Legislature(2021 - 2022)BARNES 124
04/26/2021 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Occupational Safety and Health Review Board | |
| HB170 | |
| SB69 | |
| Board of Direct Entry Midwives | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 170 | TELECONFERENCED | |
| + | SB 69 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HB 170-ENERGY INDEPENDENCE PROGRAM & FUND: AIDEA
3:22:39 PM
CO-CHAIR FIELDS announced that the next order of business would
be HOUSE BILL NO. 170, "An Act establishing the Alaska energy
independence program and the Alaska energy independence fund in
the Alaska Industrial Development and Export Authority; and
providing for an effective date." [Before the committee was
CSHB 170(ENE).]
3:23:15 PM
ALAN WEITZNER, Executive Director, Alaska Industrial Development
and Export Authority (AIDEA), began a PowerPoint [hard copy
included in the committee packet], titled "Alaska Energy
Independence Fund (AK EIF)," on slide 2, which read as follows
[original punctuation provided]:
AIDEA'S MISSION
To promote, develop, and advance economic growth and
diversification in Alaska by providing various means
of financing and investment.
AIDEA OVERVIEW
? Investing in Alaskans since 1967
? Alaska's Development Finance Authority
? Financially Self-Sustaining Public Corporation (no GF
by statute AS 44.88.190(b))
? $439.7 million in Dividends to Alaska since 1997
? Directed over $3 billion into economic development in
Alaska
MR. WEITZNER presented slide 3, "AIDEA AS 44.88," which read as
follows [original punctuation provided]:
WITHIN AS 44.88.010(a)(10)
It is in the public interest to promote the prosperity
and general welfare of all citizens of the state by:
(A) stimulating commercial and industrial growth and
expansion by encouraging an increase of private
investment by banks, investment houses, insurance
companies, and other financial institutions, including
pension and retirement funds, to help satisfy the need
for economic expansion;
(C) creating the Alaska Industrial Development and
Export Authority with the powers necessary to
accomplish the objectives stated in this paragraph,
including the power to issue taxable and taxexempt
bonds, to acquire ownership interests in projects, and
to provide development project financing
WITHIN AS 44.88.010 (a)(11)
it is in the state's interest to import private
capital to create new economic activity that would not
otherwise take place in the state.
MR. WEITZNER presented slide 4, "AIDEA PROGRAMS + PROJECTS,"
which read as follows [original punctuation provided]:
• Loan Participation Program
• Conduit Revenue Bond Program
• Rural Development Initiative Loan Fund
• Development Project Finance
• Sustainable Energy Transmission and Supply (SETS)
• Arctic Infrastructure Development Fund (AIDF)
• Small Business Economic Development Revolving Loan
Fund
• Business Export Assistance Program
Development Project Finance:
? Delong Mountain Transportation System
? Skagway Ore Terminal
? FedEx Aircraft MRO Hangar
? Snettisham Hydroelectric Facility
? Alaska Ship & Drydock, Ketchikan
? Camp Denali Readiness Center (JBER)
? Mustang Holding LLC
? Interior Energy Project
? BlueCrest Energy Drilling Rig Loan
? AK SHIP Vessel Repair Finance Program
? Duck Point Development II (Icy Strait Point)
? HEX Cook Inlet, LLC
? Ambler Access Project
? West Susitna Access Road Project
? Section 1002 Area Leases
3:26:37 PM
MR. WEITZNER presented slide 5, "PROJECTS + ASSETS," which
displayed a map of Alaska showing the many communities in which
AIDEA operates on a day-to-day business. He then presented
slide 6, "AIDEA & AEA," which explained the partnership between
AIDEA and the Alaska Energy Authority (AEA) and which read as
follows [original punctuation provided]:
Alaska Industrial Development and Export Authority
Mission: To promote, develop, and advance economic
growth and diversification in Alaska by providing
various means of financing and investment.
Alaska Energy Authority Mission: To reduce the cost of
energy in Alaska. AEA is Alaska's energy office and
lead agency for statewide energy policy and program
development.
The purpose and function of the AK EIF aligns with
AIDEA's existing scope establishing loan programs,
working with Alaska's financial sector and private
investors, as well as managing capital funds, such as
the Loan Participation Program (Enterprise Development
Account) and Development Project Financing (Economic
Development Account).
AIDEA would oversee loan programs and financial
management in partnership with AEA's energy and
technical subject matter expertise, leveraging
existing shared infrastructure and services.
An independent, five-person advisory board would
provide guidance on investment opportunities to AIDEA
and AEA. The advisory board's authority would not
supersede the governing authority of the AIDEA/AEA
Board.
MR. WEITZNER continued to slide 7, "TOTAL ENERGY CONSUMPTION PER
CAPITA, 2018 (million Btu)," which displayed a map of the United
States with Wyoming, North Dakota, Louisiana, Alaska, and Iowa
highlighted. He pointed out that Alaska ranks number 4 in the
nation for per capita energy consumption with 830 million
British thermal units (MMBtu) and that there is a significant
decrease in energy consumption between Alaska' position at
number 4 and Iowa's position at number 5 with 513 MMBtu. He
explained that Alaska has unique energy requirements for winter
heating as well as energy-intensive industries.
3:31:32 PM
REPRESENTATIVE MCCARTY asked why Louisiana has an energy
consumption on par with the colder states.
MR. WEITZNER replied that Louisiana's energy consumption is due
to its large industrial capacity.
3:32:00 PM
MR. WEITZNER resumed his PowerPoint presentation with slide 8,
"TOTAL ENERGY EXPENDITURES PER CAPITA, 2018 (U.S. dollars),"
which displayed the same map of the United States and a chart
showing that Alaska ranks third in per capita energy
expenditures at $8,060 which, he pointed out, is nearly twice
the national average. He said that approximately 11 percent of
Alaska's gross domestic product (GDP) goes to energy
expenditures. With the creation of the Alaska Energy
Independence Fund (AEIF) and focusing on the per capita cost of
energy, he said, marginal changes have a greater impact than in
other states; benefits may be added to the renewable energy
sector by employing the best practices from other states,
thereby positively effecting economic opportunities and job
growth.
3:33:27 PM
CO-CHAIR FIELDS asked whether the cost of energy includes that
consumed by transportation sector.
MR. WEITZNER replied that it includes all energy consumption
across the state.
3:34:12 PM
MORGAN NEFF, Chief Investment Officer, Alaska Industrial
Development and Export Authority, continued the PowerPoint
presentation and explained the Alaska Energy Independence Fund
(AEIF), sharing that committee members may have heard the term
"green bank." He presented slide 9, "WHAT IS THE AK EIF?",
which read as follows [original punctuation provided]:
• The Alaska Energy Independence Fund (AK EIF) serves
a public purpose in meeting the unique energy needs of
Alaska to promote sustainable clean energy projects
through loan programs.
• Often referred to as a "green bank", the AK EIF
functions as a public-private entity that uses modest
amounts of public funding to leverage private capital
to accelerate investment in clean energy projects.
• AK EIF meets the criteria to receive and manage
funds anticipated to become available through pending
federal legislation.
MR. NEFF presented slide 10, "INITIAL CAPITALIZATION + FUNDING,"
which read as follows [original punctuation provided]:
• Proposed initial capitalization: $10 million
appropriation from State of Alaska UGF with an
anticipated federal match.
MR. NEFF explained the table on slide 10, which displayed the
fiscal notes for initial capitalization and the operating
budgets for green banks in New York, Connecticut, and Montgomery
County, Maryland. He stressed that each green bank has a
leverage ratio of between 6:1 and 8:1, which means that for
every dollar of green bank capital, there are between 6 and 8
dollars of private sector capital invested. In Connecticut, he
pointed out, $36 million in state capital combined with private
sector capital for a total of $312 million invested in enhanced
energy efficiency programs.
3:38:21 PM
CO-CHAIR FIELDS commented that Connecticut's green bank has
ongoing cash infusions and asked Mr. Neff whether New York and
Montgomery County, Maryland, have similar ongoing infusions.
MR. NEFF responded that they do; there are infusions through
property taxes and the states have ratepayer structures.
MR. WEITZNER interjected that Montgomery County's green bank was
initially set up through a direct capital appropriation.
CO-CHAIR FIELDS asked whether there exist other options for
continual infusions to a green bank.
MR. NEFF replied that federal appropriations and philanthropic
donations have historically increased in proportion to the
amount in the green bank.
3:40:05 PM
MR. NEFF resumed the PowerPoint presentation on slide 11,
"ECONOMIC BENEFITS OF THE AK EIF," which read as follows
[original punctuation provided]:
Lower Cost of Energy
Lower Cost of Living
Create Jobs
Create Businesses
Increase Discretionary Income
MR. NEFF presented slide 12, "ECONOMIC BENEFITS OF THE AK EIF,"
which read as follows [original punctuation provided]:
$8,060
Average annual cost of energy per Alaskan
Create AK EIF
Modest public funds + private investment in clean
energy
10%
$806 average annual energy savings per Alaskan
20%
$1,612 average annual energy savings per Alaskan
30%
$2,418 average annual energy savings per Alaskan
Injects Hundreds of Millions of Dollars into Alaska's
Economy
Frees up approx. $589 million to $1.7 billion in
discretionary spending every year
3:42:41 PM
MR. WEITZNER pointed out that the figures are net revenues
compounded annually.
3:43:08 PM
MR. NEFF continued the PowerPoint with slide 13, "NATIONAL
'GREEN BANK' AND ACCELERATOR," which read as follows [original
punctuation provided]:
H.R. 806 Clean Energy and Sustainability Accelerator
Act
S.283 National Climate Bank Act
• Congress has introduced the Accelerator Act that
would form a national "green bank" capitalized with
$100 billion
• Bipartisan co-sponsors, including Alaska Rep.
Don Young.
• If/when passed, these acts would provide investment
and operational capital.
• Creation of the AK EIF would allow Alaska to
receive additional investment and operational
capital for a "green bank".
• The Clean Energy and Sustainability Accelerator is
part of the Biden Administration's American Jobs Plan
("The Infrastructure Bill").
3:44:21 PM
CO-CHAIR FIELDS shared his support for CSHB 170(ENE), and he
asked how AIDEA, AEA, and the state would deal with potential
federal funds from the infrastructure bill if corresponding
green bank legislation was not passed by the state legislature.
MR. WEITZNER responded that, while AIDEA and AEA have powers to
receive federal funding, it's unclear how it would be addressed.
He shared that it's the purpose of the program to have the
authority to establish and receive funding for the underlying
programs, characterizing such authority as the "critical issue."
3:45:23 PM
MR. NEFF continued the PowerPoint presentation with slide 14,
"ALASKA ENERGY INDEPENDENCE FUND (AK EIF)," which read as
follows [original punctuation provided]:
Overview
"An Act creating the Alaska energy independence fund
in the Alaska Industrial Development and Export
Authority; and providing for an effective date."
• Make capital more accessible to borrowers for
sustainable energy development projects.
• Partner with private capital to fund businesses and
projects, including energy-efficiency, renewable
power, micro-grid, transportation, sustainable
agriculture, and more.
• Incentivize co-investment in the non-fossil fuel
energy sector between the public (the State of Alaska
through AIDEA in partnership with Alaska Energy
Authority), Alaska's financial sector, private
investors, and philanthropic donors.
• AK EIF bill aligns with the proposed federal bills,
including the new definition of "sustainable energy
development".
MR. NEFF presented slide 15, "ALASKA ENERGY INDEPENDENCE FUND
(AK EIF)," which read as follows [original punctuation
provided]:
Financing + Investments
• The Fund would leverage its capital alongside
Alaska's financial sector to enhance total investment
in Alaskan clean energy programs and projects.
• Eligible to make loans, provide credit enhancement
structures, purchase loans, provide development
funding and other forms of financing for sustainable
energy development in Alaska's commercial,
residential, and industrial market sectors.
• The Fund would consist of appropriations made by the
legislature, loans or other assets transferred to the
Fund by AIDEA, unrestricted loan payments, interest,
or other income earned on loans, investments or assets
of the fund, and available federal funding.
3:48:59 PM
MR. NEFF presented slide 16, "PROGRAM WORKFLOW," which displayed
a graphic showing funds moving from AK EIF to a contractor, who
then distributes funds as cash payments to homeowners, business
owners, and municipalities to be used for clean energy
installation; AK EIG simultaneously establishes partnerships
with lenders to build demand. Tools such as loan loss reserves,
aggregation, securitization, credit enhancement, first-in-kind
investments, and direct loans mitigate the risk for lenders.
MR. NEFF presented slide 17, "ALASKA ENERGY INDEPENDENCE FUND
(AK EIF)," which read as follows [original punctuation
provided]:
Functions of the Fund
The AK EIF prioritizes affordable, local, reliable,
sustainable, and independent energy.
MR. NEFF pointed out the barriers to investment which include
perceived project risk, inefficiencies of scale, first-in-kind
transactions, and marginal economics, along with their
corresponding solutions: credit enhancement, aggregation and
warehousing, technical assistance, and co-investment.
3:52:27 PM
CHRIS ROSE, Executive Director, Renewable Energy Alaska Project
(REAP), shared REAP's support of HB 170 and gave a PowerPoint
presentation titled "Financing Clean Energy in Alaska." He
presented slide 2, which read as follows [original punctuation
provided]:
Founded in 2004, REAP is a statewide nonprofit
coalition of over 60 electric utilities, Alaska Native
Corporations, clean energy developers, businesses and
other NGOs
REAP's mission is to increase renewable energy
development and promote energy efficiency in Alaska
MR. ROSE presented slide 3, "REAP Education & Programs," which
read as follows [original punctuation provided]:
STEM educators promoting AK EnergySmart and Wind for
Schools reach hundreds of classrooms annually
Alaska Network for Energy Education and Employment
(ANEEE)
Sustainable Southeast Partnership (SSP) Alaska Wind
Working Group
Energy Transition Initiative Partnership Program
Conferences, Workshops, Renewable Energy Fairs, Public
Presentations
MR. ROSE presented slide 4, "REAP Advocacy," which read as
follows [original punctuation provided]:
2008: Renewable Energy Fund, $100 million ($270
million total)
2008: $360 million to AHFC for home weatherization
($640 million total)
2010: Emerging Energy Technology Fund House Bill 306
(State Energy Policy)
2016: SB 196 (PCE Endowment)
2017: Property Assessed Clean Energy (C-PACE)
2014-2021: Railbelt Electric Grid Reform
2017-2021: Green Bank
MR. ROSE presented slide 5, "Alaska's Annual Billion Dollar
Bonfire," which read as follows [original punctuation provided]:
Each year, Alaskans collectively spend approximately
$5 billion on electric, heating, and transportation
energy. At least 20% of that energy is wasted land
goes up in smoke."
MR. ROSE presented slide 6, "Energy Efficiency: The "First
Fuel," which read as follows [original punctuation provided]:
Alaskans will spend an estimated $5 BILLION on diesel
fuel, natural gas and gasoline for our electricity,
heat and transportation in the next year and
approximately 20% will be wasted
3:56:36 PM
MR. ROSE presented slide 7, "Weatherization and Rebate
Programs," which read as follows [original punctuation
provided]:
• $640 million appropriated by the state since 2008
• Over 50,000 homes - average savings: 30%
• Average annual fuel savings is over 25 million
gallons of diesel equivalent
MR. ROSE presented slide 8, "Renewable Energy Grant Fund," which
read as follows [original punctuation provided]:
Established in 2008
$270 million in state appropriations have leveraged
another $200 million in federal and private dollars
In 2020, 80+ projects displaced the equivalent of 30
million gallons of diesel fuel
MR. ROSE presented slide 9, "Levelized Cost of Energy Comparison
- Unsubsidized Analysis," subtitled "Certain Alternative Energy
generation technologies are cost-competitive with conventional
generation technologies under certain circumstances." Displayed
on the slide was a graph demonstrating that solar and wind are
the cheapest forms of electricity generation. He said the point
of the graph is to show that renewable energy projects are
becoming progressively less expensive. He proceeded to slide
10, "Why Private Financing for Clean Energy is Lacking," which
read as follows [original punctuation provided]:
? Short track record for clean energy financing
? Clean energy projects are small and distributed
? Lack of capital market liquidity and maturity
? Human and organizational behavior
4:00:16 PM
MR. ROSE presented slide 11, "Elements of Green Banks," which
read as follows [original punctuation provided]:
A focus on commercial technologies
A dedicated source of capital
A focus on leveraging private investment
A relationship with government
MR. ROSE presented slide 12, "Functions of Green Banks," which
read as follows [original punctuation provided]:
Design Loan Products & Programs to De-Risk
Educate Private Banks on the Opportunity
Market Loan Products and Programs
Leverage Private Investment Capital
MR. ROSE presented slide 13, "C-PACE (Commercial Property
Assessed Clean Energy)," which read as follows [original
punctuation provided]:
• $0 down financing
• Decreases costs, improves value
• Long repayment
• Low, fixed interest rate
• Projects are cash flow positive
• Secured by property, not owner
• Obligation transfers at sale
MR. ROSE presented slide 14, "Passage of HB 170 Will:" which
read as follows [original punctuation provided]:
• Lower the energy burden of Alaskans
• Develop investment opportunities for Alaskan lending
institutions
• Create jobs and promote business development
• Keep precious energy dollars circulating in the
economy
• Position the state to receive federal operating and
investment capital
4:02:47 PM
BERT HUNTER, Chief Investment Officer, Connecticut Green Bank,
presented a PowerPoint, titled "Overview of the Connecticut
Green Bank," in support of HB 170. He began his presentation
with slide 2, "About Us," which read as follows [original
punctuation provided]:
? Quasi-public organization Created in 2011 and
successor to the Connecticut Clean Energy Fund.
? Focus Finance clean energy (i.e. renewable energy,
energy efficiency, energy storage, alternative fuel
vehicles and infrastructure, etc.).
? Balance Sheet Approx $77m net position & $213m
assets FY20
? Revenue & Funding from a variety of sources,
including:
State Support $0.001/kWh surcharge on
electric ratepayer bills (about $7-$10 per
household per year ˜ $24-26M per year) and
Regional Greenhouse Gas Initiative about $3-5M
per year (for renewable energy)
Federal Support competitive solicitations
(e.g., SunShot, USDA, etc.) and non-competitive
resources (e.g., ARRA-SEP)
Portfolio Cash Flow Approx $8M / year
Bonds & Borrowing issue "green liberty
bonds," bank loan facilities, tax equity
investors, and foundations (e.g., PRI's)
4:06:03 PM
CO-CHAIR FIELDS asked how much money came from the initial
capitalization versus the sources of revenue which have since
become ongoing.
MR. HUNTER answered that approximately $70 million was inherited
from the clean energy fund, with the balance coming from the
system benefit charges. He stated that total assets are
currently $215 to $220 million, with $180 million in
investments.
4:07:02 PM
MR. HUNTER presented slide 3, "Board of Directors," which showed
members appointed by the governor and legislative leaders, and
includes members from the Department of Energy and Environment
Protection, the Department of Economic and Community
Development, and the Office of the Treasurer. He said board
meetings are open to the public and he invited the committee
members to attend the next meeting.
MR. HUNTER presented slide 4, "Our focus," which read as follows
[original punctuation provided]:
• create affordable long-term, sustainable financing
• energy efficiency and clean energy (solar, hydro,
wind)
• support residential, commercial, industrial +
government (Muni / State) sectors
• leverage private sector capital
MR. HUNTER presented slide 5, "How Green Banks Leverage Public
Capital with More Private Capital (methodologies?)," which
displayed graphics explaining how green banks work. He said the
market is incentivized through co-investment, credit support or
enhancement to mitigate some of the risk assumed by private
capital, and warehousing to aggregate smaller projects. He then
presented slide 6, "How Green Banks Leverage Public Capital with
More Private Capital (our current programs/products?)," which
displayed graphics showing various programs. The company
PosiGen, he said, is an energy efficiency company that focuses
on single family homes; through a "novel" credit assessment
technique the company is able to reach low to moderate income
families and reduce their energy burden by $800-$1000 per year.
The "smart-e loan" program, he said, works with community banks
and credit unions to offer a loss reserve intended to mitigate
losses due to energy efficiency loans. In warehousing, he said,
direct loans can be made to commercial properties in the "c-
pace" program, in which transactions are aggregated and
securitized; the program then issues bonds against the pool of
transactions.
4:11:32 PM
MR. HUNTER presented slide 7, "Statewide EE Programs working
with our energy utilities?," which displayed pictures of workers
at electric utilities to indicate that the program works closely
with electric utilities. He then presented slide 8, "Green Bank
Clean Energy Aggregate Investment by Source - Public and
Private," which displayed a bar graph showing how investment
increased rapidly in the early years and has increased every
year since 2012.
4:12:35 PM
REPRESENTATIVE SCHRAGE said that Alaska's green bank proposal
would require substantial funds from the state to show "proof of
concept" and he noted that the Connecticut Green Bank was able
to avoid using state funds by instantly leveraging private
capital. He asked why Alaska would require additional state
funding.
MR. HUNTER explained that Connecticut's program purposefully
avoided fully financing any transaction in order to demonstrate
bank and credit union participation. He said that it was very
important to have a starting capital position in order to get
attention from the banks.
REPRESENTATIVE SCHRAGE commented that it sounds as if state
funding was initially required, and that financial institution
and private investors were eager to get involved.
MR. HUNTER replied, "That's correct." He then discussed a case
in which an energy services agreement on college campuses was
handled completely by the green bank without other capital.
4:16:24 PM
MR. HUNTER resumed his PowerPoint presentation with slide 9,
"Connecticut Green Bank Impact Investment Social and
Environmental," and explained that the program has generated
nearly $100 million in state tax revenues from individual,
corporate, and sales taxes, and has helped create over 23,000
job-years while reducing the energy burden on 55,000 families
and businesses through the deployment of clean energy. He said
that the program has helped avoid the emission of 9 million
metric tons of greenhouse gasses. He then presented slide 10,
"Connecticut Green Bank Balance Sheet Evolution," which
displayed pie charts comparing the different types of assets in
2012 and 2020. Slide 11, "Connecticut Green Bank Balance Sheet
Evolution," showed pie charts demonstrating the project types in
which the green bank has invested.
MR. HUNTER presented slide 12, "Connecticut Green Bank
Counterparties Organization overview," which displayed an
organizational chart showing the use of subsidiaries and single-
member limited liability companies (LLCs), in which the single
member is the green bank.
4:19:43 PM
REPRESENTATIVE SCHRAGE asked whether the green bank has utilized
limited liability partnerships. He also asked whether Mr.
Hunter had an opinion on whether the Alaska energy independence
fund would be negatively affected due to the inability to create
limited liability partnerships.
MR. HUNTER pointed out two LLC subsidiaries and said that LLCs
with multiple members used to be called partnerships, but now
they're simply LLCs with two members, one of which is a managing
member. He pointed out that the structure is used to "wall off"
protections for investors.
4:21:59 PM
MR. HUNTER presented slide 13, "Public-Private Partnerships
>$800 Million1 in Private Capital Raised (5 Years)," which
displayed many different companies from small credit unions to
billion-dollar private equity firms. He said this slide is to
show that a small state such as Connecticut can attract capital
and that the investor market is interested in the activities
undertaken by the green bank. He then presented slide 14,
"Green Liberty Bonds http://www.greenlibertybonds.com/," and he
encouraged community members to visit the investor relations
website. He presented slide 15, "Connecticut Green Bank Bond
Awards," which read as follows [original punctuation provided]:
• The Green Bank won two Environmental Finance Bond
awards in 2020. The awards were judged by an
independent panel comprising 30 of the world's largest
green, social and sustainability bond investors
• The Green Bank also won the Bond Buyer Innovative
Deal of the Year Award. The Deal of the Year awards
recognize innovation in municipal finance and
represent the full diversity of the communities and
public purposes that are served by the municipal
finance market.
MR. HUNTER said that he feels the Connecticut Green Bank has
paved the way for other green banks to successfully enter the
market.
4:23:34 PM
REPRESENTATIVE NELSON asked what restrictions the state placed
on the Connecticut Green Bank at its inception.
MR. HUNTER replied, "Very few, actually, but that's because the
state looked to our board to make sure we were staying in line
with the legislation." He said the Connecticut Green Bank makes
annual reports to the legislature and is audited by a public
accounting firm.
REPRESENTATIVE NELSON noted the growth of the green bank and
asked whether Mr. Hunter believes the fund would have had such
growth if there had been many state-imposed restrictions.
MR. HUNTER responded that one of the reasons for the fund's
success is that it has been "nimble" and responsive to the
community. He noted that out of a $180 million portfolio and
$200 million in transactions, losses have been approximately
$200,000.
4:26:19 PM
JEFFERY SCHUB, Executive Director, Coalition for Green Capital,
presented a PowerPoint in support of HB 170 titled, "Alaska
Energy Independence Fund Proven Model & National Perspective."
He began his presentation on slide 2, "CGC is nonprofit expert
on public clean energy finance institutions that leverage
private capital," which read as follows [original punctuation
provided]:
• Mission to mobilize private capital in order to
accelerate clean energy deployment, lower energy costs
and expand access
• Partner with governments, market actors, capital
providers, and NGOs to design and launch public clean
energy finance entities
• Delivered technical assistance in over a dozen
states, multiple countries, leading to over $5B of new
investment
• Team of nearly 20 experts working around the country
MR. SCHUB presented slide 3, "EIF model proven in other states;
$5B+ investment; lower energy costs, new jobs, and focus on
underserved," which displayed graphics showing the level of
collective investment from green bank institutions across the
country, totaling approximately $5 billion through 2019, with a
3:1 private to public leverage ratio. He said that taking 2020
into account would bring the fund to $7 billion, as green banks
had record-breaking years of investment in 2020 despite the
COVID-19 crisis. He noted that many of the green banks across
the country focus on the underserved or rural communities that
are often excluded from transitions to clean energy, suffer from
unreliable power sources, or experience burdens from higher
electricity bills. He then presented slide 4, "Model quickly
spreading across the country irrespective of politics - state-
specific entities for state-specific needs," which displayed a
map of the United States showing states with existing green
banks, states with green banks in development, and states with
green banks to be formed.
4:29:31 PM
MR. SCHUB proceeded to slide 5, "Last year CGC analyzed
opportunity in Anchorage; potential starting point for EIF, but
needs are broader," which read as follows [original punctuation
provided]:
• Found significant investment need & opportunity
• Focus on small-scale solar generation, residential
heating and electric efficiency, and commercial
building upgrades via C-PACE financing.
• AK EIF can address these needs, complement existing
activity, and fill gaps not currently served by
lenders due to small project size, a lack of dedicated
clean energy lending capital, or lender risk
assumptions
MR SCHUB presented slide 6, "Bipartisan leg for national
"Accelerator" to fund orgs like EIF co-sponsored by Rep Young,
endorsed by President," and he said that the federal government
is close to enacting complementary federal policy specifically
to provide new capital to the Alaska Energy Independence Fund
and projects like it. The Clean Energy and Sustainability
Accelerator, a $100 billion national green bank with bipartisan
support, would fund state entities. He said the legislation has
passed the U.S. House of Representatives twice in the past year,
and President Joe Biden's American Jobs Plan expressly noted the
accelerator. He then presented slide 7, "Funds would flow to
and through EIF & join private capital to fund businesses, build
projects, serve communities," showing that areas such as
renewable power, buildings, transportation, and industry would
be eligible for investment.
MR. SCHUB presented slide 8, "Investment would target
disadvantaged, underserved communities to reduce energy costs,
support economies," which read as follows [original punctuation
provided]:
Create Jobs
New Businesses
Lower Household Energy Burden
Improved Public Health
Example Investments
• Affordable financing for households to improve
energy efficiency, comfort
• Work with native communities to increase local
renewable power generation, paired with battery
storage
• Build out microgrids to make communities more
resilient
MR. SCHUB pointed out that there are no green banks in the
country that have a statutory requirement in their forming
documents for investment in underserved communities; however, he
said, nearly all of them, through management and strategic
decisions, have chosen to prioritize underserved sectors.
Funding from Clean Energy and Sustainability Accelerator would
be a way of ensuring that the Alaska Energy Independence Fund
would invest in underserved communities, he said, with the
condition applied to the funding instead of to the institution.
4:34:30 PM
REPRESENTATIVE NELSON asked Mr. Weitzner, from the Alaska
Industrial Development and Export Authority (AIDEA), for his
opinion on the amendments to HB 170 that were passed during
previous meetings of the House Special Committee on Energy [in
CSHB 170(ENE)].
MR. WEITZNER discussed amendments adopted to HB 170 during the
April 20, 2021, meeting of the House Special Committee on
Energy. An amendment regarding the establishment of the
"Alaska energy independence program advisory board" and the
position AIDEA would be in with the passage of the proposed
legislation, he said, would "burden" the proposed legislation.
He suggested that the amendment doesn't address the
constitutional issues between the legislative and executive
branches. He said that Amendment 1 would present an issue
because the fund's purpose would be to act as a financial entity
rather than to implement energy policy, which would be more
appropriate within consideration of the regulations to be
adopted. He then addressed Amendment 11, which would require 35
percent of loans or other forms of financing to be made in
communities that receive, or have residents who receive, power
cost equalization, pointing out that effective green banks have
been structured to have flexibility in programs and funding
direction. He said that the advisory board would include
members of such communities and that the board would have the
flexibility to implement programs with the specific criteria
provided by the amendment.
REPRESENTATIVE NELSON opined that if HB 170 were to pass it
wouldn't have the same "flourish" as the Connecticut Green Bank
due to the legislative restrictions.
MR. NEFF responded, "That is correct." He suggested that if
Amendment 11 mandated that 65 percent of funds be reserved for
power cost equalization communities, the same comments would
apply. He said that broad-based flexibility is needed to adapt
to Alaska's specific needs.
[CSHB 170(ENE) was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| Vincent Perez Resume.pdf |
HL&C 4/26/2021 3:15:00 PM |
|
| Tanya Kirk Board Application.pdf |
HL&C 4/26/2021 3:15:00 PM |
|
| Tanya Kirk Resume.pdf |
HL&C 4/26/2021 3:15:00 PM |
|
| Casey Dschaak Board Application.pdf |
HL&C 4/26/2021 3:15:00 PM |
|
| SB 69 am Version A.A.PDF |
HENE 4/6/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| SB 69 am Summary of Changes.pdf |
HENE 4/6/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| SB 69 am Sponsor Statement.pdf |
HENE 4/6/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| SB 69 List of renewable facilities 2010-2021.pdf |
HL&C 4/26/2021 3:15:00 PM SL&C 3/3/2021 1:30:00 PM |
SB 69 |
| SB 69 Written Testimony Alaska Power Association.pdf |
HL&C 4/26/2021 3:15:00 PM SL&C 3/3/2021 1:30:00 PM |
SB 69 |
| SB 69 Support Received as of 4.25.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| SB 69 v. A Legislative Research IPP's 2.4.2021.pdf |
HL&C 4/26/2021 3:15:00 PM SL&C 2/15/2021 1:30:00 PM |
SB 69 |
| SB 69 Fiscal Note - DCCED, 3.5.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| SB 69 Legal Opinion 3.4.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| SB 69 version A.pdf |
HENE 4/6/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
SB 69 |
| HB 170 Presentation - AIDEA, Alan Weitzner, 4.25.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| REAP - HB 170 & SB 123 Letter of Support - 4.11.21.pdf |
HENE 4/13/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 SB 123 |
| HB 170 Sponsor Statement-Transmittal Letter (4.8.21).pdf |
HCRA 4/15/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Supporting - A Green Bank for Alaska - REAP - 2020.pdf |
HCRA 4/15/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Supporting - Green Bank Opportunity Report - MOA - May 2020.pdf |
HCRA 4/15/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Supporting - Green Banks in the U.S. - 2020.pdf |
HCRA 4/15/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Public Comment as of 4.25.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Sectional Analysis v. B.pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Summary of Changes (Version A to Version B).pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Presentation - AIDEA, Alan Weitzner, 4.25.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Presentation - REAP, Chris Rose 4.25.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Presentation - Coalition for Green Capital, Jeffrey Schub 4.25.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Presentation - CT Greenbank, Bert Hunter 4.25.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| CS for HB 170 (ENE), v. B.PDF |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB0170A (1).PDF |
HCRA 4/15/2021 10:15:00 AM HENE 4/13/2021 10:15:00 AM HENE 4/15/2021 10:15:00 AM HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Fiscal Note - CAP-AEIF, 4.08.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Fiscal Note - DCCED-AEA, 4.23.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |
| HB 170 Fiscal Note - DCCED-AIDEA, 4.23.21.pdf |
HL&C 4/26/2021 3:15:00 PM |
HB 170 |