Legislature(2025 - 2026)GRUENBERG 120
04/29/2025 01:00 PM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| HB196 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 196 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 196-RENEWABLE ENERGY GRANT FUND
1:04:47 PM
CO-CHAIR MEARS announced that the only order of business would
be HOUSE BILL NO. 196, "An Act relating to carbon offset
revenue; and relating to the renewable energy grant fund."
1:05:09 PM
REPRESSENTATIVE ROBYN BURKE, Alaska State Legislature, as prime
sponsor, presented HB 196 to the committee. She gave a broad
overview of the intent of the proposed legislation and
introduced her staff member to read through the sectional
analysis to HB 196.
1:06:55 PM
CALVIN ZUELOW, Staff, Representative Robyn Burke, Alaska State
Legislature, on behalf of Representative Burke, prime sponsor,
presented HB 196 to the committee. He read the Sectional
Analysis to HB 196 [included in the committee packet] which read
as follows [original punctuation provided]:
Section 1: Amends AS 38.95.430, created by Senate
Bill 48 passed by the 33rd Legislature, to make carbon
offset revenue deposited in the Renewable Energy Grant
Fund subject to appropriation. Currently, 20 percent
of carbon offset revenue is deposited into the
Renewable Energy Grant Fund automatically. The 20
percent reservation will still exist in statute under
this bill.
Section 2: Adds language clarifying that the purpose
of the Renewable Energy Grant Fund is to provide
affordable energy to all communities in Alaska.
Section 3: Amends AS 43.45.045(b) to flip the way the
Renewable Energy Grant Fund works. Instead of a fund
requiring appropriations out of the fund, as it exists
in current law, the new language would require
appropriations into the fund.
Section 4: Amends AS 43.45.045(d) to reflect changes
made in Section 3 of the bill, requiring the Alaska
Energy Authority (AEA), with input still required from
the Renewable Energy Fund Advisory Committee (REFAC)
and the Department of Natural Resources, to create a
methodology for reviewing and making determinations on
grant applications for renewable energy projects. AEA
will be required to annually report to the Legislature
with explanations of their decisions to approve or
deny grants. Section 4 additionally requires the AEA
to provide communities with populations smaller than
2,000 technical assistance with grant preparation, and
to annually solicit and review grant applications to
the REF.
1:09:02 PM
CO-CHAIR HOLLAND asked for further information regarding the 20
percent figure noted in HB 196.
1:10:13 PM
TREVOR FULTON, Manager, Carbon Offset Program, Department of
Natural Resources, answered committee questions on HB 196. He
explained a brief history of the carbon offset program in the
state of Alaska and detailed the required pathways for a program
like it to function. He said that the initial project that was
completed under the previous piece of legislation concerning
renewable energy grant funds was located in the Tanana Valley.
1:12:18 PM
CO-CHAIR MEARS asked if the proposed legislation was concerned
with the Carbon Offset Program.
MR. FULTON answered that HB 196 was not concerned with the
Carbon Offset Program.
1:13:47 PM
CO-CHAIR HOLLAND asked about the cost magnitude of the proposed
legislation.
MR. FULTON answered that the estimated cost from a study
completed a few years prior was approximately $80 million in
revenue from three pilot projects.
1:15:55 PM
REPRESENTATIVE RAUSCHER asked about the mathematics surrounding
the proposed legislation.
1:17:15 PM
CO-CHAIR MEARS said that the issue before the committee was the
renewable energy round 17 grant fund list and said that the $21
million dollar figure he referred to was for a project on that
list.
1:19:29 PM
REPRESENTATIVE BURKE added that the Renewable Fund Advisory
Committee (RFAC) did not have a current chair and said that it
was the goal of the proposed legislation to assign a member of
that committee as chair with the power to call a meeting.
1:20:59 PM
REPRESENTATIVE COSTELLO asked if HB 196 could remove the power
of the Alaska State Legislature (ASL) to appropriate funds.
REPRESENTATIVE BURKE opined that the ASL would still be able to
appropriate funds on the "front end."
1:23:10 PM
REPRESENTATIVE COSTELLO asked if members of the ASL that sat on
the RFAC could have more control over who provided the funding
to various projects.
1:24:01 PM
REPRESENTATIVE BURKE said that it was not the intent of the
proposed legislation to allow for more control for members of
the RFAC to make appropriations.
1:24:43 PM
CO-CHAIR HOLLAND asked for clarification regarding the language
on Page 2, line 28 of HB 196
1:25:47 PM
REPRESENTATIVE BURKE explained that the intent of HB 196 was for
its benefits to be given to all communities in Alaska. She said
that she wanted to ensure that smaller communities with less
administrative resources could follow through with the creation
of a Renewable Fund Portfolio (RFP).
1:28:34 PM
CO-CHAIR MEARS noted to the committee that Curtis Thayer of the
Alaska Energy Authority (AEA) was available to answer questions.
1:29:04 PM
REPRESENTATIVE RAUSCHER reiterated his previous question
regarding specific renewable energy appropriations made by the
ASL.
1:29:34 PM
CURTIS THAYER, Executive Director, Alaska Energy Authority,
answered committee questions on HB 196. He said that the ASL
appropriated $10 million in the previous fiscal year to allocate
towards renewable energy projects and clarified that there was
no "missing money" from the ASL in its effort to fund renewable
energy projects. He noted the importance of the labor-intensive
nature of grant distributions.
1:31:19 PM
REPRESENTATIVE RAUSCHER shared his uncertainty that the ASL
would "lose" its ability to appropriate money to renewable
energy projects. He said that he was "trying to understand" how
the proposed policies of HB 196 would work.
1:32:07 PM
MR. ZUELOW clarified that HB 196 would allow the fund to exist
of appropriations to itself from the ASL.
1:34:18 PM
MR. THAYER clarified the grant fund distribution process that
the renewable energy fund went through and spoke to the complex
nature of the work that the AEA undertook every year in the
execution of those funds.
1:35:32 PM
REPRESENTATIVE COSTELLO asked what the criteria would be for an
applicant to the renewable energy grant fund.
MR. THAYER answered that there was a "very rigorous process"
that an applicant was subject to and spoke to the role that the
Department of Natural Resources (DNR) played in the process as a
third party accounting firm.
1:38:08 PM
MR. ZUELOW shared his belief that the current renewable energy
fund would not lapse.
1:38:31 PM
REPRESENTATIVE EDGMON clarified that the renewable energy fund
grant program was included in the capitol budget to allow for a
five-year period to re-appropriate if necessary.
1:39:19 PM
CO-CHAIR HOLLAND asked about the scope and nature of the
"technical assistance" outlined by the proposed legislation and
asked Mr. Thayer what his views on the emerging technology fund
were.
MR. THAYER answered that the AEA would provide guidance, not
technical assistance with the application of the proposed
policies of HB 196. He emphasized that the technology program
he had mentioned was a separate program.
1:43:03 PM
The committee took an at-ease from 1:43 p.m. to 1:44 p.m
1:44:14 PM
REPRESENTATIVE RAUSCHER asked for further context regarding the
existing balance of the renewable energy fund.
1:45:40 PM
MR. THAYER answered that a certain portion of the existing
renewable energy fund was previously obligated.
1:46:59 PM
CO-CHAIR HOLLAND asked about other sources of funding for the
renewable energy fund.
MR. THAYER said that he would follow up with more information
later and assured the committee that most of the renewable
energy funds were obligated.
1:49:58 PM
REPRESENTATIVE EDGMON commented that he was "intrigued" by the
portion of the proposed legislation that would provide
assistance to small communities in the state. He opined that
the proposed policies of HB 196 could help different facets of
small community governments cooperate and said that HB 196 was
like "the little engine that could."
1:53:59 PM
CO-CHAIR MEARS announced that HB 196 would be held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 4 HB 196 ver I fiscal note.pdf |
HENE 4/29/2025 1:00:00 PM |
HB 196 |
| 2 HB 196 ver I sponsor statement.pdf |
HENE 4/29/2025 1:00:00 PM |
HB 196 |
| 3 HB 196 sectional analysis ver I.pdf |
HENE 4/29/2025 1:00:00 PM |
HB 196 |
| 5 HB 196 presentation H ENE 4.28.pdf |
HENE 4/29/2025 1:00:00 PM |
HB 196 |
| HB0196A.pdf |
HENE 4/29/2025 1:00:00 PM |
HB 196 |