Legislature(2023 - 2024)
2024-05-15 Senate Journal
Full Journal pdf2024-05-15 Senate Journal Page 2853 HB 307 CS FOR HOUSE BILL NO. 307(FIN) am "An Act relating to the Regulatory Commission of Alaska; relating to regulation of public utilities, pipeline carriers, and liquefied natural gas import facilities; relating to approval of wholesale power agreements; relating to preapproval for construction of energy facilities; relating to electric 2024-05-15 Senate Journal Page 2854 reliability organizations; relating to the taxation of new electricity generation facilities; relating to the Alaska Energy Authority; relating to the Railbelt Transmission Organization; requiring the Alaska Energy Authority to submit a report about issuing rate reduction bonds for financing transmission system upgrades; and providing for an effective date" which had been moved to the bottom of today's first supplemental calendar, was read the second time. Senator Olson, Cochair, moved and asked unanimous consent for the adoption of the Finance Senate Committee Substitute offered today. Without objection, SENATE CS FOR CS FOR HOUSE BILL NO. 307(FIN) "An Act relating to the Regulatory Commission of Alaska; relating to regulation of public utilities and pipeline carriers; relating to approval of wholesale power agreements; relating to electric reliability organizations; relating to loans for renewable energy resources projects from the power project fund; relating to the taxation of new electricity generation and storage facilities; relating to the Alaska Energy Authority; relating to the Railbelt Transmission Organization; and providing for an effective date" was adopted. [Amendment No. 1 was not offered.] Senator Myers offered Amendment No. 2 : Page 3, following line 21: Insert a new bill section to read: "* Sec. 8. AS 42.05.381(e) is amended to read: (e) The commission shall adopt regulations for electric cooperatives, [AND FOR] local exchange telephone utilities, and refuse utilities, setting a range for adjustment of rates by a simplified rate filing procedure. A cooperative, [OR] telephone utility, or refuse utility may apply for permission to adjust its rates over a period of time under the simplified rate filing procedure regulations. The commission shall grant the application if the cooperative, [OR] telephone utility, or refuse utility satisfies the requirements of the regulations. The commission shall adopt regulations specific to refuse utilities that provide for sufficient public notice and an opportunity for ratepayers to meaningfully comment on rate filings. The commission may review implementation of the simplified rate filing procedure at 2024-05-15 Senate Journal Page 2855 reasonable intervals and may revoke permission to use the procedure or require modification of the rates to correct an error. In this subsection, "refuse utility" means a utility furnishing collection and disposal service of garbage, refuse, trash, or other waste material to the public for compensation." Renumber the following bill sections accordingly. Page 13, line 31: Delete "sec. 18" Insert "sec. 19" Page 14, line 8: Delete "sec. 23" Insert "sec. 24" Page 14, line 9: Delete "sec. 23" Insert "sec. 24" Page 14, line 15: Delete "sec. 23" Insert "sec. 24" Page 14, line 16: Delete "Section 8" Insert "Section 9" Page 14, line 17: Delete "sec. 27" Insert "sec. 28" Senator Myers moved for the adoption of Amendment No. 2. Senator Stedman objected. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: SCS CSHB 307(FIN) Second Reading Amendment No. 2? 2024-05-15 Senate Journal Page 2856 YEAS: 9 NAYS: 11 EXCUSED: 0 ABSENT: 0 Yeas: Bjorkman, Dunbar, Gray-Jackson, Hughes, Kaufman, Kawasaki, Merrick, Myers, Shower Nays: Bishop, Claman, Giessel, Hoffman, Kiehl, Olson, Stedman, Stevens, Tobin, Wielechowski, Wilson and so, Amendment No. 2 failed. Senator Wielechowski offered Amendment No. 3 : Page 4, lines 6 - 7: Delete ", other than a public utility or a joint action agency established under AS 42.45.310," Page 4, line 8, following "electricity": Insert ", other than a facility generating electricity under net metering regulations adopted by the commission; "independent power producer" does not include a public utility or a joint action agency established under AS 42.45.310" Page 4, following line 8: Insert a new bill section to read: "* Sec. 10. AS 42.05.431(b) is amended to read: (b) A wholesale power agreement between public utilities, or between a public utility and an independent power producer, is subject to advance approval of the commission. A rate set in accordance with a wholesale power agreement must disclose a state or local tax exemption provided to a utility or independent power producer. After a wholesale power agreement is in effect, the commission may not invalidate any purchase or sale obligation under the agreement. However, if the commission finds that rates set in accordance with the agreement violate this subsection or are not just and reasonable, the commission may order the parties to negotiate an amendment to the agreement and if the parties fail to agree, to use the dispute resolution procedures contained in the contract. In this subsection, "independent power producer" means a legal entity that owns or operates a facility for the generation of electricity, other than a community energy facility under 2024-05-15 Senate Journal Page 2857 AS 42.05.725 - 42.05.735 or a facility generating electricity under net metering regulations adopted by the commission; "independent power producer" does not include a public utility or a joint action agency established under AS 42.45.310." Renumber the following bill sections accordingly. Page 13, line 31: Delete "sec. 18" Insert "sec. 19" Page 14, line 8: Delete "sec. 23" Insert "sec. 24" Page 14, line 9: Delete "sec. 23" Insert "sec. 24" Page 14, line 15: Delete "sec. 23" Insert "sec. 24" Page 14, following line 15: Insert a new bill section to read: "* Sec. 28. The uncodified law of the State of Alaska is amended by adding a new section to read: CONDITIONAL EFFECT. (a) AS 42.05.431(b), as amended by sec. 9 of this Act, takes effect only if SB 152, as passed by the Thirty- Third Alaska State Legislature, is not enacted into law. (b) AS 42.05.431(b), as amended by sec. 10 of this Act, takes effect only if SB 152, as passed by the Thirty-Third Alaska State Legislature, is enacted into law." Renumber the following bill sections accordingly. Page 14, line 17: Delete "sec. 27" Insert "sec. 29" 2024-05-15 Senate Journal Page 2858 Senator Wielechowski moved for the adoption of Amendment No. 3. Objections were heard. Senator Wielechowski moved and asked unanimous consent to withdraw Amendment No. 3. Without objection, Amendment No. 3 was withdrawn. Senator Giessel moved and asked unanimous consent the bill be considered engrossed, advanced to third reading and placed on final passage. Without objection, it was so ordered. SENATE CS FOR CS FOR HOUSE BILL NO. 307(FIN) was read the third time. The question being: "Shall SENATE CS FOR CS FOR HOUSE BILL NO. 307(FIN) "An Act relating to the Regulatory Commission of Alaska; relating to regulation of public utilities and pipeline carriers; relating to approval of wholesale power agreements; relating to electric reliability organizations; relating to loans for renewable energy resources projects from the power project fund; relating to the taxation of new electricity generation and storage facilities; relating to the Alaska Energy Authority; relating to the Railbelt Transmission Organization; and providing for an effective date" pass the Senate?" The roll was taken with the following result: SCS CSHB 307(FIN) Third Reading - Final Passage Effective Date(s) YEAS: 18 NAYS: 2 EXCUSED: 0 ABSENT: 0 Yeas: Bishop, Claman, Dunbar, Giessel, Gray-Jackson, Hoffman, Hughes, Kaufman, Kawasaki, Kiehl, Merrick, Myers, Olson, Shower, Stedman, Tobin, Wielechowski, Wilson Nays: Bjorkman, Stevens and so, SENATE CS FOR CS FOR HOUSE BILL NO. 307(FIN) passed the Senate. 2024-05-15 Senate Journal Page 2859 Senator Giessel moved and asked unanimous consent the vote on the passage of the bill be considered the vote on the effective date clause(s). Without objection, it was so ordered and the bill was referred to the Secretary for engrossment.