2022-02-04                     Senate Journal                      Page 1726
SB 179                                                                                                                        
SENATE BILL NO. 179 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
             "An Act relating to the establishment of a renewable                                                              
           portfolio standard for regulated electric utilities; and                                                            
          providing for an effective date."                                                                                     
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Commerce, Community, and                                                                      
  Economic Development                                                                                                          
                                                                                                                                
Governor's transmittal letter dated February 2:                                                                                 
                                                                                                                                
Dear President Micciche:                                                                                                        
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the creation of a                                                            
renewable portfolio standard for regulated electric utilities.                                                                  
                                                                                                                                
This bill would direct regulated utilities to increase their proportion of                                                      
net electricity production from renewable energy resources to meet                                                              
discrete statutory targets, starting with 20 percent renewable energy                                                           
resources by 2025 and 80 percent renewable energy resources by                                                                  
2040.                                                                                                                           
                                                                                                                                
Benchmarks will be set every five years, beginning December 31,                                                                 
2025, by dividing each utility’s annual net sales to customers of                                                               
generation derived from renewable energy resources by the same                                                                  
utility’s total retail electricity sales each year. The Railbelt Reliability                                                    
Council will be required to account for these production targets in                                                             
their integrated resource planning. Reporting and attainment will be                                                            
managed by the Regulatory Commission of Alaska, beginning with the                                                              
first annual reports in 2024.                                                                                                   
                                                                                                                                
                                                                                                                                

2022-02-04                     Senate Journal                      Page 1727
While 30 states and counting have passed a renewable portfolio                                                                  
standard as of 2020, this bill does not take a one-size-fits-all approach.                                                      
Waivers have been provided for transmission capacity constraints,                                                               
natural disasters, and many other “good cause” considerations. To                                                               
emphasize Alaska’s unique “succeed together” approach, utilities will                                                           
be granted an exemption if production targets are met by all utilities in                                                       
aggregate regardless of individual utility failures. Finally, all utilities                                                     
have been granted one exemption from their first instance of                                                                    
noncompliance.                                                                                                                  
                                                                                                                                
This bill takes a concrete step toward energy independence, long-term                                                           
cost reductions through up to $650 million in annual fuel savings by                                                            
2040, and the creation of a competitive marketplace for innovative                                                              
power producers.                                                                                                                
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor