                                               
electricity costs for consumers.                                                                                                
                                                                                                                                
10:11:14 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HUGHES moved  to report  [CSSB 193(L&C),  Version                                                               
29-LS1513\H],  as  amended,  out  of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection,  HCS CSSB  193(L&C) was reported  out of  the House                                                               
Labor and Commerce Standing Committee.                                                                                          
                                                                                                                                
                                                                                                                                
10:11:41 AM                                                                                                                 
                                                                                                                              
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Labor and Commerce Standing Committee meeting was adjourned at                                                                  
10:12 a.m.